The government of Nepal should use the forthcoming budget to protect the rights of Nepali children by expanding its popular and successful Child Grant program, 24 Nepali and international rights groups said today in a letter to Finance Minister Bishnu Paudel.
Only about ten percent of Nepali children currently receive the Child Grant, even though it has proven benefits and helps to safeguard Nepal’s future.
Read the press release here.
Dear Honorable Finance Minister Bishnu Prasad Paudel,
We are writing to you as a group of 24 Nepali and international civil society organizations to urge you to use the forthcoming budget to protect the rights of children in Nepal by expanding the government’s popular and successful Child Grant (Child Nutrition Allowance) program.
Nepal became a pioneer of social protection policy in South Asia in the 1990s by introducing an old age allowance. Building on that legacy, Nepal has an opportunity to further develop world-leading social protection policies that protect human rights by reducing inequality and poverty, including child poverty, increasing resilience to shocks, and investing in a more just economy. With 40 percent of the population under the age of 18, investing in social protection for children is more important than ever to protect their rights and for Nepal’s future prosperity.
The government first introduced the Child Grant in five Karnali districts in 2009. In light of the Grant’s positive impacts on children’s well-being, the program was expanded to three additional Karnali districts in 2017, with a commitment to expand it nationwide by 2025. However, it is currently only available to children aged under 5 in 25 out of 77 districts, and Dalit children under 5 nationally. In 2022, the Child Grant covered only about 45 percent of children under 5 and just 9.5 percent of all Nepali children.
Eligible families receive a monthly payment of NRs 532 for up to two children. This is the lowest level of all current social allowance payments. Nevertheless, studies by the United Nations and academics have found that the Child Grant has increased birth registration rates and enabled families to buy food, clothes, and other essential expenses to protect their children’s rights. It also lowered the incidence of child labor for the recipients and their siblings.
Research has also found that the Child Grant improved food security and health, and also enhanced the public's perception of the government. In a survey of 2,040 households, the Oversees Development Institute found that 93 percent of beneficiaries believed the government cared about their socioeconomic well-being, with 85 percent reporting an improved opinion of the government owing to the program.
Although around 40 percent of Nepal’s population is under 18, with 1,688,886 of them living with single mothers facing additional vulnerabilities, children receive only around 7 percent of the government’s social protection budget. This is a missed opportunity for the development of Nepal. The disadvantages of growing up in poverty can harm children for the rest of their lives, and that harm persists across generations, setting back the entire country’s development. In 2019, one in three children under the age of 5 was stunted by malnutrition, and the rate was 44 percent among children living in poverty. According to Nepal’s Multidimensional Poverty Index (MPI), in 2022, 20.1 percent of Nepalis experienced multidimensional poverty, and 20.2 percent were vulnerable to falling into multidimensional poverty. The absence of universal social protection exposes children to the harmful effects of economic and climate-related shocks and unpredictable crises like the Covid-19 pandemic, which drove many families into poverty and children into child labor.
A crucial feature of the Child Grant is that – when implemented in full – it is designed to be a universal program that all children in Nepal are entitled to. When financial resources are limited, targeting social protection at the poorest households may appear to be an efficient strategy. However, targeting such families has high administrative costs and often fails to reach eligible beneficiaries, because of the lack of up-to-date information or exclusionary means tests.
Domestic financing is critical for a social protection system's long-term sustainability, and Nepal’s policy of meeting social protection expenditure from domestic revenues is correct. The government should take steps to mobilize domestic resources to progressively attain universal social protection, including a solid social protection floor, by reforming the tax system to make it more fair and progressive, and setting budgetary priorities that emphasize everyone’s right to social security.
According to a 2021 UNICEF study, expanding the Child Grant to all children up to the age of 17 by 2035 is feasible for Nepal’s government, costing less than 0.7 percent of GDP a year. The implications for people’s economic and social rights would be significant. Family poverty could drop by as much as 16.8 percent, enabling families to afford better nutrition, healthcare, and education.
Social security is a human right enshrined in international human rights agreements which are binding in Nepal, and in the Nepali Constitution (Article 43).
The Child Grant is an already-proven government social protection program that can have a deep impact protecting children’s rights. It has been endorsed by numerous Nepali civil society organizations and international policy experts including UNICEF, the International Monetary Fund, the World Bank, and the European Union. In your forthcoming budget, we urge you to expand the policy as a step towards universal coverage of all children in Nepal. Millions of children and their families would benefit, and so would the entire country.
Yours Sincerely,
Nepali groups:
Global partners:
