The Performance-Based Grant system for gewogs, which came into effect in 2024, has drawn strong criticism from local leaders in Monggar. They say the system has resulted in some gewogs losing nearly 30 per cent of their annual capital grants due to low performance scores. According to the Annual Grants Guidelines for Local Governments, the performance assessment of capital grant utilisation is conducted to provide strong incentives for gewogs to improve operations and service delivery.
In Monggar, the Performance-Based Grant Assessment for the financial year 2024–2025 shows that Gongdue Gewog scored the lowest, with a little more than 44 percent. The gewog was allocated Nu 13 M for the financial year but received a little over Nu 11 M due to the poor performance which resulted in the loss of more than Nu 2 M from its annual grant.
Gongdue Gup Tshewang Tobgay attributed the low score to technical, administrative, and capacity constraints.
“According to the guidelines, gewogs are required to complete 30 per cent of any proposed activities by the end of the first quarter of the financial year, which falls around November. However, several factors often cause delays in implementing these activities. These include gewog’s remote location, lengthy tender processes and technical delays such as preparation and approval of estimates. These challenges were some of the reasons that resulted in deduction of scores.”
Local leaders added that gewogs that achieve good performance or score 100 per cent receive their full funding for the following financial year.
From 17 gewogs in Monggar, Chaskhar gewog performed well scoring over 99 percent.
As per the Annual Grant Guidelines, gewogs are assessed on four main criteria such as planning, budgeting and execution for 50 per cent, financial management 20 per cent, non-proliferation or avoiding waste 10 per cent, and compliance with relevant government rules for 20 per cent.
Dorji Wangchuk, Silambi Gup said, “Unlike in the past, we are unable to execute works according to the gewog’s plan and priorities because we do not want to lose scores under the criteria set by Performance-Based Grant. For example, if we want to construct a new farm road, we need to obtain clearances from relevant offices and conduct technical studies, which takes time. If we bypass these procedures, the work is not accepted and we are penalized for it, causing inconveniences.”
Chenga, Thangrong Gup said, “The objective of the system is to improve our responsibility, and ensure efficient fund management. However, we should consider the geographical location and situation of the gewogs. Moreover, there are 17 gewogs in Monggar district, and we must consider whether there are adequate engineers. If these factors are taken into account, I believe such issues can be minimized.
Following a long deliberation in the Dzongkhag Tshogdu, the house unanimously decided to write to the finance ministry requesting the removal of Performance-Based Grant system.
Namgay Wangchuk, Monggar
