𝐆𝐨𝐯𝐞𝐫𝐧𝐦𝐞𝐧𝐭 𝐅𝐮𝐧𝐝𝐢𝐧𝐠 𝐔𝐧𝐝𝐞𝐫 𝐭𝐡𝐞 𝐋𝐞𝐧𝐬- 𝐂𝐥𝐚𝐫𝐢𝐭𝐲 𝐒𝐨𝐮𝐠𝐡𝐭 𝐨𝐧 𝟏𝟑𝐭𝐡 𝐅𝐘𝐏 𝐂𝐚𝐩𝐢𝐭𝐚𝐥 𝐀𝐥𝐥𝐨𝐜𝐚𝐭𝐢𝐨𝐧

…𝒑𝒖𝒃𝒍𝒊𝒄 𝒂𝒏𝒅 𝒍𝒐𝒄𝒂𝒍 𝒔𝒕𝒂𝒌𝒆𝒉𝒐𝒍𝒅𝒆𝒓𝒔 𝒔𝒆𝒆𝒌 𝒄𝒍𝒂𝒓𝒊𝒕𝒚 𝒐𝒏 𝒇𝒖𝒏𝒅 𝒂𝒍𝒍𝒐𝒄𝒂𝒕𝒊𝒐𝒏, 𝒖𝒕𝒊𝒍𝒊𝒛𝒂𝒕𝒊𝒐𝒏, 𝒂𝒏𝒅 𝒊𝒎𝒑𝒂𝒄𝒕 𝒖𝒏𝒅𝒆𝒓 𝒕𝒉𝒆 13𝒕𝒉 𝒇𝒊𝒗𝒆 𝒚𝒆𝒂𝒓 𝒑𝒍𝒂𝒏

By Sonam Choden

During the ongoing parliamentary session, Rinchen Wangdi, Member of Parliament from Bartsham-Shongphu constituency, raised concerns over the transparency, utilization, and monitoring of major government funds under the 13th Five Year Plan (FYP), focusing particularly on contributions from the Government of India, which form a significant share of the country’s capital budget. Out of the Nu. 245 billion capital budget, Nu. 85 billion has been committed by India, with Nu. 70 billion earmarked for Project Tied Assistance (PTA), Nu. 5 billion for Programme Grant (PG), and Nu. 10 billion for High-Impact Community Development Projects (HICDP/SDP). Lawmakers and local stakeholders alike are seeking clarity on how these funds are being deployed and whether they align with national priorities while ensuring effective delivery of essential services.

Lekey Dorji, Minister of Finance, provided a detailed overview of the current status of these allocations. Regarding PTA projects, he stated that “so far, the Government of India has disbursed Nu. 7288.96 million for PTA projects, of which we have already utilized 83 percent.” A total of 71 PTA initiatives amounting to Nu. 66499.99 million has been approved under the 13th FYP, including both new projects and multi-plan projects carried over from the 12th FYP.
On the HICDP/SDP front, the Minister noted that 572 projects across two batches have been approved, covering essential infrastructure such as drinking water, irrigation, rural roads, chain-link fencing, and township improvements. He explained that “our first batch has reached a utilization rate of 49 percent, while the second batch has just begun implementation. HICDP disbursements follow a structured modality: 30 percent on approval, 60 percent based on progress, and 10 percent upon completion.”

The Nu. 1 billion contingency fund under SDP has also drawn attention. Minister Dorji clarified that it is a structural requirement from GoI rather than a discretionary fund, adding that “the ten percent contingency is mandatory. It is kept to meet cost escalations or scope changes across all 572 projects. No activity-wise allocation is possible because the amount must remain flexible.”

Regarding the Economic Stimulus Program (ESP), the Minister reported that Nu. 10000 million of the total Nu. 15000 million package has been released by GoI, with nearly the full allocation of Nu. 14960.99 million assigned to implementing agencies. He added that “as of 31 October 2025, ESP utilization stands at 61.21 percent. That is Nu. 7.29 billion already injected into the economy. The program has reached thousands of beneficiaries, including support for concessional loans, agriculture, tourism, skilling programs, youth employment, and education loans.”

Specific figures include 2,171 borrowers under the concessional credit program implemented by BDBL, 144 approved applicants under the Reinvigoration Fund, and 454 students receiving education loans. More than 10,000 youths have benefited under the Desuung Skilling Programme (DSP) and Youth Engagement and Livelihood Programme (YELP), while agriculture and livestock programs have reached several thousand beneficiaries.

A contentious issue was also raised by MP Sonam Kinga concerning a letter issued on October 24, 2025 by the Ministry of Finance, advising Gups against constructing chiwog meeting halls using Annual Block Grants. Critics argue that the advisory contradicts the Local Government Act 2009. The Minister explained that “new construction is a restricted activity under the Annual Budget Notification. There is no approved capital outlay for chiwog meeting halls in the 13th FYP. Proceeding with such constructions would violate the Budget Act. Existing public infrastructure in most gewogs could accommodate meetings, and constructing additional halls could create long-term financial liabilities. Annual grants are for essential services and O&M- not new construction.”

While the Minister’s statements provide detailed figures and explanations, questions remain among stakeholders regarding the transparency of fund allocation, the pace of implementation, and the potential impact of contingency and block grant restrictions on local governance. It is crucial that ongoing monitoring, public communication, and oversight are maintained to ensure funds are used effectively and in line with national priorities.