India announces 50B financial package to Bhutan

Cementing its friendly ties further with Bhutan, New Delhi on Saturday announced an aid of Rs. 50 billion to help Bhutan for its social and economic development. The aid also included a special package of Rs. 5 billion. The announcement took place after talks between Indian Prime Minister Manmohan Singh and his Bhutanese counterpart Tshering Tobgay. This is PM Tobgay’s first foreign tour after winning the last month’s general election.

“Government of India reiterated its commitment to Bhutan’s socio-economic development. The two countries agreed to work together to further strengthen bilateral relations,” a joint statement said after the talks.

Rs 45 billion is India’s assistance for Bhutan’s 11th Five-Year Plan (July 2013- June 2018).

“Rs 5 billion is towards an Economic Stimulus Plan,” the statement said. Bhutan is also tackling financial slowdown and sought New Delhi’s help to revive its economy.

The statement does not mention anything about Rs 4 billion spillover assistance from the previous plan.