Why is the neck band so large?

I am trying to make a sweater for my niece but am having some difficulties with the finishing touches. My biggest issue is the idea that the pattern leaves me with more stiches for the neck than it does for the bottom of the body. When I finished the sweater the hole for the neck is so big it would fall right over her shoulders. The pattern calls for a raglan decrease that leaves me with 136 stiches while working in the round. Then I am to divide for front neck by putting 12 stiches on a holder, then turn and work back and forth continuing the raglan as well as decreasing 1 stich at each edge until I have 94 stiches. For the Neckband it says to pick up and k10 down right front neck edge. k12 from center front stich holder, pick up and k10 from left front neck edge, leaving 130 stiches, join in the round. This is the second time I have tried to make this sweater and I am still a newbie so it takes me quite a while to do, I’m afraid my neice is going to outgrow the sweater before I can finish it for her! :wall:
I have added a picture of the sweater as well as the part of the pattern that I am having trouble with.

All I can say is that when you work the collar in the ribbing, it will pull in quite a bit and kids’ sweaters generally have large head holes to accommodate the large heads. :teehee:

Thanks, I’ll give it another try.