Two major problems that are evident in the financing of the education system in Nepal pertain to inadequate resources and low administrative efficiency. Moreover, the limited relevance of education to daily life also has implications for financing education in Nepal. These three aspects have direct bearing on the financing of education are the major focus of this section. Resource Constraints Lack of adequate resources is a major problem in the public education system. There exists a system of sharing the cost of education by the government, the community and the users.
Communities are mainly responsible for the development of physical facilities.
Resource constraints in the government sector In Nepal, the proportion of the government budget allocated to the education sector remained fairly constant at around 10 percent in the last decade and in the nineties it has been raised to around 13 percent. The investment in education as a percentage of the gross domestic product in recent years has ranged from 1.3 percent to 2.2 percent.