The Bhutanese Leading the way.
Thimphu Thromde has been charging for garbage collection, water services, and street lighting. The move, which has drawn mixed reactions from the public, is part of a broader push by the Thromde to cope with rising operational costs and become more financially self-reliant.
The Thrompon clarified that these fees are not new but have existed for years. However, earlier rates were minimal specifically for garbage and street light charges where residential units paid Nu 25, and commercial units were charged Nu 50. The updated charges now range from Nu 100 to Nu 200 depending on the category and building type.
The Thromde said public consultations were held in both 2023 and 2024 to inform and engage citizens regarding the changes. Thromde said that this is a general urban tax.
“These revisions are aimed at covering the increasing cost of providing essential urban services,” said the Thrompon.
For water services, the fees support infrastructure costs, including treated water supply, meter installation, and regular maintenance.
“People tend to value services more when they’re accountable for their usage,” said the Thrompon. The charge also discourages water wastage, a common concern when water was provided free of cost.
For a holistic approach towards resolving the increasing water shortage and demand, Thromde has initiated a water flagship program. Under this program, a total budget of Nu 57.92 million has been allocated to address the water issues at a larger level.
Street lighting is another area where costs have escalated.
Thromde pays millions annually to the Bhutan Power Corporation (BPC) to keep streetlights running. The Nu 20 per unit charge helps offset these bills and whether or not a streetlight is installed directly outside one’s building, it contributes to safer public spaces for all residents.
House owners usually collect both garbage and street light fees together and water charges separately.
In line with the growing challenge of waste management, Thromde’s waste collection services have increased the frequency of pickups which has increased from twice to four times a week.
This is supported by the revised waste tariff, now set at Nu 100 per residential unit. For commercial and institutional units, the fees vary based on Department of Trade-approved categorization, ranging up to Nu 4,000.
The Waste Management Committee, established under Royal Command and supported by the Government of Japan, has equipped the city with 17 new waste vehicles.
Despite the new rates, revenue collected remains insufficient. For instance, in 2022–2023, Thromde collected Nu 14 million (mn) in waste fees, while waste management expenses totaled Nu 40 mn annually. The gap, previously bridged using funds from other budget heads, is no longer sustainable.
Thromde’s financial constraints are a growing concern. One example was in the fiscal year 2024–2025, it proposed a budget of Nu 2 billion to the government. However, the Budget approved was Nu 675.374 mn which is just about a third of what was requested.
Further, for the long-term 13th FYP budget Thromde is supposed to get Nu 6,212.20 million. This breaks down to Nu 1,242.44 mn per year, but this year’s approved amount (Nu 675.374 mn) is far below that.
