Includes bibliographical references and index.

Contents
Page
▪ Preface 3
▪ Introduction 5
▪ Objective 5
▪ Definition of Annual Grants 6
▪ Allocation Formula for Annual Capital Grants Component 7
▪ Schematic Illustration of Annual Grant Allocation Formula 8
▪ Minimum Conditions and Process for accessing Annual Capital Grants 8
▪ Release and Reporting Procedures and Triggers for Releases 9
▪ Local Government Planning and Budgeting 11
▪ Fund Flow 13
▪ Supplementary Budget and Unspent Annual Capital Grants 13
▪ Mid-Year Review 14
▪ Eligible Expenditures 14
▪ Non-Eligible Expenditures(negative list) 15
▪ Role of Dzongkhag Administration 15
▪ Role of Gewog Administration 16
▪ Role of Royal Audit Authority 16