Social Security System in Nepal Evidence from the Institutional and Beneficiary Survey

Many countries across the globe have begun introducing Social Security System in order to assure a minimum standard of living for its old age population. Research around the world clearly demonstrates their impact on improving lives of older people. Government of Nepal has introduced a non-contributory benefit of income maintenance type of social security program where government provides cash transfer to all senior citizens aged 70 years.

With the growing rise in the budgetary allocation over years there is a growing concern regarding the management and long term sustainability of the program. In the light of the growing concern this paper examines the current status and effectiveness of the social security system in Nepal.

Using institutional and beneficiary survey the study found increasing magnitude of social security allowance expenditure. Serious problem of misappropriation of fund, transparency/accountability has been evident from the survey. Social security allowance has been helpful on economic wellbeing of the beneficiaries. The results suggest that beneficiaries have crucial role on the household decision making.

Some of the challenges include limited institutional capacity misuse and misappropriation of the fund unsettled advances payment through banks and poor information management.