Annual Report 2010 - Ministry of Finance and Planning

2 | FISCAL DEVELOPMENTPension Payments: The pension bill alsoincreased by about 7 percent toRs. 90,995 million in 2010. This reflectedthe full impact of around 21,000 retireesin 2009 and the partial impact of 16,366new retirees in 2010 and increase of theexisting COLA by Rs. 375.10080Chart 2.9 > Pension Payments: 2005-2010Defence Expenditure: The expenditureon defence and public security (Rs.190,603 million) declined considerablyto 3.4 percent of GDP in 2010 from3.9 percent in 2009. The sharpdecline in the expenditure on goodsand services (excluding salaries andwages) of the defence services as aresult of the declined purchases ofmilitary hardware due to the peacefulenvironment that prevailed in thecountry was the main reason for thisimprovement.Welfare & SocialSafety Nets 1Social welfare & safety net programmeswere continued in 2010 showing thecountry’s distinctive commitment topromoting equitable growth furtherwhile ensuring the accomplishments inthe area of social policy that surpassedmany developing countries.School Children: The country is wellon the way to achieve MillenniumDevelopment Goals (MDGs) evenbefore 2015, particularly on educationby achieving universal primaryeducation and promoting genderequality in primary and secondaryeducation. Several programmes suchas distribution of school uniforms,providing a nutritious breakfast tostudents of underprivileged schoolsand free text books programmeswere carried out targeting the schoolgoing population of 5-18 ages whichis about 21 percent of the population.In particular, the free textbooksprogramme was continued with theobjective of ensuring availability ofRs. billionPercent60402002005 2006 2007 2008 2009 2010textbooks to all 4,178,548 students Altogether, the government has spentspread in 9,704 government schools, about Rs. 7,065 million in 2010 on these75 private schools, 25 specialized programmes which are aimed at theschools and 722 Pirivenas. In 2010, welfare of school children.37 million school textbooks under433 categories, published in three Maternal & Child Nutrition: Of thelanguages have been distributed. total population in 2010, infantsSchool uniforms programme benefitted account for 1.6 percent and children3.9 million school children in 2010. under 4 years account for 7.2 percent.In 2010 about 77,800 students were To address the nutritional statusgranted scholarships and bursaries of the child population, Infant Milkamounting to Rs. 280 million.Subsidy Programme; the PoshanaMeanwhile, about 1,117, 219 children in Malla and Thriposha Programme have7,605 schools received mid-day meals. been carried out. The governmentChart 2.10 > Defence Expenditure: 2005-2010 (% of GDP)4.03.02.01.00.02005 2006 2007 2008 2009 2010Total Salaries and Wages Other Purchases of Goods and Services1See Chapter 1 of this publication for detailed information158