16 CHAPTER 3
construction of new infrastructure, given the growing insurgency during the period. However, the important role of foreign loans in financing irrigation is noted. During 1991–2001, about 60 percent of public expenditures in irriga- tion were financed through loans. These loans, however, dropped heavily in 2002–03 and led to the fall in total expenditures, even though financing from government revenue remained steady over the period. Total expenditures on roads held fairly steady over the period. As in the case of irrigation, foreign financing plays an important role, but the foreign grant component was much higher than in the irrigation sector, accounting for about 40 percent of the expenditure.
Figure 3.3 shows the geographic distribution of cumulative agricultural expenditures in per capita terms. Like total public expenditures, total agri- cultural expenditures are generally higher in the hill and mountain districts. It is noted that per capita agricultural expenditures were the highest in Manang and Mustang districts in the western mountain region and also in Kathmandu in the central region. In fact, per capita expenditures were generally higher in the western mountainous districts of Humla, Mugu, and Dolpa than in most of the districts in the Terai belt.
Figure 3.4 illustrates the distribution of cumulative irrigation expenditures in Nepal in per capita terms. Per capita expenditures in the western mountain and hill districts were particularly high and comparable to those in the more populated Terai districts. Still, the relatively low per capita expenditures in the western middle hills and indeed in most non-Terai districts in the east are
Figure 3.3 Agriculture real expenditure per capita in Nepal, 1999–2003 Rupees per capita
172—294
294—488 488—799 799—1,684 1,684—4,329 4,329—6,988
Source: Authors’ calculations from public expenditures data (World Bank 2007). Note:
Amounts are in 1995 rupees.
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