Government Social Security Expenditure Increases by 592% Over the Past Decade

Over the past decade, the Nepal government’s spending on social security has surged by 592 percent, reaching NPR 114.41 billion. The Comptroller and Auditor General’s report highlights the increased number of beneficiaries and adjustments in allowance rates as factors contributing to the fiscal burden on the state, urging the government to manage its financial obligations effectively. To ensure the sustainability of the social security system, the government has proposed encouraging economically capable citizens to forgo benefits and implementing a needs-based distribution mechanism. Kathmandu, 31 Ashad.

According to the performance audit report conducted by the Office of the Comptroller and Auditor General, the government’s annual social security expenditure was NPR 1.652 billion in the fiscal year 2072/73. This figure escalated to NPR 114.41 billion in 2081/82. Over ten years, social security payments increased by NPR 9.7888 billion, representing a 592 percent rise. In Nepal, senior citizens, economically disadvantaged individuals, persons with disabilities, helpless single women, children, those unable to care for themselves, and endangered communities have been receiving social security allowances.

The total number of beneficiaries was 2,265,535 in the fiscal year 2071/72, which has grown over the decade to 3,806,634. A decade ago, the government allocated only 2.75 percent of its total budget to social security, which has now increased to 7.51 percent. According to the Comptroller and Auditor General, when including social security payments distributed by provincial and local governments, as well as other social security programs provided by all three tiers of government, the total expenditure is even higher.