Local leaders continue to face budget shortage even as they plan for development activities to be taken up during the financial year 2014-15.
A circular issued by the Ministry of Finance says the capital budget ceiling for the financial year 2014-15 will be 18 percent of the total outlay. This means, for this financial year, gewogs will receive only 18 percent of their total budget allocated to them for the 11th Plan.
Of the eight Gewogs in Trashi Yangtse, Boomdeling Gewog will receive the highest budget of around Nu.6 million. Tongshang Gewog will receive the lowest with little over Nu.3 million.
The budget is allocated based on the size and distance of the gewog, population and poverty rate.
But the local leaders believe that the budget allocation process is not fair. They say a gewog with larger area but less population often gets higher budget as compared to smaller gewogs with more population.
The Chairman of Dzongkhag Tshogdue, Cheku, said they are worried about having to leave out important development activities given the budget crunch. “…If government could increase the budget ceiling, it will solve our problem.”
The Toedtsho Gup, Dechen Wangdi said with so many planned activities, distributing budget becomes an issue.
The Local Leaders say they will be forced to take up on a few activities given the budget crunch.
For instance, Jamkhar Gewog in Trashi Yangtse is planning to take up only two development activities during the next financial year. Jamkhar Gewog will be entitled to receive only Nu.3.1 one million as per the ceiling. Major activities like farm road construction will have to be left out because of the budget ceiling.
The Chairman said there are some gewogs that have difficulty in spending the budget. “…I feel it is about time for the government to review the criteria set for the allocation of Budget to the Gewogs.”
Local leaders are hopeful that the government will increase the budget ceiling once the economic situation of the country improves in the future.
