NEPAL - Social Protection: Review of Public Expenditure and Assessment of Social Assistance Programs - MAIN REPORT - FY11-FY20

Jul 19, 2026

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NEPAL Social Protection: Review of Public Expenditure and Assessment of Social Assistance Programs provides a main-report assessment of spending and program performance over FY11–FY20. The review analyzes expenditure trends across social insurance, social assistance, and labor market programs, and evaluates how social assistance addresses risks including poverty, shocks and disasters, and lifecycle vulnerabilities. It also examines benefit adequacy and impacts for selected schemes, fiscal implications of reforms, and policy coordination, while detailing decentralization functions, allocations, and budgeting processes at federal, provincial, and local levels.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages118

Reading Time4 h 57 min

Acknowledgments

Acronyms

Chapter 1. Introduction

1.1 Social Protection in Federal Nepal

1.2 Objective and Scope of the Report

1.3 Data Sources, Methodology, and Limitations

Chapter 2. Assessment of Social Protection Programs and Trends in Expenditures

2.1 Analysis of Trends and Levels of Budget and Expenditure

2.2 Ability of Social Assistance Programs to Address Risks and Vulnerabilities

2.3 Adequacy of Benefits and impacts of Selected Social Assistance Schemes

2.4 Policy Coherence, Coordination, and Complementarity of interventions

2.5 Analysis of Fiscal implications of Social Assistance Reforms

2.6 Summary of Findings and Recommendations

Chapter 3. Social Protection Decentralization: Analysis of Functions, Allocations, and Expenditures

3.1 Social Protection in Federal Nepal: Legal and institutional Provisions

3.2 Allocation of Social Protection Program Budget

3.3 Social Protection Expenditure at the Local Level

3.4 Summary of Findings and Recommendations

Chapter 4. Planning and Budgeting for Social Protection-Analysis of Processes and Challenges

4.1 Processes at the Federal Level

4.2 Processes at the Provincial Level

4.3 Processes at the Local Level

4.4 Summary of Findings and Recommendations

Annexes

Public Disclosure Authorized Public Disc losure Authorized Public Disclosure Authorized NEPAL Social Protection: Review of Public Expenditure and Assessment of Social Assistance Programs MAIN REPORT FY11–FY20 NEPAL Social Protection: Review of Public Expenditure and Assessment of Social Assistance Programs MAIN REPORT FY11–FY20 SOCIAL PROTECTION: REVIEW OF PUBLIC EXPENDITURE AND ASSESSMENT OF SOCIAL ASSISTANCE PROGRAMS Table of Contents Acknowledgments vii Acronyms viii Chapter 1. Introduction 1 1.1 Social Protection in Federal Nepal 1 1.2 Objective and Scope of the Report 2 1.3 Data Sources, Methodology, and Limitations 3 Chapter 2. Assessment of Social Protection Programs and Trends in Expenditures 7 2.1 Analysis of Trends and Levels of Budget and Expenditure 7 2.1.1 Overall Expenditure 8 2.1.2 Social insurance 9 2.1.3 Social Assistance 11 2.1.4 Labor Market Programs 15 2.2 Ability of Social Assistance Programs to Address Risks and Vulnerabilities 16 2.2.1 Poverty 16 2.2.2 Shocks and Disasters 20 2.2.3 Vulnerabilities across the Life Cycle 21 2.3 Adequacy of Benefits and impacts of Selected Social Assistance Schemes 24 2.3.1 Social Security Allowances 24 2.3.2 Scholarships 25 2.3.3 Midday Meals 26 2.3.4 Safe Motherhood Program 27 2.3.5 Prime Minister’s Employment Program 27 2.4 Policy Coherence, Coordination, and Complementarity of interventions 27 2.4.1 Policy Clarity and Coherence 27 2.4.2 Coordinating interventions and Ensuring Transitions across Programs 28 2.5 Analysis of Fiscal implications of Social Assistance Reforms 31 2.6 Summary of Findings and Recommendations 34 2.6.1 Recommendations 36 Chapter 3. Social Protection Decentralization: Analysis of Functions, Allocations, and Expenditures 39 3.1 Social Protection in Federal Nepal: Legal and institutional Provisions 39 3.1.1 Constitutional Provisions on Allocation of Functions 39 3.1.2 Legal and institutional Arrangements for Delivery of Programs 41 ii SOCIAL PROTECTION: REVIEW OF PUBLIC EXPENDITURE AND ASSESSMENT OF SOCIAL ASSISTANCE PROGRAMS 3.2 Allocation of Social Protection Program Budget 46 3.2.1 Overall Allocation between Levels of Government 46 3.2.2 Equity in the Allocation of Budget for Key Social Assistance Programs 48 3.2.3 Efficiency Perspectives in Program Budget Allocation 51 3.3 Social Protection Expenditure at the Local Level 52 3.3.1 Overall Expenditure at Local Levels 53 3.3.2 Local-Level Expenditures on Social Protection 54 3.4 Summary of Findings and Recommendations 56 Chapter 4. Planning and Budgeting for Social Protection-Analysis of Processes and Challenges 61 4.1 Processes at the Federal Level 61 4.1.1 Planning and Budgeting 61 4.1.2 Fund Flow 63 4.1.3 Monitoring and Reporting 63 4.2 Processes at the Provincial Level 63 4.2.1 Planning and Budgeting 64 4.2.2 Fund Flow and implementation 64 4.2.3 Monitoring and Reporting 65 4.3 Processes at the Local Level 65 4.3.1 Planning and Budgeting 65 4.3.2 Fund Flow and implementation 68 4.3.3 Monitoring and Reporting 74 4.4 Summary of Findings and Recommendations 75 Annexes 79 Annex 1. List of Social Protection Programs 79 Annex 2. Assumptions Used in Projections 85 Annex 3. Framework and indicators for Estimating intergovernmental Transfers 88 Annex 4. FY19 per Capita Program Budget by Poverty incidence 90 Annex 5. School Scholarship Program and Midday Meal Program per Capita Budget for FY19 by Education indicators 92 Annex 6. Safe Motherhood Program per Capita Budget for FY19 by Health indicators 94 Annex 7. OLS Estimates of Determinants of per Capita Program Budget by Local Levels 96 Annex 8. Share of Social Protection in Total, Earmarked, and Discretionary Expenditures at Local Levels, FY19 98 Annex 9. Budgeting Processes and Timelines at Federal and Local Levels 100 Annex 10. Fund Flow of Key Programs before and after Federal Restructuring 101

FAQs

What is the main objective and scope of the report for FY11–FY20?

The report reviews social protection in federal Nepal with a focus on public expenditure and the assessment of social assistance programs over FY11–FY20, including objectives, scope, and limitations defined in the introduction.

Which categories of social protection expenditure are analyzed in the report?

Expenditure trends are assessed across social insurance, social assistance, and labor market programs, including overall expenditure levels and related execution patterns.

How does the report evaluate whether social assistance addresses key risks and vulnerabilities?

It examines coverage and the capacity of social assistance to address poverty, shocks and disasters, and vulnerabilities across the life cycle.

How does the report treat decentralization and budgeting processes across government levels?

It analyzes social protection decentralization by reviewing legal and institutional provisions, budget allocations, and local-level expenditures, and it describes planning and budgeting processes at federal, provincial, and local levels, including fund flow and monitoring.

Jul 19, 2026

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