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Calls for fair block grant allocation resurface in Dzongkhag Tshogdu

April 3, 2025
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Local leaders in Chhukha, especially of larger gewogs, are worried about the decline in their block grant budget for the 13th Five-Year Plan. During the recent Dzongkhag Tshogdu, they raised concerns over the Resource Allocation Formula used in distributing the grant. They said that it will widen the economic development gap between larger and smaller gewogs.

The local leaders are urging the government to revisit the criteria set for the budget allocation as it affects the larger gewogs. The annual grants are decided using the Resource Allocation Formula. It looks at six key areas like population, land area, the GNH index, climate change risks, poverty levels, and transport access.

They said it does not ensure a fair and equitable distribution. Every gewog receives the same amount of money, regardless of its size.

Birkha Bdr Rai, Dzongkhag Tshogdu Chairperson said “In the next five years, smaller gewogs will see more development. And it is unfair for larger gewogs because the larger gewogs will need more infrastructure or will have to carry out more activity in accordance with its size. So, it is not fair.”

Tshering Penjor, Bongo Gup said “For example, the grant for Bongo gewog has been reduced by over Nu 1 M, and we don’t understand the reasons behind this change. Interestingly, the smaller gewogs have not been impacted.”

The Logchina Gup, Tham Bdr Rai, also said a gewog with a population of 1500 and a gewog with 4000 receive the same budget. According to the local leaders, the criteria used for budget allocation do not reflect the realities on the ground. Larger gewogs, like Bongo, Darla, and Phuentshogling, are the most affected in Chhukha.

Kinley Dem, Chhukha

Edited by Tandin Phuntsho 

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