དངུལ་རྩིས་ལྷན་ཁག། དཔལ་ལྡན་འབྲུག་གཞུང་།
Ministry of Finance
Royal Government of Bhutan
History 2
Early Formation of the Ministry of Finance
The first step towards the creation of the Ministry of Finance was taken during the 16th National Assembly Session on 9th July 1961. During this session, it was decided to establish a committee called the Gyaltse Kha Lowa. The Gyaltse Kha Lowa consisted of four members: one representative of His Majesty the King, one from the Cabinet, one from the Public, and one from the Monk Body. The committee was tasked with ensuring the proper maintenance of revenue and government properties. It was required that any government expenditure receive written assent from His Majesty the King, and the committee jointly maintained the accounts. Annual accounts were submitted to His Majesty, who also determined the budget for different Dzongkhags.
Appointment of the Finance Minister and Role Expansion
In 1968, during the 28th National Assembly Session, two new ministers were appointed, including Dasho Chogyal as the Tsilon (Finance Minister). With the appointment of the Finance Minister, the Ministry of Finance assumed the responsibilities of the Gyaltse Kha Lowa. Additionally, the Ministry’s duties expanded after the 30th National Assembly Session, with the Ministry being tasked with studying the introduction and implementation of taxes and the development of a proper budgeting system. In 1971, the Ministry of Finance submitted the first formal statement of income and expenditure for the civilian budget, which was verified and approved by the Assembly.
Development of Budgets and Customs
Before 1980, the Ministry of Finance only dealt with the civil budget, while the Planning Commission handled the development budget, which was financed from external aid. In 1980, the development budget was transferred to the Ministry of Finance, and a Budget Bureau was created. In 1985, the Budget Bureau merged with the Central Accounts Division and was renamed the Department of National Budget and Accounts (DNBA). In 1992, the function of aid coordination was transferred from the Planning Commission to the DNBA. Later, in 2000, the DNBA was bifurcated into two separate departments: the Department of Budget and Accounts and the Department of Aid and Debt Management.
The Customs Department was formally established in 1971, and customs checkposts were opened in various locations, including Phuentsholing, Chengmari, Samtse, Sipsoo, Sarpang, Kalikhola, Gelephu, and Samdrup Jongkhar, in 1978. In 1982, the excise, motor vehicle, and revenue divisions merged to form the Revenue Division, and in 1986, customs and revenue were merged into the Department of Revenue & Customs. In 2004, the Department of Lottery was established, having previously been a Directorate under Revenue and Customs.
Representative of His Majesty and Further Changes
During the 36th National Assembly Session, His Majesty appointed HRH Ashi Sonam Chhoden Wangchuck as the Representative of His Majesty in the Ministry of Finance. During HRH’s tenure, she implemented several welfare schemes, particularly in the tax sector, aimed at benefiting the poor. At the end of 1991, HRH moved on from the Ministry of Finance to become the Representative of His Majesty in the Ministry of Agriculture.
In 2003, the Planning Commission was dissolved, and its Secretariat was transferred to the Ministry of Finance, where it was renamed the Department of Planning. This marked another significant change in the Ministry’s structure.