INGO Expenditure in Nepal Matches Government Grants, While Transparency Remains a Concern
The Average Annual Expenditure of INGOs in Nepal is 21 Billion
It is observed that the expenses incurred by INGOs (International Non-Governmental Organizations) in Nepal are approximately equal to the grant amount received by the government from foreign donors. According to the official data of the Ministry of Finance, international non-governmental organizations (INGOs) in Nepal spend an amount equal to 21.25 billion rupees annually. In the last five years, the government has received an average of 26 to 27 billion rupees in grants. However, since many INGOs operating in Nepal do not update their details with the government, officials believe that their actual expenses in Nepal may be higher.
According to the Ministry of Finance, in the current financial year (FY) 2080/81, a total of Rs. 24 Arba 34 crores and 98 lakhs in aid is expected to be received through 168 programs of the INGOs. The average annual aid received through various programs of the INGOs operating in Nepal amounts to Rs. 21.22 Arba. Including the expenditure in the ongoing financial year, the total amnount in the last five years totals to in excess of Rs. 1 Kharba.
Dhaniram Sharma, spokesperson of the Ministry of Finance, is quoted as mentioning that only those INGOs who have provided the requested details to the Ministry of Finance will appear in the budget information. He also stated, "It is possible that a larger amount of money is being spent through INGOs than what is stated," indicating that the auditing and statement process is currently not being carried out.
Despite the government setting a high target for subsidies in the budget, only around 26 billion rupees are received annually. According to the data from the Office of the Director-General of Accounts, 21.29 billion rupees of subsidy was received in the last fiscal year 2079/80. In the previous year, only 28.48 billion rupees of subsidy was received.
Sanjay Kumar Mallik, Permanent Director of the Social Welfare Council, is quoted as mentioning that the expenses and work details of all the INGOs registered with the Council and conducting their programs have started to be transparent. However, obtaining details about INGOs not registered with the council and operating directly with permission from federal ministries is challenging.
According to the Ministry of Finance, these INGOs plan to spend a total of 98.29 billion rupees in Nepal through 168 programs. However, it is observed that only 24.5 billion rupees will be spent in the current year. The activities of INGOs, which slowed down during the years affected by the Covid-19 epidemic, seem to be increasing in the years after the Covid-19 epidemic subsided. Some programs have been organized by INGOs to uplift citizens affected by Covid.
The government has been gradually tracking the expenses incurred by INGOs through the Social Welfare Council. However, not all INGOs have provided such details.
Dhaniram Sharma, Joint Secretary of the Ministry of Finance, is quoted as stating that the expenditure of INGOs generally aligns with the broader national policy adopted by the country. However, he mentioned that they may not invest in every program or INGO initiative designated by the government.
"The INGOs active in Nepal bring funds to spend on us according to the priorities of their country," he said. He added that the Social Welfare Council is currently regulating such bodies.
The majority of the international non-governmental organizations providing aid during the current fiscal year are from American and European countries. INGOs from the USA, South Africa, France, Switzerland, Japan, Italy, Germany, UK, Canada, China, Denmark, Netherlands, Luxembourg, Finland, Australia, South Korea, Norway, Czech Republic, Qatar, Brazil, and Sweden are actively involved in Nepal.
This year, investments will be made through these INGOs in the fields of social justice, rural development, food security, climate change, agriculture, drinking water and sanitation, education, health, and disability. Their work is spread across most districts of the country. American INGO Nick Simmons Foundation International, with its rural hospital capacity building project, operates in all 77 districts. British INGO Save the Children International also operates in all 77 districts.
The number of INGOs registered with the Social Welfare Council is 185, out of which 140 are active. Mallik, the Permanent Director of the council, is quoted as mentioning that the number of registered INGOs has significantly decreased recently. He estimated that about 250 INGOs were previously registered in Nepal, and this number is likely to reduce to around 100 in the new registration process.
(Disclaimer: This is a translation based on an original article. Consistency in information has been maintained for accuracy.)
