Nepal’s 27-46-year-old earns more than average spending: Govt study

लगानी न्यूज

२५ पुष २०८२, शुक्रबार १६:०४January 9, 2026

. In Nepal, the income of people in the age group of 27 to 46 years is more than the average expense.

According to the National Transfer Account (NFS) report, the consumption of people below 27 years and those above 46 years of age is more than their income.TAG_OPEN_div_54

Releasing the report, Finance Minister Rameshwor Prasad Khanal said that the report will help to understand the status of income and expenditure in people’s personal lives.TAG_OPEN_div_52

He said that this data will be important for the effective implementation of social security programs, policy formulation including industrial and employment generation programs.TAG_OPEN_div_50 “We can’t formulate good policies without data. “The National Transfer Account and the Small Area Estimates of Poverty report show us what kind of policies and plans we need to make,” he said. It plays an important role in the preparation of policy reforms and development plans. ”

On the occasion, Chief Statistics Officer of National Statistics Office, Kamal Prasad Pokhrel, said that the National Transfer Account Report has been prepared for the first time in Nepal and it shows how income, consumption, savings and resource transfers are taking place among people of different age groups.TAG_OPEN_div_48 The report has been prepared for the first time after the implementation of federalism. He expressed the hope that the report would help the federal, state and local levels to formulate poverty-focused plans and programmes.

TAG_OPEN_div_46 The National Transfer Account Report analyses the life cycle of accounts per person and the total number of accounts. “Divided the age distribution of the population into three groups (children and youth, 25-64 years of working age and elderly population 65 years and above), the life cycle deficit in the fiscal year 2078/79 is lowest in the age group of 25-64 years. However, even this group does not appear to have saved adequately,” the report said.

The highest per capita life cycle loss is in the age group of 65 years and above, while the overall loss is highest in the age group of 0-24 years.TAG_OPEN_div_44 Per capita consumption is at its highest in 25-64 years and lowest in 0-24 years.

Looking at the age-wise consumption and labor income, from birth to 26 years, the expenditure is more than the labor income, which shows the life-cycle deficit, and from the age of 27 to 46 years, the life cycle savings are more than the expenses. Similarly, after the age of 47, the cost of labor is more than the income, which leads to life cycle loss.

According to the report, life cycle profit is seen on an average only at the age of about 20 years in Nepal.TAG_OPEN_div_40 As the life cycle deficit is seen in the remaining life cycle, the consumption of this period needs to be met through redistribution of wealth or through family and public transfer.

Public and private consumption separately shows that private consumption per capita is much larger than public consumption. The per capita public consumption contribution in the health sector is 902 units more than the private consumption.

The total per capita labour income in 2021/22 was around TAG_OPEN_div_36 87,814. About 69 per cent of the total labour income comes from salaries and wages, while about 31 per cent is from self-employment. Age-wise, the share of salary and wage income was highest among those aged 25 to 64 (715) and lowest among those aged 65 and over (355).

Thus, there is a comparatively large difference between consumption and labor income. According to the report, the total labour income is less than the total consumption of the country.

The Nepal Labour Force Survey 2017/18 shows that Nepal’s unemployment rate is 11.4 percent, which clearly shows that there is a huge gap between consumption and labor income due to unemployment.TAG_OPEN_div_32 That is, due to low wages and limited income from self-employment in the absence of adequate employment, the labor income is not sufficient to meet the necessary basic consumption.

} “In Nepal, 65 percent of the working age group is 65 percent of the total population, which shows a lot of potential for economic growth. However, strategic policy intervention is necessary for its effective utilization,” the report states, adding that the labour participation rate in the labour market is only 38.5 per cent and youth unemployment is 12.7 per cent. This situation of unemployment presents the urgent need to enhance skill development and employment generation programs in Nepal. ”

According to the report, the country’s labor income is much lower than the total consumption.TAG_OPEN_div_28 Although the share of the working age group is high, limited employment and skills inequalities continue to increase youth unemployment. In addition, economic activities within the country have not been able to flourish as expected as a significant proportion of the working-age group is in foreign employment.