Allocation will be based on project size and other factors
A sum of Nu 10 billion (bn) has been allocated by the government for the Small Development Projects, (SDP). From this, Nu seven bn will be allocated for the 205 gewogs, where each gewog will get Nu 34.1 million (mn). Nu 1.5 billion each is allocated for the 20 dzongkhags and the four thromdes. This was shared by the Finance Ministry during meet the press on October 25, 2024.
However, the Finance Secretary, Leki Wangmo said that there are some key principles about the SDP which the Ministry and local government should recognize. The project size has to be within five million (mn) to 15 mn. The Secretary said that since projects are of competing priorities, generally, it was agreed that any SDP project will be allocated for prioritized areas like improvement of drinking and irrigation water, chain-link fencing, gewog road and infrastructure development like town and waste management. These projects should generally benefit the larger population.
Within the framework of these key and guiding principles, the Secretary said that the Gewogs, Dzongkhags and Thromdes can propose projects in a range of Nu 5mn to 15 mn. If any project proposed, is not within the framework, such as not benefitting the general population at large, it will not be accepted.
Meanwhile, the Secretary said that since there are many priority areas, SDP’s budget has crossed Nu 10 bn and that no central government agency has received the grants.
The largest portion of the external grants is from the Government of India (GoI), comprising Project-tied Assistance and Small Development Projects (SDP), followed by contributions from the Asian Development Bank (ADB), European Union (EU), World Bank, and others.
During the First Session of the Fourth Parliament, the Finance Minister Leki Dorji reported that for the Fiscal Year 2024-25, the government estimated external grants totaling Nu 16,521.623 million (mn).
These grants consist of project-tied and program grants from various development partners. The largest portion of the external grants is from the Government of India (GoI), comprising Project-tied Assistance and Small Development Projects (SDP), followed by contributions from the Asian Development Bank (ADB), European Union (EU), World Bank, and others.
For the 12th Five Year Plan, the Small Development Project Committee (SDPC) from Bhutan and India approved 70 projects totaling approximately Nu 1.25 bn.
By Sangay Rabten, Thimphu
