FDI Aids Development

Foreign aid and grants have been an important component of fiscal year budgets of Nepal. As the large chunk of incomes go for meeting general expenditures, there is little budget meant for socio-economic development. Weak tax base and insufficient revenue collection have made it difficult for every successive government to profusely invest in infrastructure development, job creation and public sector. So the country often looks to international community for their generous cooperation to fuel economic growth. Neighbours, friendly nations, and bilateral and multilateral agencies have been supporting us to end poverty and achieve sustainable development for decades. Today foreign aid comprises 26 per cent of the national budget, with 40 donors providing official development assistance to it.