Nepal Crisis.

Nepal gets budget through presidential 

ordinance 

amid violence

Updated on Saturday, November 20, 2010, 22:14
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Kathmandu: Nepal's caretaker government announced a USD 4.5 billion annual budget through a presidential ordinance Saturday after the key session of parliament was adjourned following violent protests by the main Opposition Maoists. 

Finance Minister Surendra Pandey read out the annual budget for fiscal year 2010/11 at the National Planning Commission today in the presence of Prime Minister Madhav Kumar Nepal after President Ram Baran Yadav promulgated the ordinance. 



Earlier today, the President adjourned the budget session till December 2 in tune with the recommendation of the cabinet following an emergency meeting after lawmakers of the UCPN-Maoist prevented the Finance Minister from presenting the budget in the House yesterday.

"Presenting the budget through ordinances is painful for me, but for the nation’s economy it’s very important," Pandey said.

The country has been in a political limbo since the June 30 resignation of Prime Minister Nepal. It has stalled the country's peace process and delayed the budget, bringing the nation on the brink of financial crisis.

The budget accords top priority to employment generation, agricultural development, construction of motorable roads in mid-hilly region and creation of investment friendly environment, Pandey underlined.

The caretaker government has allocated USD 2.39 billion or 52.9 per cent under development expenditure and USD 2.12 billion or 47.1 per cent under regular expenditure in the budget for the current the fiscal year.

To meet its expenditure, the government will mobilise USD 2.89 billion from revenue collection and USD 0.87 billion is expected as grant assistance from various donor agencies.

A deficit of USD 0.746 billion is expected.

The government also plans to hand over 5,400 schools to communities this year and to provide free Internet service to all community run schools to boost IT education in the country.

Besides, the government has also introduced various incentives to promote tourism in the country ahead of the Nepal Tourism Year 2011.

Agitated Maoist lawmakers yesterday scuffled with Pandey and snatched his briefcase containing key documents as he was about to present the budget.

Earlier this week, the political parties had hammered out a deal to approve the delayed budget. 3 former finance ministers - Baburam Bhattarai of the UCPN-Maoist, Ram Sharan Mahat of Nepali Congress and Bharat Mohan Adhikari of the CPN-UML were entrusted with the responsibility of settling all issues related to the budget.

However, the major political parties - the main Opposition United Communist Party of Nepal-Maoist (UCPN-Maoist) and the 2 largest parties in the caretaker coalition, Nepali Congress and Communist Party of Nepal-UML (CPN-UML), yesterday failed to find a common ground on the budget and the prime ministerial election.  ---PTI  (zee news)
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