Opinion | Breaking down Nepal’s health budget: Where are the funds going?
Summary
Nepal allocates about 4-6% of the government budget to health, with increasing decentralization shifting funds to local levels. Federal spending focuses on infrastructure and insurance, while provincial and local levels prioritize frontline and reproductive health services.
Key Points
- Nepal's health sector receives 4-6% of the total government budget, below WHO standards despite increases.
- Decentralization has shifted more health funding to local governments, now receiving nearly 36% of the Ministry of Health budget.
- Federal health spending concentrates on infrastructure, insurance, and centralized programs, while provinces and locals focus on frontline services.
- Challenges include overlapping functions, limited local autonomy, and the need for performance-based grants and capacity building at subnational levels.
