Saving McKinsey

May 23, 2011Posted inGovernment23 Comments
McKinsey is costing the government US$ 9.1 million. That works out to about Nu 432 million. That’s a lot of money. The government knows it. And that’s probably why the government makes it a point to tell us that the McKinsey project will bring about “savings” in excess of the US$ 9.1 million being charged by them. About two years ago, when McKinsey’s “accelerating Bhutan’s socio-economic development” project was first announced, we were told that, “The savings the government makes through this project will more than make up for the consultancy cost.” A year later, amid increasing public concern…

Taking charge

April 11, 2011Posted inGovernment16 Comments
Here are two reasons why we should welcome news that the prime minister has formally taken charge of the foreign affairs portfolio: One, the foreign ministry, an important portfolio, has been without a minister for about a year. And two, this is a good opportunity for the government to reduce the size of the administration. Eleven ministers (a prime minister and 10 cabinet ministers) for a country of 700,000 people and a GDP of barely US$ 1.3 billion is excessive by any measure. Switzerland, for instance, has 7 ministers for 8 million people and a GDP of US$ 500…

Saving face

March 9, 2011Posted inGovernment35 Comments
The Supreme Court has ruled that the government violated the Constitution by raising taxes without seeking the Parliament’s approval. This is a landmark verdict. But the verdict should not be seen as a loss for the government. Nor should it be seen as a win for the opposition party. In fact it should be seen, and celebrated, for what it really is: a resounding victory for the democratic process. Even so, the government made a mistake – a serious mistake – by imposing taxes unilaterally and, in so doing, violated the Constitution. For that, the government must accept moral…

Price increases

January 12, 2011Posted inGovernment23 Comments
A civil servant tells me that the recent salary increase has made him poorer! How? Because his pay increase barely covers the corresponding increase in the cost of rent, fuel and groceries. This is his statement of expenditure: We can’t do much about the increase in the cost of fuel and onions. They reflect price hikes in India and have nothing to do with salary increases here. But we can’t allow rents and the prices of other goods to shoot up every time civil servants get a pay hike. This undermines the whole purpose of a pay increase. And…

Not small or compact or efficient

December 31, 2010Posted inGovernment14 Comments

Commenting on “No blank cheque!”, one reader, going by the name “justmyview”, asked what I thought about the government’s proposal to create a separate secretariat for energy under the Ministry of Economic Affairs. In particular, “justmyview” asked if the Parliament’s approval was needed to create the proposed secretariat, and elaborated:

Constitution clearly says that addition or reduction of ministry requires approval from parliament but doesn’t say anything about creating secretariat. Whether separate energy secretariat is necessary or not is altogether a different issue, but is it necessary to get parliamentary approval for creating secretariat? This is, yet, another important issue which will set precedence for the future government. Now the question is, should secretariat be treated like ministry? Or are there some differences? So, in this regard, what is honorable OL’s honest view on whether it is necessary to get approval from parliament or not? Who should have a final authority? Should it be with RCSC or Cabinet or parliament?

A week later, and “justmyview” was still waiting for my views:

I am still waiting to hear HOL’s view on constitutionality issue between government and RCSC regarding energy secretariat. Or HOL has no view on this issue?

First things first: Let’s drop that “H” before the “OL”. It serves no purpose.
Now for my views: Does the creation of the proposed energy secretariat need the Parliament’s approval? Yes.
The proposed secretariat will be headed by a secretary to the government and will have a separate PPD and a separate AFD in addition to whatever other departments have been proposed. By this proposal, the energy secretariat will be a secretariat of a ministry. And its structure (AFD, PPD and departments under a secretary) will be like that of any existing secretariat under any ministry.
By placing the proposed secretariat under the Ministry of Economic Affairs, that minister would, in effect, be in charge to two ministries – a ministry of economic affairs, and a ministry of energy. Whether the two secretariats report to two separate ministers or, as proposed, to a common minister, they are essentially two separate secretariats of two separate ministries. And this, incidentally, is exactly what I had said when, more than two years ago, I first heard about the government’s intentions to establish an energy secretariat.
According to Article 20 Section 2 of the Constitution, “… Creation of an additional ministry or reduction of any ministry shall be approved by Parliament.” Therefore, the creation of the energy secretariat (by which a new ministry, the ministry for energy, would be created) must require the Parliament’s approval. So I’m concerned that the government seems convinced that they do not need the Parliament’s approval to establish the new secretariat.

Fundamental question

December 22, 2010Posted inGovernment
Last week, Kuensel reported that the prime minister had announced that: ... import of private light vehicles will be temporarily stopped until the Supreme Court comes out with a verdict on the government's appeal. My last entry, on interpreting the Constitution, made me wonder if the PM’s announcement to ban the import of private light vehicles is – you guessed it – constitutional or not. Why? Because Article 7 Section 10 of the Constitution guarantees that: A Bhutanese citizen shall have the right to practice any lawful trade, profession or vocation. In other words, as long as your business…

No blank cheque!

December 22, 2010Posted inDemocracy, Government15 Comments
Business Bhutan recently reported that the prime minister had expressed his frustrations over interpretations of the constitution that were undermining the government’s work. The PM was quoted as saying: I feel very emotional because we are the democratically elected government with a huge majority which means people have placed their trust fully in us but every time we want to do something the book is being thrown at us. Our PM is correct. 67% of the electorate voted for DPT, and gave them, the ruling party, 45 of the 47 seats in the National Assembly. Yes, the government was…

Good news

December 8, 2010Posted inGovernment, Legislature21 Comments
The National Assembly has endorsed the government’s proposal to increase the salaries of public servants. Here’s the good news: Civil Servants will get a 20% raise over their pre-2009 salaries. Pre-2009 is used as a base as that was when salaries were last increased (by 35%), taking the total increase to 55%. Civil service salaries will now range from Nu 7,067 (for GSC II staff) to Nu 52,654 a month (for EX-1/ES-1 level). Secretaries to Government will draw Nu 55,490 a month. And the Cabinet Secretary will get Nu 63,000. That makes the Cabinet Secretary Bhutan’s top civil servant.…

Vice ministers?

December 6, 2010Posted inGovernment
What? The prime minister wants to call secretaries vice-ministers? Why? Who do we want to impress? Shouldn’t we focus on streamlining the civil service instead? Shouldn’t we be working towards making the civil service small, compact and efficient? Where did the prime minister get this idea from anyway? Where would vice ministers draw their legal basis from? And under what legal authority would they function? What? The RCSC is in the dark? Really?

Wanted: more guarantees

December 5, 2010Posted inGovernment
I am impressed with Lyonpo Dorji Wangdi’s confidence. When the labour minister called for a ban on drayangs, he guaranteed jobs for all the women who currently work in drayangs. And I’m quite sure that, if he had to, he could keep this promise. But here’s something he should think about: the women working in drayangs already have jobs. So they don’t need his bold assurances. Unemployed youth, on the other hand, would welcome his guarantees. After all, they are the ones who are desperate for work. So provide out-of-school youth with gainful employment. Then they themselves would choose…

Lottery questions

December 1, 2010Posted inGovernment
During Question Hour yesterday, I asked the finance minister two straightforward questions: “What action has the Royal Government taken to investigate alleged violations by Bhutan’s lottery agent in India?” “What action has the Royal Government taken to investigate alleged violations in the manner the lottery agent was appointed and reappointed?” The finance minister’s reply was a long-winded narrative about the history of Bhutan lottery. And an elaborate recount of how the government selected their lottery agent, and how, later, reduced that agent’s contractual obligations. But the finance minister did not answer the question: has the government investigated the alleged…

UN Security Council

November 28, 2010Posted inGovernment, International
"In the years ahead, I look forward to a reformed United Nations Security Council that includes India as a permanent member," US President Obama recently announced in India’s Parliament. And just like that, after years of demanding a permanent seat in the Security Council, India’s bid received a powerful boost. India is the world’s second most populous country. Its economy, already among the biggest in the world, is one of the fastest growing. And it is playing an increasingly important role in global affairs. So the US president’s pledge is timely. His assurances are good for India, and indeed,…

Fundamentally right

October 31, 2010Posted inGovernment, Legislature
Several readers didn’t agree with my suggestion that the government should pay more money for the land that they are acquiring behind the Tashichhodzong. “Dorji Drolo” favours increasing the land rates only for the original inhabitants of Hejo, but fiercely opposes increases for the others, most of who would have purchased the land at much lower prices. “Dorji Drolo” also agrued that, since the land was “… earmarked for green area some 20 years back” the compensation rates were sufficient. I agree with “Dorji Drolo” that the original inhabitants should be paid more, much more, for their land. Many…

Paying for land

October 20, 2010Posted inGovernment9 Comments
It’s autumn. And the Tashichhodzong, when viewed from the North, looks beautiful. Tidy terraced fields, lush with golden paddy present a perfect foreground for Thimphu’s auspicious dzong. Many generations of travelers before us would have, no doubt, taken in almost exactly the same tranquil view. And thanks to the government’s plans to maintain that lovely stretch of land, many generations of travelers after us could also enjoy the uninterrupted view of the dzong. To ensure that that piece of property stays as it is, the government has decided – and rightfully so – to acquire 42.32 acres of farmland…