Although strongly dependent on foreign aid, it was determined to follow its own set of priorities, keep public finance on an even keel, build up a well trained but lean bureaucracy, and prevent environmental damage from overexploitation of the forests or uncontrolled growth of tourism."
To help avoid further mistakes, the government used traditional social institutions and involved people at the local level in planning and implementation for their own district, subdistrict, or village.
[2] The Fifth Development Plan (1981–87) sought the expansion of farmland to increase the production of staple crops, such as rice, corn, wheat, barley, buckwheat, and millet.
Such concepts as self-reliance in each district, decentralization of the development administration, greater public input in decision making, better control of maintenance expenditures, and more efficient and effective use of internal resources became increasingly important.
Government planners also have endeavored to increase rural income through initiatives in the farming sector, such as stock-breeding programs, promotion of cash crops, and advanced agro-technology.
Central government efforts also were aimed at increasing the quality of life by providing electrification, modern water and sanitation systems, better cooking equipment, and insulation for houses.
[2] The latest Thirteens Five Year Plan (2024–2029)[3] (13th FYP) initiates a strategic shift in addressing the country's changing needs in a globalised world through implementing Bhutan's guiding philosophy of GNH (Gross National Happiness).
[4] The focus for this five-year period is on transforming the economy by paying attention to the strengths of its people, building societal advancement through progress and ensuring prosperity through economic resilience.
Concurrently to the Five Year Plan, His Majesty King Jigme Khesar has envisioned a project in a special administrative region of southern Bhutan, to create the Gelephu Mindfulness City.
The urban development project objective is to create an innovation driven strategic hub in South Asia blending economic growth with mindfulness, holistic living and sustainability.