The first step towards the creation of Ministry of Finance took place during the 16th session of the National Assembly held on the 9th July 1961. In pursuance of the earlier resolutions and decision, it was decided during this Assembly to establish an Accounts and Audit Committee called the Gyaltse Kha Lowa.

The Gyaltse Kha Lowa comprised of four members, one representative of His Majesty the King and one representative each from the Cabinet, Public and the Monk Body. The Committee was responsible for the proper maintenance of revenue and government properties. A prior written assent of the His Majesty the King was made necessary for any government expenditure, which was to be jointly maintained by the four committee members. Annual Accounts were to be submitted to His Majesty the King. His Majesty the King determined the budget for different Dzongkhags.

With the increase in the developmental activities, two new ministers were appointed in 1968. One of the new ministers, Dasho Chogyal, was appointed as the Tsilon (Finance Minister) during the 28th session of the National Assembly, on 20th May 1968.