Remittance is widely spent on daily consumption, followed by loan repayment and household property instead of capital formation, according to third Nepal Living Standard Survey published today.
Some 78.9 per cent of the remittance is used on daily consumption, whereas 7.1 per cent of the remittance is used to repay loans followed by 4.5 per cent on household property, 3.5 per cent on education and only a minimal 2.4 per cent is used on capital formation, stated the survey published by the Central Bureau of Statistics here today. “However, percentage of household receiving remittances has also more than doubled from 23.4 per cent 15 years ago to 55.8 per cent in 2010.”
Consumption of expenditure on food, housing and education has increased but on other non-food items it has decreased. “Share of food in total household consumption has seen a increased to 61.5 per cent from 59 per cent in 2003-04, whereas share of non-food consumption has decreased to 22.2 per cent in 2010-11 from 2003-04’s 28.7 per cent,” according to the survey that reflects the migration has not only increased the average income of a Nepali and consumption pattern but changed the social structure too. “The female headed households percentage has doubled — to 26.6 per cent from 13.6 per cent — in the last 15 years since the first Nepal Living Standard Survey 1995-96.”
Despite the remittance being used on household property, households that owned houses have decreased while those renting houses have increased and access to power, safe drinking water and toilet also increased though the load shedding hours are increasing and water comes once in a week in most urban centres.
As a major shift in the agriculture that contributes 33 per cent to the GDP, agriculture households and average size of agriculture land both decreased in the last seven years between second survey in 2003-04 and third survey in 2010-11, whereas self agriculture is still the main sector of employment with 61.3 percentage, though it’s share has come down from 70.7 percentage in 1995-96. The share of wage agriculture as a sector of employment has also dropped significantly from 12.2 percentage to 2.8 percentage in a decade-and-a-half.Similarly, share of farm income in household income has dropped to 27.7 per cent from 61 per cent in 1995-96.
However, share of non farm income surged to 37.2 per cent from 22 per cent and share of other income has doubled in 2010-11 to 35.1 per cent from 16 per cent in the first Nepal Living Standard Survey. The nominal average household income has gone five times up to Rs 202,375 from Rs 43,732.The survey revealed that the nominal average per capita income of a Nepali has increased by seven times to Rs 41,659 in last one-and-a-half decade from Rs 7,690 in 1995-96.
“The poorest 20 per cent of population has seen their nominal average per capita income rise by seven times but the riches 20 per cent of population has seen their nominal average per capita income hike by only around five times.Similarly, the working group population has increased but those dependent (60+) has also increased, whereas dependent population below 14 years has decreased.
In a positive development, more households are now borrowing from banks than from money lenders, according to the survey that was carried out across the country 500 village development committees (VDCs) of 73 districts, said director general of Central Bureau of Statistics Uttam Narayan Malla.The Survey conducted according to the World Bank’s Living Standards Measurement Study (LSMS) has collected the data from 5,988 households, he said, adding that the survey conducted every seven years is the third and this survey has some new data also that will help government formulate policy.
Use of remittance
Daily consumption — 78.9 per cent
Repay loan — 7.1 per
Household property — 4.5 per
Education — 3.5 per cent
Capital formation — 2.4 per cent
Others — 2.6 per cent
(Source: Nepal Living Standard Survey 2010-11)
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