book1

Table 7.2: Share of diff erent sub sectors in Educa� on sector Expenditure in
Nepal (%)
Par� cular
Mgmt. &
Admin.
Primary
& basic
Educa� on
Secondary
Educa� on
Higher
Educa� on
Miscellaneous
Technical
Educa� on.
Educa� onal
Development
Decade
of a
Panchayat
(1970-80)
Decade of
Improved
Panchayat a
(1980-90)
Decade of
Democracy
(1990-98) a
FY b
02/03
FY b
07/08
FY b
08/09
FY b
09/10*
8.99 4.32 2.68 5.60 4.78 3.37 4.14
23.60 38.60 49.90 59.02 57.00 60.65 36.89
20.79 15.34 20.46 22.60 25.44 24.24 18.81
36.30 32.80 21.43 10.88 11.09 10.37 10.65
10.32 8.94 5.53
NA NA 2.8 c
0.85 1.36 1.09 1.65
NA NA NA 1.05 0.33 0.28 27.86
Source: a Koirala and Acharya (2000), b: calculated from various Red Book, MoF, c :
Bajracharya (2003)
The government expenditure in technical educa� on seems very low
over the period. In 1990s the average share on technical educa� on was 2.8
percent ranging highest (5.1) in 1993/94 and lowest (1.0) in 1999/00..But
in this millennium, the share of technical and voca� onal educa� on on total
educa� on expenditure never crossed 2 percent.
Foreign aid in educa� on sector: increasing a� en� on, role and
contribu� on
Nepal has been receiving foreign aid in educa� on sector from the ini� a� on
of planned development in 1950s. The fi rst educa� on plan was formulated by
the fi nancial and technical support of American aid. From mul� lateral donors
such as the World Bank, Asian Development Bank European Commission
and UN organiza� ons to bilateral donors including INGOs, all have some
programs in educa� on sector. Generally, the mul� lateral fi nancial ins� tu� on
provides loans whereas other donors provide grants. Earlier, only the grant
component was used in educa� on sector but Nepal took foreign loan fi rst
� me in the FY 1982/83 in this sector. The fi rst loan was from the World Bank
for Mahakali Rural Integrated Development Program. Since then the share
of loan component in total educa� on aid is gradually increasing. The fl ow of
more and more foreign aid gives an idea of increasing interven� on of donor
Changing paradigms of aid eff ec� veness in Nepal 131