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Kathmandu,Monday January 10, 2000 Paush 26th, 2056.
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Country foots 36 pc of
development bill
-By a Post
Reporter
KATHMANDU, Jan. 9
- In contrast to general belief that Nepal’s development expenditure is mostly borne
by foreign assistance, a study has shown that from 1950 to 2000 Nepal has contributed 36
percent from its own revenue.
The result is
unearthed by a team of researchers comprising senior economist Bishowmbhar Pyakurel and
former Secretary Deependra Purush Dhakal. The duo conducted the research “Foreign
Aid: Some Issues for Future Policy Consideration” commissioned by the Ministry of
Finance. The report was conducted following the announcement of Finance Minister to review
national policy on foreign aid, during his budgetary speech of 1999/2000.
According to
Bishowmbhar Pyakurel the report has focused on various economic indicators of the country,
and has come out with many recommendations, extensive form of which will be publicized
only after discussions within the ministry and also with the donor community. It is learnt
that almost an 80-page report was prepared in seven weeks from the beginning of November
1999.
“We still
need to have an in-house discussion in the Minister’s presence, and then we will have
extensive discussions with donors,” Pyakurel diverted the request of the reporter to
elaborate the findings.
Pyakurel says,
the report has stressed that if Nepal enhances its capabilities in aid productivity and
utilization, and curbs the misuse of the funds it would not fall into debt trap so easily.
“Our findings have shown that whatsoever, the country has not completely submerged
into debt problems,” he added.
However, he said,
as the surplus revenue at present is not sufficient to meet all the development
requirements of the country, foreign assistance is still very much important to meet
national needs.
The report has
analysed saving-investment gap in the country, studied debt burden, commitment and
disbursement ratio of the donor community etc. The issues of decentralization, governance,
transparency, monitoring, evaluation, sustainability etc. related with operationalization
of the projects have been studied in the report.
The report has
also given due consideration to avoid duplication due to the works of NGOs in development
field. It has suggested future steps to the government on foreign assistance after
studying Nepal’s external assistance request trend in Nepal Development Forums
meeting in Paris.
During the study
the researcher duo met with various donors, political parties, members of the National
Planning Commission, implementing ministries, Office of Comptroller General, Nepal
Electricity Authority, Social Welfare Council and over 45 organizations and individuals.
According to
Economic Survey of the year 1999/2000, Nepal’s total outstanding loan has reached to
173.86 billion till mid-April 1998/99. The loan amount that year increased by only 7.8
percent, which had increased by 22 percent late last year.
Nepal earmarks
almost 15 percent of its total budget in foreign loan servicing. Total percentage of
foreign debt to national GDP at the moment is almost 50 percent. However, as Nepal’s
status is among least-indebted, it was deprived from the provision to relief debt to
highly indebted countries by United States of America, recently.
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