Nepal mobilized official development assistance worth $2 billion in 2019/20: MoF

Published On: April 8, 2021 07:17 PM NPT By: Republica  | @RepublicaNepal

This is 21.2 percent more than the amount Nepal mobilized in the fiscal year 2018/19.

KATHMANDU, April 8: Nepal mobilized official development assistance (ODA) worth US $ 2 billion in 2019/20. This is 21.2 percent more than the amount Nepal mobilized in the fiscal year 2018/19.

Unveiling the Development Cooperation Report (DCR), 2020 on Thursday, the Ministry of Finance (MoF) said the amount includes the assistance from various bilateral and multilateral development partners and cooperation received from International Non-governmental Organizations (INGOs). The amount of ODA in 2018/19 stood at US $ 1.57 billion.

Of the total ODA amount that Nepal received last fiscal year, $512.90 million was disbursed for COVID-19 response and recovery. The contribution of INGOs, however, declined to $131.80 million from $ 215.30 million during the review years.

Of the total amount, the country received 69.9 percent in loans, 18.7 percent in grants and 11.3 percent in technical assistance in the fiscal year 2019/20.  According to the MoF, the increasing share of loans in ODA reflects the result of Nepal’s eligibility in concessional loans from the Multilateral Development Banks and institutions.

“There has been an important shift in the form of increase in the portion of budgetary support by the development partners,” reads a press release issued by the Ministry of Finance. The portion of budgetary support has reached 36.9 percent of total ODA in 2019/20 from 15.2 percent in 2018/19.

The development cooperation report released on Thursday also showed a significant improvement in the on-budget channeling of assistance. Of total ODA, $1.67 billion (83.5 percent) was channeled through on-budget in the review period as compared to 78.4 percent in the previous year.

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