The Royal Audit Authority’s review report on the Local Government Development Grant found that most local government funds are being allocated to farm roads and Lhakhang development. The report states that key sectors such as education, health, and livestock are given the least priority. The 2024 Annual Grant Guideline prioritises projects with economic and social benefits that will boost local productivity, and improve health and education.
During the financial year 2021 to 2024, the highest expenditure was recorded for farm road development, totalling Nu 2.88bn. This was followed by lhakhang development activities with an expenditure of a little over Nu 834 M. Agriculture support ranked third, with expenses amounting to more than Nu 634 M.
The report also found that the health, education, and livestock sectors were the least prioritised in terms of budget allocation in the gewogs.
Health initiatives incurred a cost of nearly Nu 590 M, followed by education at almost Nu 483 M.
According to the report, in Pema Gatshel’s Shumar Gewog, students at Shali Primary School continue to use desks and chairs from the 1980s and 1990s, many of which are no longer functional. However, according to audit findings, over the past three financial years, the gewog has allocated only Nu 2.4 M for education, which accounts for just four per cent of the total budget, reflecting its status as the lowest priority.
The lowest expenditure was on livestock support, amounting to around Nu 220 M. The report also revealed that the funding for livestock development has been consistently declining over the past three financial years.
According to the report, farm road development has been the most prioritised across all districts except Haa and Gasa. Haa has placed farm roads as the second-highest priority sector after lhakhang development.
The report states that Local Governments have heavily prioritised lhakhang development. This has led to a disproportionate allocation of funds, limiting investments in other key areas.
According to the report, investments in farm road development have reportedly deviated from the Farm Road Development Guidelines.
The report mentions that approach roads leading to lhakhangs and Lam’s residences were often booked under farm road expenditures.
In addition, farm road construction from Pangringku to Thrichu Goenpa in Trashi Yangtse, completed in May last year, was found to connect a monastery instead of human settlements or agricultural land, violating key guidelines.
Monggar saw the highest expenditure on Lhakhang development amounting to more than Nu 111 M, followed by Samtse, Chukha, Dagana and Trashigang.
The annual grant guideline 2024 also mandates local governments to spend no more than 10 per cent of the annual grant for activities related to the preservation and promotion of cultural and religious heritages.
Samten Dolkar
Edited by Phub Gyem
