Print Edition - 2015-04-10 | MONEY
Nepal likely to get more aid in 2017
Apr 9, 2015-
Nepal is one of the few least developed countries (LDCs) projected to receive more foreign aid in 2017 than in 2014 while two-thirds of the LDCs are expected to see a decline in assistance from donor countries, the Organization of Economic Cooperation and Development (OECD) said.
According to “2014 Global Outlook on Aid”, a report based on the country assistance programmes (CPA) of 36 donor countries for the period 2014-17, Nepal, Bangladesh and Cambodia will be receiving a higher amount of foreign aid. The overall CPAs to LDCs and other low income countries will decrease 4 percent.
Aid per capita is expected to decline at a faster pace as a consequence of steady population growth. The worrying trend of a continued decline in programme aid to LDCs merits international attention as part of the post-2015 financing framework, said the report.
There are currently 48 LDCs of which 18 are also considered middle income countries based on their level of income per capita in 2013.
According to the report, Nepal is expected to get $1.09 billion in foreign aid in 2017, up from $1.02 billion in 2014. While many countries will receive less aid per capita, Nepal is expected to get a higher amount with per capita aid expected to climb to $36.8 in 2017 from $35.4 in 2014.
According to the Finance Ministry, the country has already received aid commitment of more than Rs 240 billion this fiscal, a new record. Madhu Marasini, chief of international cooperation coordination division at the ministry, said reforms initiated by the government, including new foreign aid policy, and the target of graduating the country to the status of “developing country” from LDC by 2022, have attracted more aid commitments from donors.
“The resources may not be big problem for Nepal but poor spending has been a cause of concern,” he added.
Nepal’s dependence on foreign aid stood at 36 percent against its tax revenue as of 2012.
There are countries whose dependence on foreign aid is more than what they earn in revenue. In the current fiscal year, foreign aid commitments to Nepal has increased manyfold thanks to increased commitments from donors in the infrastructure sector.
Published: 10-04-2015 08:53