Development Management & Finance National Capital Region Thimphu

National Capital Region Thimphu

Development Management and Finance

National Capital Region ThimphuDevelopment Management and Finance

Administration

• King (Gyalpo)

• Prime minister (Lyonchen)

• Ministries (Lhenkhag) Ministers (Lonos)

• Departments (Laukhung)

• Districts Dzongkhags

• Community centers (issue of birth certificates)

• Blocks (Gewogs)

• Sub Blocks (Chewogs)

• King maintains its authority in matters of Land, Army, Welfare funds and Disaster management.

Source: Personal conversation with Mr.Sonam Yeshey Faculty Economics Royal Thimphu College


Ministries

Economic affairs Education

Foreign affairs Agriculture and forests

Home & cultural affairs Information and communications

Human settlement and works Labor and employment

Finance Health & culture


ThimphuYear Area

1960 2 sqkm

1994 18 sqkm

1999 26 sqkm

Thimphu district municipality is 8 yrs in existence

1st district plan for Thimphu was adopted in the year 2008

1st election for mayor happened in February 2011

Census every 5 years. Last census in year 2005


Development

Any development needs to be checked and monitored. Development can lead to positive as well as negative growth. Role of planner is to facilitate development process by ascertaining all the associated activities before hand.

Management

Once the development is on course it requires management of resources.

Finance

• Finance is the spine of development. Development shall not take place in absence of finances. Finance requirements are distinct at during various stages of development.

• Financial resources are to be explored and arranged in advance before taking up development work.


Source: National revenue report 2010 Department of revenue and customs Ministry of finance Bhutan




Cost of collectionThe cost of collection incurred for collecting 1 Ngultrum is about 1 Chetrum for direct tax revenue, 4.3Chetrum for indirect tax revenue, and 0.3 Chetrum for non-tax revenue.



Concept of GNH Gross National Happiness

• Ministry of Home and cultural affairs looks after GNH

• The spirit and intent of GNH as articulated in the Bhutan Vision 2020 document is to “maximize the

happiness of all Bhutanese and to enable them to achieve their full and innate potential as human

beings.” This is envisaged through the adoption of policies and programs that operationalizes the

four pillars of GNH namely

Sustainable socio-economic development

Conservation of natural environment

Preservation of culture

Good governance.

• District administration offices of GNH are at Thimphu, Phoentshilling, Samdrup Zongkha, and Galephu

Source: http://www.gnhc.gov.bt/publications/rep/gpsr.htm Gender pilot study Bhutan 13th may 2011

http://www.gnhc.gov.bt/publications/rep/gpsr.htm


Public procurement • Division under ministry of finance headed by

chief programme officer.

• Rules and regulations of procurement are

through Public Finance Act.

• Corporations can have their own procurement

laws subject to approval from boards.

• District administration through central

government representatives.

• Procurement of Cement and bitumen are

under central control.

Source: Department of procurements Ministry of finance


Trade statistics• 90-95% trade with India; other countries are Bangladesh, Nepal, Thailand, Malaysia and Singapore.

• Agricultural products are fruits, fruit jams and pulps. In summers vegetables are exported. In winters

they are imported.

• Financial institutions in relationship are World Bank, SNB, and ADB

• Handicraft products are also exported. Changzamtok is a weaving centre.

Source: Department of procurements Ministry of finance


Financial InstitutionsThere are only two commercial banks in Bhutan with branches around the country:

The Bank of Bhutan.

Bhutan National Bank.

These banks have exchange counters at the airport, hotels and the two main cities of Thimphu and

Phuentsholing.

Bhutan also has other financial institutions to assist and promote the development of the domestic industries.

The Bhutan Development Finance Corporation provides services to

small and medium-sized industrial and agricultural producers.

Provides microcredits to farmers in agricultural sector.

The Royal Insurance Corporation of Bhutan focuses on both life and general insurance and manages the

government Employees Provident Fund.

Source: Traders’ manual for least developed countries developed by United Nation’s Economic and social commission for asia and the pacific


FDI PolicyIn pursuance of GNH Concept, the Royal Bhutan Government has adopted FDI Policy 2010 to achieve the objectives as set out in the Economic Development Policy 2010.

FDI Focus AreasThe FDI shall be encouraged in areas that contribute to the following

Development of green and sustainable economy Promotion of socially responsible and ecologically sound industries Promotion of culturally and spiritually sensitive industries Investments in services that promote Brand Bhutan Creation of a knowledge society

Source: FDI Policy 2010 Ministry of Economic affairs Royal Bhutan Government Bhutan


National Capital Region Planning BoardConstitution of national capital region planning board shall be required to take up administrative control and developing enforcement functionaries.

Following could be the possible composition of the board.

i. Mayors of the four districts constituting National capital regionii. Administrative Heads of all the of the 4 districts included in NCRiii. Ministers of Royal government of Bhutan: • Urban development separated out from works & Human settlement, Roads &

Highways separated out from Works & human settlement• Information & communications • Power separated out from Trade & Education.iv. Chief Regional planner as member secretary



Functions of Planning Committee

• To prepare and coordinate implementation of regional plan & Functional plans• To scrutinize project plans so as to check their conformity with regional plan.• To make recommendations deemed necessary for amending or modifying zonal or

project plans.

Functions of Planning Board

• Responsible for arranging for and overseeing the financing of development projects

• Financial administration• Project monitoring and coordination


Resources of finances

• Plan contribution from ministry of works and human settlement

• NCPRB fund to be constituted by central government

• International funding organizations such as World bank, SNB and ADB. These organizations have a long term association with the country under UN mandate.

T h a n k Y o u

Economy & Finance

Development Management & Finance National Capital Region Thimphu