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NC raises concerns over capacity of LG to handle increased capital budget

January 9, 2019
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The members of the National Council commended the move to increase the capital budget for the Local Government but expressed concerns over how well-staffed the gewogs are to manage such a huge grant.

The finance minister presented the 12th Five Year Plan in the National Council today.

Minister Namgay Tshering said the grant would be given as block grant to the Local Government.

From Nu 25bn in the 11th plan to Nu 50bn in the current plan, it is a 100 per cent increase in the capital budget for the Local Government.

Trongsa MP Tashi Samdrup said providing an increased Gewog Development Grant is in line with the policy of decentralization. However, he said, it’s important to delegate responsibility and accountability.

“The Dzongkhag may have the capacity to handle the grant. But for the 205 gewogs, how equipped and adequate are our gewogs in terms of human resource capacity? How in accordance with rules and regulations is the grant distribution formula?” asked MP Tashi Samdrup.

“Unlike in the past, the Gewog Development Grant will be now distributed as block grant. How ready is the Local Government to handle the grant?” asked Paro MP Ugyen Tshering.

“It’s not that the Gups do not have potential but, for instance, in Paro some gewogs do not have engineers. The gewog works are executed by dzongkhag engineers. We have one accountant taking care of two gewogs and some gewogs do not have Gewog Administrative Officer either. So, when the government plans to allocate such huge budget, I feel it’s important to develop the HR capacity at the Local Government level,” he added.

“In Haa, forget about gewogs, there isn’t enough human resource even at the Dungkhag level. Last year, during the 21st session while deliberating on ACC report, it was found that most complaints are at the Local Government level. So, it’s known that there are problems of mismanagement at the Local Government level. As the government allocates more grant in the 12th plan, it’s important to develop human resource capacity of the Local Government,” Haa MP Ugyen Namgay said.

In response, the finance minister said the HR capacity in the Local Government would be developed.

“The block grant will not be given this financial year. In the next financial year, when we distribute the block grant, we will develop the capacity of Local Government,” Minister Namgay Tshering said.

“The GNHC secretariat and finance ministry have developed rules and regulations. We have financial rules and regulations to manage budget. Regarding planning, the GNHC Secretariat has regulations on who to consult, how to go about planning and how should plans be carried out, or how inclusive are the plans,” he added.

The finance minister also said the increase in capital grant is in accordance with the Constitution and aimed towards strengthening the Local Government.

It is also to meet the increasing demand for public services from the Local Government.

At the gewog level, areas of priorities include agriculture and livestock, access to health and education, water and hygiene and household income.

At the Dzongkhag level, the focus will be on developing local economy and job creation, quality of health and education, waste and culture.

In the Thromdes, the focus would be on urban facilities, safety, water, sanitation, pollution, quality of education and congestion.

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