There is a greater need for sharing revenues with the local governments to achieve the 12th Five-Year Plan and the country’s Sustainable Development Goals (SDGs). This was highlighted in the new report on fiscal decentralisation which was compiled by the Department of Local Governance under the Home Ministry.
The report was launched in Thimphu yesterday. It provides opportunities to improve the current fiscal decentralisation framework that can allow local leaders to properly plan and execute the sustainable development solutions. The report is timely as the Local Government is expected to receive 50 per cent of the resource allocation under the 12th Five-Year Plan which has prioritised enhancing decentralisation for creating just, harmonious, and sustainable society.
“The report not only took stock or reviewed the policy institutional mechanisms, but also looked into the expenditure review by the local government and also bit of needs assessment,” said the Deputy Chief Programme Officer of the Department of Local Governance, Wangdi Gyeltshen. “Our fiscal expenditure is only on the expenditure part, so one of the recommendations is how do we bring in the local government to do the revenue sharing so that when we are talking about decentralisation and local autonomy, we have the full aspects of decentralisation technique there.”
The report also outlines how local governments can be empowered to prioritise, allocate and utilise public funds to tackle economic, environmental, and climate change challenges in the communities. The report was prepared with support from United Nations Development Programme (UNDP) and UN Environment Poverty-Environment Initiative.
