Cash strapped Japan, Nepal’s largest donor, is planning to cut its overseas assistance again this year, Associated Press said Tuesday from Tokyo quoting Foreign Ministry officials.
Spending on official development aid in the proposed 2003 budget is slated to drop by 9.4 percent to $9.64 billion from $10.6 billion last year. The proposed budget includes cuts in both overseas loans and grants.
Grant aid for 2003 is to fall by eight percent while loan assistance is slated for 3.5 percent decrease. The 2003 budget will be effective April 1. Most Japanese assistance to Nepal is in grants.