Nepal parliament approves interim budget amid political crisis

Amid the political uncertainty in Nepal, parliament today approved an interim budget for the next four months following the failure of the parties to form up a national government. Surendra Pandey, the Finance Minister in the caretaker government, today presented the interim budget for the current fiscal year in the 601-member Constituent Assembly, which enorsed it.

The interim budget of Rs. 68.88 billion or NRs.

110.21 billion (USD 1.49 billion) will allow the government administration to function for the first four months of the new fiscal year that begins July 16. Nepal''s bickering political parties failed to meet a crucial second deadline to form a consensus on a new prime minister, paving the way for the president to direct the parliament to elect a majority government.

The political crisis in Nepal deepened after a crucial meeting of the three major parties -- main Opposition UCPN-Maoist, the Nepali Congress and the Communist Party of Nepal (United Marxist Leninist), the key alliance partners in the caretaker government-- failed to agree on a name for the post of the Prime Minister based on consensus. President Ram Baran Yadav had set a July 7 deadline to suggest a name for the post of the Prime Minister based on consensus following the resignation of Prime Minister Madhav Kumar Nepal on June 30.

However, the failure of the parties to meet the deadline forced him to extend it to July 12. As the deadline set by the President to form a consensus government expired today, the process of forming a majority government would start as per the Article 38 (2) of the constitution, according to President''s Press adviser Rajendra Dahal.

Under Article 38 sub clause 1 a consensus government could be formed. Now the president will call upon the political parties to form a majority government.

The support of at least 301 members is needed to form a majority government in the 601 member House. The Maoists, who ended their decade-long civil war in 2006, have claimed the leadership of new government as it is largest party in parliament.

However, the Nepali Congress, the second largest party in teh House, has argued that it is now their turn to lead a government after the Maoists and the CPN-UML failed to conclude the peace process and frame a new constitution by the stipulated deadline of May 28. The Maoists, who waged a decade-long insurgency, joined mainstream politics after the 2006 peace deal with the interim government led by G. P. Koirala, won the largest number of parliamentary seats in the April 2008 elections.


Source: The Himalayan Times