The recommendation of National Assembly’s Economic and Finance Committee on the need to allocate Project Tied Assistance PTA) and Small Development Project (SDP) resources to local governments using a Resource Allocation Formula has not been passed. Currently, this formula is exclusively utilised for block grant allocation. During the National Assembly session today, despite 21 members supporting the recommendation, 24 opposed it, making the recommendation ineffective.
Currently, to release funds for the Small Development Projects and Project-Tied Assistance, local governments identify and prioritise Small Development Projects based on local needs and development priorities.
Small Development Projects are initiatives that are small in scale and scope, where funds range in between Nu 5 M to Nu 50 M. If the fund is more than Nu 50 M, the initiative is called as Project-Tied Assistance.
Upon approval of the Cabinet Secretariat that looks after Small Development Projects and Project-Tied Assistance related programmes, funds are allocated to the approved projects on a need basis.
Some Members of Parliament said while the Resource Allocation Formula could be a good way to bring in more transparency and responsibility to local leaders, some said it should be kept as it is especially because the fund for the two projects comes as grants from the Indian government.
Lhaba Lhaba, the MP of Khatoed_Laya Constituency in Gasa said, “Small Development Projects and Project-Tied Assistance related projects are not executed from domestic revenue because they are budgeted from external fund. It comes from the Government of India. So when we implement this fund, the Indian and Bhutanese governments decide the allocation together. So, I am not sure if this will be convenient. If the allocation is done like it is done in block grant allocation, regions that need more funds will be short of budget.”
Similarly, Lamgong_Wangchang’s MP Sonam Tashi said, “For example, the Indian government has promised us to give Nu 85 B. They are not going to give us straight away but this will go through vigorous planning. Most MPs are saying we need to come up with RAF. The central government just cannot give the fund and just ask the LGs to do whatever they like with it. I think it should be kept as it was before.”
Pempa, the MP of Chhukha’s Bongo_Chapchha Constituency said, “This fund is not from internal sources. It is an external grant. There are so many dos and don’ts when we use those funds. If we use RAF to allocate money, we would not be able to show them the results, which will in return affect in getting funds in the future”
The committee said using Resource Allocation Formula will make local governments more responsible and accountable, promote equitable and balanced resource allocation and foster socio-economic development.
In the draft 13th Five Year Plan document, a total resource outlay of Nu 80bn has been allocated for Small Development Projects and Project-Tied Assistance of which Nu 38bn is allocated for local governments.
Samten Dolkar / Singye Dema
Edited by Kipchu
