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 10 percent of Nepali children currently receive the Child Grant, even though it has proven benefits and helps to safeguard Nepal’s future.
“With about 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,” said Tilottam Paudel, chairperson of the Social Protection Civil Society Network. “The disadvantages of growing up in poverty can harm children for the rest of their lives, setting back the entire country’s development.”
The government first introduced the Child Grant in five districts in Karnali province in 2009. 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 currently receive a monthly payment of 532 Nepali rupees (about US$3.85) each 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 afford other essential expenses. It also lowered the likelihood of child labor for the recipients and their siblings.
According to a 2021 UN Children’s Fund (UNICEF) study, expanding the Child Grant to all children up to the age of 17 by 2035 is feasible, costing less than 0.7 percent of the country’s GDP per year. The implications for people’s economic, social, and cultural rights would be significant. Family poverty could drop by as much as 16.8 percent, enabling families to afford better nutrition, health care, and education.
Research has also found that the Child Grant has improved food security and health and enhanced the public’s perception of the government. A survey of 2,040 households 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.
Nepal became a pioneer of social protection policy in South Asia in the 1990s by introducing the old age allowance. Social security is a human right enshrined in international human rights agreements and in Article 43 of the Nepali Constitution. Yet the absence of social protection for most Nepali children leaves them vulnerable to the harmful effects of economic and climate-related shocks.
The government has repeatedly pledged to extend the Child Grant but has not done so in recent budgets. A crucial feature of the policy is that when implemented in full, it is designed to be a universal program that all Nepali children are entitled to. When financial resources are limited, targeting social protection at the poorest households may appear to be an efficient strategy. However, targeting the poorest families has high administrative costs and often fails to reach eligible beneficiaries due to a lack of up-to-date information or exclusionary means tests. It has also been found to contribute to social stigma, which in turn creates disincentives for individuals to seek benefits they are entitled to.
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 the right approach, the groups said. The government should take steps to mobilize domestic resources to progressively attain universal social protection by reforming the tax system or setting budgetary priorities that emphasize everyone’s right to social security.
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 international policy experts including UNICEF, the International Monetary Fund, the World Bank, and the European Union.
“That so few Nepali children currently receive the Child Grant is a denial of their rights and a missed opportunity for Nepal’s development,” said Lena Simet, senior poverty and inequality researcher at Human Rights Watch. “In the forthcoming budget, Finance Minister Paudel should expand the policy as a step toward universal coverage, which would benefit millions of children and their families, and the entire country.”
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