is the major factor of development, manifested in literacy in general and higher education in particular. Nepal resembles all the characteristics of least developed countries in the area of education as well. The Nepal Population Census 2011 result has disclosed the fact that the literacy rate of the country has increased from 54.1 percent in 2001 and reached to 65,9 percent in 2011. Results shows the male literacy rate of 75.0 per cent and the female literacy rate of 56.1 percent. The highest literacy rate is reported among males in the Kathmandu district (92.2%) and the lowest among females in the Rautahat district (32%). However, the adult literacy rate in the country is lower than the average of the low human development group.

EducationThis share is almost the same as the Asian average of 3.74 %, slight higher than that of India (3.2%), but significantly less than that of Bhutan (5.1%) and much less than Maldives(8.1%).

The state of literacy and the overall national expenditure in education is reflected in higher education as well. The gross enrollment ration in tertiary education has remained lowest compared to most countries in South Asia and the regional groups. It was observed 5.6 %, which was almost the same to the least developed countries average (5.7%), yet slightly higher of Pakistan (5.2%) and significantly higher to Afghanistan (3.6). But significantly lower than that of the average among the low human development countries Bhutan (6.6%) and Bangladesh (7.9%). Substantially lower than that of India and average among the medium human development countries and China. Such enrollment ratios among the medium and high human development countries are 49.3 and 72.9 percentages respectively.

The total allocation of budget in education over the last decade has remained quite high.The contribution of growth rate is of above 15 %. The contribution of foreign aid in education over the last 10  years period has remained in the range of 20 percent and above 30 % of the total educational budget. This shows that the domestic contribution in the education expenditure is extremely high, which not only confirms the commitment of the government, but also shows the capability to invest in education.