The presentation is a part of academic exercise of preparing National Capital Region Plan Thimphu at SPA Bhopal in academic year 2011-12

1. National Capital Region Thimphu
Development Management and Finance

2. National Capital Region Thimphu
Development 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

3. National Capital Region Thimphu
Development Management and Finance
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

4. National Capital Region Thimphu
Development Management and Finance
Thimphu
Year 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

5. National Capital Region Thimphu
Development Management and Finance
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.

6. National Capital Region Thimphu
Development Management and Finance
Source: National revenue report 2010 Department of revenue and customs Ministry of finance Bhutan

7. National Capital Region Thimphu
Development Management and Finance
Source: National revenue report 2010 Department of revenue and customs Ministry of finance Bhutan

8. National Capital Region Thimphu
Development Management and Finance
Cost of collection
The 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.
Source: National revenue report 2010 Department of revenue and customs Ministry of finance Bhutan

9. National Capital Region Thimphu
Development Management and Finance
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

10. National Capital Region Thimphu
Development Management and Finance
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

11. National Capital Region Thimphu
Development Management and 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

12. National Capital Region Thimphu
Development Management and Finance
Financial Institutions
There 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

13. National Capital Region Thimphu
Development Management and Finance
FDI Policy
In 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 Areas
The 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

14. National Capital Region Thimphu
Development Management and Finance
National Capital Region Planning Board
Constitution 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 region
ii. Administrative Heads of all the of the 4 districts included in NCR
iii. 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
Source: National revenue report 2010 Department of revenue and customs Ministry of finance Bhutan

15. National Capital Region Thimphu
Development Management and Finance
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

16. National Capital Region Thimphu
Development Management and Finance
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.

17. T h a n k Y o u