The Bhutan We Think We Know

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FAQ

What could Bhutan's fuel subsidy buy instead?

Bhutan spends on the order of Nu 5 billion a year subsidising fuel — money that is burned in engines and leaves nothing behind. The book reframes that as a choice rather than a fixed cost: the same annual sum could instead fund a national public-transport build-out — a fleet of buses, bus-rapid-transit corridors, road upgrades, transport hubs, and tens of thousands of electric-vehicle incentives. Same money; one option consumes it, the other turns it into a permanent asset.

The point is not that fuel subsidies are wrong, but that they are invisible and asset-free. Roughly Nu 5 billion a year cushions the per-litre cost for every motorist, with no receipt, no budget line, and nothing left over once the fuel is combusted.

1671.710025025,000electric busesBus Rapid Transit corridorskm of mountain roadfast-charging hubsEV-purchase incentivesYutong / BYD class · Nu 30M eachBRT · Babesa-to-Norzin-Lam class · Nu 3bn eachfull reconstruction · Nu 50M per km4 chargers each · Nu 20M per hubat Nu 200,000 per vehicleWhat Nu 5 billion of fuel subsidy could buy insteadFive alternatives. Each line is the full one-year subsidy redirected to one asset class.
Source BBS 22 May 2026 (PM in National Assembly — Nu 1.45bn cumulative subsidy through 22 May 2026); The Bhutanese 23 May 2026 (Nu 23/L diesel bridge, projected annualised burn Nu 5–7bn); GMC and 13th FYP procurement-unit cost references for electric-bus (Nu 30M), fast-charging-hub (Nu 20M), mountain-road reconstruction (Nu 50M/km), and BRT-corridor (Nu 3bn) line items.

Spent once on infrastructure, the same money compounds for decades; spent every year on fuel, it disappears every year. That is the trade the book puts on the table in Paradox #74, alongside the hidden per-tank subsidy in Paradox #72.

Primary sources