Financing Higher Education in Nepal: Issues and Challenges

Abstract

The Strategic fi nancing decisions of higher education have multifaceted effects on creating knowledge economy and equitable access, quality, relevance, research and innovation in particular. This paper is primarily based on secondary data sources and examines fi nancing policies, programs, practices, trends and challenges. Low level of funding, ineffi ciency of the higher education system, inconsistent funding policies, programs and practices, weak fi nancial management system, shadowed equity and access and rising cost of higher education are traced as major challenges of funding higher education. Based on discussions, possible strategic options like revisiting funding policies, need for more investment from the government, adaptation and strengthening of formulae and performance based funding, improving spending pattern, reducing cycle cost and ineffi ciency by improving internal effi ciency, reducing cost and performance gap among providers, diversifying sources of funding higher education, private sector involvement, fi nancial assistance/scholarship scheme for poor but bright students, and fi nancial management reform are suggested to realize higher education’s strategic goals of equity, access, quality, relevance, research and innovation.