The Policy of the Royal Government of Bhutan to provide goods and services on subsidized rate to the Bhutanese people started even before the Department of Forest was established. During those periods the system was implemented by the Civil Authorities. The marking of timber/trees was done by the guards from the Civil Offices. After the Department of Forest was established the system of allotting subsidized timber for house construction in rural areas
was implemented by the Department of Forest. In 1969 the first Forest Act was passed which provided a clause for allotting timber for domestic consumption of the local people from the Government Reserved Forest as well as private forests. This clause was repealed when the second Forest Act was passed in 1995. The system of providing subsidized timber for rural house construction was again introduced through Forest and Nature Conservation Rules 2000.