Till the Tenth Five Year Plan, Bhutanese planning was top down fashion and controlled system. But today in the Tenth Five Year Plan, Government has used the formula to plan the activities. This is what the Secretary of Gross National Happiness, Karm Tshthrim said today during a talk by two emient persons from India. The secretary also said that the formula based on four components initially. These compoents were Population, environment, poverty and geographical area. However, later on environment was deleted and only three indicatos were used. Karma Tshetrhim said that this is just the beginning and yet to go along way and today's presentations will further help in refining the formula.One of the resource persons, Professor Stuti Lall from the Society for Developmental Studies said that decentralization is necessary in planning process. She said that decentralization help to motivate, enchance efficiency, accountability, manageability and autonomy. She also presented various theories and types of decentralization.
According to Professor Stuti Lall, Fiscal Decentralization is the assignment of expenditure and revenue. It is the mobilization functions to sub-national levels of government (SNG). Her presentation revealed that the role of fiscal decentralization is to enable financing of development across the country and also bring equitable development.She cited how to devolve funds between central and sub-national level, between centre and state, between districts and blocksas some of the major challenges fiscal decentralization. She also talked on fiscal decentralization from two perspectives, the federal type of government and natural type of government with examples and experiences from India, Indonesia, Phillippines and Egypt.
Professor Vinay D. Lall, Director General from Society for Developmental Studies presented a paper on role of devolution formula. He said that "Devolution formula is critical operational tool for transfer of natural resources and promote the regional development." He said that such formula should be developed depending on the stutus of development, level of economic growth, lack of basic facilities, tax effeciency, geographical area and population.
According to Professor Vinay, Bhutanese Fiscal System and Formula has three tier fiscal devolution system like Indian. That is National > 20 Districts > 205 Blocks. His presentation also revealed that Bhutan's fiscal devolution system is based on three components. Population which moastly comprise of residen rural (70%), Poverty Index(25%) and Geographical Area(5%). He said that there has to be a paradigm shift from Output (GDP) to Outcome (GNH). He said the major implication of such shift is that it focus from an output result to and outcome result.
However, some of the participants raised skepticism about the shift from output to outcome in practical live as most of the developmental activities does not actually lead to outcome as he propsed.
Closing the session, the Secretary Karma Tshethrim said that in the past it was more oriented to tight input and loose at the output but now it will be reversed.
The presentation was attended by hundred participants. The Senior Officials from GNHC, government agencies, media, faculty members and students of RIM. The event was organized at the RIM Conference this evening and organized by GNHC.
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