His Majesty the King had established Geog Yargay Tshogchhung in 1991 to promote local socio-economic development strategies and initiatives by empowering the people to make decisions on their plans and programs, and by enabling them to adopt approaches and practices adopted to local needs.

The Royal Governments has decided that 9th FYP shall be geog based and that wide range of powers, authority, functions and responsibilities shall be devolved to the people through the Geog Yargay Tshogchhung.