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Nepal Government Spending

Government expenditure as % of GDP  GC.XPN.TOTL.GD.ZS

Nepal's government spending was 19.44% in 2021, ranked 32nd globally. This represents a 3.6% decrease from 2020. Data from World Bank, covering 2004–2021.

19.44% −0.72% (-3.6%)
Year 2021 Rank #32 Global Peak 21.70% (2019) Source World Bank

Nepal Government Spending (2004–2021)

Overview

Nepal's government spending stood at 19.44% in 2021, a decline of +0.72% from 2020. Nepal ranked 32nd globally.

Since 2004 Nepal’s government spending as a share of GDP has risen from 14.60 to 19.44 in 2021, placing it 32nd globally. The upward trajectory accelerated after the all‑time trough of 12.69 in 2013, reaching an all‑time peak of 21.70 in 2019 before settling slightly lower at the latest figure. This pattern mirrors the fiscal expansion observed in peer economies such as the Philippines, whose 2021 spending share stood at 19.14, suggesting regional pressures to fund infrastructure and social programmes. Over the 13‑year coverage period the average annual increase approximates 0.4 percentage points, driven by higher allocations to health, education and disaster resilience. Continued growth will depend on the government’s capacity to broaden the tax base and manage debt, while external shocks or fiscal consolidation could moderate the upward trend.

Data & projection

Year Government Spending YoY change Rank
2021 19.44% −0.72% #32
2020 20.16% −1.54% #34
2019 21.70% +1.54% #50
2018 20.17% +3.31% #51
2017 16.85% +2.63% #36
2016 14.23% +0.24% #20
2015 13.99% +0.41% #19
2014 13.58% +0.89% #20
2013 12.69% −1.15% #14
2012 13.84% −0.10% #21
2011 13.94% −1.70% #19
2010 15.64% +1.04% #24
2004 14.60% – #20

Detected Pattern

Stagflation Risk
GDP growth below 2% combined with inflation above 8% and rising unemployment. The worst macro combination for policymakers.
Inflation 8.8% GDP growth 0.4% Unemployment 10.7%
Occurred 307 times, 117 successful
Inflation
26.9%
GDP growth
-4.2%
Unemployment
14.6%
Inflation
185.7%
GDP growth
-14.0%
Unemployment
60.8%
Inflation
14.4%
GDP growth
1.1%
Unemployment
9.1%
Inflation
33.9%
GDP growth
-1.5%
Unemployment
17.0%
Inflation
736.1%
GDP growth
1.7%
Unemployment
9.4%
Inflation
13.6%
GDP growth
1.3%
Unemployment
14.1%

Analysis

Nepal matched the Stagflation Risk pattern in 2016. Historically, 38% of countries showing this pattern (117 out of 307) saw government spending improve within 24 months. View full analysis →

Frequently Asked Questions

What is Nepal's government spending?▾

Nepal's government spending was 19.44% in 2021. Ranked 32nd globally. This represents a 3.6% decrease from the previous year.

What was the highest government spending in Nepal?▾

Nepal's government spending peaked at 21.70% in 2019.

What was the lowest government spending in Nepal?▾

The lowest government spending in Nepal was 12.69% in 2013.

How does Nepal rank in government spending?▾

Nepal ranks 32nd globally in government spending as of 2021.

What is the World Bank indicator code for government spending?▾

The World Bank indicator code is GC.XPN.TOTL.GD.ZS. Data sourced from World Bank.

What is the government spending of Nepal in 2021?▾

The government spending of Nepal in 2021 was 19.44%. This ranks 32nd in the world.

Cite this page

APA
Nepal Government Spending. HistorySaid. Retrieved October 31, 2026, from https://historysaid.com/nepal/government-spending/
BibTeX
@misc{historysaid_nepal_government-spending, title = {Nepal Government Spending}, url = {https://historysaid.com/nepal/government-spending/}, publisher = {HistorySaid}, year = {2026} }
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