Dec 10, 2008- Thimphu: The Gross National Happiness Commission has recommended Nu 12 billion for local development activities in the 10th Plan, according to a source in the government.

The GNHC recommendation and resource allocation procedures were discussed with the lawmakers on December 7 and 8. The budget is part of Nu 141 billion earmarked for the 10th Plan.

The budget, 80% of which is plan-tied, is to be used for implementing activities and programs for local development identified in the Plan. And the 20% can be spent by local authorities based on their priorities or for the ad-hoc plan activities.

The Nu 12 billion allocation does not include education and spillover feeder roads. It includes farm roads, bridges, Basic Health Units, and Out Reach Clinics.

However, while spending the budget the local authorities will have to follow the GNHC guidelines.

The BT source said the budgeting has been done using the Resource Allocation Formula (RAF), which considered the geographical size of the dzongkhags, population and the poverty status.

MPs proposed that the resource allocation should be done with a clear status of the geogs taking into consideration the factors like poverty incidence.

The GNHC has, however, doesn’t have a dis-aggregated statistics on poverty incidence for the geogs, said the source.

But the Commission is working on ‘small area estimation’ in collaboration with the National Statistic Bureau. 

“This will give the details of each geog, especially the status on poverty incidence, and accordingly the resource allocation will be done in the future,” said the source.

The GNHC recommendation will be submitted to the cabinet after which it will be discussed in parliament.