Thimphu district has allocated about Nu 706 M in the capital budget for the 2026-27 financial year, covering the district administration and eight gewogs. But the amount allocated to each gewog is determined by more than just its population or geographical size. The allocation takes into account poverty, climate risks, GNH indicators and even transportation needs.
Of the Nu 706 M capital budget, around Nu 446 M is allocated to the district administration, while the eight gewogs receive a combined allocation of about Nu 260 M.
Among the eight gewogs, Soe has the highest allocation at little over Nu 44 M, followed by Kawang at more than Nu 42 M, Naro at over Nu 39 M, Chang and Lingzhi at over Nu 37 M each and Darkarla at nearly Nu 30 M.
Maedwang has the lowest capital allocation at over Nu 29 M.
“There are several criteria for budget allocation. Twenty per cent is based on population, 10 per cent on total area, 25 per cent on poverty, 15 per cent on climate-related disasters, 15 per cent on GNH indicators, and the remaining allocation is based on transportation,” said Pema Tenzin, Planning Officer, Thimphu District.
At the district level, much of the capital funding comes through India’s Project Tied Assistance (PTA), followed by the Royal Government’s annual capital grant. Another Nu 27 M comes through India’s High Impact Community Development Projects, with the remaining funds coming from development partners.
“Under the 13th Five-Year Plan, Thimphu District has been allocated more than Nu 480 M. We received around eight per cent in the first year, 18 per cent in the second year, and 25 per cent this year from the Ministry of Finance. In total, we have received around Nu 129 M so far,” said Pema Tenzin, Planning Officer, Thimphu District.
Meanwhile, a new Performance-Based Grant system has been introduced for districts and thromdes from this financial year.
The system will assess districts on service delivery, financial management and compliance with government policies and laws.
The results will establish a baseline for determining part of the next year’s annual capital block grant.
Karma Wangdi
Edited by Sonam Pem
