KATHMANDU, June 18: Nepal has been steadily expanding the number of universities each year, but the budget for higher education has not kept pace—raising concerns over declining quality, weak research capacity, and limited innovation.
A review of budget trends over the past five years shows that only around 1 percent of total national allocation has consistently been set aside for higher education, including study, research, and academic reform. Experts say this persistent gap is now undermining efforts to improve academic standards and strengthen research output.
Former Vice-Chancellor of Tribhuvan University (TU), Prof Dr Deepak Aryal, said the imbalance is directly affecting academic growth and the country’s research capacity.
He said universities in the past functioned largely as teaching institutions with limited practical exposure and were mostly theory-driven. “Today, the world is moving forward with research as a priority,” he said. “Earlier, even those without a PhD could become professors, but now a PhD is mandatory. At least 8 marks are allocated for PhD and 20 marks for publications in the evaluation system.”
Aryal stressed that modern university education must be research-driven. “Research cannot be conducted without adequate funding. In Nepal, mobilizing resources is extremely difficult,” he said, noting that science-related research often depends on foreign funding.
“The government provided Rs 100 million three years ago, but last year it was reduced to just Rs 10 million,” he said. “Research cannot function on such a limited budget. Higher education is about discovery and innovation, which is impossible without investment. The state must increase funding alongside the expansion of universities.”
He added that subjects such as glaciers, water resources, biodiversity, animal kingdom, nuclear physics, environmental science, and even astrology are taught in universities—all of which require strong research support. “Only 1 percent of the total budget goes to higher education, which is not sufficient,” he said. “University officials cannot rely on personal contacts to raise funds. Where is the state support?”
Prioritize quality enhancement, not the proliferation
Vice-Chancellor of Purbanchal University, Prof Dr Biju Kumar Thapaliya, echoed similar concerns, saying that although the government has expanded the number of universities, academic programmes remain largely identical across institutions. As a result, national educational goals have not been achieved.
He noted that while education historically received around 10 percent of the national budget, higher education has remained stuck at around 1 percent of the total budget and about 10 percent of the education budget.
“The government’s policy emphasizes research and innovation, and universities are the main institutions responsible for delivering that,” he said. “Purbanchal and Pokhara universities have some flexibility, as their laws allow limited resource mobilization from the public sector.”
Thapaliya also stressed the need for workforce planning based on national projections. “Universities should produce human resources according to national needs. But most institutions still run identical programs, which has affected quality and outcomes,” he said, adding that education generally accounts for around 10–12 percent of the total budget.
As Nepal’s higher education sector expands, concerns are growing over the inability to proportionately increase funding for research, innovation, and quality improvement. For fiscal year 2026/27, the government has allocated around Rs 218 billion for the education, science, and technology sector.
Although nearly 10 percent of the national budget is allocated to education, stakeholders say higher education continues to receive less priority than required. While student enrolment, academic programmes, and research demands continue to rise, funding has not kept pace.
Most budget consumed by salaries
A large share of higher education funding is spent on salaries, allowances, and administrative costs. According to former TU Vice-Chancellor Aryal, most university grants are consumed by regular expenses, leaving little for research, laboratory development, digital infrastructure, and international collaboration.
Stagnant budget Share
Although education funding has increased in absolute terms over the past five fiscal years, its share in the total national budget has remained largely unchanged. Experts say most allocations go to school education, teacher management, and basic-level programmes, while higher education struggles to achieve international standards and expand scholarship opportunities.
Weak research funding base
Research and innovation are widely considered the backbone of quality higher education. However, in Nepal, university research funding remains negligible as a proportion of the total budget. The lack of research grants has led many students and academics to seek opportunities abroad.
Aryal said universities must evolve not only as teaching institutions but also as centres of research and innovation, which requires structural reforms in budget allocation.
13 universities in operation
Despite various scholarship programmes, the cost of higher education continues to rise. Students in medicine, engineering, information technology, and management face high expenses, disproportionately affecting those from economically weaker backgrounds, Aryal said.
Nepal currently has 13 universities, including Tribhuvan University, Nepal Sanskrit University, Kathmandu University, Purbanchal University, Pokhara University, Lumbini Buddhist University, Agriculture and Forestry University, Mid-West University, Far-Western University, Nepal Open University, Rajarshi Janak University, Gandaki University, and Madan Bhandari University of Science and Technology.
There are also four health science academies: BP Koirala Institute of Health Sciences, Patan Academy of Health Sciences, Karnali Academy of Health Sciences, and the National Academy of Medical Sciences.
Around 500,000 students are currently enrolled in higher education in Nepal, with about 75 percent studying at Tribhuvan University alone. “Most universities depend on government grants,” said Thapaliya. “However, some institutions, including Kathmandu University, Pokhara University, and Purbanchal University, also manage part of their budgets through internal resources.”
Because TU alone accounts for nearly 75 percent of students, it receives around 70 percent of the total higher education budget.
