Bhutan Roundup: Stalled power exports, by-election, MP’s vehicle allowance hike

MPs' vehicle allowance raised to $28,000

Members of Bhutan’s Parliament will now receive Nu 2.5 million ($28,713) as a lump sum for vehicle allowance, a 150% increase from the earlier Nu 1 million ($11,485). A senior government official said the increase was not a monetisation of the discontinued “Prado Quota,” but an enhancement of the allowance. The decision follows debates during the Summer Session of Parliament, where MPs pressed for either designated duty vehicles or a return of vehicle quotas. The additional Nu 1.5 million ($17,227)was released in June 2025.

Rowover junking of development fund

The National Council (NC) has accused the National Assembly (NA) of removing the Nu 94 million ($1.079 million) Priority Development Fund (PDF) from the 2025-26 Budget Appropriation Bill after the Supreme Court declared it unconstitutional. The NC said the NA failed to consult or seek consensus before forwarding the revised Bill for Royal Assent. The NA responded that it acted within its exclusive constitutional authority over Money Bills and noted the Supreme Court’s interpretation was binding. It rejected the NC’s call for an emergency joint committee meeting, saying there was “no legal or procedural basis.” The NA stressed that legislative control over public finance rests with the Assembly, not the Council.

Bhutan’s electricity export paralysed as tariff talks with India stalls

Bhutan is unable to export electricity from the 1,020 MW Punatsangchu II Hydroelectric Project (PHPA II) as no tariff agreement has been reached with India. The project, which will be fully commissioned by August 27, is currently generating over 850 MW, but all power is being used domestically at a temporary rate of Nu 3 ($0.034) per unit. Talks between the two governments remain stalled, with disagreement over future tariff revisions. Loan repayments for PHPA II will start two years after commissioning, heightening the urgency for a resolution.

By-election in Trongsa’s Nubi-Tangsibji constituency set for September 4

Voters in Trongsa’s Nubi-Tangsibji constituency will head to the polls on September 4 for a by-election following the resignation of former MP Tashi Dorji after his conviction for child molestation. The polls feature Bhutan Tendrel Party’s (BTP) Tashi Samdrup, 53, who pledges to focus on effective implementation of the 13th Five-Year Plan, and People’s Democratic Party’s (PDP) Phuntsho Dendup, 40, who is campaigning on improving road connectivity and rural services. In the 2023-2024 general election, Dorji won narrowly over Dendup with 54% of the vote.

Bhutan’s king to make first state visit to Vietnam

King Jigme Khesar Namgyel Wangchuck and Queen Jetsun Pema will pay a state visit to Vietnam from August 18 to 22 at the invitation of President Lương Cường. This will be the first such visit since Bhutan and Vietnam established diplomatic relations in 2012. The King is scheduled to meet Vietnam’s top leaders, including the President, Prime Minister, and National Assembly Chairman. Talks will cover cooperation in agriculture, tourism, culture, education, technology, and green development. Trade between the two countries currently stands at about US$20,000 annually, with two Vietnamese investment projects in Bhutan.