[{"bbox": [96, 151, 1135, 560], "category": "Text", "text": "The Action is in line with the new European Consensus on Development⁸ as it promotes accountable and transparent institutions and foster participatory decision-making and public access to information. The Action is aligned with the NDICI focal areas⁹ on (i) “Good governance, democracy, rule of law and human rights” and (ii) “Poverty eradication, fight against inequalities and human development, job creation and digitalisation” and with EC priorities on Green Deal, Alliances for Science, Technology and Innovation, and Digital Alliances for sustainable growth and decent jobs. It is also aligned with the Territorial Approach to Local Development, the EU Communication on ‘Empowering local authorities in partner countries for enhanced governance and more effective development outcome¹⁰’, ‘Digital for Development¹¹’, the Gender Action Plan III especially to the thematic engagement “Promoting equal participation and leadership¹²”. It contributes to several SDGs¹³, namely: SDG 1 (ending poverty); SDG 4 (quality education); SDG 5 (gender equality); SDG 8 (Decent work and economic growth); SDG 10 (Reduced inequalities) and SDG 16 (Peace, Justice and Strong Institutions). It is further aligned with the RGoB’s 12th FYP National Key Results Area 13 ‘Strengthening democracy and decentralisation’ and 10 “Gender Equality” as well as with the RGoB’s Digital Drukyul Flagship Programme¹⁴."}, {"bbox": [85, 599, 340, 629], "category": "Section-header", "text": "## 2.2 Problem Analysis"}, {"bbox": [96, 673, 1135, 993], "category": "Text", "text": "Bhutan is ranked 134 out of 189 countries and territories in the Human development index (HDI) published in 2019. Ending poverty, realizing sustainable development and pursuing progress centred on people's well-being are integral to both SDGs and Gross National Happiness (GNH). In 2017, the poverty rate stood at 8.2% (rural poverty - 11.9% and urban poverty- 0.8%). The Gini index, which measures inequality, hardly changed between 2012 and 2017 (0.38 in 2017). The country's literacy rate was 71.4% in 2017. Poverty and inequality levels may be adversely affected as a consequence of the COVID-19 pandemic, the poverty headcount ratio is projected to increase to 12.5% in 2021, given continued inflationary pressures and the growth decline. Significant resources are required to reduce the gap especially taking into consideration the geography of the country. With 71% of pristine forest cover, about 30% of the Bhutan's energy consumption today is met through electricity, mostly through hydropower plants. Two-third of total energy demand is met by non-renewable fuels."}, {"bbox": [96, 1048, 1135, 1107], "category": "Text", "text": "Identification of main stakeholders and corresponding institutional and/or organisational issues (mandates, potential roles, and capacities) to be covered by the action:"}, {"bbox": [96, 1135, 1135, 1338], "category": "Text", "text": "While service delivery functions are being decentralised, the **capacity** of the **local government** to mobilise revenue remains limited. The operations of the Dzongkhags and Gewogs (local administration) are dependent on current account transfers from the central government while the Annual Grants support service delivery projects. The rural tax is the principal source of Gewogs' internal revenue. However, the level of revenue generated is negligible and inadequate for addressing service delivery demands. Local governments report and remit to the central government the bulk of revenues, which they collect, including various fees and, most importantly, insurance premiums."}, {"bbox": [85, 1403, 1122, 1430], "category": "Footnote", "text": "⁸ https://international-partnerships.ec.europa.eu/policies/european-development-policy/european-consensus-development_en"}, {"bbox": [85, 1428, 1144, 1477], "category": "Footnote", "text": "⁹ https://international-partnerships.ec.europa.eu/funding/funding-instruments/global-europe-neighbourhood-development-and-international-cooperation-instrument_en"}, {"bbox": [85, 1476, 845, 1502], "category": "Footnote", "text": "¹⁰ https://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2013:0280:FIN:EN:PDF"}, {"bbox": [85, 1501, 1144, 1550], "category": "Footnote", "text": "¹¹ https://futurium.ec.europa.eu/en/Digital4Development/library/digital4development-mainstreaming-digital-technologies-and-services-eu-development-policy"}, {"bbox": [85, 1549, 660, 1574], "category": "Footnote", "text": "¹² https://ec.europa.eu/commission/presscorner/detail/en/IP_20_2184"}, {"bbox": [85, 1573, 310, 1598], "category": "Footnote", "text": "¹³ https://sdgs.un.org/goals"}, {"bbox": [85, 1598, 1070, 1646], "category": "Footnote", "text": "¹⁴ https://flagship.gnhc.gov.bt/digital-drukyul/#:~:text=Digital%20Drukyul%20Flagship%20Program%20aims,a%20smart%20and%20inclusive%20society"}, {"bbox": [1038, 1681, 1144, 1705], "category": "Page-footer", "text": "Page 7 of 39"}]