The MSP has two funding sources for all its activities. While the operational costs are funded by the Royal Government of Bhutan, the costs for the raw materials and packaging materials are met from the Revolving Fund. The Revolving Fund was first established in 1996 with equal contributions from the Royal Government of Bhutan and the European Commission.

The Fund was started to enable the then Pharmaceutical & Research Unit to fund its raw materials needs for production of traditional medicines. The Fund is now used by MSP in meeting expenses that have a direct short-term and long-term bearing on MSP’s products and its ability to generate revenue for the Fund for sustainable production and cross-subsidization of traditional medicines.

Currently the Fund is managed by the Management Board comprising of the relevant officials from various Divisions under Ministry of Health. The Fund has  reached an amount of approx. Nu. 14.163 millions (as of 30th Oct. 2011).