KATHMANDU, Jun 1: Aiming to develop capable, enterprising, and productive human capital that can build its own future, the government allocated Rs 211.17 billion for the education sector in Fiscal Year 2025/26. Last year, the government allocated Rs 236.6 billion, making this year’s budget Rs 7.51 billion higher than the previous year.
Finance Minister Bishnu Paudel presented the budget for FY 2025/26 in Parliament on Thursday and announced that the government increased the budget for the midday meal program in schools, prioritizing the holistic development of children at the school level.
The government allocated Rs 10.19 billion this year for the midday meal program, benefiting 2.8 million children in grades 1 to 5. Last year, former Finance Minister Barshaman Pun allocated Rs 839 million for the same program in the publicly released budget.
Last year, officials expected the program to benefit 3 million students, but this year they plan to serve only 2.8 million students. Despite this, the government kept the midday meal budget comparable to last year's allocation.
Education expert Bidyanath Koirala analyzed the budget and said, "The state can ensure that only the actual number of enrolled children receive midday meal benefits if it disburses funds based on verified student data. Recently published audit reports revealed that local governments misappropriated midday meal funds without proper data."
Not only that, education expert Koirala says this year's budget ignores creativity.
Similarly, the government allocated Rs 1.19 billion to distribute sanitary pads to 1.3 million female students in schools to increase girls' enrollment and reduce dropout rates.
Increase grants for early childhood development assistants and school staff
Minister Paudel presented a budget that implements the government's agreement with the Nepal Teachers' Federation (NTF). The government increased the grant for early childhood development assistants. Minister Paudel stated that the federal government raised the conditional grants it provides as remuneration for early childhood development workers and school staff in community schools.
"The government has raised the grant for early childhood development assistants and school staff," Minister Paudel said. "It has allocated an additional Rs 10.10 billion to the NTF for this purpose.
Plan unveiled to educate children of Musahar, Dom,and Chamar communities in medicine
Finance Minister Paudel said the government will continue providing scholarships to targeted communities and students from remote Himalayan districts. It will offer incentive scholarships to students from the Musahar, Dom, and Chamar communities for higher education in medicine. The government has allocated Rs 2.44 billion for these scholarships.
Minister Paudel also announced that the government will launch a new teacher bank program in collaboration with universities to address the shortage of English, Science, and Math teachers at the school level. The government will deploy graduates as volunteer teachers under this program.
The budget states that the government will arrange hostels to help students with disabilities complete their basic education. It will also prepare national regulatory standards and actively monitor private schools.
Incentive Program Based on Educational Results
Minister Paudel proposed a policy to run an incentive program based on educational results to ensure the education budget is used effectively. "The government will implement this program in 100 schools, selecting at least one school from each district," Minister Paudel stated in the budget. "These schools will also help other schools improve their results."
He added that the government will allocate Rs 2.5 million to each participating school for this purpose.
Provincial level to conduct SEE
Item number 154 of the budget states that the government will gradually transform conditional grant programs in the education sector into financial equalization grants. It also assigns the provincial level to conduct and manage the Secondary Education Examination (SEE).
Rs 2.72 billion allocated for the National Educational Reform Program
It has revised the previously implemented program. Last year, the government removed a Rs 1 billion National Educational Reform Program due to duplication in education sector initiatives. However, this year, it has reintroduced the program under a new arrangement.
Under this new arrangement, the government will provide capital grants to develop physical infrastructure in schools with more than 1,500 students in the Terai and Madhesh regions, more than 1,000 students in the Hills, and more than 500 students in the Mountains through the National Educational Reform Program. Additionally, it has allocated Rs 2.72 billion to complete the construction of ongoing model schools.
The government will map all schools considering changes in geography, demographics, and school numbers, then coordinate with local bodies to align teacher positions and adjust them by education level, according to the new budget.
To ensure uniformity in higher education, the government plans to draft and implement an umbrella Higher Education Act. It also intends to restructure universities to curb the rising trend of students going abroad for studies.
The budget proposes reestablishing the University Grants Commission to allocate grants to universities based on student enrollment, educational quality, and infrastructure needs. Additionally, it requires universities to publish and implement their academic calendars before the academic session starts, or face suspension of their grants.
The government will review quotas allocated to educational institutions based on workforce projections to ensure sufficient manpower supply in sectors such as agriculture, engineering, information technology, and health services. It has allocated Rs 560 million to build medical colleges in Bardibas, Butwal, Dadeldhura, and Surkhet.
The government will establish institutions to operate universities like Madan Bhandari Science and Technology University and Vidushi Yogmaya Ayurveda University. To attract foreign students, it will provide free visas and multiple-entry visas for their guardians.
The budget states, "The government will select one technical school in each province and upgrade it as a model school. It will encourage students who complete school education to enroll in technical and vocational education or university education based on their academic results."
The budget further states, "The government will make youth who cannot pursue higher education entrepreneurial through skill-based training. Next year, the Council for Technical Education and Vocational Training (CTEVT) will train 26,900 youths for more than six months."
Laxmikishor Suvedi, president of the NTF, welcomed the government's budget increase for early childhood development and school staff, saying it addresses their demands. He added that the government is addressing other issues through the Education Act.