THE STATE OF THE TSA-WA-SUM - cabinet.gov.bt report 2015.pdf · the state of the tsa-wa-sum tshering tobgay prime minister ... • national language ... - 1 - the state of the tsa-wa-sum

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THE STATE OF THE TSA-WA-SUM

TSHERING TOBGAYPRIME MINISTER

ROYAL GOVERNMENT OF BHUTAN

FIFTH SESSION OF THE SECOND PARLIAMENT OF BHUTAN16 JUNE 2015

THIMPHU, BHUTAN

TABLE OF CONTENTS

INTRODUCTORY STATEMENT ..............................................................................1

HIS MAJESTY THE KING ..........................................................................................4

COUNTRY .................................................................................................................10• Security.................................................................................................................................10• ForeignRelations...............................................................................................................10• GrossNationalHappiness................................................................................................17

THE FIRST PILLAR OF GNH: SUSTAINABLE AND EQUITABLE SOCIO-ECONOMIC DEVELOPMENT ....................................................................18

• SocialDevelopment...............................................................................................18• Health.......................................................................................................................18• Education.................................................................................................................20• Poverty.....................................................................................................................24• EconomicGrowth.................................................................................................24• Jewel1–Hydropower...........................................................................................27• Jewel2–Agriculture.............................................................................................29• Jewel3–Tourism................................................................................................... 31• Jewel4–SmallandMediumEnterprises.......................................................... 33• Jewel5–Mining..................................................................................................... 33• OtherSectors.......................................................................................................... 34• Infrastructure......................................................................................................... 34• BusinessEnvironment.......................................................................................... 36• Promotinglocalproducts..................................................................................... 37• Privatesectordevelopment.................................................................................. 38

SECOND PILLAR OF GNH: PRESERVATION AND PROMOTION OF CULTURE ........................................................................................................39

• SpiritualHeritage................................................................................................... 39• ArchitecturalHeritage...........................................................................................40• NationalLanguage.................................................................................................41• MovieIndustry.......................................................................................................42

• PerformingArtsandTextiles...............................................................................42

THE THIRD PILLAR OF GNH: CONSERVATION OF THE ENVIRONMENT ............................................................................................44

• DisasterManagement........................................................................................... 46

THE FOURTH PILLAR OF GNH: GOOD GOVERNANCE ........................47• Democracy..............................................................................................................47• LocalGovernment.................................................................................................47• TheExecutive..........................................................................................................49• Thelegislature......................................................................................................... 50• Thejudiciary........................................................................................................... 51• ConstitutionalBodies........................................................................................... 52• CivilSocietyOrganizations................................................................................ 53• Media........................................................................................................................ 54

OUR PEOPLE ............................................................................................................55• Youth..................................................................................................................................... 55• Women.................................................................................................................................. 57• Sports.................................................................................................................................... 59

CONCLUSION ..........................................................................................................61

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THE STATE OF THE TSA-WA-SUMFIFTH SESSION OF THE SECOND PARLIAMENT OF BHUTAN 16 JUNE 2015

YourMajestyTheKingSpeakeroftheNationalAssemblyChairmanoftheNationalCouncilLeaderoftheOppositionPartyMembersofParliamentFellowCitizens

Itis,indeed,agreathonourandprivilegetopresenttheAnnualReportontheStateoftheTsa-Wa-SumtothisaugustAssemblyasprescribedbyArticle10Section10oftheConstitu-tionofourgreatcountry.

IthanktheSpeaker,theChairmanoftheNationalCouncil,theLeaderofOppositionPar-tyandtheMembersofParliamentfortheopportunity.Ithanktheguestsandthepeoplewatchingonnationaltelevision.

Iundertakethisresponsibility faithfullyandinearnesttoreporttoYourMajesty,Parlia-mentandthepeopleofBhutanonourprogressandachievementsasanationandpeople,andthechallengesweface.

AsIhaveunderscoredinthepast,thesignificanceandimportanceoftheTsa-Wa-Sumcan-notbeoverstated.Itdefinesusasanationandpeople,anddistinguishesusfromothers.Itisthesourceofourstrengthandunity.Ascitizensofthisgreatnation,weeachhavearespon-sibilitytoconsciouslyprotect,nurtureandstrengthentheTsa-Wa-Sum.

ThisParliament,gracedbythepresenceofourbelovedKingrepresentingthesacredInsti-tutionofMonarchy;andelectedrepresentativesofthepeopleofall20DzongkhagsistheembodimentoftheTsa-Wa-Sum - itpersonifiestheunshakableandinviolablebondthatbindsusasanationandpeople.

It is here thatwe come together todiscussmattersofnational importance; to celebrateachievements;andtofindsolutionstomanyofthechallengeswefaceinaspiritofsharedresponsibilityandcooperation.Indoingso,wehavealwaysbeenfortunateandprivilegedtobenefitfromtheableleadership,wisecounselandguidanceofHisMajestyTheKing,forwhichweremaindeeplygrateful.

Weareasmallcountrythatisnotonlylandlockedbutalsohighlymountainous.Wehaveaverysmallpopulationandlimitedresources.WearesandwichedbetweenIndiaandChina

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-twolargeandpowerfulcountries.

But our country is blessed– by the goodwill andbenedictions ofGuruRimpoche andZhabdrungNgawangNamgyal.By thebenevolence,magnanimityandenlightened lead-ershipofourMonarchs.Andby theprayersofHisHolinessTheJeKhenpo, theZhungDratshang,lams,truelkusandrimpochesofvariouslineages.

Weareafortunatepeopleandnation.ThatiswhyBhutanisregardedasBaeyul.

Wehavecomealongwaysincewefirstembarkedontheprocessofmodernizationintheearly60s.Undauntedbyourconstraints,limitationsandformidablechallenges,oursucces-siveMonarchssteeredournationandpeopletowardsthepathofpeace,progressandpros-perity.Theyprovidedoutstandingleadershiptopreserve,protectandenhanceourstatusasasovereignindependentnationandtoimprovethesocialandeconomicwellbeingofourpeople.Aboveall,theyalwaysputtheinterestofthecountryandpeopleabovetheirown.

DuringthegloriousreignofHisMajestyTheFourthDrukGyalpo,Bhutanwitnessedun-precedentedpeace,progressanddevelopment.For34years,HisMajestyTheFourthDrukGyalpoworkedtirelesslytoimprovethewellbeingandwelfareofourpeopleandtomakeournationstrongerandsecure.Indeed,HisMajestyTheFourthDrukGyalpobequeathedtousalegacythathaslaidafirmfoundationforastrong,prosperousandsecurefutureforourpeopleandnation.WeoweourbelovedFourthDrukGyalpoahugedebtofgratitudeforbeingourmostimportantbenefactorandguardian.

ItisamatterofgreatpridetostatethatBhutanhasachievedremarkableprogressanddevel-opmentinallspheresinanenvironmentofpeaceandstabilitywithinafewdecades.Ourachievementsarenoteworthyandhavewonaccoladesfromwell-wishersintheregionandbeyond.Allthiswouldnothavebeenpossiblewithouttheselflessleadershipandunwaver-ingcommitmentofourbelovedKings.

Today,wearemostfortunateandblessedtohaveahighlycommitted,ableanddynamicleaderinthepersonofHisMajestyTheKingtolead,guideandcounselus.TobuildonthegreatlegacyofHisMajestyTheFourthDrukGyalpo,itgivesmegreatjoytostatethatHisMajestyhas,withinashortspanof9years,furtherconsolidatedandstrengthenedthelegacyofHisMajestyTheFourthDrukGyalpo.

Withtheblessingsofourguardiandeitiesbutmoreimportantly,theenlightenedandvi-sionaryleadershipofHisMajestyTheKingandHisMajestyTheFourthDrukGyalpo,we

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havemuchtocelebrate.

· Weareasovereignindependentnationwithaproudhistory.Wewerenevercolonizedduetothewisdomandcourageofourforefathers.

· Wearerecognizedasprogressivemodernnationstateandaresponsiblememberoftheinternationalcommunity.

· Ourrichanduniqueculturalheritageisvibrantandthriving.

· Ourrichanddiversenaturalenvironment ispristineandadmiredbytheworldasamodelofconservation.

· Oureconomyisgrowingandouraspirationtobeself-reliantisnolongerfar-fetched.

· Oursystemofgovernanceanddemocracyisinstitutionalizedandflourishing.

· Most importantly,ourpeopleenjoypeace,stabilityandhappinessandcan lookfor-wardtoagoodfuture.

However,noneof this canbe sustained ifwedonotworkhard and sincerely. Ifwebe-comecomplacentandtakethingsforgranted.IfwearenotpreparedtomakesacrificeslikeourforefathersdidtostrengthenthesovereigntyofBhutan-tokeepthePalden Drukpai GyalkhabasBaeyul.Theopportunitieswehaveaswellaschallengeswefacedemandgreaterresolve,hardworkandinnovativeideasandsolutions.Iassureyouthatthegovernmentwillcontinuetoworkinearnestandsparenoeffortstosustainthepaceofsocialandeconomicdevelopment,toconsolidateourgainsandovercomechallenges.

Likethepreviousyears,IpresenttheAnnualReportontheStateoftheNationastheStateoftheTsa-Wa-Sum–theStateofourKing,CountryandPeople.TheStateoftheTsa-Wa-Sumwilltryandcoverasmuchaspossiblewithinthelimitedtime.Asinthepreviousyeartheoverallfocuswillbeontheoverarchingnationalobjectiveofachievingselfreliance.

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HIS MAJESTY THE KING

TheInstitutionofMonarchyisthebedrockofournation,ouridentityandsovereignty.Itisindispensableandsacrosanct.Itisoursourceofstrengthandunity.

Bhutanisasmallcountry,withasmallpopulationandwithlimitedresources.Butwehaveanassetthatbiggercountrieswithmuchmorepeopleandlargerresourcesdon’thaveandi.e.ourKing.

WehaveaKingwhoworkstirelessly,frommorningtonight,dayinanddayout,throughouttheseasons,toimprovethelivesofhissubjects;aKingwhohastravelledthelengthandbreadthofourcountry;aKingwhohastouchedthelivesofeachandeveryBhutanese;aKingtheworldadmiresandaffectionatelycallsthePeoples’King.

Wecontinuetoenjoyunprecedentedlevelsofpeace,progressandprosperity.Ournationandpeopleremainstrong,unitedandharmoniousunderHisMajesty’sleadership.Weareunitedasonefamilyinonehouse-asonepeopleinonecountryunderoneKinginspiredbyHisMajesty’svision;motivatedandencouragedbyHisMajesty’sleadershipandresolve;andconfidentofasecureandhappyfutureunderHisMajesty’senlightenedreign.AllthisbecauseHisMajestyistheSokshingofourcountry.

HisMajesty’sinnatequalitiesofhumility,compassionandcommitmenttoservethepeopleandcountryareextraordinaryandunmatched.HisMajesty’sAddresstothenationduringHisCoronationcapturesthisvividlyandIquote:

“Throughout my reign I will never rule you as a king. I will protect you as a parent, care for you as a brother, and serve you as a son. I shall give you everything and keep nothing.”

ExercisingHisRoyalPrerogativesunderArticle2oftheConstitution,HisMajestygrantscitizenship, landkiduandotherkidus tothepeopleofBhutan.Hetravelsthelengthandbreadthofthecountryregularlybyroadandonfoottoeachandeverydzongkhag,gewogandvillage,nomatterhowremoteorinaccessible.WhereverHisMajestyvisits,Hegivespeoplestrength,courageandconfidencetorealizetheiraspirations.Andmotivatesthemtoworkhard,succeedandcontributetonationbuilding.HisMajestyhasalreadyvisited ev-ery gewoginallthe20dzongkhags.Mostrecently,withinthelastmonth,HisMajestyvis-itedBji,Katsho,EssugewogsinHaa,SamtseintheWest,andMerak,Sakteng,RangjungandSengorintheEast.

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His Majesty spends considerable time with his subjects granting audiences to peoplethroughoutthecountryandhasapowerfulinsightintotheirhopesandaspirations.

i. Foremost, is thepeople’s hope to own land: So far,HisMajestyhas granted close to124,000acresoflandtomorethan130,000householdsenablingpeoplefromacrossthecountrytoimprovetheirlivelihoodsandtohavethemeanstobuildabetterfutureforthemselvesandtheirchildren.ThefirstroundofgrantinglandkiduisoverandHisMajestyhasalreadyCommandedtoworkonthesecondround.Whereextremepov-ertyexists,entirevillageshavebeenresettledforexampleKhenidranginPemaGatselandBebjiinHaainvolving315households.

ii. People hope for a better future for their children:However,somecannotaffordtosendtheirchildrentoschool.SoHisMajestyhasgrantedpersonalscholarshipstochildrenofpoorfamilies.Currentlythereare morethan3000GyalpoiTozeysfrom20Dzong-khags,witharound200pursuingtertiaryleveleducation.

iii. People hope for support in old age:HisMajestycurrentlyprovidesmonthlystipendsto850senioranddisadvantagedcitizenswhocannotfendforthemselves.Inaddition,HisMajestyhasinstitutedaspecialschemetolookaftertheelderlywhodonothaveanyfamilymembers.

iv. People hope for good health:HisMajesty’smobilekidumedicalunitconstantlytoursthecountrytoprovidemedicalservicestothosepeoplewhocannotvisitthehospital.Morethan8500peopleacrossthecountryweretreatedlastyearalone,withmorethan1100surgeriesand1560endoscopies.

v. People hope to solve citizenship:Sofar,HisMajestyhasgrantedcitizenshipkiduto8600peoplewhowereexperiencingproblemsbecausetheydonothavecitizenship.

vi. People hope for relief during natural calamities:HisMajestyTheKing isalwaysat theforefrontofproviding relief, refuge, solaceandcomfort to theaffected families.Heisthefirstresponderwheneverandwhereveradisastermayoccur.Onbehalfofthepeople,IthankHisMajestyforpersonallyvisitingSarpangduringthefireandprovid-ingrelief.Alsoforprovidingrelieftothevictimsofwindstorminoursoutherndzong-khagsandcommandingtheArmyandDeSuupstoassistthevictims.

vii. Inaddition,people hope for help in time of problems:TherearemanywaysforpeopletosubmittheirappealsandHisMajestyhearstheappealsdirectlyasacontinuouspartofHisMajesty’swork,grantingnumerousaudiencesintheThroneRoominTashich-hodzong,andalsoduringRoyalTours.

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viii. Also,people hope for good leaders in public offices:HisMajestytrainsleaderstoservethecountrynowandinthefuture.

a) HisMajestyhassetupCentersofExcellencesuchastheRoyalInstituteofGover-nanceandStrategicStudies(RIGSS)totrainandequippolicymakers,managersandpotentialleaderswiththewherewithalandknowledgeinallmajorareasofnationbuilding.TheknowledgeandinsightsimpartedbyRIGSSisofgreatben-efitasweendeavourtobuildastrong,robustandresilientnation.92Executiveshavebeentrainedsofarthrough4SeniorExecutiveLeadershipProgramand46SeniorArmedForcesOfficerstrainedthrough2MilitaryLeadersStrategicStud-iesSeminar.

b) TheDeSuungprograminstitutedbyHisMajestyin2011hasbroughttogetheranduntiedpeoplefromdiversebackgrounds–civilservice,privatesector,gradu-ates,teachersetc.foracommoncause–toservethecommunityandnation.Thisvaluebasedintegratedtrainingprogramhasinstilledthespiritofvolunteerism,integrityandcivic responsibility. Ithasprovidedanopportunity toall citizensonapurelyvoluntarybasistoservethenationas“GuardiansofPeace”overandabovetheirownresponsibilities.Theprogramhasbeenextremelysuccessfulintransformingourperspectiveascitizenstoserveforahighercausebeyondtheself.Today,DeSuupsactivelyparticipateindisasteroperationsandcharitableac-tivities.Theyhavegreatlyaugmentedourexistingnationalcapacitytodealwithdisasters.AndweareextremelygratefultoHisMajestyforintroducingtheDeSu-ungprogram.1765DeSuungshavesofarbeentrained.

c) Likewise,HisMajestyTheKingisverycloselyinvolvedwiththescoutmovementinBhutan.ThescoutmovementinBhutanhaskeptouryouthengaged.Ithasen-couragedandmotivatedouryouthtobephysicallyandmentallyfitandprepared.Ithasinstilledmoralvaluesandskillstobecomeresponsibleandproductiveciti-zens.Ithashelpedensurethatouryouthremainasanassetfornationbuilding.

d) InadditionHisMajestyprovidesRoyalCounsel.Deeplycommittedtonurtur-ing,trainingandbuildingapoolofqualified,experiencedandprofessionallead-ers,HisMajestyinvestsagreatdealoftimeandeffortwitharangeofpeoplefromdifferentbackgroundsandprofessions.Hehasgrantednumerousaudiences toMPs,civilservants,judges,businessmenandreligiouspersons,amongothers,tocounsel,guideandmotivatethemtoworkhard,excelintheirrespectivefieldsandtocontributetobuildingastrongnation.

HisMajesty’svision for thenation -Hisknowledge,wisdomand intimateun-

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derstandingofourchallengesandaspirationsisexceptional.Hegivesusaclearperspectiveofhowweasapeopleandcountryshouldmove forward.Cabinetmembersandmyselfhavepersonallybenefitedfromhoursofcounsel.However,letmemakeone thing absolutely clear.HisMajesty’s counsel andguidance isneverimposedonus.Itismerelyprovidedtoguideandhelpuschartourwayfor-ward-tomotivateandencourageustoexcel.Toworkharder!Thefinaldecisionisalwaysours!

HisMajesty’smagnanimityisnotjustconfinedtoBhutan.IthastouchedthelivesofmanypeoplebeyondourbordersandendearedthemtoHisMajestyTheKingandourcountry.TherearemanyexamplesbutIwillhighlightjustthreeintheyear:

i. InMarchthisyearHisMajestyTheKingaccompaniedbyHerMajestyTheGyaltsuentravelledtoSingaporetoattendthefuneralofSingapore’sfirstPrimeMinisterandin-ternationalstatesmanMr.LeeKuanYew.TheentirenationwasinmourningandthepeopleofSingaporeweregrateful forHisMajestyandGyaltsuen’spersonalcondo-lences.

ii. OnApril25thisyearadevastatingearthquakethatresultedin8800deathsand23,000injuredwiththousandsofhousesdestroyedandentirevillagesflattenedinNepal.IntheimmediateaftermathoftheearthquakeHisMajestyCommandedmetovisitNe-palandpersonallyoffercondolencestothePrimeMinister,governmentandpeopleofNepal.HisMajestyalsoCommandedasemsoofNu.63milliontobecontributedtotheGovernmentofNepalandfora63membermedicalreliefteamtobedeployed.Sincetheteamwasamongthefirstmedicalrespondersonthegroundandself-sustain-ing,theywereimmediatelydeployedtoTrishuli,Nuwakotoneoftheworsthitareas.Incooperationwithlocalauthoritiesthemedicalteamprovidedmuchneededemer-gencymedicalservicesroundtheclocktreatingalmost2000victimsduringits22-daydeployment.Anadditional15memberswerealsosentfollowingarequestmadebyNepal.TheservicesprovidedbytheteamweregreatlyappreciatedbythepeopleandGovernmentofNepal,particularlybycommunities,familiesandindividualsthatweregivenmedicalcare.TherewasatremendousoutpouringofgratitudeandappreciationforHisMajestyTheKingandthisgesture,notwithstandingourownlimitationsandconstraints,willforeverremainetchedintheheartsandmindsofthepeopleofNepal.

iii. InSeptember2014,Bhutandeployed itsfirsteverUNpeacekeepertoaUNpeace-keepingmission.Itwasahistoricmomentandareflectionofourcommitmenttocon-tribute,albeitinasmallwaytooneoftheprimaryobjectivesoftheUnitedNations- themaintenanceof internationalpeaceandsecurity.BasedontheconvictionthathavingbeenamemberoftheUNforover43yearsandbenefitedfromtheUN,His

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MajestyhadCommandedthat itwastimeforBhutantocontributetoworldpeace.Our participation in peacekeeping efforts has beenwelcomed by the internationalcommunityandtheUnitedNations.

HisMajestyTheKinghasbeeninstrumentalinpromotinggoodwillforBhutanbyunder-takingvisitsabroadaswellasbygrantingaudiencestovisitingforeigndignitaries.HisMaj-estyvisitsIndiaregularlyandinvestsconsiderabletimeandefforttofurtherdeepenandconsolidateourcloserelationswithIndia.Today,ourrelationswithIndia,ourclosestfriendandneighbour, remain strong and exemplaryunder the leadership andguidanceofHisMajestyTheKing.

HisMajesty’svisitsabroadhavestimulatedandarousedtremendousinterestinBhutan.HisMajesty’sendearingpersonalityandsimplicitycapturedtheimaginationofthepeopledur-ingRoyalVisitstoJapan,ThailandandIndia.Thishas,amongothers,translatedintoasurgeintouristarrivalsfromthesecountries.WhichevercountryHisMajestyvisits,itgeneratesconsiderablepublicityandgoodwillforBhutanandwehaveeveryreasontobeproudandblessedtohavesuchaLeader.

Thisyearisaveryimportantyearforallofus,asitwillmarkthe60thBirthAnniversaryofourbelovedFourthDrukGyalpo.ItisanoccasionforustocelebrateandtopaytributetoaselflessLeaderwhodevoted34yearsofhislifetoimprovethesocialandeconomicwellbe-ingofthecountry.Heassumedtheheavyburdenofbuildinganationthatwasconfrontedwithsomanychallengesatthetenderageof17.ButHeremainedsteadfastandresoluteandbequeathedtousamodernnationstatethatissecureandfirmlyonthepathofgreaterpeace,progressandprosperity.Amongothers,HegaveusandtheworldGrossNationalHappinessasaholistic,sustainableandhealthierdevelopmentparadigmtoachievemod-ernizationanddevelopment.

Itis,therefore,imperativethatthe60thBirthAnniversaryofHisMajestyTheFourthDrukGyalpobemarkedinabefittingmanner.WhileHisMajestyTheFourthDrukGyalpohascommandedthatnocelebrationsbeorganized,thepeopleofBhutanarekeentoexpresstheirlove,gratitudeandloyaltyandwillneverbehappyandsatisfiedifthisimportantoc-casionisnotcommemoratedinanappropriatemanner.It,therefore,cameasagreatreliefwhenHisMajestyTheKingcommandedyearlongcelebrations.Iampleasedtoreportthatanumberofcommemorativeeventshavebeenheldthroughoutthecountryandmorearebeingplanned.Thefocusofthecelebrationsisdevelopment,especiallytimelyimplementa-tionofthe11thFiveYearPlan.

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IwouldliketorespectfullypayourdeepestgratitudeandappreciationtoHerMajestyTheGyaltsuen JetsunPemaWangchuck, our belovedQueen,who also serves alongsideHisMajesty.HerMajestyaccompaniesHisMajestyonallRoyalvisitswithinthecountrynomatterhowdifficultorremote.HerMajestyhasstartedtheQueen’sProjectin2014toim-proverurallivelihoodandisalsotheRoyalPatronforcausesrelatedtodisability,health,environment,womenanddisastermanagement.

Iwouldalso like to thankHRHGyaltshabJigmeDorjiWangchuck forrepresentingHisMajestyinSharchog Khorlo Tsibgyed.

HisMajestyTheKingisourguardianandconscience.Asweendeavourtoachievegreaterpeace,progressandprosperity,welookuptoHisMajestyforhiswisecounsel,guidanceandblessings.HisMajesty isourgreatestandmostreliablesourceofstrength.Heisthesymbol of our unity and the vanguard against corruption and complacency.We are ex-tremelyfortunateandblessedtohavesuchaKing.ThisgovernmentandIremainconfidentthatwewillsucceedinrealizingallourendeavoursundertheableleadershipofHisMajestyTheKingandbecomeanationthatisself-reliantandstrongineveryrespect.

Onbehalfofthepeopleandgovernment,Ioffermyprayersforthecontinuedgoodhealth,longlifeandwellbeingofHisMajestyTheKing,HisMajestyTheFourthDrukGyalpo,HerMajestyTheGyaltsuenandTheirMajestiestheQueenMothers.

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COUNTRY

Asasmallcountry,wefaceformidablebutnotinsurmountablechallenges.Auniqueiden-tityandmostimportantlytheunityofthepeopleisthemostenduringstrengthofanationof750,000peoplesurroundedby2.5billionpeople.Today,thenationreposesitsfaithinthesymbolofourstrength,unityandidentityofthepeople,TheirMajestiesthe4thand5thDrukGyalpos.ItisthroughtheirbeingthatwederiveinspirationandstrengthtoservetheTsaWaSumasonepeopleonenation.

Theoverallobjectivesofourcountryistostrengthensovereignty;ensurepeace,harmonyandunity;consolidategoodgovernanceandthefoundationsofdemocracy;andmostim-portantlytoachieveselfreliance.

TheEleventhFiveYearPlan(11thFYP)willmeetmostoftheseobjectives.Theoverarchinggoalofthe11thFYPistoachieve“self-reliance and inclusive green socio-economic development”. Towardsthisend,wehaveallocatedatotalofNu.213billionforthePlan,outofwhichNu.140billionaremetfromtheinternalresources,andNu.58billionaremetfromthedonorsupport.Abulkofthedonorsupport,aboutNu.45billion,comesfromtheGovernmentofIndia(GoI),andtherest(Nu.13billion)havebeencommittedbyEU,Japan,Austria,Swit-zerlandandothers.Itisimportantthattheseresourcesareusedefficientlyandeffectivelytofulfilltheambitioustargetsthatwehavesetinthe11thFYP.

Thisyearisverycriticalforusbecausewearealmostmid-waythroughthe11thFYPPlanperiod.Sofar,theimplementationoftheplanhasbeenprogressingwell.Allpreliminaryworkswithregardtotheimplementationoftheplanisnowcomplete,andhereon,wecanfullyfocusonimplementation.

WewillsoonstarttheMid-TermReviewtoevaluatetheprogress,identifyissuesandchal-lenges,andfasttracktheimplementationoftheplansothatallthetargetssetinthe11thFYPcanbeachievedwellwithinthetimeframe.Todoso,IwillbevisitingalltheDzong-khags,andasmanyGewogsaspossible.I lookforwardtomeetingour local leadersandpeople,andconductingtheMid-TermReviewsuccessfully.

SecurityThe2014GlobalPeaceIndexhas listedBhutan(16th)asbeingamongtheworld’smostpeacefulandstablesocieties.Theannualsurveyassessescountriesbasedon22indicatorsthatgaugeongoingdomestic and international conflict, societal safety and security, andmilitarization.Whilethisisdefinitelysomethingwecanbeproudof,andwecandrawen-

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couragementfrombeingrecognizedasoneofworld’ssafestandmoststablecountry,wecanneveraffordtobecomplacent.

Asasmallcountry,oursecurityisextremelyimportant.HisMajestymostrecentlyatthepassingoutparadeoftheRoyalBhutanArmyrecruitssaidthat, “Our greatest objective is to ensure that the peace and security of our country remains intact for generations, and that our people can achieve progress and prosperity, and are able to fulfil all of their dreams and aspira-tions”.

Iwouldliketothankourarmedforcesforcontinuingtokeepourcountrysafe.Inalldirec-tions-fromtheEasttotheWest-fromthehot,humidjunglesintheSouthtothehigh,frigidmountainsintheNorth,ourarmedforcesconstantlyguardtheborders(1094km)andprotectourcountrywithouthesitatingtoputtheirlivesontheline.

ThisyearwefacerenewedthreatsofmilitantsattemptingtoenterourcountryastheIndianArmyhas launchedoperationsagainstmilitantgroups inAssam(India).Reminiscentof2003,ourarmedforceshavesteppedupvigilanceandareguardingourSouthernborderstopreventIndianmilitantsfromenteringourcountry.

Withinthecountry,theRoyalBhutanPolice(RBP)continuestoensurethesafetyofourpeople.TheRBPhasstrengtheneditsservicesandimprovedpublic-policerelationsespe-ciallyamongtheyouths.TheRBPregisteredacrimerateof2367casesin2014comparedto2926cases in2013,whichwasadecreaseof559cases,or19%.Thegovernmentwillcontinuetosupportactivitiesaimedatensuringpublicsafety.

Ourarmedforcescontinuetoprotecteconomicinfrastructuresuchashydro-power,bridg-es, airports and telecom stations frommilitants andmiscreants.They have helpedwithdisaster reliefandreconstruction- theearthquakes in2009and2011;fires inWamrong(2009), Bumthang (2009, 2010) and Sarpang (2015);GLOFmitigation ofThorthomilake.Theyarealsohelpingwithdevelopmentbyrebuildingdzongsandassistingwithca-dastrallandsurveysforHisMajesty’ssecondphaseoflandkidu.

AmidstallourvulnerabilitieswearesafeandsecureandIwould like to thankHisMaj-esty’sleadershipasSupremeCommander-in-ChiefoftheArmedForces.IwouldalsoliketothankallranksofthearmedforcesfortheirdedicatedservicetotheTsa-Wa-Sum.

Foreign Relations Intherealmofourforeignrelations,wecontinuetoconscientiouslybuildonthestrong

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foundationsthathavebeenlaidbyoursuccessiveMonarchsandnurturedbyHisMajestyTheKing in theadvancementofournational interests. Iwould like toexpressourdeepgratitudetoHisMajestyTheKingforthecontinuedguidanceandsupportinstrengtheningBhutan’srelationswiththeworld.

Atthebilaterallevel,anumberofkeyoutcomeshavebeenachieved:

OfforemostsignificanceisthereaffirmationoftheexcellentstateofbilateraltiesandstrongfriendshipthatexistsbetweenIndiaandBhutanthroughtheexchangeofvisitsatthehigh-estlevel.

· TheirMajesties theKingandGyaltsuenvisited India inOctober2014 tograce theFounder’sDayCelebrationof theLawrenceSchool inSanawar,HimachalPradesh.TheirMajestiesalsoembarkeduponapilgrimage toBodhgayaandVaranasion theinvitationoftheGovernmentofIndia.TheirMajesties’visittoIndiawassymbolicofthemanyconnectionsbetweenthetwocountriesincludingpeople-to-peopletiesandsharedspiritualheritage.

· OntheinvitationofHisMajestyTheKing,thePresidentoftheRepublicofIndia,HisExcellencyMr.PranabMukherjeepaidaStateVisittoBhutaninNovember2014.ThevisitwassignificantasittookplacebarelyfourmonthsafterHisExcellencyMr.Naren-draModi’smaidenvisittoBhutanafterbeingsworninasthePrimeMinisterofIndia.During this important visit, fourMemorandaofUnderstanding (MoUs) related totheeducationsector,humanresourcecapacitybuildingandtheestablishmentoftheNalandaUniversityinBiharweresigned.ThePresidentalsoinauguratedtheYelchenCentralSchoolandlaunchedtheSchoolReformProgramme,theEast-WestHighwayDouble-LanningProjectandthe JigmeWangchuckPowerTrainingInstitute.

IampleasedtoreportthatIvisitedIndiainJanuarythisyearontheinvitationoftheIndianPrimeMinistertoattendthe7thVibrantGujaratSummitinAhmedabad.DuringthevisitIalsotooktheopportunitytomeetthePresidentofIndia,theVice-President,MinisterforExternalAffairs,FinanceMinister,DefenceMinister,HomeMinisterandotherseniorof-ficialsoftheGovernmentofIndia.TheGovernmentofIndiaalsopresentedasaplingoftheBodhitreeasagiftfromthepeopleofIndiatothepeopleofBhutanontheoccasionofthe60th BirthAnniversaryofHisMajestytheFourthDrukGyalpo.

AsafurthertestimonyofthestrongandcloserelationsthatourtwocountriesenjoyH.E.Dr.S.JaishankarmadehisfirstofficialvisitabroadasForeignSecretarytoBhutaninMarch.Regularconsultationsandvisitsatvariouslevelscontinuetotakeplacebetweenthetwo

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countriesbuildingupon thismulti-faceted relationship. India remainsour closest friendandneighbor-ourrelationsserveasthecornerstoneofour foreignpolicy-andwewillcontinuetobuildonthisspecialrelationship.

WewarmlywelcomeH.E.AmbassadorGautumBambawale,whotookoverfromAmbas-sadorV.P.Haran,asthe16thAmbassadorofIndiatoBhutaninAugust2014.AmbassadorBambawale’scommitmentandcontributionishighlyappreciatedandweareworkingverycloselywithhiminfurtheringIndo-Bhutanrelations.

Ihavethehonorofreportingthat,inadditiontoIndia,Ivisitedthefollowingcountriesintheinterestofdeepeningbilateralrelations:

· InJunelastyearIvisitedJapanontheinvitationoftheJapanesePrimeMinisterShinzoAbe,coincidingwiththe50thanniversaryofdevelopmentcooperationbetweenBhu-tanandJapan.DuringthevisitIreceivedassurancesforcontinuedJapaneseassistancetooursocio-economicdevelopment.

· InDecember2014,IvisitedBangladeshontheinvitationofPrimeMinisterSheikhHasina.IhadverygoodmeetingswiththePresident,PrimeMinister,variousdignitar-iesandseniorgovernmentofficials.Bothsidesexpressedconfidenceintheexcellentandlongstandingrelations,andalsoexploredareasinwhichthetwocountriescoulddeepencooperation.Duringthevisit,theBilateralTradeAgreementbetweenthetwocountrieswasrenewedandasaspecialgestureoffriendshiptheGovernmentofBan-gladeshgiftedtheRoyalGovernmentaplotmeasuring3211.895sq.meters for theconstructionoftheRoyalBhutaneseEmbassyinDhaka.

· InAprilthisyear,IvisitedSriLankaontheinvitationofthePresidentofSriLankaH.E.Mr.MaithripalaSirisena. Duringthevisit,IcalledonthePresidentandmetwithvarious dignitaries and senior officials of the governmentwherewe reaffirmed theexistinggoodbilateralrelationsanddiscussedwaystostrengthentherelationship.AMemorandumofUnderstandingonForeignOfficeConsultationswassignedestab-lishingamechanismforregularconsultationbetweentheForeignSecretariesofthetwocountries.TheGovernmentofSriLankaalsopresentedasaplingoftheSriMahaBodhitreeasagiftfromtheGovernmentandthepeopleofSriLankatothepeopleofBhutanontheoccasionofthe60thBirthAnniversaryofHisMajestytheFourthDrukGyalpo.

· EarlierthismonthIvisitedBrusselsattheinvitationofthePresidentoftheEuropeanCommission,Mr.Jean-ClaudeJunker.ThiswasthefirstvisittotheEuropeanUnionbyaBhutanesePrimeMinister.Iheldwide-rangingdiscussionswithEUleadersonissues

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of common interest, includingdevelopment cooperation. I thanked theEU for thethreefoldincreaseinassistancetoBhutanduringtheperiod2014-2020,andalsodis-cussedthepossibilityoffurtherassistanceinanumberofclimatechangerelatedproj-ects.IalsometthePrimeMinisterofLuxembourg,Mr. XavierBettelanddiscussedwithhimbilateralrelationsandwaystostrengthenit.

ThesevisitsweresignificantbecauseallofthemwerefirstofficialbilateralvisitsbyaBhuta-nesePrimeMinistertothesecountries.Mymeetingswiththeleadersandseniorofficialsofthesecountrieswillfosterstrongerfriendshipbetweenourcountries.

With our immediate neighborChina in the north, we continue tomaintain warm andcordial relations.The22nd RoundofBoundaryTalkswasheld inChina in2014andthe23rd Roundwill take place inThimphu soon.After the 22nd Round of BoundaryTalks,twomeetingsattheExpertGrouplevelhavebeenheld.TheJointTechnicalFieldSurvey( JTFS)ofthedisputedareasinthecentralsector(Bayul/Pasamlung)wascarriedoutin2013. ThefirstphaseoftheJTFSofthedisputedareasinthewesternsectorhasjustbeencompletedandthesecondphasewillbecarriedoutlaterthisyear. Iampersonallyvisitingthedisputedareas.InOctoberlastyear,IvisitedCharithang,SinchulumpaandDramanaareasandjustlastmonththeDoklamarea.

WearehappytonotethattheresettlementofthepeoplefromthecampsinNepalispro-gressingwell.AsofApril thisyear,96,237peoplehavebeenresettledinthe“coregroupofcountries”,withtheUSAaccepting81,482people.IwishtothanktheGovernmentofNepalandthe“coregroup”ledbytheUSAandincludingCanada,UnitedKingdom,Neth-erlands,Denmark,Norway,NewZealandandAustraliaforworkinghardtobringclosuretothehumanitarianissueofthepeopleinthecamps.

Whileweareasmallnationfacingbigchallenges,thishasnotdiscouragedusfromprovid-ingassistancewithinourlimitedmeanstoothersintheinternationalcommunityintheirtimeofneed.Asreportedearlier, followingthedevastatingearthquakeinNepal,BhutancontributedUSD$1milliontotheGovernmentofNepaltohelpsupporttheirreliefandrehabilitationefforts,andwasamongthefirstresponderstohaveamedicalreliefteamontheground.ThisisthefirstmajordisasterreliefoperationoutsideitsbordersthatBhutanhasparticipatedin.Iwouldliketoacknowledgeandcongratulateour78medicalreliefteamfortheiroutstandingworkinprovidingmuchneededemergencymedicalassistancetothevictimsoftheearthquakeduringthe22-daystheywereinNepal.TheyhavedoneourKingandcountryproud.Theexperiencesoftheteamwouldalsocontributetowardsourowndisasterpreparedness.

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DuringmyvisittotheUnitedSatestopromotethe“BhutanforLifeInitiative”ItooktheopportunitytomeetwithMs.NishaDesaiBiswal,AssistantSecretaryofStateforSouthandCentralAsianAffairsanddiscussedwithherissuesofcommoninterest.EarlierImettheU.S.SecretaryofStateMr.JohnKerryinIndiaduringthe7thVibrantGujaratSummit.DuringthevisitIalsometwithseniorexecutivesofvariouscompaniesintheprivatesector,includingGoogle,FacebookandNatelEnergy,toexplorepartnershipsforeconomicdevel-opment.Asaresult,andinlessthanthreemonthssincemyvisit,wehavesignedaMOUwithNatelEnergytojointlyexplorethepotentialofmanufacturingmicrohydropowertur-binesinBhutantomeetourneedsforsustainableenergyaswellasforexporttotheregion.

Asacountrythatiscommittedtointernationalpeace,securityandcooperationwecontin-uetobroadenourengagementsandcontributionstovariousmultilateralandregionalfora.

ThroughtheUNwecontinuetoplayanactiveroleasaresponsibleandconstructivemem-beroftheinternationalcommunity.Inthiscontext,notwithstandingourlimitationsandconstraints, and as earlier reportedBhutan joined the fraternity of nationsparticipatinginUNpeacekeepingoperationsinSeptember2014bymakingamodestcontributionofpeacekeeperstoafewpeacekeepingmissionsaroundtheworld.ThefirsteverpeacekeepersfromBhutan(15officersand2NCOs)arenowdeployedatsixUNpeacekeepingmissionsinUNTSO(Israel),MINUSCA(CentralAfricanRepublic),UNMIL(Liberia),UNMISS(South Sudan),UNDOF (Syria) andMINUSMA (Mali).Within the next fewmonthstherewouldbe42Bhutanesepeacekeepersontheground(30officersand12NCOs)withpeacekeepersalsodeployingtoUNAMID(Darfur),UNISFA(Abyei),MINUSTAH(Hai-ti)andMINURSO(WesternSahara).

Ourpeacekeeperson the groundare all performingwell,which is good forour reputa-tion.Theyaregainingvaluableexperienceandknowledgeindifferentenvironments.Mostimportantlyour armed forces areprotecting internationalpeace.This is indeedaproudmomentforBhutanasitreflectsthecomingofageandgrowthofournation,andunder-scoresourconstructiveroleininternationalaffairs.HavingbenefitedthroughvariousUNassistance,Bhutanisnowabletocontributemeaningfullytothecauseofpeaceandsecurity.IwouldliketothankHisMajestyTheKingfortakingthislaudableinitiative.Iwouldalsoliketocongratulatethearmedforcesandourpeacekeepers.

ImetwiththeUNSecretaryGeneralontwooccasionsinIndiaandinNewYorkthisyear.On both occasions he appreciated our contributions to formulation of the SustainableDevelopmentGoals and the post-2015Development Agenda, our participation inUNpeacekeepingoperationsandourproactiveeffortstopreservetheenvironment.Itookthe

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opportunitytothanktheUNSGforthesignificantcontributionsoftheUNsystemtoBhu-tan’sdevelopmentandassuredhimofourcontinuedsupportandcooperationintheUN.

DuringmyvisittotheU.S.inMarchthisyear,IalsotooktheopportunitytomeetwiththePresidentoftheWordBank,Dr.JimYongKim.IthankedhimfortheassistancethattheWorldBankhasbeenprovidingtoBhutansince1981anddiscussedhowwecoulddeepenourpartnership,particularlyininfrastructureandhydropowerdevelopment,tourism,sus-tainableagricultureandpovertyeradicationthroughtargetedinterventionstorealizeouroverallgoalofself-reliance.IamhappytoreportthatIreceivedstrongassurancefromDr.KimthattheWorldBankremainscommittedtosupportingBhutaninthesepriorityareas.

InAugustlastyear,IwaselectedtheChairmanofthe70thSessionoftheUNEconomicandSocialCommissionforAsiaandthePacific(UN-ESCAP).ThiswasthefirsttimeBhu-tanhadbeenelectedtoholdthis importantpostatthehelmofthe62memberregionalbody,representing4.1billionpeople.

InSeptemberlastyear,IvisitedtheADBontheinvitationofthePresidentoftheADBMr.TakehikoNakao.DuringmymeetingwithMr.NakaoandseniorADBofficials,IthankedtheADBfortheirpartnershipandcontributiontoBhutan’sdevelopmentprocesssince1982andalsohighlightedtheneedfortheircontinuedassistanceduringthe11thFiveYearPlan.

InNovemberlastyear,IparticipatedintheEighteenthSAARCSummitinNepal.AmongotherstheSummitemphasizedtheimportanceofenhancingconnectivityintheregion.AnimportantoutcomeoftheSummitwasthesigningoftheSAARCFrameworkAgreementforEnergyCooperation.AtthesidelinesoftheSummit,IalsohadbilateraltalkswiththeotherSAARCLeaderswherewediscussedissuesofmutualinterest.

WehavejusthostedtheBBIN(Bangladesh,Bhutan,IndiaandNepal)TransportMinistersMeetingwhereaMotorVehicleAgreementwas signedbetween the fourcountries.Theagreementisexpectedtobolsterconnectivity,tradeandpeopletopeoplecontactamongthefourSAARCcountriesonasub-regionalplatform.

Inthepastyear,wehavehadthehonourofplayinghostto141importantdignitariesandofficialsfromvariouscountriesaswellasvariousbusinessdelegations,andhostinganum-berofinternationalconferences.HisMajestywaspleasedtograntaudiencetoover34dig-nitariesandofficials.Thevisitsprovideduswithopportunitiestoshowcasethecountry,whatwehaveachievedandcanyetachievethroughpartnerships.Thesevisitshavefurtherhelpedstrengthenourrelationswithothercountriesandorganizations.

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Asasmallcountrywithlimitedresourceswealsocannotaffordtohavemanydiplomaticandconsularmissionsabroad.Ourdiplomaticandconsularengagementis,therefore,alsosupportedby7HonoraryConsulsand34FriendshipAssociationsin22countriesaroundtheworld.AndIwouldliketothankthemfortheimportantroletheyareplayinginpro-motingBhutantotheworld,fortheirsteadfastsupporttotheBhutanese,andforbeingafriendofBhutan.

Theregularexchangeofvisits,participationatmajoreventsandannualconsultationmech-anisms constitutes an important componentofBhutan’s relations and cooperationwithothercountries.Nonation-state isanislandandwemustrecognizethatasa landlockednationof750,000wecannotsurvive,muchlessprosper,inisolation.Ourchallengesasanationrequire forus tocontinuouslyreachout toothers toreaffirmold friendshipsandforgenewpartnerships.Itisbutgearedtowardssafeguardingandpromotingournationalinterestsininternationalaffairs.

Hereallowmetoexpressmyappreciationforthefactthattheprogresswehavemadeasanationsinceembarkingonourplanneddevelopmentprocessover50yearsagohasbeenmadepossiblethroughgenerousassistanceofallourdevelopmentpartners,inparticularourclosefriendIndia.

Gross National HappinessInthepursuitofourdevelopmentgoalsandobjectiveswecontinuetobeguidedbythetimelessvisionof“GrossNationalHappiness”.WhileinterestinGNHinternationallycon-tinuestogrow,thefocusofthegovernmentisimplementingtheprinciplesofGNHwithinthecountry.TheCenterforBhutanStudies,whichservesasthefocalpointforGNH,hasbeenconductingnationwideGNHSurveysandGNHResearchtomeasurehappinessofourpeople.ThethirdofsuchsurveyshasbeencompletedandtheReportwillbepublishedbytheendofnextmonth.Theresultsofsuchsurveyswillguidethegovernment in for-mulatingdevelopmentpoliciesthatarealignedtomeettheaspirationsofourpeople.IamhappytoreportthatCBSisalsoorganizinganinternationalconferenceonGNHinNo-vemberthisyear.Thiswillbeanimportantconferenceasitcommemoratesthe60thBirthAnniversaryofHisMajestytheFourthDrukGyalpo.

Rest of my report under COUNTRY will be presented under the four pillars of GNH:

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THE FIRST PILLAR OF GNH: SUSTAINABLE AND EQUITABLE SOCIO-ECONOMIC DEVELOPMENT

Social Development

WehavemanythingstobeproudofasBhutanese.Ouruniquehealthcareandeducationsystem,whichisavitalcomponentofthepillarofsustainableandequitablesocio-equitabledevelopment,isoneofthem.Despitebeingapoorcountryweareabletoprovideallpeoplefreehealthcareandfreeeducation.Thissystemisessentialforsocialmobilityaswithoutittherichwouldgetricherandpoorwouldremainmarginalized.However,simplyprovidingfreehealthcareandeducationisnolongerenoughinarapidlychangingBhutan.HealthcareandeducationmustbeofhighestpossiblequalityifpeoplearetohaveequalopportunitiestoincreasetheirstandardoflivingaccordingtothetimesandservetheTsa-wa-sum.

Health

FreehealthcareisofparamountimportanceinthepursuitofGNH.IthasbeenidentifiedasoneoftheninedomainsofGNHandenshrinedintheConstitutionofBhutanasa“birthrightofeveryBhutanese.”AccordingtoWHOreports,only58countriesintheworldhaveenactedsomeformof legislationmandatingUniversalHealthCare.Ofthesemostcoveronlyprimaryandemergencyhealthservices.Whatsetsusapart isthatourhealthcare iscompletelyfreeandincludespreventiveandcurativehealthcare,allmedicineandhospitalservicesand referralsoutside thecountry.8%of the totalbudgethasbeenallocated forHealthinthefinancialyear2015-16.

Whilewehavemadeimpressivestrides,ourhealthcaresystemisfacedwithnewchallenges.These includea rise in incidenceofnon-communicablediseases, shortageofpersonnel,managementissuesandthesustainabilityofcontinuousimprovementsinservicesagainsttherisingcostsandexpectationsofourpeople.Thegovernmenthasundertakenmajorini-tiativestomeetthechallenges.

· JDWNRHwasgrantedautonomyinSeptember2014toinjectdynamismandbettermanagementofhealthresources.Theincreasedfinancial,humanresourceandman-agementautonomyandthestartingtobuildthisyear150-beddedJetsuenPemaMa-ternalandChildrenHospital, aDialysisUnitandaGuestHouseat JDWNRHwillfurtherimproveitsservices.

· Investmentintheexpansionofhealthinfrastructurecontinuestoabsorbthemostsig-nificantshareofthesector’sannualbudget.Theconstructionofthe150-beddedCen-

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tralRegionalReferralHospital,the40-beddedSamtseHospitalandthePublicHealthLaboratoryareprogressingwellandconstructionoftheTsirangandDewathangHos-pitalwillstartsoon.

· Toaddressthechallengesofnon-communicablediseases(NCDs),DiabeticClinicshavebeenestablishedin24hospitalsincluding4BHU-IinZhemgang,Dagana,Sam-drupChholingandNganglam.ABMImonitoringsystemhasalsobeeninstitutedinallthehealthcentersinthecountry.

· ThegovernmentisalsointegratingtheuseofICTindeliveringandcoordinatingcriti-calpublicservicesacrossallsectorstoensureefficiency,economyandtimelydeliv-ery.Inthisregard,theBhutanHealthManagementandInformationSystem(MSAc-cess)hasbeenupgradedtoaweb-basedDrukHealthInformationSystem2(DHIS2).TrainingofTrainersonDHIS2hasbeencompleted,andtherollouttohealthcenterswillbecompletedbytheendofthismonth.

· Increasingnumberofpeopleinthecountryisoptingfortraditionalmedicineasalter-nativemeansoftreatment.ItisnotonlypopularinBhutanbutoutsidetoo.TraditionalmedicineservicesareanareawhereBhutancancreateanichemarket.Further, thediversificationofMenjongSorigpharmaceutical inthefieldsofcosmetics,wellness,spa and traditionalmedicinal products development using local productswill helppromotetheeconomy,andthetraditionalmedicalsysteminthecountry. Thegovern-mentwillbecorporatizingMenjongSorigpharmaceuticalinordertomakebestuseofourrichmedicinalresources.

· OneofthemostsignificantsuccessesofourhealthsystemistheHealthTrustFund(HTF),whichwasestablishedthroughtheCommandofHisMajestytheFourthDrukGyalpo.TheFundhasaccumulatedacapitalofUSD21.9Milliontofinancethepro-curementofbothessentialdrugs andvaccines.TheTrustFundbeganfinancing allessentialdrugs - fromparacetamol to cancer treatment and all vaccinations for im-munization-inallhealthfacilitiesinthecountrysinceJuly2014.Thecostofessentialdrugsforthefinancialyear2014-2015isestimatedatalmostUSD3Million.HTFisasuccessstoryandanexampleforothercountriesandIampleasedtoreportthatitsofficiallaunchthisyearwillbeabefittingtributetocommemoratethe60thBirthAn-niversaryofHisMajestytheFourthDrukGyalpo.

· Accesstosafedrinkingwateristhemosteffectivestrategytocombatwater-bornedis-easesandthegovernment’spriorityistoensureuniversalaccess.Currentlyabout94%of ruralhouseholdshavewatersupplyschemesbutonly83%are functioning.Whyis this thecase? Itcertainlycan’tbe lackofmoney! In the10thPlanNu.1.4billion

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wasspentforruralwatersupply;in2013-2014itwasalmostNu.130million;andin2014-2015itisNu.143million.Thisyear,Nu.210millionwillbespenttorepairruralwatersupplyschemes.Enoughmoneyhasbeenallocatedtoruralwatersupply.Mostlythroughlocalgovernment.Itisimperativethatresourcesareusedwelland,mostlythecommunitiesinvolvedtomaintaintheschemes.

· Rural sanitation is another important areaof focusasonly68%of ruralhouseholdhavepropersanitation.Despitehighwaterandsanitationcoverage,theincidenceofill-nessduetowater,sanitationandhygienerelateddiseasesarestillhighinBhutan.Diar-rhoeacontinuestobetop10diseasesinBhutanasaresultofpoorsanitationpracticesand, inparticular, thepoor stateof toilets and associated facilities.Hygienebehav-iouralchangeisnecessaryandIwouldliketorequestpeopletobuild,useandmaintainpropersanitationtopreventtheemergenceandspreadofcommunicablediseases.

· Amajorchallenge for thecountry is thegrowingproblemofdrugabuse,especiallyamongouryouth.Itisasocialproblemthatimpactsnotonlytheindividualbutalsohasadetrimentaleffectonthefamily,communityandnationatlarge.Allofusmust,therefore,worktogethertoaddressthismenace.ParliamenthaspassedtheDrugandPsychotropic Substances Act to empower authorities and ensure that drug dealersgethigherpenalties.Thegovernmentwillalsostepupitseffortstosupportdrugre-habilitation.CurrentlytheYouthDevelopmentFund(YDF)rehabilitationcentreatSerbithangprovidesrehabilitationandreintegrationprograms.Withacapacityfor24patients,thecentreisoftenoverbooked.TheYDFisbuildinganewdrugrehabilitationcentreatTshaluna.IwouldliketothankHerMajestyGyalyumTsheringPemWang-chuckfortheimportantrolethatYDFisplayinginaddressingnotjustproblemofdrugabusebutmanyotheractivitiesthatempowerouryouth.

Education.Asasmallcountrywithaverysmallpopulation,ourhumanresourcesare limitedandamostvaluableresource.Assuch,thequalityofeducationweprovideouryouthtodaywilldetermineourlong-termsuccess.

Globally,transformativechangesarecompellingcountries,developedanddevelopingalike,totakestockoftheirdevelopmentstrategiesandembarkonfarreachingreformstoaddressnewchallengesandopportunitiesofthe21stCentury.Bhutanfindsitselfinthemidstofsimilarsocial,economicandpoliticaltransformation.Withourfutureincreasinglylinkedtoaglobalizedworld,therapidtransformationhasusheredinnewrealitiesthatrequirein-novativeapproachestoaddressthem.TheEleventhPlanhasprovidedanopportunetimetotakestockofthestateofournationagainstthesenewdevelopmentsandbuildonthe

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strongfoundationswehavelaidbyusheringinnewplans,strategiesandpreparationsthatreflectthechangingrealitiesaswellasthenewopportunitiesandchallengesthattheybring.Ingoingforward,therelevanceofoureducationsystemtoachieveournationalgoalsandobjectivesmustremainattheforefrontofourthinking,ourplanningandtheimplementa-tionofthecurrentandsuccessiveFiveYearPlans.HisMajestyTheKinghasoftenunder-scoredthatthequalityofeducationforouryouthisofparamountimportance,remindingusthat“a nation’s future will mirror the quality of her youth – a nation cannot fool herself into thinking of a bright future when she has not invested wisely in her children”.Forneitherourvisionforournationnorthegoalsinourplansarepossibleifwedonotrelentlesslyanduncompromisinglyinvestinbuildingadynamiceducationsystem.

EveryBhutanesemustbegivenanopportunity tobeeducatedandtrainedandwehaveno doubt made remarkable progress in ensuring access to education. Today, with 551schoolsand107extendedclassrooms,almosteverychildis inschool.Thisyear172,303studentswereenrolledfromPPthroughClassXII.Ournetenrollmentis98.7%andwith8572 teacherswehavean impressive teacher student ratioof1:20.Thegovernmenthasalsoachievedsignificantsuccessinexpandingaccesstoearlychildhoodcareandeducation(ECCE).Today,thereare210ECCEcentersascomparedto165in2013.Thirtytwoper-centoftheECCEcentersarerunthroughprivateparticipation.

Thetaskathandistobuildadynamiceducationsystemthatnurturesouryouthwiththerightvalues,knowledgeandskillsthatarerelevantforthetimes.Thecomplexityandenor-mityofthistaskcannotbedenied.Itwillrequireasystemicapproach,newthinking,insti-tutionsandtools,alonger-termperspectiveinourplanning,predictableresources,andthecollaborationandcommitmentofallourpeople.However,theurgencyofsowingtheseedsforsuchaneducationsystemcannotbeoveremphasizedasourwindowofopportunityissmall,giventhatthelargestsectionofourpopulationtodayareyouth.Theeducationsectorwillcontinuetobegivenspecialemphasisbythegovernmenttoprovidethenecessaryim-petusforachievingoursharedgoalsandvisionforourfuture.Towardsthisend,thegovern-menthaslaunchedseveralfar-reachinginitiatives.18%ofthetotalbudgetforthefinancialyear2015-16hasbeenallocatedtoeducation.

· The Education Blueprint, a 10-year strategic plan formulated through nation-wideconsultations, seeks to further improve theoverallqualityofeducationbyaddress-ingthefoureducationaldimensionsofaccess,quality,equity,andsupportefficiencythroughstrategicinterventionsandinitiativestobeimplemented.

· TheSchoolReformProgramwasinitiatedin2014toenhanceefficiencyandqualityofeducationaloutcomeswhilealsoensuringsustainabilityofserviceprovision.Akey

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elementofthePrograminvolvesthereformingschoolsintoCentralSchoolsforPPtoClassXorClassXII,withtheprovisionofboardingandbussingserviceswhereneces-sary.TheProgramisbeingimplementedonapilotbasis,withatotalof24schoolsthisyearand25schoolsin2015.IwouldliketothankGOIforprovidingNu.4.3billioninassistanceforthisimportantProgram.

· Inadditiontoestablishingcentralschools,45schoolsoperateas“autonomousschools”withgreaterfinancial,managementandhumanresourceautonomytopromotegreateraccountabilityforthequalityofeducationintheschoolsystem.Thisinitiativeisex-pectedtofostergreaterinnovationandtherebyenhancelearningoutcomes.

· To ensure objective, critical and unbiased research based perspectives on the stateof education, theDepartmentofCurriculumResearch andDevelopmenthas beendelinkedfromtheMinistryofEducationandmergedwiththeRoyalEducationCoun-cil.REChasbeenaccordedautonomytofocusoncurriculum,teacherdevelopment,independentresearchandprovidethegovernmentwithobjectivefeedbackandrec-ommendationstoimproveallaspectsofoureducationsystem.

· TheNationalScoutsProgramisreceivingrenewedfocustoensurethattheeducationsystem impartseducationwithvalues suchas teamworkandpromotes learningbe-yondtheclassrooms.The1stNationalScoutsDaywasobservedonHisMajestyTheKing’sbirthday.

· TheSchoolfeedingsystemisbeingimproved.VitaminB-complexisbeingprovidedtoallstudentstopreventincidencesofperipheralneuropathy,whichhadaffected36stu-dents.ACentralizedSchoolFeedingProgrammewasalsoinstitutedfromJuly2014forRGoB-stipendsupportedschoolstoachieveeconomyofscaleinfoodprocurement,fortifyfoodcommoditiesandimprovethequalityoffoodcommodities.AMemoran-dumofUnderstandinghasbeensignedbetweentheMinistryofEducationandFoodCorporationofBhutanLimited to procure, store anddistribute food commoditiestoschools.ThisProgrammeissignificant,asWFP’sassistancefortheschoolfeedingprogrammewillbephasedoutcompletelybytheendofthe2018academicyear.TheMinistryofAgricultureandForestsisgoingtoprovidepulletsinsomeschoolsonpilotbasistoensurethateverychildgets3eggsaweek.

TheNationalReadingYear2015waslaunchedon9thDecember2014byHisMajestyTheKingtocelebrate60thBirthAnniversaryofHisMajestytheFourthDrukGyalpo.Everyschool isparticipating in this importantevent topromotegood readinghabits, life-longlearningandpersonalgrowth.TheJigmeDorjiWangchuckNationalLibrarywillberelo-catedtoabiggerbuildingtoaccommodatemorebooksandmorereaders. E-librarydo-

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natedbyIndiaduringthevisitofPrimeMinisterModiwouldsignificantlyenhanceaccesstolearningmaterialsandtheuseofICTinallschoolsandcolleges.Thee-librarywillbelaunchedthisyear,covering49schoolsandcolleges.

Thereare672studenttrainingin6technicaltraininginstitueand2institueofzorigchusum.

Inthefieldofhighereducation,thegovernmentwillcontinuetosupportRUBwhichnowhas10,000studentsenrolledin8colleges.Ofthetotal10,000students82%ofstudentsre-ceivegovernmentscholarshipand18%areself-financed.Thegovernmentdeemsitequallyimportanttoimprovequalityofeducationinallcolleges.Forthat,RUBrequiresadequateresources to improve teacherconditionsand facilities.Thegovernment is thereforesup-portingtheincreaseinstudentfeesfromanaverageofNu.67,000perstudentperyeartoaboutNu.78,000peryearandhaspaidmorethanNu.700millioninfeesthisyear.Ad-ditionally, thegovernment is spendingNu.255million this year for capitalworks,withSherbutsealonereceivingNu.85million.RUBhasbeenreceivingthenecessaryfinancialsupport.Itistimenowforittoimprovequality!

Topromoteinclusivedevelopment,thegovernmenthasaccordedahighprioritytoensurethatchildrenwithspecialneedshaveequalaccesstoqualityeducationsothattheycanreal-izetheirpotentialandbecomeresponsibleandproductivecitizens.Thenumberofschoolscateringtochildrenwithspecialneedshasincreasedtosevenin2015andvarioussupportsystemsarealsobeingputinplace.BhutanalsocelebratedtheInternationalDayofPersonswithDisabilitieson3rdDecember2014,whichwasgracedbyHerMajestytheGyaltsuen.

ThegovernmenthasalsoestablishedResearchEndowmentFundtoencourageandsup-portresearchinvariousfieldsandstudentsandcollegescancompeteforgrants.

Toenable studentswhodonot receive scholarships, thegovernmenthasprovisions forstudentloans.Sofar,47studentshaveavailededucationloanstotallingNu.0.70million.

Thegovernmentwillaccordhighprioritytopromotingprivatecolleges.Whilewehave33privateschoolsthereisonly1privatecollegeinthecountry.Thereistremendousoppor-tunityforprivatecollegesascurrentlymorethan5,275Bhutanesearestudyingincollegesabroad.Thisisnotonlyaseveredrainonoureconomyandforeigncurrencyreservesbutmanyofourstudentsarenotgettingqualityeducation.Whileexistingpolicesencouragetheestablishmentofprivatecollegesthegovernmentislookingatadditionalincentives.

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PovertyIntherecentdecadeswemadeimpressiveprogressinoursocio-economicdevelopment.Improvementsinsocialsectorssuchashealthandeducationareimportantandbenefitev-eryoneinthecountry.However,fortheverypoorthisisnotenoughinbeingabletorealizetheirfullpotentialand,therefore,targetedpovertyinterventionistheonlysolution.

HisMajesty’skiduprogramshavehadthebiggestimpactintermsoftargetedinterventioninpovertyreduction.Supportfromthekiduprogramsthroughland,scholarshipanddirectfinancialsupporthavebroughtaboutsignificantimprovementsinthelivesofthepeople.

CivilSocietyOrganizations like theTarayanaFoundationalsoplayan important role inachievingthesocialobjectives.TarayanaFoundationisworkingin150villagesinupliftingthelivesofthepeople.IwouldliketothankHerMajestyGyalyumDorjiWangmoWang-chuckforherRoyalpatronageofTarayanaFoundationandforhernobleinitiatives.ThisyearalsomarksHerMajesty60thBirthAnniversaryandIwishtoofferTashiDelekandwishHerMajestytheGyalyumlonglifeonbehalfofthepeople.

UndertheRuralEconomyAdvancementProgramme(REAP),75villageshavebeeniden-tifiedtoreceivesupportandforwhichNu.150millionhasbeenapproved.41villageswillreceivesupportthroughTarayanaFoundationand34villagesthroughlocalgovernments.

To further rampupefforts towardspovertyalleviation, thegovernmenthasdirected fortheTargetedHouseholdPovertyProgram(THPP),inwhichthesurveyforvalidationandformulationof targeted interventions for thepoorest3154households identifiedby theDzongkhagsisbeingcarriedout.Bhutanmaybetheonlycountrythatengagesatsuchalevel.

Economic GrowthWehaveachievedremarkablesocio-economicprogressoverthefivedecadesofourplanneddevelopment.Today,Bhutan ispoised tograduate from thecategoryofLDCsby2021.However,sustainingdevelopmentthroughourownmeanscontinuestobeamajorchal-lenge.Wearestillhighlydependentondevelopmentaid.VirtuallyallofcapitalexpenditureofourFiveYearPlansisstillmetfromforeignassistanceandloans.Achievingself-relianceis thereforeavitalnationalobjective forwhichwemuststrengthenoureconomy.Beingasmalllandlockedcountry,withasmallpopulationandlimitedresourceswemustworkhardertostrengthenoureconomythroughourownproductivecapacitiesifwearetoreal-izethisvisionofourMonarchs.

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Asweareaware, twoyearsagoourcountry facedunprecedentedmacro-economicchal-lenges arising froma severe shortfall inourRupee reserves.The total governmentdebtsoaredfromNu.33.07billionin2008,toNu.62.8billionin2012toNu.10.13billionbyJune2013andweregrowing.ToaddresstheRupeecrisis,thegovernmentwascompelledtoborrowRs.15billionfromtheStateBankofIndiaandpaidNu.1.2billionininterestalone.

Toredressthesituation,temporaryrestrictionswerealsoimposedonpersonalconstruc-tionandvehicleloanswhileimportofvariousconsumeritemswereembargoed.Asaresultoftheensuingcreditshortageinthefinancialmarketeconomicactivitiesvirtuallycametoastandstill.Inflationreachedanall-timehighof8.6%andyouthunemploymentreached9.6%.GDPgrowthfelltoanall-timelowof2.1%in2013-thelowestgrowthinthelast20years.

Ihademphasizedinmylasttwostateofthenationreportsthatrevitalizationofourecono-myisamajorandurgentpriorityofthegovernment.Iamhappytoreportthatasaresultofthevariousinitiativestakenbythegovernmentoureconomyhasnotonlyshownpositivesignsofrecoverybutisbouncingbackasevidentfrom2.05%in2013to6.8%growthinGDPin2014.ThegrowthprojectionsbytheWorldBankareevenbetterat7.9%forthefiscalyear2014-15and8.4%by2016.TheAsianDevelopmentBankhasprojectedsimilargrowthfigures.

Therearemanyotherindicatorsthatsuggestapositivetrendinoureconomy.Forinstance,ourtotaltradeincreasedfromNu.80billionin2013toNu.92billionin2014.Mostsignifi-cantly,tradedeficitdecreasedfromNu.21.42billiontoNu.21.3billionduringthesameperiod.Thesuspensiononhousingandvehicleloanswereliftedin2014andhousingcon-structionloansincreasedfromNu.12.031billionin2012toNu.13.82billion.Commer-cialborrowingshavealreadyincreasedfromNu.45.4billionin2012toNu.55.3billionasofJune2014.Theembargoonimportsofvehicle, fuelandfurniturewasalsoliftedinJuly2014andthegovernmentrevisedtaxesonvehicleimportsandintroducednewtaxesonfuelconsumptiontoreplaceadhocimportembargos.Inflationhasdroppedto6.3%.AlthoughoveralloutstandingdebthasincreasedtoNu.108.3billionasofJune2014,non-hydropowerloanshavedecreasedfromNu.16.9billionin2012/13toNu.11.2billionin2013/14.Thisisthefirstdecreaseinnon-hydropowerloansinalongtime.TheRupeesitu-ationhasstabilized.Ourforeigncurrencyreserves,whichdeclinedtoUS$770millionin2012,havenowgrowntoUS$834.3million.TherupeereservesareatahealthyfigureofRs.10.7billionascomparedtoRs.1.5billionin2012.

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Despitetherecoveryprocessandthegovernment’sefforts,thereisnoroomforcompla-cency.ThegovernmentisworkingcloselywiththeRoyalMonetaryAuthority,otherkeyagenciesandstakeholders in theprivatesector toensurestrongeconomic fundamentalsandaddresstwomajorandlong-standingchallengesofoureconomy.

The first challenge is the large and persistent negative trade balance over the decades.Thoughshowingsignsofimprovement,itstandsatNu.21.3billionwhichis20%ofGDPandcontinuestoposeamajorrisk.Ourexportsareconfinedtomainlyelectricityandafewmineralbasedindustrieswhilewevirtuallyimporteverythingelse.

Theonlysolutionistoworkhard,diversifyoureconomybyenhancingproductivityandboostingdomesticproductionofgoodsandservicesforexports.Thisneedstobecomple-mentedbypromotinglocalproducts,forwhichmanyopportunitiesexist.EffortsarebeingmadetostrengthenFCBtocollectfoodproductsanddistributethemtomarkets,institu-tionsandschools.Inthetransportsector,wemustincreasinglysubstitutefossilfuelwithelectricity.LastyearweimportedNu.7.692billionworthofpetrolanddiesel.Ifwecanreplaceevenpartofthatwewillimproveourtradebalance,rupeesituationandalsoprotectourenvironment.Intheconstructionindustry,weimportNu.9.88billionworthofcon-structionmaterial.Withbetterdesignsthatsupportusinglocalmaterialandestablishingapermanentexhibitioncenterforlocalbuildingmaterial,wecanchangethat.

Thesecond,andamorecriticalproblem,isthecontinuedunemploymentofyouth,whichisunacceptableforasmallcountrywithalargeproportionofyoungpeople.Althoughyouthunemploymentdecreasedfrom9.6%in2013to9.4%in2014,thisisnotgoodenoughandwecannotallowyouthunemployment.Thegovernmentwillcontinueitssupportmeasurestocreatejobsforouryouth.AkeyongoinginitiativeofthegovernmentistheGuaranteedEmploymentProgrammeforwhichNu.192.550millionhasbeenallocatedtoimplementoverseasemployment,directemploymentandyouthemploymentschemes.Sofar718jobseekershavebeensentabroadundertheOverseasEmploymentScheme;1,222jobseekershavebeenemployedbyvariousenterprisesunderDirectEmploymentScheme,and240youthhavebeentrainedundertheYouthEmploymentScheme.UndertheGraduateSkillsProgramme,freshgraduatesareprovidedwithself-employmentskillsandasofdate,atotalof69graduateshavecompletedand158areundergoingtraining.Thegovernmenthasalsoestablishedahigh-levelmulti-sectoralemploymenttaskforcetoidentifyimmediatesolu-tionsforcreatingemployment.Iampersonallyoverseeingtheeffortsofthetaskforceandamhappytoreportthattheinitialrecommendationsareverypromising.

While the governmentwill continue tobuildon these initiatives the roleof theprivate

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sectorisvitaltoaddressyouthunemployment.Currently,thegovernmentanditscorpora-tionsremainsthelargestsourceofemployment.Thismustchangeifwearetoeffectivelyaddressthisnationalchallenge.Opportunities forgainfulemploymentmust increasinglycomefromprivatesector.Thereisnootherwayout.

Here,Iwouldliketothankallthoseprivatesectoremployersthathavealreadytakenuponthemselves this important taskofcreating jobs forourpeople. Iamawarethat therearemanyotherSMEsthatareincreasinglycreatingjobsforouryouth.Thisisindeedencourag-ingandthegovernmentwillcontinuetopromotetheprivatesectorasastrategicpartnerinstrengtheningoureconomythroughourownproductivecapacities,providinggainfulemployment forourpeopleandultimatelyachievingourcommonnationalgoalof self-reliance.

Inthisregard,IwouldliketoprovideanupdateontheFiveJewelsofoureconomythatIannouncedinmylastStateoftheNationAddressandwhichcontinuestotakecentrestageinourprogrammestoachieveournationaldevelopmentgoals.

Jewel 1 – HydropowerWeareblessedwitharichenvironmentandanetworkofswiftflowingriversthatprovideusauniqueopportunitytogeneratecleanenergythatisvitaltostrengthenoureconomy,promoteoverallsocio-economicprogressandournationalgoalofself-reliance.Assuch,developmentofhydropowerremainsthebackboneofoureconomy.

Thetotalhydropowergenerationcapacityof30,000MWoutofwhich23,760MWiseco-nomicallyfeasible.Theinstalledcapacityis1488MW,whichislessthan5%ofourcapacity.In2014,hydropowerwas14.3%ofGDPandweproduced7,147.10millionunitsofelec-tricityofwhich72.5%wasexportedbringinginNu.10.7billioninrevenue.

Iamhappytoreportthatdespitesomedelaysandchallenges,wearemakinggoodprogressintheongoinghydropowerprojectsunderconstruction,whichwouldaddanadditional3,658MWwhencompleted.The1,200MWPHPAIprojectis74%complete,the1,020MWPHPAIIprojectis60%completeandthe720MWMangdechhuprojectis65%com-plete.Workhasalsostartedonthe600MWKholongchhuand118MWNikachhuproj-ects.Furthermore,thegovernmenthasapprovedthedetailedprojectreports(DPRs)forWangchhu,Bunakha,ChamkharchhuandAmochhuhydropowerprojects.

Thedevelopmentofthisvitalsectorofoureconomywouldnothavebeenpossiblewith-out thegeneroussupportandcooperationof India.Almostallourhydropowerprojects

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havebeendevelopedwithassistancefromtheGovernmentofIndia.HydropowerremainsthecenterpieceofmutuallybeneficialeconomiccooperationbetweenBhutanandIndia.WhileIndiabenefitsfromthecleanenergyweexport,Bhutanbenefitsfromtherevenueweearnaswellastheavailabilityofcheapandcleanenergyforourdomesticuse.ItakethisopportunitytothankthegovernmentandpeopleofIndiafortheircontinuedsupportinthisvitalsector.

Whilewewillcontinuetodevelopthissector,thereisaneedtomovebeyondsimplygen-eratingandsellingpower.Wemustinvestandbuildourcapacitytobecomeleadingexpertsandaknowledgecentreforhydropowerdevelopmentinourowncountry,intheregionandglobally.Inthisregard,Iamhappytoreportthatseveralinitiativesarealreadyunderwayun-dertheableleadershipofDrukGreenPowerCorporation.FromoperatingandmanaginghydropowerprojectsbuiltjointlybytheGovernmentsofIndiaandBhutan,DGPCisnowmakingsignificantcontributionstoself-relianceandcapacitybuildinginthisvitalsector.Tillrecently,DGPCfocusedonoperatingandmanaginghydropowerprojectsbuiltjointlybythegovernmentsofIndiaandBhutan.Butnow,DGPChasincreaseditscontributioninthehydropowersectorbymarkingtheseimportantmilestones.

· OnJune2014,DGPCsuccessfullycompletedtheTsibjulumchhuDiversionSchemethatincreasedTala’sgenerationcapacityby15MW.Theschemewasdesigned,man-agedandfinancedbyDGPC.

· On21Februarythisyear,the126MWDagachhuhydropowerprojectwascommis-sioned.ThisjointventureprojectbetweenTataandDGPCwasmanagedandmoni-toredbyDGPC.

· InOctober last year,DGPCstarted constructionof the118MWNikachhupowerproject.TheprojectwasdevelopedbyDGPCandisbeingfinancedandmanageden-tirelybyDGPC.

· InOctober lastyearBhutanHydropowerServiceCenter, jointventurebetweenAl-stomandDGPC,began itsoperationsandhavestartedrepairinghydro-mechanicalcomponents.Wenolongerneedtosendthecrucialcomponentsoutsidethecountryforexpensiveandtime-consumingrepairs.DiscussionsareunderwaytoexpandtheCentertomanufacturehydropowercomponentsinBhutan.Thisventureisasignifi-cantsteptowardsourgoalofself-reliance.

· Bytheendofthisyear,DGPCwouldhavecompletedtheDPRforthe1230MWRot-poshongproject,thelargestprojectthattheyhavetakenonindependently.

· Inaddition,DGPCisundertakingseveralprefeasibilityandfeasibilitystudiesforvari-

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ousotherprojectsthatwillbeusedforpreparingDetailedProjectReports(DPRs).Allthishasaddedexpertiseandknowledgeinhydropower.Wecanbecomethecenterforhydropowerknowledgeandskills.Furthermore,thegovernmenthasalsotakenthefollow-inginitiativestobuildadditionalcapacityinhydropower:

· TheConstructionDevelopmentCorporationLimitedhasbeen transferred toDHIwithamandatetobuildcapacitytoundertakehydropowerconstructionandpromotethestandardofconstructioninthecountry.

· APowerTrainingInstitutehasbeenestablishedinDekilingandwasinauguratedbyPresidentofIndiainNovember2014.

IassuretheNationthatthegovernmentwillcontinuetoensurethatthedevelopmentofthehydropowerisinournationalinterestandbenefitsfirstandforemostthepeopleofBhutan.Wewillcontinuetoactivelyencouragethebuildingofdomesticnationalcapacitytoundertakeconstructionofpowerprojectsandtakealeadroleinthesupplyofgoodsandservicestothehydropowerprojects.

Jewel 2 – AgricultureAgriculture is the foundationofanationensuringeconomicgrowth,people’s livelihoodandsocialstability.Itisimportantforoureconomyfortworeasons:

a) 62%ofourpeopledependonfarmingandthisisimportantintermsofemploymentandpovertyalleviation.

b) Wecannotbecometrulyself-reliantunlesswegrowenoughfoodofourowntosustainourpeople.

Inthelastyearagricultureamountedto16.2%oftheGDPandthisisgoodprogress-witha3%growthrateforthefirsttime.Wewillnowaimtoincreasethisgrowthratethrough:

a. Cerealproductionandhorticulture

b. Cashcrops-wherewearemorethanselfsufficient.Cardamomandpotatoeshavebeenfetchingrecordprices.

c. Eggs-weareselfsufficient-productioncontinuingtoincrease

d. Vegetables-thereisa31.4%increaseinproductionandweareontargettobeselfsufficientby2017.

e. Dairy-wewillbeselfsufficientby2018

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Investmentsthathavebeenmadebythegovernmenttoincreaseproductioninclude:

a) Farm Roads:Toimproveaccessibilityandalsoconnectpeopleandmarkets730.80kmoffarmroadshavebeenconstructedinthelasttwoyears.Thisyearalone,131newfarmroadsmeasuring657kmwereconstructed.Afarmroadisnotaroadifitcanonlybeaccessibleinthespringandautumn.Therefore,toensurethatthefarmroadsareac-cessibleatalltimes,112farmroadsmeasuring427kmwererenovated.TheroadsbuiltbytheCentralMaintenanceUnitisgenerallyallweatherroads.

b) Irrigation:Morethan100kmofirrigationwasbuiltduringthelasttwoyears.Thisyear12schemesof125kmwillbenefit3840acresforover1746households.Someschemesthatwerebuilt inthe1970sbyHisMajestytheFourthDrukGyalpohavefallenintodisrepair.Twomajorschemesthathavebeenrenovatedandrelaunchedin-cludethe11.4kmlongBuyangirrigationchannelinTrashiYangtsiand7kmlongTak-laiirrigationscheme.Inaddition,6.83kmKuchiDianairrigationschemeinYoeseltseGewoginSamtseisalsobeingrebuiltandwillbenefit1043acresoflandforover300households.Thesethreeirrigationschemeswillboostagriculturalproductivitybypro-vidingwatertoabout7743acresofland.Wehumblydedicatethemtothe60thBirthAnniversaryofHisMajestytheFourthDrukGyalpo.Another145kmisbeingreno-vated,whichwillbenefit1401householdsand4665acresofland.

c) Farm mechanization:13farmmachineryhiringunitshavebeenestablishedwith89tractors,174powertillersandothermachineries.4600acresisundermechanization.Tosupportourfarmers,onepowertillerhasbeenissuedtoeverygewog.Bytheendofthisyear,anotherpowertillerwillbeprovided.Theaimistoprovideonepowertillerperchiwog.Eachgewogwillalsoreceiveoneutilityvehiclebythisfinancialyear.

d) Electric fencing:Ourfarmersworkhardtotilltheirlandsandgrowtheircrops.Onebigchallengetheyconstantlyencounteristheencroachmentoftheirlandandincreas-ingcropdepredationbywildanimals.Atotallengthof477.17kmofelectricfencinghasbeenbuiltacross20Dzongkhagsbenefittingmorethan3479households.Theex-perienceoffarmersontheimpactofelectricfencingisencouragingastheynolongerhaveto losesleepbyguardingtheircrop.This is themosteffectivesolutionagainstwildanimalsbutmaintenanceisimportant.Inthecomingyearthegovernmentwillbuild485kmmoreofelectricfencing.However,IurgefarmersandLocalGovernmenttomaintainthefenceproperlyfromtimetotime.

e) Green houses: Towards promoting off-season vegetable production and enhancenurseryproduction,176greenhouseswere installed in thepastyear. In thecomingyear,weplantosupport650moregreenhouses.

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f) Livestock:Thegovernmenthasalreadyexpanded13livestockcenters.WewillinvestNu.817.786millioninthecomingfiscalyeartofurtherupgradeandexpandsothattheselivestockcentersareabletoprovideinputslikecalves,piglets,poultryinput(dayoldchicks)andfingerlingtoourfarmers.

g) Financing:Oneoftheconstraintsfacedintheagriculturalsectorisaccesstofinanceand, therefore, theestablishmentofGewogBanks.TheBhutanDevelopmentBank(BDB)hasalreadyestablished19gewogbanks.By theendof Junewewouldhaveestablished50banks,andbytheendofnextyear,wewouldhaveestablishedbanksinalmosteverygewoginthecountry.Ourfarmerswillgetbankingserviceswithouthav-ingtotraveltothedzongkhags.Iwouldliketoencourageallruralhouseholdstoopenbankaccountsasthiswilldrawthemintothemainstreamoftheeconomy.

ManyfarmersarealsoavailingloansfromtheBusinessOpportunityandInformationCentre(BOIC).So far,1211projectsamounting toNu.338millionhavebeenap-proved.1953moreapplicationsarestillpending.Farmersareeagertoavailtheloansevenimpatientbuttheapplicationsneedtobeprocessedproperly.Allthishasbeenachievedinbarely10monthsthatBOIChasbeenoperational.

h) Farm shops:Oneofthebiggestchallengesthatfarmersfaceisthatthelackofaccesstoamarketoutletinwhichtoselltheirproduce.Toaddressthisissue,farmshopswillbe introduced to sell seeds, fertilizers, animal feeds and farming tools/implements.Thefarmshopswillalsobuyproducefromthefarmers.Thefirstfarmshopwasinau-guratedinSephuGewog.Bythisyear,therewouldbe74morefarmshops.

TheAnnualPerformanceAgreements(APA)withallthedzongkhagsfocusmainlyonag-riculture,giventheimportanceithasforthepeopleinallthedzongkhags.Hencealltheleadersincludingthedzongdasandgupsaremakingseriouseffortsinboostingthesectorandinmeasuringagriculturaloutputswhichisalreadygrowing.Thegovernmentexpectstheagriculturaloutputtogrowsignificantlyinthecomingyears.

Jewel 3 – TourismTourismis3.57%ofGDPbutthesecondlargestrevenueearnerforthecountrycontribut-ingmorethanNu.20.8billiontotheeconomyin2014,whichisanincreaseof25%fromthepreviousyearandNu.1.35billiontogovernmentrevenue.Moreimportantly,tourismgeneratesthelargestnumberofjobsemploying24,645Bhutanesethatincludenotjusttouroperatorsbutalsodrivers,guides, staff inhotelsand localartisans in thehandicraftsec-tor.Withjointeffortsbythegovernmentandprivatestakeholders,thisvitalsectorofoureconomycancreatemanymorejobs.

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Thegovernmentwillcontinuetosupportthe“highvaluelowimpact”tourismpolicyandpromotetheholisticdevelopmentofthisvitalsectorincollaborationwithallrelevantstake-holders.Suchcoordinatedeffortshavehelpedtheindustrytomaintainasteadygrowth.In2014,Bhutanreceivedatotalof133,480visitorswhichisthehighestnumberoftouristar-rivalsrecorded.Ofthetotal,62,129werefromIndiaand71,351werefromothercountries.

Amajorhighlightofthissectorin2014wastheBhutan–ThailandFriendshipOfferinitiatedbythegovernmenttargetingThaitouristsduringtheoff-seasonperiod.Theinitiativewashighlysuccessfulwith12,105ThaitouristshavingvisitedBhutan.ThisgeneratedmorethanNu.150millioninrevenuesforthegovernment.

Thegovernmenthasalsoannouncedtheyear2015asthe“VisitBhutanYear”tocommem-oratethe60thBirthAnniversaryofHisMajestytheFourthDrukGyalpo.Thenumberofarrivalshasalready increasedbymorethan62%inthefirst threemonthswithatotalof39,899visitorscomparedto24,500arrivalslastyear.

Thegovernmentwillcontinuetoinvestinthetourismsectorbydevelopingtrekkingtrails,promotingfestivalsandbuildingroadsideamenities.Over11newtrekrouteswillbedevel-opedduringtheupcomingfiscalyearwithafocusineasternBhutantodiversifytourismdestinationsandtakeitsbenefitsacrossthecountry.ThedevelopmentoffacilitiessuchascampsitesandotherservicesalongtheSaltTrekRouteineasternBhutanhavealreadybeeninitiated.Theconstructionoffourroadsideamenitiesisnearingcompletionandanaddi-tional11newroadsideamenitieswillbebuilt.Community-BasedTourismModelsarealsobeingexploredtobenefitlocalcommunities.

TheRoyalInstituteofTourismandHospitalityiscompleteandwillstrengthencapacityde-velopmentinthetourismsector.Theadoptionoftourismrulesandregulationswillprovideanenablingpolicyenvironmentandthegovernmentplanstointroducehelicopterservicesthisyear.

Asinfrastructureiscriticalinthetourismindustry,thegovernmentwillcontinueitssup-portmeasurestoattractdomesticandforeigninvestmenttostrengthenourtourisminfra-structure.Such supporthas already resulted inan increase inprivate investments in thehotelsector,increasinghotelcapacityfrom1,619roomsin2013to2,186roomsin2014–a35%increaseinjustoneyear.However,mostofthisincreaseisconcentratedinThimphuandParo.Moreneedstobedoneelsewhere,especiallyineasternBhutan.Withthedevel-opmentofadditionaltourismproductsbeyondcentralandwesternBhutan,Iamconfidentthatinvestorswillgraduallyfocustheirinvestmentsinotherpartsofthecountry.

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AnotherareathatremainslargelyuntappedisdomestictourismwithmanyBhutanesein-creasingly travellingoutside forholidays.TheTourismCouncil ofBhutan isdevelopingpackagestopromotedomestictourism.

Allthiswillstrengthenthisvitalsectorofoureconomy.

Jewel 4 – Small and Medium EnterprisesSMEsarevital for thecreationofself-employmentandemployment,diversificationanddeepeningofoureconomyandpromotingbalancedandinclusivedevelopment.Smallen-terprisesforms4.4%ofGDPandtheirgrowthhasbeensignificant,with2,645newenter-prisesbeingestablishedin2014creatingjobsformorethan7,500Bhutanese.In2014,thenewlyestablishedBusinessOpportunityandInformationCentre(BOIC)aloneapproved589projects for small enterprises that are spread across the20Dzongkhags.With a to-tal investmentofNu.178.45million, theseprojectshavegeneratedemployment for905Bhutanese.TheAgencyforPromotionofIndigenousCrafthasalsosetup360newruralhouseholdsinzorig chusum.

Topromotethisvitalsectorofoureconomy,thegovernmenthasgrantedtaxexemptionsformicroandsmallbusinessesintheruralareasunderwhich10,254enterpriseswereex-emptedfromtaxesamountingtoNu.14.315milliontillApril2015.TheBOICwillbefur-therstrengthenedandstreamlinedtoprovidefinancingforsmallenterprisesthroughoutthecountry.ServiceswillbetakentothepeoplethroughICTtoreduceadministrativebur-denandenhanceservicedelivery.Employmentandenterpriseestablishmenttargetswillbeincreased andentrepreneurshipdevelopmentprograms targetingunemployedgraduateswillbeinitiated.AbusinessincubatorattheChangzamtogservicecentertosupportsmallbusinessstartupsisexpectedtobecompletedby2017.The110-acreBondeymaindustrialestateinMongarisbeingdevelopedtolargelyfocusonsmallandmediumenterprises.ToensureanenablingpolicyenvironmentforSMEs,theNationalAssemblyhaspassedtheEnterpriseRegistrationBill.

Jewel 5 – MiningAsa country rich innatural resources, themining sectorplays an important role inoureconomycontributing to2.7%ofGDP.Thesector registereda realgrowthof32.2% in2013/14,amarkedimprovementfromthenegativegrowthof2.2%inthepreviousyear.Therearecurrently29activeminesand36quarries inthecountrycovering3,471acres.Minesconstituteanimportantsourceofrevenuetothegovernment.Thoughminingisonly2.8%ofGDP,minescontributedNu.282.4millioninlicensefeeandroyaltyin2014.

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Toprovideaholisticpolicyframeworkandaclearroadmapforthesustainabledevelop-mentofthisstrategicsectorthegovernmentisdevelopingaMineralDevelopmentPolicy.ThePolicy,whichisinitsfinalstagesofdevelopmentandwillbereadyforimplementationbythisyear,willresolveissuesrelatedtoallocationofmines,valueaddition,compliancemonitoring,environmentalandsocialconcernsandmaximizereturns.

Furthermore, the government has also established a StateMiningCorporation (SMC)underDrukHoldingand Investments inDecember2014.TheSMC isexpected to leadthewayforscientificandsustainablemining.Itwillcomplementtheeffortsoftheprivatesector,supporttheeffortsofthegovernmentinmineralprospecting,optimizeeconomicreturnsfromtheminingsectortowardsachievingeconomicself-relianceandsetthestan-dardsforsociallyresponsibleandsustainablemining.AlltheproceedsfromtheSMCwillbeusedtofinancetheschoolreform.

Other SectorsTocomplementtheFiveJewelsinstrengtheningoureconomy,thegovernmentisalsopro-motingeconomicopportunitiesinothersectors.TheseincludeICTandhighqualityedu-cation.

Tofullyrealizethepotentialofthe5economicjewelsandotherareas,thegovernmentwillcontinuetoinvestinprivatesectordevelopment,developingeconomicinfrastructure,pro-motingaccesstofinanceandensuringanenablingbusinessenvironment.

Infrastructure

i. Roads: Enhancingdomestic andexternal connectivity is vital to strengtheningoureconomyandachievingself-reliance.Thegovernmentwill focusonthecompletionoftheEast-WestHighwaydouble-lanningandblacktoppingofGewogcenterroadstoenhanceourinternalroadconnectivity.

Todaywehaveatotalroadnetworkof10,713kmofwhich2478arenationalhighways;1387Dzongkhaghighways;and5129gewogroadsandfarmroads.Theroadsunderconstruction:

a) East-WestHighwaywideningwhere42contractorsareinvolved.14workpack-ageshavebeenawardedand20areunderevaluation.

b) Raidak–Lhamoizingkha(18km)-onlythebridgeisleft.

c) Panbang–Nganglam(55.6km)-4kmofblacktoppingleft.

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d) Samdrupcholing–Samrang(24km)-completed.

e) Gyalposhing–Nganglam(75km)-2kmofformationcuttingisleft.

f) Dagapela–Dalbari(80.5km)

g) Jengkana–Khamina(65km)

h) Namchukhola–Gakiling(16km)

Inadditiontheblacktoppingof52Gewogcenterroadisgoingon.

ii. Connectivity: Giventhechallengesofournaturalgeography, internetconnectivityisnotonlyimportantbutanessentialinfrastructureforeconomicdevelopment.With3Gnowavailablethroughoutcountry,thegovernmentwill focusonenhancingser-vicesandreducingcost.AnE-BusinessandE-MasterplanareamongtheinitiativesinthepipelinethatwillfurtherintegrateICTasakeypillarforeconomicdiversification.

iii. Air transport: Asa landlockedandmountainous country, air transport connectiv-ityisvitalbothfortourismanddiversifyingthemanufacturingandservicessectors.Muchhasbeenachievedinthisregard.ThenumberofpassengersflyingthroughParoairport lastyear296,422wasthehighesteverrecorded-a38%increase.Anewair-crafthasjoinedtheDrukAirfleetwhichnowincludes6Airbus319and1ATR.ThegovernmentisexploringnewroutesandAirServiceAgreementswithMyanmarandSri Lanka are being processed thatwill further enhance international connectivity.Thegovernment is alsoworkingongettingall threedomestic airports functioning.BumthangandGelephuairportterminalsarereadyandYongphulawillbereadybynextyear. DomesticairconnectivitywillbefurtheraugmentedwiththehelicopterservicesthatwillbelaunchedinNovembertocommemoratethe60thBirthAnniver-saryofHisMajestytheFourthDrukGyalpo.

iv. Industrial estates: Akeychallengeforprivatesectordevelopmenthasbeenthelackofindustriallandandinfrastructure.PasakhaIndustrialEstatewith188acreswases-tablishedin2006.AspartofitsinfrastructuredevelopmentaNu.35.5millionwastemanagementprojecthasbeencompletedin2014.ThisyearNu.360willbespentforroad and constructionof 2 bridges.Four industrial estates comprisingof a total of1,650acresarealsobeingplannedacrossthecountry:

a) Bondeymaestate inMongarwith110.34acres isexpectedtobecompletedbyJune2016.Nu.197.7millionhasbeenmobilizedfromtheGoIforitsdevelop-ment.Theestatewilllargelybereservedforsmallandmediumenterprisesengag-

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ingintheagriculturesectorandimmenselybenefittheeasternDzongkhags.

b) MotangaestateinSamdrupJongkharwith145.52AcreswillbefundedbyRGOBand is expected to be completed within the current plan period. Preliminaryworkswillbegininthenewfiscalyear.

c) JigmelingestateinSarpangwith755.57AcreswillbefundedbyGOI.Nu.326.5millionhasbeenmobilizedandinfrastructureworkisscheduledtobeginfromthenewfiscalyear.

d) DhamdumestateinSamtsewith613.78AcreswillbefundedbyGOI.Nu.300millionhasbeenmobilizedandinfrastructureworkisscheduledtobeginfromthenewfiscalyear.

v. Finance: Anotherkeypriorityofthegovernmentistoensureasoundfinancialsectorandpromoteaccesstofinance.TheRoyalMonetaryAuthorityhasbeenmanagingthefinancialsectorwellandthehealthofthebankingsystemhassignificantlyimproved.TheNu.2.1billionofESPhascontributedtowardsinjectingthemuchneededfinan-cialliquidityinthebankingsystem.ThegovernmentisalsoexploringwaystoincreaseaccesstofinancewithinternationaldevelopmentbanksandhassignedanagreementwiththeEuropeanInvestmentBank.

Business EnvironmentToensureanenablingenvironment for thefive jewels it is imperative that the legalandregulatoryframeworksareharmoniousandsupportive.Towardsthisend,thegovernmenthasundertakenthefollowingPolicyandregulatoryreforms:

i. OntheWorldBank’sEaseofDoingBusinessindex,Bhutanisranked125outof189countries.Amulti-sectoralDoingBusinessTask Force has been established to im-proveourrankingandweareontracktowardsgettingtothetop100thisyear.

ii. TheForeignDirectInvestmentPolicy2010hasbeenrevised.Inthelasttwoyears,16projectsworthNu.5.13billionhavebeenapproved.Fourofthemarealreadyoperat-ingwhile the remaining12are at various stagesof construction.Thesenew invest-mentsareexpectedtocreatehundredsofjobsforourpeople.

iii. TheEconomicDevelopmentPolicyof2010isbeingreviewedtoprovidethehighestlevelof“strategicdirection”,andtoensurethateconomytakesthecentrestageofourdevelopmentinitiatives.Thenewpolicywillbereadybyendofthisyear.

iv. TopromotestrongpublicprivatepartnershipstheBetterBusinessCouncilhasbeen

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establishedandincludesrepresentativesfromthegovernment,privateandcorporatesectors.Iampersonallychairingthisimportantcouncilandwearesettinganambi-tiousagendatoresolvechallengestotheinvestmentclimateinthecountry.TheCoun-cilwillsoonreviewtheprivatesectordevelopmentplan,whichhasbeencompletedasannouncedlastyear.Aspartofforum,thegovernmentrecentlyinitiateda“DoingBusiness:MeetYourGovernment”program thatprovidesdirect redress system forbusinesses.Wearecurrentlyhelping15enterprises resolvevarious issues related todoingbusinessandmorehaveshowninterest.

v. TheEnterpriseRegistrationBill,whichwaspassedduringthissessionofParliamentwill make doing business easier and accord SMEs legal protection and associatedrights.

vi. TheCompaniesAct2000isunderconsiderationbytheParliamentforamendment.Therevisedactwillsimplifyregistrationprocessesforincorporatedcompanieswhileensuringenhancedcorporategovernanceinlinewithinternationalbestpractices.

vii. TheTourismRulesandRegulationshasbeenadoptedtofacilitatethedevelopmentofthissector.

Promoting local productsThetradedeficitstandsatNu.21.3billionwhichis20%ofourGDP.Therefore,wemustworkhardertowardsnarrowingthetradedeficit.

Inthisregard,Iseealotofopportunitiesthatcanhelpusreduceimport,increaseexportandcorrectthetradebalance.Alotcanbedoneifwepromotetheproductionofandusageofourlocalproductsinourmarkets,insteadofimportingeverythingfromoutside.

In2014alone,wehave importedfooditemsworthNu.6.68billion.Inacountrywheremorethantwo-thirdsofthepopulationworksinthefarms,wecancertainlyproducefoodproductsenough forourselves ifweprioritizeonproductionanddistributionof theag-riculturalproducts.Therefore,thegovernmentisstrengtheningtheFoodCooperationofBhutan(FCB)tocollectthefoodproductsanddistributethemtothemarkets,institutions,andschools.

Wealsospendahugeamountofmoneyonimportingconstructionmaterialsintothecoun-tryeveryyear.Lastyear,wespentatotalofNu.9.58billion.Weproducebutwearenotusinglocalmateriallikesbrickstopromoteourlocaleconomy.Topromotetheproductionanduseoflocalmaterials,thegovernmentwillconstructapermanentexhibitioncentreforlocalbuildingmaterials,andincorporatelocalmaterialsintheBhutanScheduleofRates

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(BSR)anddrawings.

WealsomustmakeuseoftheBhutaneseworkersintheconstructionsector.Somesaythisisdifficult.However,theexperienceofCDCL,whichemploys500Bhutaneseengineers,techniciansandskilledworkers,suggestsotherwiseandthatsolutionscanbefound.Icon-gratulateCDCLforshowingthewayandwouldliketoreiteratethegovernment’soffertoprovideworktoanycontractorwithafullBhutaneseworkforce.

Promotionofdomestictourismwouldbeoneotherway.Itwouldbewonderfulifourpeo-plecangocamping,undertakepilgrimages,andspendvacationsinplacesofinterestwithinthecountryand,therebycontributetothelocaleconomy.

LastyearweimportedNu.7.6billionworthoffossilfuel.Therefore,wemustreplacefossilfuelwithelectricityfortransportation.Ifwecanreplacepartofthatwewillimproveourtradebalanceandrupeesituation,andprotectourenvironment.

Private sector developmentIwouldliketoreiteratethatastrongprivatesectorisvitalifwearetobuildastrongecono-my,addressourunemploymentchallengeandachieveself-reliance.

Nodoubtthattheprivatesectorhasfaceddifficultyduetomacroeconomicsituationfol-lowingtheRupeecrisis.However,nowthatweareonthepathtofullrecoverytheprivatesectorcanandmustgrow.Oureconomy is stableagain, theRupeesituationhas signifi-cantlyimproved,loansareavailableandthegovernmentissparingnoefforttopromotethe5Jewelsoftheeconomy,improveeaseofdoingbusinessanddevelopingstrategiceconomicinfrastructure.TheEDPisbeingrevisedandFDIhasbeenrevisedandthegovernmentispromoting theuseof localproducts.Thepay increase togovernmentemployeeshas in-creaseddisposable incomebymorethanNu.2billionandmost importantlythebudgetofNu.213billioninthe11thFYPisanunprecedentedopportunityforprivatesector.Forinstance,inconstructionalonethereisaboutNu.72billionofworkplannedwithNu.33billionfornationalhighways,bridges,gewogroadsandfarmroads;Nu.4.024billionforconstructionofschools;andNu.1.329billionforhospitals.Additionallythereisalotofwork through thenon-plannedbudgetof thehydropower sectorandsimilaropportuni-tiesthroughtargetedinterventionprogramsofthegovernmentinagriculture,tourismandsmallenterprises.

Icallupontheprivatesectortorisetothechallengeandworktowardsstrengtheningitspartnershipwiththegovernmenttoachieveourcommongoalsandobjectives.

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SECOND PILLAR OF GNH: PRESERVATION AND PROMOTION OF CULTURE

Ifthereisonethingthatsetsusapartfromtherestoftheworldtoday, it isourrichanduniqueculture,whichiswidelyadmiredbytheoutsideworld. Manywonderhowweman-aged tokeepourculture intact.We inBhutanknowthat it is a resultof the tirelessandconscientiouseffortsmadebyourvisionaryKingsandforefatherstoguard,nurture,andbequeaththelegacytous.

HisMajestytheFourthDrukGyalpohadrightlysaidthatforasmallcountrylikeBhutan,withoutmilitarymightoreconomicclout,itisthevibrancyofouruniquecultureandtradi-tionsthatwillserveasthehallmarksofoursovereigntyandsecurity.Indeeditisoursharedvalues, traditions, andbeliefs that shapeourcommonnational identity, andcontinue tobindustogetherasanationaswenavigateourwayforwardinthe21stCentury.Andin-creasingly,ithasalsobecomeimportantforoureconomyanddevelopment.

Spiritual HeritageOurspiritualheritageisoneaspectthatsingularlyimbuesuswithsublimevaluesanden-richesour societywith spirituality even aswepursuemodern socio-economicdevelop-ment.UndertheenlightenedleadershipandpatronageofourKingsandtheRoyalFamily,HisHolinesstheJeKhenpoandtheZhungDratshangalongwithothereminentreligiouspersonalitiesofall lineagesaroundthecountry,havebeenpivotalinpreservingandpro-motingourspiritualheritage.

Overthepastoneyear,significantreligiouseventswereconductedalloverthecountry.InJanuarythisyear,theZhungDratshangconductedthe“sip-chi-doe-kurim”.Thiswasatrib-utetoHisMajestytheFourthDrukGyalpoonhis60thbirthanniversaryandIwouldliketothankHisHolinesstheJeKhenpo,ZhungDratshangandcivilservantsforsuccessfullyorganizingthishistoricevent.

Manyotherkurims andreligiouseventswerealsoorganizedbymembersoftheroyalfamily,dratshang,choedey,andrabdeythroughoutthecountrytocommemoratethe60thBirthAnniversaryofHisMajestytheFourthDrukGyalpo.AlltheseareafittingtributeasDruk-gyalZhipaisatrueDharmaKing.

Thisyearisalsothe60thbirthanniversaryofHisHolinesstheJeKhenpo,whoispresentlyonyearlongretreatforthewellbeingofourKing,Country,andthePeople.RespectfullyIwishtoofferTashiDelekandwishHisHolinesstheJeKhenpolonglifeonbehalfofthepeople.

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Towardsmakingreligiouseducationmoreaccessibletothosewhoaspiretopursueit,nu-merousnewmonasticschoolsandcollegeshavebeenorarebeingopened,upgradedorbuiltindifferentpartsofthecountryduringthepastyear:

· ThePhochhuDumraCentralMonasticSchool(ZhirimTewa)havebeenestablishedinPunakha, and theMonastic astrological school (TshizhungLobdra) inSershongunderSarpangDzongkhag.

· ConstructionofTangoBuddhistCollege inDodena(Thimphu) isnearingcomple-tion,andthatofZhirimLobdraTewaeachinGelephuandSibsoowillstartsoon.

· TheWolakhanunnery inPunakha,andKhothaRinchenlingShedraarebothbeingupgradedintoThorimWogma.

· TheZhirimLobdraTewaBuddhistschool,envisagedbyHisHolinesstheJeKhenpoisbeingbuiltinTashichhoeling,Samtse.TheconstructionisbeingsupportedbytheGovernmentofIndiaandoncecompletedwillprovideaneightyear longcoursetoyoungmonksandnovices.

OurLhotshamHinducommunityalsocontinuestoreceivesupportfromHisMajestyTheKingintermsofreligiouspatronage.TheShivalayaMandir inSamtse,anoldandsacredMandir,isbeingrenovatedupontheCommandofHisMajestyTheKing.HisMajestyhascontributed to theMandir and ispersonallyoverseeing the renovationworks.Similarly,theconstructionofaMandir inThimphuisalsonearingcompletion.ItishopedthattheseMandirs willserveasplacesofworship,andenhancethespiritualwellbeingofourLhot-shamHinducommunity.

DuringmyvisittoIndiaandSriLankathisyear,thePresidentofIndiaandthePresidentofSriLankabothdonatedBodhitreesaplings.TheBodhitreeorJanchub ShingholdsgreatreligioussignificanceinBuddhismasitisassociatedwiththelifeofLordBuddha,hisen-lightenmentandteachings.Iamsurethatthesacredtreeswillinspireadeepsenseofspiri-tualdevotionandfulfillmentamongourpeople.TheywillbeplantedinsuitablelocationsattheCommandofHisMajestyTheKingtocommemoratethe60thBirthAnniversaryofHisMajestytheFourthDrukGyalpo.

Architectural HeritageOurartandarchitecturalheritage,especiallyourmajesticDzongsandLhakhangsandthemarvelouspaintingsandartworksthereof, isaphysicalmanifestationof thegrandeurofourforefathers’imaginationandingenuity.Itwasthroughthesestructuresthatourcountryhasbeendefendedandadministered,and ismuchofwhatconstitutesourculture today

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preservedandperpetuatedoverthecenturies.Therefore,conservationofourarchitecturalheritageisvital.

FollowingHisMajestyTheKing’sCommand, the reconstructionof theWangduePho-drangDzongisunderwayandisprogressingwell.TheconstructionoftheDzong’sKuenreyhasalreadystarted.WelostatreasuregiftedbyZhabdrungNgawangNamgyalbutwehavebeengiventheresponsibilityandopportunitytorebuildthedzong.Thisisanationalproj-ectforallthepeopleofBhutanandnotjustforthepeopleofsha-da-gyed.Therefore,wemustalljoinhandstorebuildingthehistoricdzongtoitsformerglory.AsPrimeMinister,Iwillleavenostoneunturnedtoachievethis.

Some other important conservation and restoration projects are also being carried outacrossthecountry.ManyLhakhangsincludingPhajoding,LhakhangKarpo,GasaDzong,ParoTa-DzongandTrashigangDzongarebeingrenovated.NewdzongsarebeingbuiltinDenchiforPemagatshelDzongkhag,Sarpang-TarunderShompangkhaGewogforSarpangDzongkhag.

ChortensareperhapsthemostcommonreligiouslandmarksinBhutan,andholdimmensespiritualsignificanceforourpeoplebuiltbyvariousreligiousfigures,lamsandourforefa-thers.Theywerebuilttowardofevil,topreservereligiousrelicsandsymbolizeenlighten-ment.Thereare8,065Chortensinthecountrywith4,226inneedofrepair-manyhavingbeenvandalized.Tocommemoratethe60thbirthanniversaryofHisMajestytheFourthDrukGyalpo,allchortensaroundthecountryarebeingrestored.Sofar,atotalof1,238chortensin7dzongkhagshavebeenrepaired.IurgetheDzongdas,localgovernmentandthepeopletorepairtheseheritageandtoletmeknowifyouneedgovernmenthelporap-provals.

Besides,wehavecompletedthedraftingoftheHeritagesSitesBill,andareconstructingaNationalConservationLaboratoryatKawaJangsainThimphuwhichwillfacilitateoureffortsinconservation.

National LanguageLanguageisbothacomponentandacarrierofculture.Itismostlyintheformoflanguageandliteraturethatacultureispassedonfromonegenerationtothenext.We,inBhutan,areproudtohaveastrongnationallanguagethatisdistinctive,vibrantandfunctionalandourgratitudegoestotheforesightofourleadersfordevelopingandpromotingDzongkhaasanimportantnationalgoalfromearlyon.

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Challengeshoweverremainastohowbesttomakeitrelevanttothemodernizingcontextsofoursocietythatcallsforawholenewsetofvocabulary.ThefactthatEnglishisseenasmoreusefulintoday’sageofglobalizationdoesnotmakethetaskanyeasier.

Overtheyears, theDzongkhaDevelopmentCommission(DDC)haspublishedarangeofbooks,dictionariesanddocumentedthe lineageof lamasand local festivalofSamtenChoelingMonasteryinTsakaling.TheDDChasalsocollectedlanguagedataonfourgram-maticaltopicsofBrokpake,ChochangachaandOlekha,andanalyzedanddescribedthemin order towrite grammars of these languages in Dzongkha.Without suchdocumenta-tionssomeofourdialectsfacetheriskofdisappearingandwiththatapartofourculturalheritage.Grammaticalanalysis,NaturalLanguageProcessing(NLP)andotherDzongkhadevelopmentworkshavealsobeencarriedout.Theseare,butjustfewexamplesofthecom-mendableworksthatDDChasdoneandcontinuestodotowardsthedevelopmentandpromotionofthenationallanguage.

WhiletheDDCisdoingitspart,itwouldtakecooperationandcommitmentfromeachofthestakeholdersinthesocietytoalsopromotethenationallanguage.

Movie IndustryTherole-played inpromoting languageandculturebyourentertainment industrymustberecognized.Theyareperhapsthemostingeniousandeffectivebutleastacknowledgedmedia throughwhichDzongkha and our culture are promoted. Scores of localmoviesandmusicthatareproducedeveryyearservestonotonlykeepourpeople(especiallytheyouth)entertainedbutalso,toanextent,shieldthemagainsttheonslaughtofforeigncul-tures.Therefore,Iwouldliketoencouragethemembersofourmovieindustrytocontinuepromotingournationallanguageandcultureconsciouslythroughtheirwork.Thebenefitisnotjustwithinthecountrybutthisalsopromotesthecountryoutside.Thegovernmentwillprovidesupportthroughendowmentestablishedforcultureandthearts.

Performing Arts and TextilesOurage-oldsongs,dances,andmusicareamongthemoretangibleandexhilaratingformsofourculture.TheRoyalAcademyofPerformingArts(RAPA)wasestablishedunderthecommandofDrukgyalSumpain1954.Sincethenithascontributedimmenselytothede-velopmentandpromotionofperformingartsinthecountry,whilealsoprovidingemploy-ment.

IampleasedtoreportthattowardsstrengtheningtheworkoftheAcademyintheareaofperformingarts,theAcademywasupgradedtoanInstituteonJune4ththisyearuponthe

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CommandofHisMajestyTheKing.TheRoyalInstituteofPerformingArtswillnowof-fercoursesinpracticalandtheoryofmaskdance,folkdance,music,LozeyandTsangmo,drama,DriglamNamzhag,andstory-telling.

Bhutanesetextilesarenotonlyanintegralpartofourculture,buthavebeeninstrumentalinempoweringmanyofourwomenwitheconomicself-reliance.TheRoyalTextileAcademy(RTA)hasbeentrainingourwomeninthislivingartoftraditionalweaving,therebypre-servingandpromotingthecultureofBhutanesetextiles.ItisencouragingtoseetheRTAexpandingtobeaverydynamiccentretopreserveandpromotethisimportantaspectofourculture.TheRTArecentlyheldtwospecialexhibitions,“IntheserviceofourKings”and“ATributetoHisMajestyDrukgyalZhipa,”bothtocommemorate60thbirthanniversaryofHisMajestytheFourthDrukGyalpo.IwouldliketothankHerMajestyGyalyumSangayChodenWangchuckformakingtheexhibitionspossible,herRoyalpatronagetotheRTAandinthepromotionofBhutanesetextileswithinandoutsidethecountry.

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THE THIRD PILLAR OF GNH: CONSERVATION OF THE ENVIRONMENT

Bhutanismodernizingrapidly.ButIamhappytosaythatevenaswemodernize,oursoci-ety’sbeliefinandcommitmenttoenvironmentalconservationisnotwaning.Ourrichnat-uralenvironmentislargelyintactduetotheforesightofourMonarchsinrecognizingtheconservationofenvironmentforthebenefitofthepeople.ItisapreciousgiftofourKingsandwemustalwaysprotecttheenvironmentforourselves,ourchildrenandtheworldatlarge.

Bhutan is considered a rolemodel in conservation, especially with climate change andglobalwarmingtakingcenterstage.Thegovernmentcontinuestotakepartinregionalandglobaldiscoursesontheenvironment,becausethereisalotofexpectationforBhutantotakealeadershiprole.WearepreparingfortheUnitedNationsFrameworkConventiononClimateChange(UNFCCC)ParisConferenceonClimateChangeorCOP21tobeheldinNovemberthisyear.

Climatechangewillbeoneofthemajordriversofchangeonthestateofthenaturalenvi-ronmentinBhutan.TheIPCC,initsFourthAssessmentReportwarnsthatglaciersintheHimalayasareretreating“fasterthaninanypartoftheworld”and“mayevendisappearbytheyear2035”.Suchdiretrendsarealarming.Duetorapidglacialmelt,someoftheglaciallakesaregrowingrapidlyinsizeleadingtoincreasedriskof‘glaciallakeoutburstfloods’.Sofar25suchdangerousglaciallakeshavebeenidentifiedinBhutan.Thiscouldalsoimpactourhydropowergeneration.

Therearereportsofdwindlingwaterflowinourriversanddisappearanceofsmallerstreamsandcreeks.ThisisamatterofconcernintermsofwatersecurityandtheNationalEnviron-mentCommission(NEC)incollaborationwithotherrelevantstakeholdershascompletedundertakinganationwide surveyonwater resources inventory.Theoutputof thewaterresourcesinventorywillbecrucialtomanageandprotectourwatershedssothatthereisadequatewaterinourriverstosustainhydropowergeneration.

TheForest InventorySurvey for11Dzongkhagshasbeencompletedandsurvey for theremaining9Dzongkhagsisunderway.Besides,wearealsoconductingsurveyoftigersinthecountry.Thesesurveyswillnotonlyhelpustodeterminethehealthofourenvironmentscientifically,butalsoprovideuswithcomprehensivepictureofourenvironmentsothatwecancomeupwithbettermanagementpracticesandpolicies.

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UndertheGreenBhutanInitiative,weareplantingtreesandflowersalongourhighwaysand in the towns, especially inThimphu. In this connection, I amparticularlyhappy tomentiontwosignificantevents:

· TheRoyalFlowerExhibitionatUgyenPelriPalaceinParoearlierthisyearwasare-soundingsuccess.About50,000peoplevisitedUgyenPelriPalacein5daystoenjoythebeautifulflowersandgardensthatwereondisplaytocommemoratethe60thBirthAnniversaryofHisMajestytheFourthDrukGyalpo.IwouldliketothankHerMaj-estyGyalyumTsheringYangdonWangchuckfortheRoyalpatronage.

· WesetaGuinnessWorldRecord inTreePlantingon2 June2015whensome100volunteersplantedarecordof49,672treesatKuenselPhodranginjustonehour.HerMajestyGyalyumDorjiWangmoWangchuckdedicatedthisandotherPeople’sInitia-tiveinCelebratingtheSixtiethAnniversary(PICSA)activitiestothe60thBirthAn-niversaryofHisMajestytheFourthDrukGyalpo.Wemustnownurturethetreesthathavebeenplantedsothateachofthetreesgrowsbigandaddtothegreeneryinthearea.

HisMajestyTheKinghasCommandedthat,“Where we live must be clean, safe, organised, and beautiful, for national integrity, national pride, and for our bright future. This too is nation building.”

So Iurge allour fellowcitizens to followHisMajesty’spersonal examplesbynurturinggreenery.

TheGreen Bhutan has been corporatized to promote flowers and trees in the country.Thereisgoodbusinesspotentialinfloriculture,andIencourageourprivatesectortotakethisupseriously.

Butgreeningourtownsisnotenough.WemustkeepBhutancleanandlitter-free.There-fore,undertheCleanBhutanInitiative,ourvolunteershavebeenworkingtokeepthecoun-trycleanthroughvariousclean-upcampaigns,advocatingontheimportanceoflivinginacleanandhealthyenvironmentandcreatingawarenessonwastemanagement.Iwouldliketorequesteveryone, ifpossible, tohelpourvolunteerswiththeclean-upcampaignsandactivities.Attheleast,Iwouldrequesteveryonenottolitter.

InMarchthisyear,attheinvitationofthePresidentofWWF,IvisitedtheUnitedStatestopromotetheBhutanforLife(BFL)initiative.BFLisamajorinitiativebythegovernmentinpartnershipwithWWFtoensuresustainablefinancingfortheconservationofBhutan’s

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protectedareasandbiologicalcorridors.Weexpecttoraiseafundof$45millionbyJune2016fortheconservationof6millionacresofforestsandothernaturalhabitats,andsus-tainableeconomiclivelihoodofcommunitiesintheseareas.DuringthevariouseventsandmediaengagementstopromoteBFLinUnitedStates,IwasabletoraiseawarenessofBhu-tan’sconservationvaluesandachievements,andthechallengesandopportunitiesthatwefaceintheprocessofourcountry’sdevelopment.

HerMajestytheGyaltsuen,aspatronoftheenvironment,continuestoprovideguidance,andpromotevariousenvironmentalprojectsgearedtowardssustainabledevelopmentandprotectionof theenvironment. Coincidingwith theWorldEnvironmentDay this year,HerMajestylaunchedtheinitiativetoreducepaperusageinthegovernmentoffices.TheGoogleApps isexpectedtonotonlyhelp increaseenvironmentalsustainabilitybutalsohelpreducecosts.IwouldliketothankHerMajestytheGyaltsuenforherpatronage.

Disaster Management Thenaturaldisasterscausedbyclimatechangeandglobalwarmingaroundtheworldareincreasinglybecomingacommonplace.Weare fortunate thatnomajornaturaldisastershavehitBhutanasyet.IwouldliketothankourZhungDratshangandotherreligiouscom-munitiesfortheirconstantprayerstokeepourcountrysafe.

WearefortunatetohaveHisMajestyTheKingtohelpusintimesofdisasters,whetherbigorsmall.Therefore,IwouldliketothankHisMajestyforprovidingcontinuedguidancetothegovernmentandbenevolencetothepeople.Thegovernmenthas established theNationalDisasterManagementAuthority andDis-trictDisasterManagementCommitteesinall20Dzongkhags.Wearenowintheprocessofstrengtheningtheofficesandbuildingthecapacityfordisastermanagement.

ThegovernmenthasalsoestablishedBhutanRedCrossSociety,whichwill,amongotherthings,beinvolvedininitiativesthatpromotedisasterpreparednessandresponse,andpro-videemergencyreliefandassistance.WearegratefultoHerMajestytheGyaltsuenforgra-ciouslyconsentingtobethePresidentoftheSociety.

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THE FOURTH PILLAR OF GNH: GOOD GOVERNANCE

GoodGovernanceisnotjustavernacularusedbutactuallypracticed,andthefoundationforithasbeenestablishedbyoursuccessiveMonarchs.ThisisembodiedinHisMajestyTheKingwhopersonallyalwaysstressesinhismanyAddressesontheneedforthegovern-mentmachinerytobealwaysefficient,effective,productiveandproactiveaswellassensi-tivetotheneedsofthepeople.HisMajestyprovidesguidanceandcounseltotheMembersofParliament,CivilServantsandlocalgovernmentofficials.Thegovernmentalsocontin-uestobenefit fromHisMajesty’sguidancebutwithoutany interference.Iwould liketothankHisMajestyforbeingahugesourceofinspirationandinstillingconfidenceinustoserveourpeople.

DemocracyOurdemocracyisuniquebecauseitwasgiftedbythethroneandourdemocracyisstrongbecauseitistheMonarchywhichstrengthensourdemocraticidealstowardsfulfillingtheaspirationofthepeople.Wemustalwaysrememberthatourpeopledidnotwantdemoc-racy,butithasbequeathedtothepeopleand,therefore,itisincumbentuponeachoneofustoprotectandnurtureitsothatHisMajestyTheKingandHisMajestytheFourthDrukGyalpo’svisionistrulyrealized,thehopesandaspirationsofthepeoplearemet,andourcountrybecomesstronger.

WearenowintheseventhyearofDemocraticConstitutionalMonarchyandourdemo-craticinstitutionscontinuetobestrengthenedandentrenchedwitheffectivechecksandbalances.Therearefivepoliticalpartiesandallarefunctioningwell,bringingvibrancyandstrength toourdemocracy.TheElectionCommissionofBhutan isengagedwithall thepoliticalparties.TheBhutanDemocracyDialoguehasrecentlybeenlaunchedasaforumwhichwillenablepoliticalpartiestoworktogetherandtakeacommonpositiononissuesthatwillhelpconsolidateBhutanesedemocracy.

Inordertoencouragestudentstolearnabouttherolesandresponsibilitiesofcitizensinnationbuildingand in sustainingdemocracy theConstitutionof theBhutan,Children’sParliamentwas signed in Punakha earlier thismonth.TheChildren’s Parliamentwouldstrengthenthefutureofdemocracybymakingyoungpeopleunderstandthedemocraticproceduresbetter.

Local GovernmentAstronganddynamiclocalgovernmentisanimportantelementofdemocracy.Working

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incloseandconstantinteractionwiththepeopleandhavingintimateknowledgeaboutthedailylives,problems,aspirationsofthepeople,thelocalgovernmentisanimportantbridgebetweenthegovernmentandthecitizens.“Local government is not the lowest level of govern-ment; it is the nearest and closest level of government for our people”iswhatHisMajestyTheKingsaidtotheGupsrightafterthefirstlocalgovernmentelectionsin2011.Hence,theimportanceofWangtse Chirphel.

ConsiderablepowerandauthorityhavebeendevolvedtothelocalgovernmentinlinewiththeConstitution(Article22Clause1)tofacilitatethedirectparticipationofthepeopleinthedevelopmentandmanagementoftheirownsocial,economicandenvironmentalwell-being.

Tobeginwith,wehaveincreasedthebudgetallocatedtothelocalgovernments.Thisyear,arecordNu.11.563billionwasallocateddirectlytoLocalGovernment,i.e.24%ofthetotalbudget.TheamountincreasestoNu.15.415billionifcentralactivitiesforthegewogsareadded,whichis33%ofthetotalbudget.Inaddition,GewogDevelopmentGrantsofNu.20lakhshavebeenprovidedeveryyearandhowthisshouldbeusedisentirelyuptothelocalgovernment.

All this is indicative of the importance of local government. Butmore importantly, theParliament has in this session declared 15 more DzongkhagThromdes and 18 YenlagThromdes.Thisisexpectedtofacilitatepropertownplanninganddevelopmentinallthedzongkhagsandbringaboutbalancedsocio-economicdevelopment.Thegovernmentwillcontinuetoworkcloselywith the localgovernments to thiseffect.WithregardtoPemaGatshelDzongkhagThromde,wewillworktogetherwithalltherelevantstakeholderstoensurethattheestablishmentofthromdeisnotdelayed.

Furthermore,theParliamenthaspassedtheLocalGovernmentEntitlementAct,whichwillnotonlyenablethelocalgovernmentleaderstoservewithaddedmotivationbutalsoat-tractmorepeopletoaspiretoserveasleadersandparticipateatthegrassrootslevel.

TherecentdecisiontakenbytheRCSCtoincreasetheentrylevelpositionforDzongdaswillalsoensurethatmorequalifiedandexperiencedDzongdasadministertheDzongkhags,andthiswillundoubtedlycontributetorobustandprogressivedevelopmentintheDzongkhags.

Coincidentally,theannual localgovernmentconferenceiscurrentlybeingheldinThim-phu. Iwould like to thank theGTChairpersons forparticipating in thisvery importantconferenceandalsothankthemforattendingtoday’sStateoftheNationReportsession.

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The ExecutiveGiventhatthepublicserviceisthecountry’slargestemployerandproviderofservices,itisclearthatitsperformanceiscrucialforourwidereconomicandsocialwellbeing.TheRoyalCivilServiceCommission(RCSC) is conducting reform in thecivil service to improveleadership, theworkingenvironmentandrecognitionforhardwork.TheOrganizationalDevelopment(OD)exerciseisonemajorreform.TheODexercisewasinitiatedinAugust2014andsofarithasinvolved17,038civilservantscovering10ministries,5agencies,7dzongkhagsand3thromdes.ThegovernmentisimplementingtheresultsoftheOD,whichisexpectedtoleadtomoreefficiencyanddeliveryofbetterservices.

TheRCSChasalsoidentifiedCivilServiceWelfare(CSW)asanotherkeyareaofreformandimplementedthefollowing:

· Exitmanagement–toensurecivilservantsexitwithfullgraceanddignityuponsuper-annuation;

· Civilservicesupportdesk–toprovideanavenuetoraisegrievancesandhelpretainthebestandthebrightest;and

· Civilservantswelfarescheme–aself-helpprogramme,toprovidefinancialsupporttocivilservantsorfamilyofdeceasedcivilservantsintimesofbereavementandgrief.

Duringthe107thNationalDaycelebration,atotalof4,501civilandpublicservantswereconferredtheRoyalCivilServiceAwardbyHisMajestyfortheirdedicatedandlifetimeServicestotheTsa-Wa-Sum.HisMajestyalsograntedaudienceto75lifetimeserviceawardrecipientsfromthesixeasternDzongkhagsduringtheNationalDaycelebrationsatKan-glung,Trashigang. Iwould like to thankHisMajesty for the recognitionwhich isa bigmotivationforourcivilservants.

Thebiggestchangeinthegovernment’swayofdoingworkistheGovernmentPerformanceManagementSystem(GPMS).TheAnnualPerformanceAgreement(APA)for2014-2015wasapilotexercise.Butallministries,autonomousagencies,andDzongkhagssignedtheAPAsandsuccessfullycompletedmostoftheobjectivesandachievedtargets.Iwouldliketothankeverybody.

TheAPAfor2015-16isbeingimplementedfully.TheAPAtargetswerediscussedwithgov-ernmentagenciesandalltargetsareinlinewiththeEleventhPlanobjectives.TheAPAisalsousedasbasisforbudgetand,therefore,allactivitiesintheAPAarefunded.Ilookfor-wardtosigningtheAPAwiththeMinisters,Secretaries,HeadsofAgenciesandDzongdags.Moreimportantly,Ilookforwardtoworkingtogethertoachievingthetargets.

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IwouldliketothankallthecivilservantsforcomingonboardonthisimportantinitiativeandfortheirsupportinachievingtheAPAtargets.Internationalexpertsanddonorshavebeenimpressed.Theresultswillhelpservicedeliveryandtheattainmentofournationalobjectives.

InNovember2014,theGovernmenttoCitizen(G2C)Officewasestablisheddirectlyun-der thePrimeMinister’sOfficeand is aimed towards improvingpublic servicedelivery.Sincethen,theG2COfficehasbeenreviewingthesystemsandservices,exploringalter-nativestoimprovetheservicedeliverythroughinfrastructureenhancementandcapacitydevelopment,andcarryingoutawarenessactivitieswherenecessary,tokeepthecitizensinformed.Therearecurrently36servicesonline;16openservicescanbeavailedfromanycomputer,fromanyplace;andforfarmers,thereare7servicesavailable(timberpermit;firewood/fencingissuance;birthanddeathregistration;censustransfer;headofhouseholdservices;andsecurityclearance)fromCommunityCenters.

The legislatureDuringtheOpeningCeremonyoftheThirdSessionoftheSecondParliamenton16May,2014,HisMajestyhadcommandedtobemindfulofthenumberoflawsandtheneedtoharmonizethem.Further,HisMajestyCommandedthatmorethannumbers,qualityandimplementation is important.Following theCommand, the government formed aTaskForcetoharmonizeandtocheckforanyconflictintheexistinglaws.TheTaskForcein-cludedmembersfromtheJudiciary,OfficeoftheAttorneyGeneral,CabinetSecretariat,BhutanNationalLegalInstitute,theRoyalBhutanPoliceandaPrivateLawFirm.Bhutanhas126ActsandtheTaskForcereviewedall.TheinitialfindingsoftheTaskForceisthat:

· 14ofthe126ActsconflictwiththeConstitutionandotherActs,andrequireconsoli-dation/harmonization

· 14Actsshouldberepealed

· 2Actsareredundantandshouldberepealed

· 3Actshavenotbeenimplemented

TheSecondParliamentpassed/amendedfivelaws.Inparticular,theNationalAssemblyActandNationalCouncilActwereamended.Sixinternationaltreatiesandconventionswerealsoratified.

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ThefollowingBillsaretobeintroducedbythegovernmentthisyearfollowingapprovalbytheLhengyeZhungtshog:

a) SalesTax,customsandExciseAct(Amend)

b) EnvironmentAssessmentAct(Amend)

c) BhutanInformationCommunicationsandMediaAct(Amend)

d) StatisticsBillofBhutan

e) BCCIAct

TheHon’bleSpeakerJigmeZangpoisalsostrengtheningthelegislature.TheRulesofPro-cedureforPublicAccountsCommitteeandGuidelinesforFinanceCommitteehavebeendeveloped.Hehastravelledtovariouspartsofthecountrytoexplainaboutdemocracyandlawstothepeople.Hehasparticipatedinimportantinternationalconferences,visitedfor-eignparliamentsandhostedparliamentarydelegationsfromothercountries,whichhaveallstrengthenedrelationsandenhancedtiesandcooperationbetweenthelegislativebodies.

IwouldalsoliketowelcometheappointmentofthenewSecretaryGeneraltotheNationalAssembly,SangayDuba.

The judiciaryIn ademocracy,theroleofjudiciaryiscrucialforitisthefaithfulkeeperofthe constitution-alassurance.Itplaysanimportantroleinupholdingtheruleoflawtherebystrengtheningtheconfidenceofthepeople.

On 15November 2014, formerThrimcheLyonpo SonamTobgye demitted office aftercompleting43yearsofservicetotheTsa-Wa-Sum.Iwouldliketothankhimforhislongand illustrious service serving threeKings and for havingbroughtmanyprogressive re-formsinthejudiciaryasChiefJustice.LyonpoSonamTobgyewasalsoactivelyinvolvedinthedraftingoftheConstitutionastheChairmanoftheConstitutionDraftingCommittee.

On28November2014,HisMajestyTheKingconferredtheDakyentoThrimcheLyonpoTsheringWangchuk,thenewChiefJusticeoftheSupremeCourt.Iwouldliketocongrat-ulateThrimcheLyonpoTsheringWangchukonhisappointmentandexpressconfidencethatthenewChiefJusticewillenhancethestatureofthejudiciaryanditsindependencesuchthat italwaysremainscapableof fulfilling itssolemndutiesofprotectingtherightsofBhutanesecitizens-safeguardingtheirfreedomsandinstillingthevaluesofjusticeand

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equalitywhileentrenchingtheprincipleoftheruleoflaw.Governmentwillworktowardsstrengtheningjudiciary.

Judicialinfrastructureisimportantfortheruleoflawandtoprovideaccesstojustice.TheSupremeCourtmovedtoitsnewbuilding,whichwasbuiltwiththegenerousassistancefromtheGovernmentofIndia,on15thJune,2014.Thisisabeautifulandsignificantstruc-tureinkeepingwiththeimportanceanddignityoftheCourtandtheJudiciaryasacoequal,independentbranchofthegovernment.Threecourtsarecurrentlybeingbuiltandtheywillfurtherenhance theadministrationof justice.The37courts across thecountrydecided20,249ofthetotal21,604casesin2014.

Tofurtherstrengthenthejudicialsystemandprovidehighqualitylegaleducation,HisMaj-estyhadCommandedtheestablishmentoftheRoyalInstituteofLawin2009.TheRoyalInstituteofLawisbeingestablishedatPangbisa,ParobyRoyalCharterandtheconstruc-tionof the institutewillbegin thisyear forwhichNu.500millionhasbeenbudgeted. Iwould like to take theopportunity to thankandacknowledgeHerRoyalHighnessAshiSonamDechanWangchuck’spersonalcontributioninseeingthisprojecttofruitionfollow-ingtheCommandofHisMajesty.

TwolawshavebeenamendedbytheParliamenttostrengthenruleoflawi.e.theAttorneyGeneralActandtheJambiAct.

Constitutional BodiesTheconstitutionalbodiesnotonlyupholdtheprinciplesoftheConstitutionbutalsoac-tively promote constitutional valueswhile ensuring effective functioning of the govern-ment.TogetherwithParliament,theyactaswatchdogsoverthegovernmentandstatema-chinery.Theyhelptorestorethecredibilityofthestateanditsinstitutionsintheeyesofthecitizens,ensurethatdemocracyandthevaluesassociatedwithitflourishes,ensurerespectfortheruleoflaw,andcontributetoanopen,accountableandtransparentgovernment.

IwouldliketocommendtheexcellentworkbeingdonebytheConstitutionalbodiesintheirrespectiveareasofmandates,andthankthemforprovidingthenecessarychecksandbalanceinourdemocracy.

Duringthe107thNationalDayCelebrationsinTrashigang,HisMajestyTheKingrightlyremindedusoftherisksofcorruptionaswepursuesocio-economicdevelopment.HisMaj-estystated:“The highest probable risk to development that I foresee is corruption. Our national development efforts will be hindered by unchecked corruption.” Ignoringcorruption,HisMaj-

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estysaid,isevenagreaterthreat.

Indeed,forasmallcountrywithlimitedresources,wecannotaffordtotoleratecorruption.Otherwise,therichwillbecomericher,andthepoorpoorer.Andwewillneverbeabletoachieveourgoalofself-reliance.Corruptionisathreatandwillremainathreat.Therefore,theroleoffightingcorruptioninthecountrycannotbeACC’sjobalone-it’sacollectiveresponsibilityandwilltakecombinedeffortstosucceed.Thefightagainstcorruptionstartswitheachoneofus.

Bhutanisamongtheleastcorruptcountriesintheworld,withTransparencyInternational’s2014CorruptionPerception Index (CPI)putting the countryon the top amongSouthAsiancountriesand30thgloballyamong175countries.Butthisalsomeansthatwecan’taffordtoloseourguardbutrathertokeepthemomentum.Onthegovernment’spart,wetakealltheACC’srecommendationsveryseriously,andwillcontinuetodoso.Infact,anti-corruptioncommitmentsaremandatoryineveryPerformanceAgreementthegovernmentsigns.

Civil Society Organizations CivilSocietyOrganizations(CSO)areplayingan important role inourdemocracyandhavecontributed tonationbuildingbycomplementing theeffortsof thegovernment inimprovingthelivesofthepeopleinBhutan.

ThereareCSOsinvolvedwiththeenvironment,women,art,youth,thepoorandvulner-able,nuns,businesses,mediaallofwhomaredoingwell.SomeCSOshavedirectlyhelpedinstrengtheninginitiativestowardsself-relianceandsustainabledevelopment.TheLodenFoundationisanexample.

Therearenow47registeredCSOs,with9CSOshavingbeenregisteredwithinthelastyearitself.Thegovernmentwillcontinue tosupport theworkof theexistingCSOsandwel-comesnewapplications.But,atthesametime,wealsoneedtobemindfulthatasasmallcountry,wecaneasilyhavetoomanyCSOsthatmaybedoingthesamethingandduplicat-ingefforts.

ManyofCSOsareunderthepatronageofTheirMajestiestheQueenMotherswhosetire-lesssupportandguidancehasbroughtaboutmeaningfulresultsforthepeople.Onbehalfofthepeopleandgovernment,IthankTheirMajestiestheQueenMothersfortheirRoyalPatronageandcontinuedsupport.

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MediaThepresenceofrobustmediaisbothapreconditionforandanindicatorofavibrantde-mocracy.Therefore,themediahasaveryimportantroletoplayinourfledglingdemocracy.Overandaboveitstraditionalroletoinform,educate,andentertain,itmustbeatthevan-guardofprovidingchecksandbalancesinthesystem,andensuringtransparencyandac-countabilityforgoodgovernance.Howsuccessfullywegrowandfunctionasademocracyinthecomingyearswill,toalargeextent,dependonhoweffectiveandstrongourmediaevolvesinto.

Forasmallmarket,wehavea fairly impressivenumberofmediahouses.Todaywehave10newspapers,5radiostationsincludingBBS,andoneTVstation.Ifwegobynumbers,themediaisvibrantinBhutan.Thereisalotofnews,opinionsandevendebate.Also,thegovernmentdoesnotinterfere.Butthemediascenarioisnotasvibrantasthenumbersin-dicate.Manymediahousesarefacingseriousfinancialproblemsandstrugglingtosurvive.Partofthisproblemwerealize,isthenear,totaldependenceofthemediahousesongovern-mentadvertisementsfortheirrevenue.Thegovernmentonitspartwillcontinuetosupportthemediahousesbutsustainingonadvertisementrevenuealonewillnotbeenough.Seniorjournalistsareleavingthemediainsearchofbetteropportunitiesinothersectors,andthequalityofreportingorthemediacontentisdeteriorating.

Nonetheless,ownersofthemediahouseshavenotgivenup.Theycontinuetopublishnews-papersandstoriesevenwhentheyrunthroughbiglosses.Wewouldliketoencourageourmediahouses,especiallythenewspapers,toconsidermergingtogetherinordertosustain.Onthepartofthegovernment,weremainreadyandcommittedtohelpingourmedianotjusttosurvivebutthrive,inallpossibleways.Butatthesametimewemustbecarefulnottointerfereinthefreedomandfunctioningofourmedia.

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OUR PEOPLE

Ontheoccasionofthe10thConvocationoftheRoyalUniversityofBhutanHisMajestysaidandIquote:

“As a small country with a small population and limited resources, we can’t afford to have the problems associated with large nations. What we lack in numbers, we must make up in talent.”

Humanresourceisthekeytoacountry’sdevelopment.Itisthemostinvaluableassetofacountrytoimproveitseconomyandsocialdevelopment.Itisimportantbecausethede-velopmentofotherresourcessolelydependsuponthisresource.CountrieslikeSingaporehavereliedontheirhumanresourcetoproposer.

Thegovernmentwill be conducting aPopulation andHousingCensus, thepreparatoryworkforwhichwillstartthisyear.Thelastcensuswasconductedin2005anditistimetoconductanothercensustoseethestatusofourpeople.Thecensuswillgiveacomprehen-sivepictureofthesocialandlivingconditionsofourpeople,andprovidevaluableinforma-tionforplanningandpolicypurposes.

YouthYouthisthelargestsegmentofourpopulationwith145,611youthbetweentheagesof15to24.Thegovernmenthasalwaysandwillcontinuetoplacehighimportanceininvestinginourchildrenandyouthandinempoweringthefuturenation-buildersofourcountry.HisMajestyTheKinghas,timeandagain,remindedusoftheimportanceofinculcatingvalues,skillsandasenseofnationalidentityinouryouthsothattheygrowupasresponsibleciti-zensandmakepositivecontributionstothecommunityandthenation.

Giventhisimportance,theneedhasbeenfeltforgreaterstrategicinvestmentinouryouth.Unemployment,drugabuse,depression,crimeandtherisingnumberofsuicidecasesareamongsomeofthekeychallengesfacedbythisgroupofourpopulation.

Overtheyears,oneofthebiggestproblemsthatouryouthfaceisunemployment.Toad-dressthisissue,thegovernmenthastakenmanyinitiativestowardaddressingtheissueofunemploymentover thepastyear. Asaresult,wewereable tobringdownthenationalunemploymentratefrom2.9%in2013to2.6%in2014.Theyouthunemploymentratehassimilarlyfallenfrom9.6%in2013to9.4%in2014.Thissuggeststhatthereare3,680youthsleftunemployedtoday.

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Thoughbyglobalstandards,thecurrentunemploymentrateofBhutanmaynotbesignifi-cant-butforBhutanthetrendisseenashighandunacceptable.Hence,despitetheachieve-mentofthegovernmentintacklingtheyouthunemploymentissueoverthelastoneyear,thisshouldnotgiveusreasonforcomplacency.Inordertomakethecountryself-reliant,eachandeverycitizenofaproductiveageshouldhavetheopportunitytoworkandcontrib-utetowardnation-building.Bothemploymentandnation-buildingdemandthecollectiveeffortofourpeopleandtheyshouldgohandinhand,andshouldbecomplementingandreinforcingoneanother.Onlythencanwebeabletonurtureourselvesasproductiveciti-zensandmakeoureconomystrongandself-reliantoverthelongrun.

Thegovernmentisdoingitsbestinaddressingyouthunemployment.TheMinistryofLa-bourandHumanResource(MoLHR)registered5869jobseekerslastyear.Offthem3842have been placed in government offices, corporations and private sector. Various otherschemesandopportunitieshavealsobeenmadeavailable:

· Vocationaltraining-thereare672studentstrainingin6technicaltraininginstitutesand2institutesofzorigchusum.

· UndertheDirectEmploymentScheme1352jobseekershavebeenplaced.

· UndertheGuaranteedEmploymentSchemegraduatesgetpaidNu.7500bythegov-ernmentwiththeprivateemployer-payingequalormorebutnotlessthanNu.3750;forthosewhohavecompletedClassXIIitisNu.5000fromthegovernmentandNu.3750fromtheprivateemployer;andforthosewhohavecompletedClassXitisNu.3750fromthegovernmentandNu.3750fromtheprivateemployer.

· Underentrepreneurshiptrainingprogramthereare99youth.

· Underoverseas employment718 job seekershavebeen sent to India,Qatar,UAE,ThailandandIsrael.78willbesenttoKuwaitnextmonthfollowedby80inOctober-withmanymoreneeded.

Howeveronechallengethatweconstantlyfaceisthemismatchbetweenthejobsavailableinthemarketandtheskillsandaptitudepossessedbyouryouth.Itisfurthercompoundedbythedichotomybetweentheblue-collarjobsandattitudeofouryouthtowardssuchjobs.Thegovernmenthasundertakennumerousinitiativesandprogrammestoreconcilesuchdichotomies.However, the government alone cannot address this issue and addressingyouthunemploymentwillalsorequirethecollectiveeffortfromouryouth’sside.Theymustchangetheirattitudeandoutlooktowardtheavailablejobsandshouldbewillingtoacceptandembrace theavailableemploymentopportunities.Outof3,500 jobsavailable1,718

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jobsarestillvacantbuttheironyisthattheyouthdon’twantthesejobs.Whethertheyouthacceptthejobsorwantbetterjobs,itisaboutchoiceandtheyshouldnotgiveup.Thegov-ernmentisstillresolvedtocreatingandprovidingmeaningfulemploymentopportunities.

Someoftheothersocialissuesthatouryoungpeoplearefacingincludedrugandalcoholabuseaswellasincreaseinsuicideandmentalhealthissues.Thegovernmenthasunder-takenamyriadofinitiativestoaddressestheseissuesincludingmoreawarenessonharmfuleffectsofdrugsincludingthroughdocumentaryprograms,preventionprogramsinschoolsandwithfamilies,strengtheningcounsellingandotherservicesincludingoutreachbypeercounsellors,andsupporttorehabilitationandreintegrationinitiativesforthoseaddictedtosubstanceabuse.

SuicideandmentalhealthissueshasemergedasanissueofconcernofBhutan.Initiativesundertakenby thegovernment toaddress this issue includeastudyonthe trend insui-cidebetweenyears2009and2013.Giventheurgencyoftheissue,basedontheresultofthestudy,a3-yearactionplanforpreventionofsuicideinBhutanhasbeenapproved.Thiswouldamongotherthingsstrengthencounsellingandsupportprogramsandensurethatprincipalsandteachersaremoreawareandvigilantaboutthesignsandsymptomsofde-pressionandsuicideandhencepreventsuicideattempts.

Iamhappytoreportthatouryouthtodaybenefitfromacomprehensiveframeworkofas-sistanceintheformoftheyouthprogrammesandservicesinitiatedbythegovernmentandCSOssuchastheYouthDevelopmentFund.Inadditiontonumerousotherinitiativesun-dertakenbygovernmentandCSOagencies,anumberofprogrammeshasbeenconductedbytheBhutanScoutsAssociation(BSA)withtheobjectiveofrevitalizingscouting-relatedactivities and assuring our youth acquire leadership qualities and strong values of “Tha Dhamtsi”and“Lay Jumday,”;theyinclude,amongotherthings,thecelebrationofthefirstNationalScoutsDayon21February2015,the2ndScoutsConferenceinFebruary2015,the3rdLeadershipTrainingCampforScoutsatRBAMilitaryTrainingCenterinTencholing,andtheRuralUrbanYouthExchangeProgramme.TopromotethecultureofContempo-raryArtsamongtheyouth,trainingwasalsoorganizedfor30studentsbytheDepartmentofInformationandMediainconjunctionwithVASTthisyear.

WomenComparedtomostcountries,womenhavealwaysheldabetterpositioninBhutanesesoci-ety.Howevertheyalsofacechallengeswhichhaveconstrainedtheirparticipationinelectedofficesandattheworkplace.Toaddresssomeofthesechallengesthegovernmenthasun-dertakenthefollowinginitiativesinthepastyear:

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· Finalizationof theNationalPlanofAction toPromoteGenderEquality inElectedOffices.This identifiesdifferentwaysof creatingdemand forwomen’sparticipationin the local government,NationalCouncil andNationalAssembly elections. Somekeyinterventionsproposedincludestrengtheningthelegalandpolicyenvironment,enhancingadequateawareness,establishingmechanismstosupportwomencandidateandbuildingcapacityofbothaspiringandelectedwomen

· Studyconductedtowardsenhancingwomen’sparticipationincivilserviceandprivatesector.Thefindings revealed that social andcultural attitudesandpractices,genderrolesinhouseholdchoresandchildcareresponsibilitieswereseenasthemainfactorsthatconstrainedtheirrepresentation

· NationalReviewontheImplementationoftheBeijingDeclarationandPlatformforAction(BPFA)

· Inaddition to theongoingawarenessandsensitizationprogramsonwomen issues,trainingsindifferenttradeswereprovidedtoover513women,outofwhich251wom-enweregainfullyemployed

· Establishmentof63SelfHelpGroupswith90%participationofwomeninfourdis-trictsofSamtse,PemaGatshel,ZhemgangandTrashigang through the JFPR/ADBsupportedprojecton‘EnhancingEconomicOpportunitiesforWomenandGirls’

· Towardssupportingworkingmothers,theRoyalCivilServiceCommissionhasstart-edreviewingmeasurestomakeworkingconditionsmorefavourableforbreastfeedingmotherssuchasflexi-timingforworkingmothers.TheCommissionisexploringpro-vidingextendedpaidmaternityleaveandayearlongunpaidmaternityleavetoenablemotherstospendmoretimewiththeirnewbornbabies.TheCommissionisalsolook-ingatextendingthebabyfeedinghours(noonto2pm)fromayeartotwoyearsformotherandalsoincorporatingflexi-leave(flexi-timing)for24monthsperiod.

· Towardsprovidingmoresupporttoworkingmothers,crècheserviceshavealsobeenintroducedinsomeMinistries.

· EarlyChildhoodCareandDevelopmentprogramsarealsobeingexpandedtosupportholisticdevelopmentofachild.

Thegovernmentalsopreparedandsubmitted:

· Bhutan’s8thto9thPeriodicReportontheConventionontheEliminationofAllFormsofDiscriminationagainstWomen(CEDAW)totheUNCEDAWCommittee.

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· Bhutan’s3rdto5thPeriodicReportontheConventionontheRightsoftheChild(CRC)andtheInitialReportsonthetwoOptionalProtocolstotheCRCi.e.theOptionalProtocolontheSaleofChildren,ChildProstitutionandChildPornography,andtheOptionalProtocolontheInvolvementofChildreninArmedConflict,totheUnitedNationsCommitteeontheRightsoftheChild.

SportsHRHPrinceJigyelUgyenWangchuck,wasre-electedasthePresidentofBhutanOlympicCommittee(BOC)bytheBOCGeneralAssemblyonMay31,thisyear.Akeensportsman,HisRoyalHighnesshadstreamlinedsportsadministrationandencouragedprofessional-ismbothonandoffthesportsfields.Hisre-electionisatestimonyofthesignificantroleHisRoyalHighnesshasplayedinstrengtheningthesportssectorinthecountry.IwouldliketocongratulateHisRoyalHighnessonhisre-electionandthankhimforimprovingandpromotingsportsinthecountry,especiallyamongtheyouth.Manysportingeventshavebeenheldandarebeingheldinthecountrytocommemoratethe60thBirthAnniversaryofHisMajestytheFourthDrukGyalpo.

TheBhutanOlympicCommitteeandNationalSportsFederationsareplayinganimportantroleinthedevelopmentofsportsandinpromotingphysicalfitnessandwellness.Sportsisalsoanimportantpartofeducationandgrowthespeciallyfortheyouth.Throughpartici-pationinsportsyoungpeoplelearnabouttheimportanceofkeyvaluessuchashonesty,teamwork,respectforthemselvesandothers,fairplayandadherencetorules.Italsopro-videsa forumforyoungpeopleto learnhowtodealwithcompetitionandtocopewithbothwinningandlosing.Allthiscontributestotheirsocialandmoraldevelopment.Thedevelopmentofclubs furtherencouragesyouth leadershipdevelopmentandthevarioustournamentsorganizedprovideaconvenientplatformforengagingtheyouthandspread-inghealthylivingmessages.

ThegovernmentiscommittedtosupportingsportsandhavebudgetedNu.96millionforthedevelopmentofsports.Toencourageandsustaingoodperformanceinsports,thegov-ernmenthasalsoapprovedtheincreaseoftheSportsExcellenceAwardsbythreefolds.Thegovernmentwillcontinuetoplayitsroleofdevelopingappropriatepoliciesandlegislationtoensureeffectivesportsgovernance.IwouldalsoliketoacknowledgetheroleoftheRoyalUniversityofBhutanandtheRoyalThimphuCollegeinpromotingsportsthroughscholar-ships,andtheprivatesectorfortheirsponsorshipofthesportingevents.

Bhutanparticipatedinover25internationalcompetitionsinthelastoneyear.OurteamsandathletescontinuetodistinguishthemselvesandIapplaudourdedicatedathletes for

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theirsterlingperformances.Untilrecently,Bhutanwasrankedlasti.e.209infootball.How-ever,theFIFArankinghasnowshotupto163followingourfirstworldcupqualifyingwinoverSriLanka.Iwouldliketocongratulateourteam.Iknowtheycouldnotfaretoowellagainst theirmatchwithHongKong.Butas theyplayagainstChinaatChanglimithangtoday,thewholenationstandsbehindthemandIwouldliketowishourteamtheverybest.

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CONCLUSION

Ournationremainsstrongandunited.Blessedbyourguardiandeities.SecureandstableunderthewiseandableleadershipofHisMajestyTheKingandtheprayersofHisHolinessTheJeKhenpo,theZhungDratshangandChoedays.Andwearemakingsteadyprogresstowardsrealizingournationalgoalsandobjectives.

Butweneedtoworkharder!Weneedtoworkcollectivelywithunityofpurpose-tocon-solidateourgains and to seizeopportunities.To fulfill thehopes andaspirationsofourpeople.Toaddressthechallengesthatourcommunitiesandpeopleface.Toensurethatourgreatnationemergesstrongereachpassingyear.

The security situation of our country, both internal and external, is secure.Our cultureandspiritualitycontinuestoflourish.Ournaturalenvironmentispristineandthriving-asourceofimmenseprideforusandaninspirationfortheoutsideworld.

Theruleoflawisdeeplyentrenched,andourpeoplehaveequalaccesstojustice.Democ-racy,despitebeinglessthanadecadeold,isinstitutionalized,vibrantandfunctioning.

Oureconomyhasbecomemorestableandwecanlookforwardtomorerobustgrowthintheyearsahead.Socially,wehaveacomealongway,andthepeopletodayhaveequalop-portunitiesandfacilitiestoprogressandprosperprovidedtheyarewillingtoworkhard.

Mostimportantly,wehaveHisMajestyTheKingtoleadandguideus.Toinspireustodobetterandexcel.Togivehopeandconfidencetoourpeople.Andtoprovideavisionforaninclusive,prosperousandjustsociety.HisMajestyisthesourceofpeace,stability,unityandharmonyinthecountry.HeistheSokshingofthePeldenDrukpa!

Despitethevulnerabilitiesthatwefaceasasmalllandlockedcountry,weremainconfident,unitedandundauntedinourcommitmentandresolvebecauseoftheleadershipthatHisMajestyTheKing inspires inallofus. AKingwhoexemplifies thehigheststandardsofintegrity,commitmentandservicetothenation.Heisourmostimportantbenefactorandourconsciencetoservethecountryandpeople–toworkhardandconscientiouslytowardsachievingournationalgoalofself-reliance.

Inclosing,Ioffermyhumbleprayersforthecontinuedgoodhealth,longlifeandwellbe-ingofHisMajestyTheFourthDrukGyalpoonhis60thBirthAnniversary.HisMajestyTheFourthDrukGyalpoisanextraordinarystatesman.Aselflessandvisionaryleaderwho

contributionstowardsnationbuildingisunparalleled.

ItismysingularhonourtorespectfullyexpressourheartfeltgratitudetoHisMajestyTheKing.WithHisMajesty’scontinuedguidanceandcounsel,we look into the futurewithrenewedhope,confidenceandenthusiasmasanation.

I would also like to expressmy deep appreciation toHisHolinessThe JeKhenpo, theZhungDratshangandChoedaysfortheirprayersforthecontinuedpeaceandprosperityofthepeopleandwellbeingofthenation.

LetmealsothanktheHon’bleSpeaker,theLeaderofOppositionandalltheHon’bleMem-bersofthisaugustHouseforthecriticalrolethatyouplayinthedevelopmentofournation.

AllowmetoalsothanktheDhakha-Sum, Dessungs,CivilService,PrivateSectorandallBhu-tanesefortheroletheyplaytosecureourfutureasamoreprosperousandproductivena-tion.

Finally,Itaketheopportunitytoreaffirmmygovernment’sfullcommitmenttoworkwithevengreaterresolveandcommitmenttofulfillthevisionofHisMajestyTheKingandHisMajestyTheFourthDrukGyalpo;tomeettheaspirationsofourpeople;andtoensurethatwesucceedinrealizingournationalprioritiesandgoals.

TASHI DELEK.

Documents

THE STATE OF THE TSA-WA-SUM - cabinet.gov.bt report 2015.pdf · the state of the tsa-wa-sum tshering tobgay prime minister ... • national language ... - 1 - the state of the tsa-wa-sum