Rs. 30 trillion required to achieve SDGs by 2030

Kathmandu, Apr. 21: An annual investment of Rs. 3,023 billion is required to meet the Sustainable Development Goals.

According to the periodic update report prepared by the National Planning Commission, about Rs. 29,965 billion is required to achieve the Sustainable Development Goals by 2024-30.

Among the Sustainable Development Goals, the largest share of the total investment requirement is expected to be in Goal-9 (Industry, Innovation and Infrastructure) at 24 per cent.

Similarly, Goal-7 (clean energy) is expected to account for 12 per cent and Goal-1 (poverty eradiation) will require 11 per cent.

The National Planning Commission released the Sustainable Development Goals: Needs Identification, Cost Estimates and Financial Strategy, 2081 on Sunday, which estimates that an average investment of 45.4 per cent of the gross domestic product (GDP) will be required during 2024-30.

This estimate is 2.4 percentage points lower than the average annual estimate made in the previous strategy, according to the report.

Due to the changing context of COVID-19, demographic changes, migration and urbanisation, growing inequality, climate change-related issues, the need for further strengthening the role of provincial and local levels in implementing federalism, the opportunities and impacts created by upgrading from least developed countries to developing countries, and the laxity seen in the mobilisation of international development assistance for the implementation of the SDGs, the Sustainable Development Goals: Needs Identification, Cost Estimates and Financial Strategies, 2081, published in 2018, has been updated, said the NPC.

The strategy has been prepared to make financial resources available from the public, private, cooperative and household levels to meet the investment requirements of the Sustainable Development Goals.

The public sector is expected to mobilise 57.5 per cent of the total investment requirement for the Sustainable Development Goals.

Of this, the share of investment from the federal, provincial and local governments is estimated to be 70 per cent, 9 per cent and 21 per cent respectively.

In addition, 34.35 per cent is expected to be mobilised from the private sector, 4.18 per cent from the cooperative and non-governmental sector and 3.95 per cent from the household level.

An analysis of the investment needs of the Sustainable Development Goals and the various resources available for this indicates that there will be an average fiscal gap of Rs. 755 billion (11.1 per cent of GDP on average) over the period 2024-30.

Of this, the annual average fiscal gap in the public sector is estimated to be Rs. 426 billion while the fiscal gap for the private sector is estimated to be Rs. 329 billion.

According to the goals, the largest fiscal gaps are seen in infrastructure, sustainable cities, education, health and water and sanitation.

Addressing the fiscal gap for the implementation of the goals, it is mentioned that in order to achieve maximum progress in the Sustainable Development Goals by 2030, there is a need to review macroeconomic policies, improve sectoral policies, and prioritise the Sustainable Development Goals.

In addition, the report includes strategies such as improving revenue mobilisation, mobilising foreign aid, increasing the cost-effectiveness of public spending, and promoting strategic partnerships.