GYT Act, 2002

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Geog Yargay Tshogchhung Chathrim 2002_English version_

Geog Yargay Tshogchhung

Chathrim, 2002


Whereas, His Majesty the King had established Geog Yargay Tshogchung in 1991 to promote local
socio-economic development strategies and initiatives, by empowering the people to make decisions on
their plans and programmes, and by enabling them to adopt approaches and practices adapted to local

Whereas, the Royal Government has decided that the 9th Five-Year Plan shall be geog based and that a
wide range of powers, authority, functions and respon ibilities shall be devolved to the people through
the Geog Yargay Tshogchung; and

Whereas, in pursuant to profound visions and noble conceptions of reforms of His Majesty the King
aimed at strengthening decentralisation and devolution, he Chathrim of Geog Yargay Tshogchung, 1992,
is herewith revised to bring greater peace, happiness and prosperity in the Kingdom.

Therefore, be it resolved, that the 80th Session of the National Assembly of Bhutan enacts "Geog Yargay
Tshogchung Chathrim, 2002" on 13th day of the 6th month of Water Male Horse Year, corresponding to
22nd 2002.

Article 1: Title, Commencement and Amendment

1. This Chathrim shall be cited as the “Geog Yargay Tshogchung Chathrim, 2002”, corresponding to

the Water Male Horse Year.

2. The Chathrim shall come into force on the date of its ratification on 22nd 2002, corresponding to

the 13th day of the 6th month of Water Male Horse Year, by the National Assembly, throughout the

3. This Chathrim shall supersede all earlier Chathrim, rules and regulations pertaining to Geog

Yargay Tshogchung.

4. Any provision of this Chathrim may be amended, whenever necessary, by the National Assembly

of Bhutan.

Article 2: Definitions
1. ‘Candidate’ means any person who is standing for election or nomination;

2. ‘Chathrim’ means the Chathrim of Geog Yargay Tshogchung, 2002;

3. ‘Chimi’ means an elected member of the National Assembly of Bhutan representing his or her


4. ‘Dzongdag’ means the chief executive of a dzongkhag or any official for the time being exercising

the functions of the office of dzongdag;

5. ‘Dzongkhag administration’ means the agency of the Royal Governm nt headed by the dzongkhag;

6. ‘Dzongkhag Yargay Tshogchung’ means any Dzongkhag Yargay Tshogchung constituted under the

provisions of the Dzongkhag Yargay Tshogchung Chathrim, 2002;

7. ‘Gewog plan’ means a set of activities that are included in the national annual or five-year plan,

and are managed and implemented by the Geog Yargay Tshogchung;

8. ‘Geog Yargay Tshogchung’ means any Geog Yargay Tshogchung constituted under this Chathrim;

9. ‘Gung’ means households registered in accordance with the househld registration system;

10. ‘Gup’ means head of the geog elected as per the provisions of this Chathrim;

11. ‘Geog clerk’ means the clerk of the geog and the Geog Yargay Tshogchhung, appointed by Geog

Yargay Tshogchhung;

12. ‘Local’ means the areas within the jurisdiction of the Geog Yargay Tshogchung;

13. ‘Mangmi’ means an elected representative of the geog, who can be either a mang ap or a mang


14. ‘Member’ means any elected person who has fulfilled the criteria of membership of Geog Yargay


15. ‘Nangkhoet’ means works or responsibilities determined by village (s);

16. ‘Observer’ means a chimi, or a sectoral staff who attends Geog Yargay Tshogchung meeting to

provide clarifications and information;

17. ‘Registered resident’ means a person with citizenship identity card whose census record is

maintained in a particular geog, and he or she has been living there for at least one year in the
immediate past;

18. ‘Royal Government’ means the Royal Government of Bhutan; and

19. ‘Tshogpa’ means a representative of a village, or a cluster of villages.

20. ‘Chupon’ means a village messenger.

21. In case of conflicting interpretation of any provision of this Chathrim, the decision of the Court of

Law shall be final and binding.

22. The original of the Chathrim shall be in Dzongkha which will prevail over its translations in other

languages, if there are conflicting interpretations.

Article 3: Composition, Terms of Office and Allowances of Members

1. Geog Yargay Tshogchung shall comprise of gup, mangmi and tshogpa as members.

2. Chimi, geog clerk, and representatives of the various sectors in the geog shall attend as observers.

The gup may invite any other observer, as required.

3. The term of office for the members of the G og Yargay Tshogchung shall be one year for tshogpa;

three years each for mangmi and gup.

4. The tenure of the gup shall be reckoned from the date of registration with the dzongkhag

administration, which shall coincide with the date on which the gup receives a dar from the

5. The gup, mangmi and gaydrung shall receive a monthly allowance of Nu. 6,000, Nu. 4,500 and
Nu. 4,000 respectively, or as revised by the Royal Government from time to time.

6. All voting members and non-voting member geog clerk shall receive Nu. 150 per day as sitting

fees for Geog Yargay Tshogchung sessions, or as revised by the Royal Government from time to

Article 4: Eligibility Criteria for Members

A candidate for Geog Yargay Tshogchung, including the gup, shall satisfy all of the following terms:

1. A candidate shall be a Bhutanese citizen under the provisions of the Citizenship Act;

2. A candidate shall not have served a prison sentence both inside and outside the Kingdom;

3. A candidate shall not have committed a criminal offence;

4. A candidate shall not have been dismissed, on dishonourable grounds such as corruption and

misuse of position, from his or her previous employment in either government or private

5. A candidate shall be of sound mental health, and physically able to effectively perform his or her

duties with hoesty and dedication;

6. A candidate shall be a registered resident of the geog, who are 25 years of age and above;

7. A candidate shall be functionally literate, with skill adequate to discharge his or her duties;

8. A candidate who is not married to a foreign national; and

9. A candidate who respects and follows the Driglam Choesum of Pelden Drukpa.

Article 5: Procedures for Election of GYT Members

The procedures for electing the members of the Geog Yar ay Tshogchhung shall be as per the provisions
of an Election Act. However, until the Election Act is passed by the National Assembly of Bhutan, the
members of the Geog Yargay Tshogchhung shall be elected in accordance with the following procedures;

1. The candidates shall not solicit votes through bribery, threat or any other unscrupulous means;

2. All members of the Geog Yargay Tshogchhung shall be elected through secret ballots;

3. All the registered residents of a geog/village, who are 21 years of age and above, with citizenship

identity card, shall be eligible of vote;

4. Each eligible registered resident gathered during the time of voting shall cast one vote;

5. Ballot boxes shall be opened and votes counted in the presence of at least half of those who have

participated in the voting;

6. In the case of more than one candidates, the candidte securing the highest number of votes shall

be declared as elected;

7. In the case of candidate securing equal number of votes, a second round of voting shall be carried

out amongst the tied candidates. If, however, the candidates with the highest number of votes still
remain tied even after the second round, then, the candidate shall be elected by drawing of lots
amongst such tied canditates;

8. In case there is only one candidate, secret ballot shall be held on basis of ‘yes’ and ‘no’. the

candidate shall be declared elected only if he or she secures ‘yes’ votes of more than fifty percent
of the votes casted. Otherwise, the geog shall nomiate another candidate or candidates and repeat
the voting procedures.

9. For the election of gup, there shall be minimum of two officers appointed by the dzongkhag

administration,, whose functions shall be to:

(a) verify that eligibility requirements are met by allcandidates before they fill nomination forms;

(b) prepare polling place and ballots and conduct the election process in a fair manner, and

(c) countersign the form for the declaration of election results, signed by the Geog Yargay

Tshogchung members.

10. Any registered resident of a geog may send a written complaint concerning the alleged el ction

irregularity in the election of any GYT member to the dzongkhag administration, within a period
of 10 days, after the declaration of the election results. The dzongkhag administration shall carry
out an inquiry into the allegation. If the allegation is found true, the candidate shall be disqualified
and re-elections shall be conducted. The disqualified candidate shall be barred from contesting in
future elections for a period of ten years. Further, any person involved in bribery or similar
unlawful acts shall be prosecuted a the Court of Law.

ARTICLE 6. Relieving of GYT Members

A member of Geog Yargay Tshogchung, including the gup, may be relieved of his or her post by Geog
Yargay Tshogchung with two-thirds majority of all members under any of the following circumstances:

1. A member has lost the trust and confidence of the people, with demonstrable evidence;

2. A member is found to be incompetent and negligent in the duties entrusted to him or her; and

3. A member is found to have engaged in an act that is harmful and detrimental to the peace and

harmony of the community or of the Kingdom.

ARTICLE 7: Geog Yargay Tshogchhung Meeting Procedur s

1. Geog Yargay Tshogchung meetings shall be convened, at least once every three months and shall

be chaired by the gup.

2. The Gup may convene, if required, additional meetings.

3. In the absence of the gup, the mangmi shall chair the meeting.

4. There shall be a fixed agenda for every meeting.

5. At least two-thirds of all the members must be present at a meeting to form the quorum and pass
any decision.

6. The GYT meeting shall commence with traditional opening ceremony.

7. Decisions of the meeting shall be made either by consensus or by a simple majority of those

present in a meeting.

8. The geog clerk shall record the minutes of meeting and distribu e them to all the members.

9. The agenda and the record of the meetings shall be maintained in national language. The minutes

of a meeting shall be adopted upon confirmation by the members present in a meeting and
subsequently signed by the chairman.

10. No members of a Geog Yargay Tshogchung shall be arrested or prosecuted while G og Yargay

Tshogchung is in session.

11. Members shall enjoy equal freedom of speech in the GYT meeting.

ARTICLE 8. Regulatory Powers of Geog Yargay Tshogchhung

The following are the areas of powers and functions f Geog Yargay Tshogchung on which it can adopt
and enforce regulations applicable within a geog:

1. safe disposal of waste;

2. control and prevention of pollution of air, soil and water;

3. sanitation standards;

4. control of communicable livestock diseases within te geog in accordance with the Livestock Act,


5. allocation of safe and clean drinking water from water supply schemes;

6. allocation of irrigation water, in accordance with the provisions of the Land Act, 1979;

7. standard of architectural designs of houses, within the broad framework of set national codes;

8. protecting and harvesting of edible forest products in the local area in accordance with the Forest

and Nature Conservation Act, 1995;

9. setting up of local handicraft enterprises within thegeog;

10. setting up of co-operatives, within the scope of the Co-operatives Act, 2001, with members within

a geog;

11. depredation of crops by livestock and wildlife, in accordance with the provisions of the Forest and

Nature Conservation Act, 1995;

12. exemption of gung from nangkhoet beneficiary contributions, in cash or in kind or in labour; and

13. creation and designation of local recreational areas around villages.

ARTICLE 9. Administrative Powers and Functions of GYT

The following are the administrative powers and functions of Geog Yargay Tshogchung:

1. identification, prioritisation and formulation of activities for the geog plan, for which the technical

backstopping and advisory services shall be provided by the sector staff of the dzongkhag

2. administration, monitoring and review of all activiies that are part of the geog’s plans, including

the maintenance of community properties such as lh khangs, goendeys and their nangtens,
chheoten, mani dangrem, water supply schemes, irrigation channels, footpaths, mule tracks, farm
and feeder roads, suspension and cantilever bridges, micro-hydels, Basic Health Units and
outreach clinics, lower secondary school and community schools and extension centres of the
Renewal Natural Resources sectors;

3. discuss and submit tree monthly progress reports to the dzongkhag administration on sectors listed

in paragraph 2 above, including on financial and administration matters, performances of civil
servants etc.

4. submission of motions arising from villages for consideration of Dzongkhag Yargay Tshogdu and

the National Assembly;

5. approval for hiring and mobilization of labour for the upkeep of communal facilities;

6. approval of the appointment of geog clerk;

7. conservation and protection of water sources, lakes, springs, streams, and rivers;

8. custody and care of communal lands, community forests, including communal sokshing and

nyekhor tsamdo, medicinal herbs and accordingly prevention of illegal house construction and all
other types of encroachments in such community lands s well as on Government land and forests;

9. prevention of construction of structures, whether on national, communal or private lands, within 50

feet of highways falling in local area;

10. protection and preservation of ney, nyekhang of yulha and zhidag, which are not part of custody of

a monastic body or central agencies;

11. management of community shedra, drubdey, gomdey, tshechu, kuchhoe bumdey, and other

community rites and festivities;

12. preservation and promotion of driglam choesum;

13. organisation of relief measures during natural disasters and emergencies;

14. promotion of co-operatives and community initiated and managed activities in the g og;

15. award of contract works; and

16. appointment of geog tender committee and other committees required for ischarging functions of

Geog Yargay Tshogchung.

ARTICLE 10. Financial Powers of Geog Yargay Tshogchhung

Geog Yargay Tshogchung shall be vested with adequate budgetary and financal powers to enable it to
effectively carry out its roles and responsibilities under this Chathrim, particularly the following:

1. approval of the geog’s annual budget;

2. accordance of approval by GYT for works or activities costing above Nu. 50,000;

3. accordance of other financial approvals as required under regulations;

4. re-appropriation of geog plan budget, as provided in regulation;

5. approval of the plan for maintenance of development infrastructures to be met from the retained

rural taxes;

6. approval of the plan for use of other funds raised by the Geog Yargay Tshogchung itself;

7. approval of rates of local utilities like irrigation water, locally generated power and drinking water

necessary for the upkeep of such utilities; and

8. review of the accounts of all expenditures of the Geog and ratify, in accordance with the financial

rules and regulations.

The Ministry of Finance shall from time to time revi w and frame rules and regulations on the financial
powers and functions of the Geog Yargay Tshogchhung that shall include but not limited to the above.

ARTICLE 11. Powers and Responsibilities of Gup

As the head of the geog, the gup shall:

1. oversee the overall affairs of the geog and implement the decisions of the Geog Yargay


2. chair the Geog Yargay Tshogchung meetings, school management and admission boards and the

geog’s other important meetings, and maintain decorum and order in these meetings;

3. submit progress reports of the geog in accordance with Article 9(3) to the dzongkhag


4. appoint and exercise administrative control of non-civil service personnel, such as the g og clerk

and communal caretakers, appointed in the geog under the authority of the Geog Yargay

5. carry out works approved by the GYT in accordance with the financial rules and regulations in

execution of works;

6. authorise payments for the works, procurements, and administrative claims;

7. accord financial sanctions for activities costing up to Nu. 50,000;

8. maintain registration records of land, livestock and other properties and population and issue

certifications and testimonials thereof;

9. compile and submit annual records of population, houses, land and cattle to the dzongkhag

administration not later than December of every year;

10. collect annual rural taxes not later than October of every year;

11. collect and deposit premiums for rural life and house insurance with the dzongkhag administration

not later than February of every year;

12. verify life and house insurance claims;

13. verify applications for timber, fuel wood and such ot er facilities;

14. verify applications for kidu;

15. mediate and conciliate disputes of minor civil nature referred by the people in the geog by

involving, if required, conciliators of good standig in the community.

ARTICLE 12. Responsibilities of Mangmi, Geog Clerk, Tshogpa and Chupon

1. As the deputy head of the geog, mangmi shall assist the gup in the administration of the functions

and responsibilities delegated to the gup. Mangmi shall officiate as gup in the absence of the gup.

2. The geog clerk shall maintain records of appointments of Geog Yargay Tshogchhung and such

other meetings. He or she shall be responsible for management of the office.

3. Tshogpa beside attending the GYT meetings, shall be responsible for overall affairs of his or her

constituency and liaise between Geog Yargay Tshogchung and the constituency he or she

4. Chupon shall be entrusted with the traditional responsibilit es within the geog of communicating

directives of the chairman of the Geog Yargay Tshogchhung (gup) to the people.

ARTICLE 13. Code of Practice of Members of Geog Yargay Tshogchhung and

Office Bearers

1. Any member of office bearer of Geog Yargay Tshogchhung with any personal or pecuniary
interest shall disqualify himself or be disqualified from participation in decision making
process when circumstances seem to affect his impartiality.

2. The following acts or omissions of members and office-bearers of Geog Yargay Tshogchung

shall constitute corrupt practices, which are hereby unlawful;

(a) taking possession or disposing by illicit means of g vernment and public money and

(b) approving or awarding any contract works, procurement, and jobs in favour of a person or

organisation, not competent or entitled to such works, procurement, and jobs or in favour
of an indirect representative of a person or organisation who is not competent or entitled;

(c) directly or indirectly requesting or receiving any gift in cash or kind, in connection with
contract works, procurement, and jobs, which may affect fair decisions;

(d) neglecting, after due request, without sufficient justification, to process or act

expeditiously on a matter pending before him or her, for the purpose of getting irregular
pecuniary returns from a person or organisation, or discriminating against a person or

(e) divulging valuable information of a confidential character, acquired in his or her official

capacity to unauthorised persons or organisation or releasing such information in advance
of the authorized release date; and

(f) giving any private individuals or organisations unwarranted benefits and preferences in the

discharge of his or her duties through partiality.

ARTICLE 14. Penalties for Violation of Code of Practice

1. Any member, or an employee of Geog Yargay Tshogchung, or a functionary serving the
community in any capacity committing any violation f Article 13 shall be subject to penal

2. Any violation proven in a administrative proceeding, instituted by dzongkhag administration,

shall be sufficient ground for his or her dismissal even if no criminal prosecution is instituted
against him or her.

3. Any person or organisation committing any of the unlawful acts, which is deemed serious, shall

be tried in court by criminal prosecution

4. Any person or organizatin abetting with the members or office bearers in violation of Article 13
of this Chathrim, shall be subject to penal liabilities as per the laws.

Annex- 1

!" %) *

Financial Rules and Regulations 2002-Changes Applicable to Geog
Executed Activities

Financial Rules and Regulations 2002-Changes Applicable to Geog
Executed Activities

List of Contents


Title, Scope and Commencement



1. Rural Taxes and locally mobilized resources

2. Centrally allocated funds for specific plan activities

System for Implementation of Activities;

1. For expenditures to be met from Rural Taxes and other locally mobilized

a. General
b. Accounting
c. Revenue Collection & Accounting Procedures
d. Engineering and Other Technical Services

2. For expenditures to be met from centrally allocated funds for 5-year plans

a. General
b. Budget Appropriateions and Releases
c. Financial Powers
d. Payments & Accounting
e. Accounts Reporting
f. Engineering and Other Technical Services
g. Procurement Procedures

Tender Committee


Financial Rules and Regulations 2002-Changes Applicable to Geog
Executed Activities


In accordance with Article 10 of the Geog Yargay Tshhogchhung Chathrim, 2002, the Ministry of
Finance hereby issues the changes in the Financial Rules & Regulations 2001(FRR 2001) for faciliting
the decentralization process to the geog levels;

Title, Scope and Commencement

These Rules shall be called the FRR 2002 – Changes Applicable to Geog Executed Activities.

Except to the extent specifically modified in these Rules, the procedures prescribed in the FRR 2001 shall
continue to be applicable.

These Rules shall come in to force from 22nd July, 2002.

These Rules may be amended from time to time by the Ministry of Finance.


These Rules are aimed a facilitating the G og Yargay Tshogchhung to make decisions with regard to the
execution and regulation of activities by geogs.


The funds for geog-level activities shall comprise of the following:

1. Rural Taxes and locally mobilized resources:

a. Rural Taxes:

The following rural taxes shall be collected and retained by the geogs for meeting the
maintenance expenditures of the g ogs’ infrastructure facilities.

i. Land Tax including Grazing Tax;

ii. House Tax;

iii. Cattle Tax;
(Introduction of new taxes including rural taxes and revision of tax rates shall be carried out
only by the Royal Government.)

b. Geog’s locally mobilized funds:

Any locally mobilized resources may be used to supplement the rural tax amounts to meet the
local requirements.

2. Centrally allocated funds for specific plan activities.

Such funds would constitute allocations from the national budget for the implementation of

specific activities of the geogs’ 5-years plan and which involve larger financial outlays.

System for Implementation of Activities:

In accordance with the two modes of financing, the activities shall be implemented on the basis of

a two-tier system as follows:

1. For expenditures to be met from Rural Taxes and other locally mobilized resources.

a. General

The gups shall prepare annual estimates of the rural tax revenue, along with he estimates of
locally mobilized resources, and submit then to the Geog Yargay Tshogchhung (GYTs) along
with the proposals for expenditure.

Expenditure shall include minor maintenance of development infrastructure in accordance
with the following procedure:

i. Works and other goods & services costing up to Nu.25,000/- by reasonable
inquiries from local parties;

ii. Works and other goods & services costing above Nu.25,000/- and below

Nu.500,000/- through limited inquiry from local parties. If suitable local parties are
not available, then the inquiries may be obtained from parties located within the

iii. Works and other goods & services costing up to Nu.50,000/- the procedures shall

be in accordance with the rules for centrally allocated funds.

b. Accounting

i. A current account shall be opened in the name of the geog in the nearest bank, into
which shall be deposited the rural taxes and other locally mobilized funds of the
geog, and the payments shall also be made through the sam account.

ii. The gup shall operate the bank account jointly with the geog clerk, and the geog

clerk shall maintain the accounts and documents.

iii. The receipts & payments statement shall be prepared on a monthly basis. Such
statements shall be submitted to the GYT half-yearl for review and ratification.
Such a statement shall also be submitted to the Dzongkhag Yargay Tshogdu and
the dzongkhag administration annually for review. A copy of the annual statements
shall be submitted to the Department of Budget & Accounts (DBA) as well.

iv. The records should be maintained and stored properly to ensure future verification

and proper handing and taking over between the out-g ing and in-coming gups.

(For the maintenance of accounts, the geog clerk shall be provided training by the
Dzongkhag’s Finance personnel on the basis of budgeting, procurement, book-keeping, and
record maintenance. The Dzongkhag’s Finance personnel who shall initially open the books
of accounts for them, shall also visit the geogs periodically to supervise the maintenance of

c. Revenue Collection & Accounting Procedures

i. The gups shall collect the rural taxes as per prevailing practices and deposit them
into the current account in the bank.

ii. The gups shall maintain separate books of accounts for the coll ction on the basis

of different types of taxes collected and on indiviual taxpayers’ basis as per the
format to be issued by the Department of Revenue & Customs (DRC), Ministry of

iii. The details of taxes collected shall be submitted to the Geog Yargay Tshogchhung

annually for review and ratification.

iv. A statement of taxes collected shall be submitted to the dzongkhag, which shall in
be forwarded to the DRC, MoF.

d. Engineering and Other Technical Services

The Dzongkhag Engineering Section (DES) must provide the necessary technical support
wherever necessary.

2. For expenditures to be met from centrally allocated funds for 5-years plans:

a. General

The GYT shall approve the execution of activities limited to their geogs subject to the
availability of annual fund allocations from the national budget. The gups shall execute the
activities in accordance with the provisions of the FRR 2002, subject to the following

b. Budget Appropriations and Releases

i. The annual budget proposals shall be prepared by the gups with the help of the
Dzongkhag Finance Sections (DFS) and submit to the GYT.

ii. After the GYT’s approval, the proposals shall be submitted to the dzongkhag

administrations, which will in turn after incorporation with its own budget submit to the

iii. The DBA, MoF shall open separate Letter of Credit (LC) accounts for each of the geogs

at the dzongkhags.

iv. The appropriated provisions shall be released to the dzongkhags in the LC accounts of

the respective geogs.

v. The LC accounts shall be operated by the respective gups and the head of the DFS

c. Finanice Powers

In the exercise of their financial responsibilities, the GYTs and the gups shall have the powers
as specified in these Rules and as delegated in theschedule attached the these Rules.

d. Payments & Accounting

i. The authorizations for payments shall be given by gups as the head of the GYT, and
based only on such authorizations, the DFS shall make the payments.

ii. Payments shall be regulated as per the FRR 2002. The DFS shall maintain all the books

of accounts and other financial records separately for each geog.

e. Accounts Reporting

i. The monthly receipts & payments statements with the prescribed schedules shall be
submitted to the Department of Budget & Accounts (DBA), MoF.

ii. The accounts of all receipts and payments must be su mitted to the GYT and the DYT

annually for review and ratification.

f. Engineering and Other Technical Services

i. The payments for works shall be made upon the verification of the bills by the engineers.
Such verifications shall be based on the entries in the works execution records as
prescribed in Section 6.3 of the Finance & Accounting Manual of the FRR 2001. For
this purpose, the DES shall provide the necessary services.

ii. The DES shall prepare the design, estimates, tender documentation, etc..

iii. The functional design, location, the cost estimates, and the mode of undertaking the

works shall be scrutinized and approved by the GYT.

iv. The DES shall be responsible for the supervision of w rks, maintenance of relevant

records, and certification of claims as required uner the FRR 2002.

g. Procurement Procedures

The gup shall execute the activities in the following manner:

i. The activity should be part of the plan approved by the GYT and for which funds have
been mobilized.

ii. He / She should get the estimates for the activity prepared, and have the tenders floated.

Among other specifications, a suitable condition to encourage the use of local labour,
materials and skills shall be included.

iii. Before embarking on any particular activity costing more the Nu.50,000/-, he /she shall

obtain the sanction of the GYT.

iv. The procurements shall be conducted in accordance with the provisions of the FRR 2002

subject to the following variations:

A. For Works

i. For works estimated to cost not more than Nu.500,000/-
Inquires shall be made from registered local contractors or community groups in the
geog. If there are not more than one such party, and whose rates are within a range of
+/- 5% of the estimates, the GYT may decide and award the work to the party.

ii. For works costing between Nu.500,000/- to Nu.4,000,/-
Tenders shall be floated in the entire dzongkhag

iii. For works costing above Nu.4,000,000/-

Open tenders shall be floated in the entire country.

B. For Other Goods and Services

i. Generally, purchases of items such as school textbooks, medical supplies, chemicals,
fertilizers etc. shall be purchased directly from the respective department’s central
supplying units/agents.

ii. However, should there be other purchases required for which there are no central

supplying units/agents of the Government, the procedures outlined in the FRR 2002
shall be followed.

Tender Committee:

a. A tender committee of the geog shall be formed to recommend the award of contracts for

both the tiers of implementation.

i. the gup as the chairperson;

ii. the geog clerk or the Dzongkhag Finance Section head as the case may be;

iii. the relevant field staff or the dzongkhag relevant sector head as the case may be; and

iv. three elected GYT members other than the gup for a period of one year.

b. The Geog Tender Committee shall be equated with the Departmen al Tender Committee

(DTC), and accordingly its powers shall be at par with those of the DTC.

c. The final decision shall be given only the GYT.


All accounts shall be subject to audit periodically, and the audit reports shall be submitted to
the GYT, DYT, Finance Ministry and the Home Ministry for review and follow-up action.


Annex – 2

0* 2

Schedule of Delegation of Powers to Dzongkhag and Geog

Schedule of Delegation of Powers to the Dzongkhag and Geog Levels
Sl.No. Powers Delegated Nature of

DYT Head of Dzongkhag GYT Gup Remarks


a. Payment of emoluments O NA FP NA FP
b. Encashment of leave O NA FP NA NA
e. Sanction of arrears emoluments O NA FP NA FP

f. Payment of salary advance O NA FP NA Nil Subject to liquidation within
the same Financial Year.


EO NA Up to the Ceiling
prescribed for

discretionary grant.

NA Nil


Travel & medical expense

i. Within Bhutan O NA FP NA Nil

ii. Within India EO NA Nil NA Nil As per clearance of the
Medical Referral


a. Tours

i. Within Bhutan & India O NA FP NA FP(Within
Bhutan only)

b. Seminars/Conferences

i. Within Bhutan & India O NA FP NA FP(Within
Bhutan only)

c. Leave travel claims O NA FP NA NA
d. Transvel benefits(TG/Transport) O NA FP NA NA

e. Travel by ineligible modes EO NA Nil NA Nil

Sl.No. Powers Delegated Nature of

DYT Head of Dzongkhag GYT Gup Remarks



a. Hiring of buildings EO NA FP NA Nil

b. Hiring machinery/equipment O NA FP NA FP




a. Insurance O NA FP NA FP

b. Repairs O NA FP NA FP



a. POL for official vehicles O NA FP NA Nil

b. Repair of vehicles/equipment O NA FP NA Nil

c. Purchase of spare parts O NA FP NA Nil




a. Entertainment of guests EO NA Up to Nu.0.10m

NA Nil ** With no suppl. Budget;

b. Gifts EO NA Up to Nu.5,000 per

NA Nil To be managed out of the
budget for item 11.a above


a. Write off of losses

i. Due to theft/natural calamity EO Up to Nu.

Up to Nu. 10,000 Nil Nil Per incidence

Sl.No. Powers Delegated Nature of

DYT Head of Dzongkhag GYT Gup Remarks

ii. In transit, handling and

EO Up to Nu.

Up to Nu. 20,000 Nil Nil Per incidence

b. Unserviceable and obsolete

EO Up to Nu.

Up to Nu. 50,000 Nil Nil Per incidence


a. Sanction of post service benefits O NA FP NA NA

b. Recovery of dues from

retirement benefits



a. land & buildings (within

EO Nil Nil NA Nil

b. Tools/plants/equipment O NA FP NA FP

c. Vehicles O NA FP Nil Nil

d. Furniture/office equipment O NA FP NA FP


a. Private land EO Nil Nil Nil Nil

b. Govt. land & property EO Nil Nil Nil Nil


a. Advances for approved purposes O NA FP NA Nil


a. Administrative approval &

financial sanction
O NA FP FP Up to Nu.

Technical sanctions shall be
issued by a competent
technical authority.

Sl.No. Powers Delegated Nature of

DYT Head of Dzongkhag GYT Gup Remarks

b. Award of work O NA FP FP Up to Nu.



O NA 1 year 1 year Nil



a. From one object code to another
object code in same activity

EO Up to Nu.
50,000 per

Up to Nu. 30,000
per occasion

Up to 20,000
per occasion

Nil Permitted from current to
capital expenditure and not
vice versa.

b. From one activity to another
activity in the same programme/

EO Up to Nu.
50,000 per

Up to Nu. 30,000
per occasion

Up to 20,000
per occasion

Nil -do-

c. From one sub-programme to
another sub-programme in the
same programme

EO Up to Nu.
75,000 per

Up to Nu. 50,000
per occasion

Up to 20,000
per occasion

Nil -do-

d. From one programme to another

EO Up to Nu.
75,000 per

Nil Up to 20,000
per occasion

Nil -do- within the same
administrative unit.

Note: These powers are all subject to the entitlements and/or budget provision.
O Ordinary, i.e., which can be further delegated
EO Extra Ordinary, i.e., which cannot be further delegated.
NA Not Applicable
FP Full Powers

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