1. National Decentralization Policy
Department of Local Governance
Ministry of Home and Cultural Affairs

2. Financial and Technical Support

3. Outline of the presentation
Brief background
Objectives
Principles of the policy
Types of decentralization being proposed
Framework for enunciation of the Policy
Summary of Policy statements
Key aspects of the Policy
Q&A

4. Background
NC recommended to conduct a Diagnostic Study on local governance.
Local Governance Assessment Study was commissioned and funded by the SDC.
Study recommended to develop a consolidated National Decentralization Policy
In 2016, the Prime Minister had directed the Home Ministry to review the CDG, GDG and DDG in the form of annual capital grants, and capacity development of the Human Resource in the Local Governments.
Concept Note approved by the 150th session of the Lhengye Zhungtshog on 9th January 2018.

5. Objectives of the Policy
To provide the vision and a holistic framework for decentralization process.
To establish a coherent policy and legal framework that provides strategic guidance for a coordinated and integrated approach to decentralization among all stakeholders
To improve the enabling environment for LGs to be more self-reliant, autonomous with adequate human and financial resources
To lay the foundation for a Decentralization Implementation Plan

6. Principles of the Policy
Unity and harmony
Sustainability
Gradualism and flexibility
Participation
Equity and inclusiveness
Transparency and accountability
Responsiveness
Non-partisanship
Multi-sector and multi-stakeholder
Subsidiarity

7. Types of Decentralization
Administrative
Fiscal
Political

8. Framework for enunciation of Policy
Policy issue analysis
Policy change statement
Strategic policy action

9. Summary of Policy Statements
Administrative Decentralization
Devolution as the main mode of decentralization
Harmonization of legal and policy framework
Strengthening Inter-governmental relations and coordination mechanisms
Devolution of Human Resources Management
Developing Sustainable LG Capacity
Strengthening ICT Infrastructure and promoting e-governance

10. Summary of Policy Statements
Political Decentralization
Revised framework for participatory and integrated planning
Improved transparency and information sharing mechanisms
Deepened citizens’ engagement, social accountability and partnership
Fiscal Decentralization
Progressive fiscal decentralization
Enhancing self-reliance through own source revenue generation

11. Key aspects of the Policy
Policy function – Central Government
Technical support and M&E – central Government
Institutional connect – through LG resolutions
HR deployment in key areas
HR functions decentralization
CD decentralization

12. Key aspects of the Policy
Establishment of a fair system of PE
Coordination, including CSOs and CBOs
Periodic review of DoRF
Progressive increase in grant for LGs, plus untying them
Inclusive governance (women, youth, vulnerable groups)
Local fiscal policies, including OSRs
Increase tax base

13. Q&A

14. KADINCHE LA!