A recent review of Bhutan’s planning system has found it is feasible to shorten the planning cycle from five years to three years. A group of civil servants based at the Centre for Bhutan and GNH Studies conducted the research. They referred to the budgetary expenditures, election cycle, and development partners’ coordination for the study.
One of the papers in the review studied the finance ministry’s budget and expenditure data of all the projects implemented in the 11th and the 12th Five Year Plan.
It concluded that the average duration of implementing the Plans is two-and-a-half years. It means the majority of the projects during the Five-Year Plans were completed in the first three years. For instance, in the 11th Plan, more than 75 per cent of the projects were completed during the period.
“Since 77.4 per cent of the projects, which is a huge chunk, concentrate under three years implementation period, there is a possibility of having a seamless alignment between the project cycle and three-year planning cycle,” said Dechen Wangmo, a Research Officer with the GNHC.
However, as per the findings, only those projects worth Nu, 50.7 M would be complete within three years.
Besides, there will be projects such as dzong constructions that will take several years to complete and spillover from one plan to another.
“There is also an existing trend of projects being formulated in the middle of a five-year plan. And these projects have a varying duration of a cycle. If these projects are brought to align with the planning cycle, whether it’s three or five years, the spillover effect could be reduced,” she added.
The three-year planning system will also provide flexibility for the government of the day to quickly integrate its development manifesto into annual plans and budgets.
However, the report states that a three-year planning cycle will require rigorous planning and efficient manpower. It means strengthening the Policy & Planning Division of the GNHC and across agencies including the local governments.
Similarly, the research on the election cycle alongside the planning cycle till the year 2050 highlights that a three-year cycle is feasible.
According to Sangay Chophel, a Sr. Research Officer with the Centre for Bhutan and GNH Studies, the three-year planning cycle aligns well with the election cycle; meaning, there is no need to move the plans forward to align with the election cycle. “In the current situation of a five-year cycle, after every five years, the plan has to be moved forward by three months because of the vacuum created during the interim government,” he said.
The study forecasts that if the three-year plan cycle is adopted, two incoming governments will have to implement the spillover activities of the previous plan for more than a year.
“In 2034, the incoming government will have to implement the spillover activities of the previous plan for 18 months and 27 months in 2039. However, the spillover activities also occur in the five-year plan,” he added.
As part of the review, a separate study was also conducted to understand the relationship between the development partners and the five-year plan. From 49, fourteen development partners providing need-based aid to Bhutan were selected for the study.
“For instance, even if we change our plan duration to three years, there won’t be a misalignment between the planning duration of our development partners and the duration of our development plan. As long as there is a shared development objective between the donor and the recipient country, the development partners will align their plans with the country’s existing plan duration,” said Rinchen Wangmo, a Researcher with the Centre for Bhutan and GNH Studies.
A five-year plan has been guiding Bhutan’s developmental processes since 1961. As per the report, a new form of governance cycle since 2008 and the ever-changing needs of the economy and citizens have led to rethink the relevance of the planning system and explore a more effective alternative.
Meanwhile, it was learned that the GNH Commission is revisiting the planning system of the five-year plans.
Sonam Wangdi
