Nepal’s SDG Implementation under Review: Study Reveals Inadequate Resource Allocation & Spending
Nepal is one of the first countries in the world to develop a Sustainable Development Goals (SDGs) roadmap for the years 2016–2030. However, a new UN report has revealed inadequate resource allocation for SDGs, coupled with insufficient spending of the allocated budget to achieve the developmental targets.
The survey, entitled ‘SDG-Based Public Expenditure Tracking Survey (PETS) of the Provinces in Nepal, released by UNDP assesses the resource allocation and spending pattern in all the seven provinces by Sustainable Development Goals and identify problems with resource allocation, transfer, and spending for SDGs implementation. The survey has been published as a package of seven separate study reports, each one dedicated to a province.
The study also points out that these findings on SDG related expenditures have to be read in the context where not all provinces have fully coded their budgets and expenditures by SDGs.
The study shows provinces have left the budget uncoded in the range of 5% (Karnali Province) to 93% (Madhesh Province) during the study period. Partial SDG coding of the budget has not shown the true picture of expenditure for achieving the SDGs. In order to properly track the budget allocation and expenditure pattern, budgets of the provinces were re-coded by SDGs based on the Provincial SDG-coding sourcebook developed with UNDP assistance. As a result, 86–95% of budgetary programs were coded, and 5–14% of the allocated budget remained uncoded because they are either not directly related to the SDGs or unallocated funds remaining with the Finance Ministry.
The major concentration of budgetary allocation and expenditure of all the provinces was on SDG 2, 3, 4, 6, 9, 16, and 17. However, SDG 9 (only for physical infrastructure) has got the highest allocation and expenditure. Further, it was found that the provinces have either not allocated or negligibly allocated budget to SDG 7 (energy), SDG 10 (reducing inequality) and SDG 12 (sustainable consumption and production).
In certain cases, the study reveals, funds have been transferred in ways that bypass parliamentary systems, leading to overspending of allocated budgets as witnessed in the Sudurpashchim. The study recommends government officials to revisit budget allocation and utilization processes in order to maximize impact towards achieving the SDGs.
There are shifts in allocation within SDGs year on year by the province as revealed by the budgetary allocation analysis of the provinces during the study period. However, the study found that there were concerns about poverty and hunger in Karnali Province, and the government had not given high priority to addressing these issues.
In a broad analysis, the survey reveals inadequate resource allocation for SDGs implementation in Nepal. The study recommends that provincial governments need to prioritize SDG-based planning and budgeting and ensure compliance with government guidelines. Additionally, there is a need to increase the budgetary allocation to SDGs that have been neglected in the past, such as SDG 7 (energy), SDG 10 (reducing inequality), and SDG 12 (sustainable consumption and production). Achieving the SDGs requires all tiers of the government, along with other stakeholders such as non-government organizations, community organizations, and the private sector, to work hand in hand.
