The Bhutanese Leading the way.
On 5th February 2024, the National Assembly MPs hade their first plenary session and one of the outcomes of the session was a 14th February 2024 letter signed by the Speaker asking for 2,800cc designated vehicles for MPs as per the Pay Structure Reform Act 2022.
The letter was addressed to the Prime Minister’s Office. The reason given was that Nu 1 mn is not enough to buy a duty vehicle. Then different provisions of the Act were cited.
At the time, the NA MPs declined to take the Nu 1 million (mn) lump sum amount that their NC colleagues had already taken.
The Finance Ministry, however, made clear its inability to provide such vehicles as no new vehicles were being bought.
This was followed up by a second letter to the PMO from the NA House Committee again signed by the Speaker which asked for the lump sum amount to be enhanced to Nu 2.5 mn from the current Nu 1 mn.
The letter said, “The House Committee of the National Assembly has thus decided and proposes an amount of Nu 2.5 mn.”
The letter says the amount will enable the MPs to buy duty vehicles with their vehicle quota being discontinued.
The NA and the House Committee in its letters to the government is trying to justify its demand using the Pay Structure Reform Act 2022 section 62 which says, ‘Each Member of Parliament shall be provided a designated duty vehicle or a one-time lump sum grant for the purchase of vehicle along with the Driver, and Fuel and Maintenance Allowances.’
The House Committee sent the letter via the Speaker Lungten Dorji to the PMO and from there the Prime Minister’s Office sent it for study to the Finance Ministry.
The Speaker said the House Committee felt that it would be difficult for the government to buy new Toyota Fortuners as they are very expensive and so considering inflation and increased costs there was some expectation to increase the Nu 1 mn lump sum amount.
The talk among MPs was that some don’t have cars while a few are even driving boleros and so an enhanced amount would help them buy decent cars.
The Speaker said though he is yet to officially get a reply he has heard that the Finance Ministry has written to the PMO saying that the only way to enhance the amount would be to institute a Pay Commission.
It is likely that the matter will rest at that at least from the side of the government.
However, if the MPs push the issue then there are a total of 72 MPs and minus the PM, 9 Ministers, Speaker and NC Chairman who get duty vehicles it will come to 60 MPs needing 60 new Toyota Fortuners each costing Nu 5 million (mn) including the mandatory Green Tax but minus the sales and other taxes since it is a government purchase.
60 Fortuners will cost around Nu 300 mn. This also means that 60 new drivers have to be hired and their total monthly cost inclusive of basic pay and PF will be Nu 25,000 per month which will mean a monthly salary bill of Nu 1.5 mn in total or an annual pay of Nu 18 mn.
Fuel costs will have to be borne by the government and so if the average monthly fuel consumption is Nu 10,000 then the annual fuel cost will be Nu 7.2 mn.
This is not taking into account repair and maintenance which itself will run into millions and also increase in pay of drivers over time.
On the other hand, if the lump sum amount is agreed to at Nu 2.5 mn per MP then the current Nu 60 mn lump sum given to the 60 MPs at Nu 1 mn each will have increased to Nu 150 mn.
Currently, MPs apart from the Nu 1 mn lump sum get Nu 10,000 per month driver allowance and Nu 10,000 per month fuel allowance.
The NA MPs have taken the Nu 1 mn each for now but the implementation of the Pay Structure Reform Act 2022 is one of the motions being considered and designated vehicles is a core issue there.
If an ordinary citizen wants to buy a Toyota Fortuner then the approximate cost with full taxes is around Nu 7 mn.
Earlier, the House Committee Chairman who is Deputy Speaker Sangay Khandu said it is not just about the vehicles but other issues in the Act.
He had said that the civil servants accompanying ministers are getting only 20% DSA which is not enough.
However, here a source said that the civil servants travelling with ministers get their room and food covered and so there is no need to give beyond the 20% DSA which is an additional amount.
The Deputy Speaker had also pointed out to the communication allowance being cut is making it difficult but here a source said that the communication allowance was only for senior officials at Director and above and it was cancelled by the last Parliament since everybody is communicating and not just higher officials.
On the issue of annual leave also raised by the Deputy Speaker it was already rationalized and added to the pay and civil servants were to get 21 days leave but here the high attrition rate impacted it a bit.
