India's Aid to Nepal Dwindles, China Now Among Major Donors

In 2013-14, the Indian aid, however, fell to USD 47,796,349 and it dwindled to USD 22,227,306 in 2014-15, the report said.

Published: 25th April 2016 10:47 PM  |   Last Updated: 25th April 2016 10:47 PM   |  A+A-


KATHMANDU: India's aid to Nepal has dwindled by over 50 per cent in the last five years to USD 22 million while China's assistance to the land-locked nation doubled, a Nepalese Finance Ministry report says, amid Nepal's deepening ties with the Communist giant.

Chinese aid of USD 37.94 million was disbursed in the 12-month period in 2014-2015 which made it the fourth largest bilateral donor to Nepal behind the UK, the US and Japan, according to Nepal's Development Cooperation Report 2014-15.

Switzerland was the fifth largest donor.

India's actual disbursement of aid to Nepal in the financial year 2010-11 was USD 50,728,502. In 2011-12, it was USD 50,620,749 and in 2012-13 it rose to USD 63,813,269.

In 2013-14, the Indian aid, however, fell to USD 47,796,349 and it dwindled to USD 22,227,306 in 2014-15, the report said.

On the other hand, China's aid to Nepal has been steadily growing from USD 18,843,988 in 2010-11 to USD 28,344,923 in 2011-12 and USD 34,120,033 in 2012-13. The financial help again grew to USD 41,381,522 in 2013-14 and stood at USD 37,948,75 in 2014-15.

The volume of aid disbursement in FY 2014-15 reached a total of USD 1.13 billion of which Overall Official Development Assistance (ODA) contribution was USD 1020.75 million (90 per cent) and INGO contribution was USD 116.89 million (10 per cent).

Despite the devastating earthquake in April 2015, the level of ODA disbursement stood at almost the similar level as compared to the previous fiscal year (USD 1.03 billion in FY 2013-14), the report said.

Of the total disbursement of ODA, about 45 per cent was provided by multilateral donors, while nearly 55 per cent came from bilateral donors, it said.

The top five bilateral development partners for the FY 2014-15 were the UK (USD 168.07 million), USAID (USD 132.37 million), Japan (USD 39.87 million), China (USD 37.95 million) and Switzerland (USD 32.47 million).

The top 5 bilateral development partners contributed approximately 40 per cent of the total ODA disbursements.

The report noted that the trend of ODA shows disbursed over the last 5 years from top development partners indicates that the disbursement from the World Bank Group, ADB, India, Japan and EU has declined, the Finance Ministry report said.

Nepal has been receiving development assistances for more than six decades and aid continues to play an important role in the socio-economic development of the country, it added.

ODA represents in average about 20 per cent of the national budget over the last 5 years. The estimated GDP for FY 2014-15 was USD 21.2 billion whereas the total government expenditure was estimated to be about USD 6.2 billion which is about 29.1 per cent of GDP.


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