GDG is aimed at strengthening good governance and decentralization at the grass root level and has an annual budget allocation of Nu 2 million for each gewog, over and above the regular budget.
A Royal Audit Authority performance audit report states highlights significant accomplishments and initiatives, as well as shortcomings and deficiencies observed by the RAA.
In terms of implementation of the GDG activities, the RAA noted significant achievements both in physical and financial, recording aggregate achievements of 98.91% and 97.44% respectively.
The discretionary choices and flexibility in using the Grant would benefit the rural communities as it allows meeting their local needs and priorities without having to observe procedures, which are otherwise applicable to obtain fund under regular annual budget.
The GDG has in general led to expansion of infrastructures like road access, provision of irrigation channels, drinking water and maintenance of cultural properties. If used judiciously and prudently, it would foster decentralization process as well as the economic growth at the grass root level.
Notwithstanding these developments brought about through GDG, the RAA also noted certain shortcomings and deficiencies in the administration and utilization of Grant.
The activities implemented through the Grant lacked alignment with strategic longterm goals. Guidelines do not specify strategies required to achieve national goals such as generating employment opportunities, enhancement of income and activities that would improve the livelihood of the rural people. Review of activities implemented through the Grant showed that sizeable amounts were not related to economic activities.
Review of revised capital budget for the financial year 2012-13 to 2014-15 showed reduction in the aggregate capital budget allocated to Gewogs despite additional funds being provided through GDG. In many cases the aggregate capital budget including GDG had reduced from 2012-13 when there was no GDG. Therefore, there is no actual increment in the provision of capital budget to the Gewogs with the introduction of Grant.
Utilization of Grants for farm roads was found not effective as the actual construction with limited budget resulted in poor quality of roads providing no value for money in creating such infrastructures. The farm roads constructed through GDG did not fulfill the standards specified in the Guidelines for Farm Road Construction 2013 and many farm roads were found not pliable.
Allocation of GDG equally to all Gewogs without considering the factors like, poverty incidences, level of development, size of population and geographical coverage of the Gewogs lacked fairness and equity in the distribution of fund.
There was no proper monitoring mechanism in implementation of GDG activities and transfer of ownership for assets created thereby lacking proper maintenance.
38 cases of non-compliance to GDG Guidelines 2014 were observed. Such cases clearly indicated that the provisions of Guidelines were not observed properly while initiating, endorsing, approving and implementing the activities.