Bhutan embarked on the path to modernization and development by initiating the first socio- economic development plan in 1961. A decade later in 1971, His Majesty, the Late King Jigme Dorji Wangchuck instituted the Planning Commission as an independent body. The broad functions of the Planning Commission and its Secretariat were to formulate overall development strategies and coordinate sectoral activities, policies and programmes, and formulate Five-Year Plans and programmes. The Planning Commission was also responsible for aid management, co-coordinating inter-ministerial development programmes, and monitoring and evaluating programmes at the macro-level. It was also the role of the Commission to ensure timely implementation of the Plans according to specified objectives and priorities.
In 1993 the role of aid management was transferred to the Ministry of Finance from Planning Commission. Furthermore, in the same year the role of Dzongkhag Development Coordination was transferred from the Ministry of Home Affairs to the Planning Commission. To enhance planning and its translation into programmes, Policy and Planning Divisions (PPDs) were established in the various ministries in 1991 after detailed discussions at various levels of the Government. The PPDs were set up to act as a direct professional bridge between the line agencies and the Planning Commission to improve the quality and efficiency of the planning process. Read more