Impact of Public Expenditure on Economic Growth and Poverty Alleviation in Nepal

Nepal, a small Himalayan kingdom, sandwiched between two giant neighbours China and India, with a very low per capita income of $1 244 per annum (NPC, HMG Nepal 2000), is one of the poorest countries in the world. Widespread poverty and unequal distribution of income are its most challenging issues. During the second half of the 20th century, Nepal has made substantial economic progress under planned development efforts, however crucial issues of economic development, specially the problem of poverty and inequality are still unsolved and are expanding day by day.