Socio-economic contribution of remittance in Chhedagad municipality

Abstract

This research work is the analysis of the socio-economic contribution of remittance in Chhedagad Municipality. The study assesses how the remittance income contributes the social and economic condition of the rural household people in the study are. Remittance is considered as the major component which has direct as well as indirect impact on macroeconomic indicators. It is a micro level study, this study analyzed the socio-economic difference between remittance receiving households (RRHH) and remittance non-receiving households (RNRHH) of three selected ward of Chhedagad Municipality, Jajarkot. The socio-economic difference between RRHH and RNRHH has been analyzed into mainly two indicators that is household income and expenditure. It was found that 62 percent of household used their remittance income on daily household expenses, 16 percent used in loan repayment, 20 percent in purchasing land and only 2 percent in social activities.The average expenditure of remittance receiving household on education, health, fooding and clothing was 6.2 percent, 11.34 percent, 20 percent and 12.09 percent respectively more than that of nonreceiving household. It

was found that the mean difference of income from food crops was Rs. 6,400, income from cash crops was Rs. 3,000, income from animal product was Rs. 5,100 between RRHH and RNRHH. The average remittance income was Rs.4,04,000 in 2021. This study suggests that the government needs to reduce the high cost incurred for migration; promote remittance income into productive sectors of the economy including small and micro enterprises through financial intermediaries; set up a separate bank for providing loans for foreign employment; provide skill development training before going to abroad and provide opportunities to utilize newly learnt skills from foreign employment. If remittance and other resources are properly managed through policy programs, the economy has now reached the stage from where we can expect sustained growth and development with further reduction in poverty and inequality in coming years.