[{"bbox": [97, 153, 1134, 410], "category": "Text", "text": "Management System (e-PEMS) that is integrated with the Royal Civil Service Commission's (RCSC's) new web-based human resource management system (civil service information system); online travel allowance (TA)/ dearness allowance (DA) system development launched and the Administrators Training in Thimphu, Punakha and Bumthang Regions have been conducted. The Annual Grants have been allocated to Dzongkhags and Thromdes, in addition to Gewogs; and the Ministry of Finance have initiated clustering of finance services in local governments. On Audit, there has been development of Performance Audit Guidelines; internal Audit Strategic Plan and Quality Assurance Improvement Programme Guidelines; development of guideline framework for financial and budget scrutiny for Parliamentarians."}, {"bbox": [97, 441, 1134, 674], "category": "Text", "text": "The annual **procurement** plan prepared through the electronic-Government procurement (e-GP) by pilot ministries. So far, invitation of more than 50% of bids conducted through the e-GP platform. 100% of the Annual Procurement Plan is done through e-GP using National Competitive Bidding (NCB) by three pilot ministries. PFM reform actions that are relevant as part of the RGoB's anti-corruption efforts include the Corruption Risk Management (CRM) plans being developed in collaboration between the Anti-Corruption Committee, Royal Audit Authority and the Ministry of Finance's Central Coordinating Agency (CCA) for Internal Audit Service for ministries, Dzongkhags, Thromdes and autonomous agencies."}, {"bbox": [97, 702, 1134, 1049], "category": "Text", "text": "The Constitution of Bhutan requires that recurrent spending should be funded from domestic revenues. The manifesto of the new government (in office since November 2018) also placed emphasis on **Domestic Revenue Mobilization (DRM)**. Domestic revenue realised in 2019-20 at EUR 426.11 million accounting for 20.2% of GDP. The tax to GDP ratio was 12.69 %. It is expected to grow by 7% during the FY2021-22, from a drop of negative (-) 8% in FY 2020-21, mainly on account of estimated growth from income taxes, followed by increased consumption taxes. Weaknesses in the domestic revenue base is being addressed by the introduction of the Bhutan Integrated Taxation System (BITS) and GST, while volatility in fiscal revenues and expenditures is tackled through the Bhutan Economic Stabilization Fund (BESF). The Department of Revenue initiated major legislative reforms to create an enabling policy environment for DRM. It includes enactment of Fiscal Incentives Act and Customs Act; endorsement of Double Taxation Avoidance Agreement (DTAA) with Bangladesh and an introduction of Ad-valorem taxation system on royalty on mines and minerals."}, {"bbox": [97, 1078, 1082, 1136], "category": "Text", "text": "In conclusion, the public finance management reform strategy is sufficiently relevant and credible, including on domestic revenue mobilisation, and the eligibility criterion is met."}, {"bbox": [115, 1150, 617, 1179], "category": "Section-header", "text": "### 2.3.5 Transparency and Oversight of the Budget"}, {"bbox": [97, 1194, 1134, 1513], "category": "Text", "text": "The Ministry of Finance prepares annual **Budget Report** in consultation with the budgetary agencies within the directives of the Cabinet. The budget report is discussed in detail by the Economic and Finance Committee (PFC) of the National Assembly after its presentation by the Finance Minister to the Parliament. The Finance Committee further conducts public consultation with relevant stakeholders. The Executive Budget for the 2021-22 was approved in May 2021 and published in the Ministry of Finance website. It includes the following documents: Economic Overview; Fiscal Policy; Resources; Expenditure covering the budget for 2020-21, revised budget for 2019-20 and Annual Financial Statement (AFS) for 2019-20; Public debt; Fiscal risk; and Financial position of public sector institutions and investments. Budget Utilization Plan User Manual has been developed to monitor performance. The Supplementary Appropriation bill for a sum not exceeding EUR 32.37 million on account of incorporation of donor-funded activities and technical adjustment was approved in May 2021."}, {"bbox": [97, 1541, 1134, 1628], "category": "Text", "text": "For 2021-22, the **total resources** are estimated at EUR 667.83 million, of which domestic revenue is EUR 418.82 million accounting for 17.8% of GDP (of which 64% is tax revenue and 36% is non-tax revenue), external grants are EUR 241.48 million, and other receipts is EUR 7.53 million. Total"}, {"bbox": [1027, 1681, 1144, 1705], "category": "Page-footer", "text": "Page 15 of 39"}]