Kathmandu. The concept of social security in Nepal was formalized during the Rana period through the Military Fund. Currently, social security programs include scholarships, mid-day meals, free textbook distribution, senior citizen allowance, assistance to the disabled, and the Prime Minister’s Employment Program, and its scope has expanded in recent times.
Currently, more than 80 social security programs are being run by various ministries and agencies of the federal government. The provincial and local governments have started adding services and facilities to the various social security programs run by the federal government and running new programs.
According to the World Bank’s Social Protection Report, Nepal’s social security and protection expenditure, which was around one percent of the gross domestic product in fiscal year 2059/60, has reached 2.5 percent in fiscal year 2069/70. Such expenditure on social protection (excluding public health) was 2.1 percent.
In FY 2075/76, such expenditure increased from 131 billion to 147.46 billion (12.8 percent of the total annual budget) in FY 2077/78, while more than 253 billion was spent in FY 2079/80.
In FY 2080/81, more than 258 billion was allocated. In FY 2079/80, capital expenditure was about 234 billion. By the current fiscal year 2081/82, it has reached close to 300 billion. Thus, it seems that it will be difficult to sustain the state’s investment in social security, which is increasing every year.
Sanubabu Adhikari, Director of the National Identity Card and Registration Department, said that the liability is increasing every year as the number of beneficiaries increases.
According to him, the department is also preparing to collect details of the resources required for social security allowance for the upcoming fiscal year and demand a budget. Currently, social security allowance is being provided through the banking system in all 753 local levels. More than 3.7 million Nepalis are receiving social security allowances provided by the state.
According to the department, the government is currently providing a monthly allowance of Rs 4,000 to senior citizens who have reached the age of 68, while citizens of the districts of the former Karnali and Dalit citizens across the country who have reached the age of 60 receive an allowance of Rs 2,660. The government has also been providing allowances to single women. The government has been providing Rs 2,660 monthly to unmarried women, divorced or legally separated women, and women of any age whose husband has died, and Rs 2,660 to widows and widowers.
Under social security, citizens of any age who have received a Class A, i.e. red disability identity card from the relevant body are being provided with a monthly allowance of Rs 3,990.
Citizens of any age who have received a Class B, i.e. blue disability identity card from the relevant body with severe disabilities receive Rs 2,128 monthly, while endangered indigenous/tribal peoples like Kusunda, Bankaria, Raute, Surel, Hayu, Raji, Kisan, Lepcha, Meche and Kusavadiya, Patharkatta, Silkat, Kusavadhiya, Kuchabadhiya receive Rs 3,990 per month.
As per Schedule 5 of the Children’s Welfare Act, the government has been providing Rs 532 per month to a maximum of two children born to one mother under the age of five in Dalit families in the areas and districts specified by the Government of Nepal and across the country. This allowance is not based on contributions. The government has been providing it from its own treasury.
Economist Keshav Acharya informed that it is time for the government to think about the social security liability that has been increasing every year. According to him, some who deserve social security programs are not getting them yet, while others who shouldn’t are getting them.
According to him, it seems that the federal government is also running social security programs like the provincial and local levels. Hence, there is duplication. Duplication should be eliminated. The state has reached a point where it cannot bear the social security responsibility, and it is necessary to think about how to manage it, Acharya said.
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