Bhutan is a Sovereign Kingdom where the power belongs to the people of Bhutan with a form of Government of a Democratic Constitutional Monarchy.
The Supreme Court is the guardian of this Constitution and the final authority on its interpretation. And the rights over mineral resources, rivers, lakes and forests are vest in the State and are the properties of the State, which shall be regulated by law.
The Executive Power:
The Government shall protect and strengthen the sovereignty of the Kingdom, provide good governance, and ensure peace, security, well being and happiness of the people.
The king is the Head of the state but the Executive Power is vested in the Lhengye Zhungtshog (Council of Ministres or Cabinet), which consist of the Ministers headed by the Prime Minister.
The number of Ministers is determined by the number of Ministries required to provide efficient and good governance. Creation of an additional ministry or reduction of any ministry shall be approved by Parliament. Ministries shall not be created for the purpose only of appointing Ministers
The Legislative Branch:
Is formed by the Parliament that consists of the Druk Gyalpo (The King of Bhutan), the National Council and the National Assembly.
According to their Constitution:
The National Council consists of twenty-five members comprising: One member elected by the voters in each of the twenty Dzongkhags (Districts); and Five eminent persons nominated by the Druk Gyalpo (King of Bhutan). Besides its legislative functions, the National Councils act as the House of review on matters affecting the security and sovereignty of the country and the interests of the nation and the people that need to be brought to the notice of the Druk Gyalpo (King of Bhutan), the Prime Minister and the National Assembly. A candidate to or a member of the National Council shall not belong to any political party.
The National Assembly have a maximum of fifty-five members, elected from each Dzongkhag (District) in proportion to its population, provided that no Dzongkhag (District) can have less than two or more than seven members, for which purpose Parliament should divide efficiently each Dzongkhag (District) into constituencies for the voters in each constituency directly electing one member to the National Assembly. Every ten years have to be updated and reapportioned.
The National Assembly must elect a Speaker and a Deputy Speaker from among its members. The National Assembly must assemble at least twice a year
The Judiciary Power:
The judicial authority is vested by the Royal Courts of Justice comprising the Supreme Court, the High Court, the Dzongkhag (District) Court, the Dungkhag (District) Court and such other Courts and Tribunals as that may be established from time to time by the Druk Gyalpo (King of Buthan) on the recommendation of the National Judicial Commission.
The Chief Justice is appointed from among the Drangpons (Judge of a Royal Court of Justice) of the Supreme Court or from among eminent jurists by the Druk Gyalpo, by warrant under His hand and seal in consultation with the National Judicial Commission.
The Drangpons (Judge or Justice of a Royal Court of Justice) of the Supreme Court shall be appointed from among the Drangpons (Judge of a Royal Court of Justice.) of the High Court or from among eminent jurists by the Druk Gyalpo (King of Bhutan).
The term of office of the Chief Justice of Bhutan shall be five years or until attaining the age of sixty years, and the Drangpons of the Supreme Court shall be ten years or until attaining the age of sixty years.
The Supreme Court, formed by the Chief Justice and four Drangpons, is the highest appellate authority to entertain appeals against the judgments, orders, or decisions of the High Court in all matters and have the power to review its judgments and orders.
According to the constitution the Power and authority must be decentralized and devolved to elected Local Governments to facilitate the direct participation of the people in the development and management of their own social, economic and environmental well-being.
Local Government:
The territory of Bhutan has established twenty local governments, one for each Dzongkhags (District) and any alteration of those areas and boundaries can be done only with the consent of more than three-fourths of the total number of members of Parliament.
The function of local governments is to provide social, economic services and to promote the development and well being of constituents. Those provinces has not legislative powers on national level but grants them with authority to collect taxes, make rules and regulations consistent with national legislation, and receive funds from the national government to fulfill their duties.
Source:
http://www.bhutanaudit.gov.bt/About%20Us/Mandates/Constitution%20of%20Bhutan%202008.pdf