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Discussion on improving self-sufficiency of CTA after US funding cut

During the ongoing 17th budget session of Tibetan Parliament in exile, the issue of recent reduction in US funding announced by the Trump administration were debated by the members. The Tibetan MPs, while speaking over the issue, advocated Green Book...
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Tibetan parliament office in Dharamsala.
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During the ongoing 17th budget session of Tibetan Parliament in exile, the issue of recent reduction in US funding announced by the Trump administration were debated by the members. The Tibetan MPs, while speaking over the issue, advocated Green Book tax on Tibetans living as refugees in India to make the Central Tibetan Administration (CTA) financially self-reliant and less dependent on foreign funding.

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The Green Book is a document issued to Tibetan refugees by the Indian government that gives them refugee status. Green Book also serves as passport for the Tibetans travelling abroad.

During the ongoing budget session, the Tibetan MPs held in-depth discussions about ways to improve the financial self-sufficiency of the Central Tibetan Administration (CTA) and on strategies to generate revenue and ensure long-term economic stability for the Tibetan government-in-exile.

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The MPs debated the proposal to increase the Tibetan voluntary contribution, commonly known as the Green Book tax or (Chatrel Lakdep inTibetan), to address a widening financial gap caused by the reduced US funding.

MP Dhondup Tashi emphasised the need of increasing voluntary tax contributions as the primary source of administrative funding. He proposed a tenfold increase in contributions, arguing that such a measure could cover a significant portion of the Central Tibetan Administration’s annual expenditure and ensure long-term financial sustainability.

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Aukatsang Youdon said a multi-pronged approach to achieving financial independence should be adopted. She suggested a revised tax collection system and alternative funding mechanisms such as student loan models inspired by systems in other countries to reduce reliance on external aid.

While some MPs pushed for an increase in contributions, Representative Dawa Phunkyi cautioned that complete financial self-sufficiency would be an immense challenge. He stressed on importance of stringent expenditure control and suggested the government cut administrative costs to ease financial strain.

Chodak Gyatso, another MP, proposed revenue-generating business ventures as a potential funding source. He also suggested the establishment of a new voluntary contribution system managed by the Finance Department, allowing Tibetans to donate beyond their mandatory Greenbook contributions.

Penpa Tsering Sikyong or president of Central Tibetan Administration, who also holds the department of finance, acknowledged that financial self-sufficiency has long been a priority for the current Cabinet but stressed the importance of conducting realistic feasibility assessments before implementing a drastic increase in voluntary tax contributions. Parliament has the authority to pass a resolution on tax adjustments. Tibetans willing to contribute beyond their standard Chatrel (voluntary tax) payments are welcome to do so. If deemed necessary, Parliament could formalise an increase in contributions to strengthen the Central Tibetan Administration’s financial stability, he said.

Sources here said the Tibetan government receives approximately 3 million (US dollars) annually from voluntary tax contributions by Tibetans residing in India, Nepal, Bhutan and abroad. However, its administrative expenditures amount to nearly $40 million per year. The voluntary contributions account for only 9% of the Central Tibetan Administration’s (CTA) total budget.

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