Nepal | July 10, 2020

Nepal must invest Rs 5.5 bn a day to meet Sustainable Development Goals

Rupak D Sharma
Share Now:

Kathmandu, June 13

Nepal needs to invest at least Rs 5.5 billion per day, on average, in areas ranging from poverty reduction, education, health and environment to clean energy, industrialisation, urban development, information technology and governance to meet the Sustainable Development Goals, an ambitious universal programme supported by the United Nations to end global poverty, protect the planet and ensure peace and prosperity.

The final analysis conducted by the National Planning Commission, the apex body that frames the country’s development plans and programmes, has put investment requirement for Nepal to achieve SDGs at Rs 2,024.8 billion per year, which is around 58 per cent of the gross domestic product of this fiscal year.

This investment will have to be made per year till 2030 — the deadline to achieve SDGs. This means Nepal needs to spend over Rs 30,300 billion during the lifespan of SDGs from 2016 to 2030.

The latest investment requirement is 14 per cent more than the projection made in February 2018.

The study, which will soon be made public, was conducted with the support of the Nepal office of the UN Development Programme.

“The projection was made using UN-approved methodologies and based on surveys conducted in various sectors,” UNDP Resident Representative Ayshanie Medagangoda-Labe told THT. “With this, Nepal has positioned itself as a global leader in carrying out a rigorous study on SDG investment requirement.”

The SDGs are a set of 17 goals and 169 targets which not only push for economic growth and infrastructure and social development, but quality education and healthcare services, climate action, innovation, sustainable consumption and industrialisation, and decent work.

Nepal, for example, needs to invest over Rs 4,500 billion till 2030 to provide quality education, over Rs 2,000 billion to ensure good health and well-being, and over Rs 2,200 billion to eradicate poverty. One of the areas where Nepal needs to invest big is transport, industry and ICT where over Rs 6,000 billion must be spent till 2030 to build resilient infrastructure, promote inclusive and sustainable industrialisation, and foster innovation.

All these investments make SDGs an ambitious programme. And Nepal needs to make plenty of reforms to meet all the targets within the 2030 deadline, as it is projected to face a financing gap of 21 per cent to implement programmes designed to meet SDGs.

As per current projections, the government must bear around 55 per cent of the total cost required to meet SDGs. But the government is likely to face a financing gap of 38 per cent in investment that it should make if its existing revenue and borrowings are taken into account. This means the government should widen revenue base, seek more loans and grants from foreign governments and multilateral agencies, and incentivise private and other sectors to invest in SDGs.

Similar financing gap has been seen in private sector investment as well, which must be covered by attracting foreign direct investment, debt financing and equity investment.

“Nepal will have to make structural reforms and enhance capacity of provinces and local levels to meet SDGs. If it fails to accelerate implementation, it, like many countries in Asia and the Pacific, will lag behind,” said Medagangoda-Labe, adding, “Only 11 years are left for the SDG deadline to expire.”

SDG investment requirement

  • Average annual investment requirementRs 2,024.8 bn
  • Total investment requirement (2015-2030)Rs 30,372 bn
  • Total financing gap21 per cent or Rs 585 bn per year
  • Financing gap in government investment38 per cent

A version of this article appears in print on June 14, 2019 of The Himalayan Times.

Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Silva shines as Man City thrash Newcastle 5-0

MANCHESTER: David Silva scored one goal and made two more as Manchester City put on a passing masterclass to overwhelm Newcastle United with a 5-0 Premier League victory on Wednesday. Having announced that he will leave the club at the end of this season after a 10-year spell, the 34- Read More...

Salah double keeps Liverpool on track for points record

BRIGHTON: Mohamed Salah scored twice as champions Liverpool moved on to 92 points with a 3-1 win at Brighton and Hove Albion in the Premier League on Wednesday. The victory kept Liverpool on target to secure a record Premier League points tally, with Juergen Klopp's side needing nine from Read More...

Adequate social security key to minimise impact of COVID-19, says PM Oli

KATHMANDU, JULY 8 Prime Minister KP Sharma Oli said protection of the most vulnerable, including migrant workers and those in informal sectors, and provision of adequate social security and health care was the key to minimise the impact of COVID-19. Addressing virtual ‘Global Summit on COVID Read More...

Suarez scores as Barca condemn Espanyol to relegation

Barca beat Espanyol 1-0 in city derby Suarez won the match with his 195th goal for the club Espanyol were relegated after 26 years in La Liga  BARCELONA: Barcelona kept up their pursuit of leaders Real Madrid in the La Liga title race by beating city rivals Espanyol 1-0 at home Read More...

Coronavirus pandemic affects Nepal’s sovereign credit rating process

KATHMANDU, JULY 8 The country’s sovereign rating assessment is likely to be delayed due to the coronavirus pandemic. Though the government had awarded Fitch Ratings, a United States-based international credit rating agency, to study and confirm Nepal’s sovereign credit rating in December l Read More...

Human rights awareness, Human rights education

‘Respect rights of vulnerable people’

KATHMANDU, JULY 8 International partners, civil society and humanitarian organisations have been working together to support the Government of Nepal’s response to the COVID-19 crisis, read a joint press statement issued by United Nations, various embassies and international agencies in Nepal to Read More...

SP-N notifies EC of Giri’s expulsion

KATHMANDU, JULY 8 Samajwadi Party-Nepal today wrote a letter to the Parliament Secretariat stating that it had expelled lawmaker Sarita Giri from the House of Representatives. Assistant Spokesperson for the Parliament Secretariat Dasharath Dahamala said his office would inform Speaker Agni Pra Read More...

Man held for swindling job aspirants of hefty amount

Swindler allegedly offered ‘fake offer letters’ to victims  KATHMANDU, JULY 8 Police have arrested Bijay Pandey, 34, on charge of swindling lakhs of rupees from at least seven persons on the pretext of securing them employment at World Health Organisation’s Nepal office. Pandey, who ha Read More...