Abstract.Day2.Sigdel

Mapping lifetime deficits in Nepal: A National Transfer Accounts Approach

Rishiram Sigdel

Nepal has been experiencing a demographic window of opportunity since 1992, which is expected to last until 2047. This golden period of 55 years holds significant potential for economic development. In this regard, understanding the economic lifecycle of individuals is crucial for designing policies that ensure sustainable economic growth and social welfare. Therefore, this study applies the National Transfer Accounts framework to analyze Nepal’s lifetime deficits. Using detailed data for the fiscal year 2021/22, we estimate total consumption at 4,088,266 million rupees, of which 10 percent is attributed to government consumption and the rest to private consumption. During the same period, a total of 2,561,047 million rupees were earned as labor income with 69 percent derived from wages and salaries while the rest from self-employment. As a result, life cycle deficit stands at 1,527,219 million rupees, reflecting the gap between consumption and labor earnings. Age- specific analysis reveals that individuals aged 27 to 46 experience a surplus, with the highest per capita surplus observed at age 33. In contrast, all other age groups experience a deficit, with the highest per capita deficit recorded at age 87. These findings highlight critical insights into the economic challenges posed by demographic shifts, particularly aging and youth dependency.