KATHMANDU — How is the Nepali annual Budget Shared between different branches and ministries? Today we will explain to you the vertiginous framework of the government expenses. Answers revealing to us the Nepali Government’s yearly priorities.
On the 29th of May, 2018 Finance Minister Yubaraj Khatiwada presented Nepal’s federal budget for the fiscal year 2018/19 in front of the parliament. The total annual budget he declared added up to 1 300 000 000 000 NPR (1.3 trillion).
One of the most interesting uses of public money and the subject to a lot of controversy in worldwide national political debates is the annual government expenditures. Specifically, those destined for government offices and members of staff salaries
This is the second release of our “Decryption” articles. You will find the first one on the following link:
Decryption: Top 10 Most Paid Nepali Government Officials (per month)
Annual Functional Expenditure Division Estimated for 2018/2019 :
1. ECONOMIC AFFAIRS: 483 141 700 000 NPR (37%)
Picture Credit: Entrepreneur.com
The Biggest slice of the federal’s wealth cake goes to economic strategic investment in order to pursue economic growth.
It devours 37% of the general budget and is digested by general economic infrastructures managing commercial and Agricultural labor affairs, Forestry (selling wood), fishing and hunting activities leading to the sell of preys.
More aggressively it targets fossil fuel mining and energy programs, manufacturing and construction. 30 % of their share goes to Transport and Communication. Other industries and the managing of Economic affairs make the most of what’s left (4%).
2. GENERAL PUBLIC SERVICE 396 745 900 000 NPR (30%)
Picture Credit: asia.nikkei
The heartbeat of governmental administration is accorded the rank of second on the list of priorities as it is granted 30% of the annual national budget.
40% of the general public service expenditures is redirected towards executive and legislative organs, financial and fiscal affairs, and external affairs. This is where officials draw their salaries. 156 286 200 000 NPR ends up in Prime Minister and Council of Minister’s Offices. In the previous article, we were advising you to be careful as a salary doesn’t reflect the wealth a VIP has access to. Most of their daily cost of living is covered by this extremely high expenditure, higher than any other branches we will encounter in the rest of this ranking (Education, Health…).
Prime Minister and his Offices Budget compared to other branches:
3. EDUCATION 134 187 500 000 NPR (10%)
Picture Credit: Bryan Kulka
“An investment in knowledge pays the best interest,” said Benjamin Franklin. How much is Nepali government ready to invest in its future?
A lot, 10% of the national budget to be exact. But still, far from most countries as Vietnam were the expenditures for education go up to 20% of the annual budget and Cuba where it goes up to 40%.
It is mostly divided into 3 different categories of expenses :
Pre-primary and primary education gets more than half of the share, and Education not definable by level and Subsidiary services to education equally share the rest.
But is it enough to fight the 35% illiteracy rate (last reported in 2011, and reused in the 2017 ministeries of Education Figures report)?
Nepal’s Budget is very low compared to the rest of the world, even lower regarding expenditures for education. In France 72 billion dollars are spent each year in that purpose. In the US, 68 billion dollars. Even in Pakistan, it is around 7 billion dollars. A huge difference compared to Nepal and its 1,2 billion dollars.
4. HOUSING AND COMMUNITY AMENITIES 66 576 100 000 NPR (5%)
Since the 2015 earthquake rebuilding and reinforcing housing facilities have been an obvious priority. 30 Billion NPR are spent each year to offer citizen proper roofs. But in 2018, 20 000 families in Ramechhap are still living in earthquake-damaged homes.
Also, “There are an estimated 444,554 homes in the Valley. According to the survey report, only 6 percent of the houses are reinforced concrete engineered and 48 percent of the houses are non-engineered reinforced concrete structures.” Reported the Kathmandu Post.
However, this part of the budget underlines another sanitary issue Nepal is currently fighting. The challenging landscapes, environmental pollution and the precariousness of communal and private facilities is an everyday burden for inhabitants. A vital installation on which no expense can afford to be cut from is the access to proper water supplies.
20% of the population doesn’t have access to drinkable water. Still, even the 80% who have access to running “clean” water, rightfully take cautions, as it has been recognized “unsafe” by many organizations. Myself, I experienced the fine line between clean and drinkable water. In remote areas uphill of the Ramechaapdistrict, I was sick for two days after drinking what locals use for everyday needs, the water came from communal fountain installed. Most of them are out of order for days in a row forcing inhabitants to go fetch water in polluted streams and pounds.
26 626 200 000NPR are currently being invested in these facilities. The government is aware this is not enough, but their reach out for foreign investors interested in the water project has failed until this day.
780 million people Worldwide do not have access to a safe water source. 6 million of them are from Nepal.
7% of the people not able to drink daily and safely on this planet, live in Nepal.
5. HEALTH 65 343 200 000 NPR (4%)
More than 200 billion dollars were spent during the 21st century to improve health in the lower income countries.
In Nepal, Maternal Health Care is one of the largest problems that can be linked to lack of infrastructures and resources. Preterm birth reaches an alarming level of 2.5% of death causes in Nepal.
“Lack of access to basic maternal healthcare, difficult geographical terrain, poorly developed transportation and communication systems, poverty, illiteracy, women’s low status in the society, political conflict, shortage of health care professional and underutilization of currently available services are major challenges…” Simkhada B, Major problems and key issues in Maternal Health in Nepal.
Other main Causes of death according to the World health center can all be explained by environment and social issues. Which means they can be resolved with more expenditure. COPD, Chronic obstructive pulmonary disease (9.2%) and Lower respiratory infection (7%), can be due to respiratory failure, linked to air pollution. Diarrhoeal disease (3.3%) from lack of access to proper water supplies. Self-harm(3%), suicide is very common after sexual assaults, social violence or exclusions. Road injury (2.7%), in a country with very few proper “roads”.
6. PUBLIC ORDER AND SAFETY 47 501 200 000 NPR (4%)
Most of this expenditure goes to the police force, the Law Courts and prisons.
According to police reports, Nepal is facing a 10% annual growth in crime numbers. The biggest concern, resulting in the most numerous arrests is public offenses, 10 054 cases lead to court and sentence in 2017.
Only 14 900 000 NPR goes to fire protection services. A very low countermeasure to face the 60,000 hectares annually turned to ash due to drought, cigarets butts, and unsafe homemade fires.
7. SOCIAL PROTECTION 46 913 200 000 NPR (3%)
87% of this expenditure goes towards caste and ethnicity-based social exclusion which are deeply nested in Nepalese society.
To change this tragic division among Nepali, the government invests in the empowerment of self-perception and in inclusion programs.
A noticeable way of doing so is building communal institutions.
An example, is women communities in remote villages, fighting gender exclusion, empowering themselves by participating in the political and social debates of their districts.
Once the subtraction is done, we find ourselves with an alarming question: Is the 13 percent remaining, enough to help the others who suffer from poverty?
In Nepal, it is estimated that more than 1 million children are orphaned. Equal to 10 % out of the underaged population born inside its borders. Only a few rare orphanages beneficiate of financial government support. Hard choices have to be made when choosing who will beneficiate of that expenditure as Children and Families protection only account for 334 800 000 NPR.
8. DEFENCE 44 928 500 000 NPR (3%)
Nepal’s Army is the 101st strongest in the world, 0.5% of its GNP (Gross national product) is invested in its maintenance.
It is not directly involved in any direct conflicts but acts as international observers. UN peace operations human troops support covering a total of 42 missions since 1958, the latest being in Libya 2016.
“As of 10 Mar 2019, the Nepali Army has deployed across 12 missions around the world. As a troop-contributing country, Nepal ranks fifth in the world. Currently, the Nepali Army has some 5106 soldiers including 193 female soldiers serving in 12 different missions around the globe. Nepal has a commitment to provide up to 5000 peacekeepers should the UN so request.” declared the official Nepali Army Web page.
International Research Institut For Peace in Stockholm delivered the following ranking, explaining to us why Nepal is so far down on the world military ranking, the obvious answer being its low expenditure in the matter.
9. ENVIRONMENTAL PROTECTION 22 718 000 000 NPR (2%)
Kathmandu is considered the 5th most polluted capital in the World. An issue Kathmandu Tribune as often been covering.
To find out more about Nepal’s Environment Problems and solutions click here or on the links below:
10. RECREATION, CULTURE AND RELIGION 7 106 400 000 NPR (0.7%)
Yes, Nepal’s Tourism is flourishing, and the strong beliefs its population has for Hinduism and Buddhism participate in the safeguard of cultural and religious treasures. But how many parks for children, proper football fields, or cultural centers can be seen?
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Nepal is not among the wealthiest countries in the world, quite the opposite, but is it an excuse to priorities economic and political investment at the expense of social, health and security issues? More answers are to come in the next Decryption Issue.
