The Canadian International Development Agency (CIDA) has doled out Rs 120 million to 19 ethnic groups and networks over the last three and half years. UNDP has spent Rs 25 million on 15 ethnic and regional networks to advocate for ethnic issues under a project on inclusive constitution. Swiss Development Cooperation has been providing Rs 2.25 billion annual budget to the CA, political parties as well as other NGOs since 2009. The Danish HUGOU recently launched a Rs 624 million project called the Madhes Initiative. Similarly, the German aid agency (GTI) has already spent Rs 82.5 million during the first phase and an additional Rs 110 million has been dispersed for discussion on federal issues. There are 34 EU projects supporting the ethnic agenda. The EU has been openly advocating ethnic issues in Nepal since 1998.
Ethnic issues have overshadowed political and economic issues during the country's political transition mainly because they have been well-funded from external donors to redress discrimination against marginalised communities. The issue came to prominence after an indigenous caucus of CA members recently prevented the four major parties from tabling a proposal in parliament, proving that the ethnic agenda is dominating debate in the CA.