Budget 2011-12: Peace, social inclusion, infrastructure priority
KATHMANDU, JUL 12 -
Incorporating some populist programmes and giving thrust to peace and constitution writing process, the Ministry of Finance (MoF) is giving last touches to the new budget that focuses on social inclusion and infrastructure.
Sources say the budget will increase civil servants’ salary by 20 percent. “The salary and perks of the civil servant will increase by 20 percent,” said finance ministry sources.
The increment in the salary would put additional burden of Rs 16 billion on the government.
With three days left for the budget presentation, the finance ministry is under pressure from parties including coalition partner UCPN (Maoist) and the ministries to incorporate their demands.
The Samyukta Loktantrik Madhesi Morcha (SLMM) on Sunday submitted a 6-point ultimatum to the government demanding that programmes for addressing the Madhesi issues be presented in the budget.
As demands from all quarters are coming, the ministry is struggling to fix the actual size of the budget.
Such is the pressure that even Deputy Prime Minister and Finance Minister Bharat Mohan Adhikari admitted keeping the budget under the ceiling given by National Planning Commission (NPC) looks impossible.
“There might be a fluctuation of Rs 3 to 4 billion from the ceiling set by the NPC,” said Adhikari. “However, it won’t cross Rs 390 billion.”
Even though Adhikari told Nepali Congress leaders on Monday that the budget won’t be distributive one, ministry sources say some of the demands forwarded by the Maoists have been incorporated in the budget.
Sources say the kin of conflict hit families will receive Rs 200,000 each even though the Maoists are demanding Rs 500,000 for each family. The finance ministry has proposed Rs 2 billion for this.
The budget has revived the youth self employment programme, launched by the then Maoist-led government. A total of 50,000 youths will be provided employment through this programme. As mentioned in the government policies and programmes, the budget will announce one model village in all 75 districts. “Altogether, Rs 8 billion has been allocated for programmes that are populist,” said ministry sources.
The budget has allocated sizeable amount to projects of national importance—Rs 1 billion each for Kathmandu-Tarai Fast Track, Mid Hill Highway and Sikta Irrigation Project. Also in the offing is a package to address the liquidity crunch that the country’s financial system is grappling with.
In keeping with past tradition, Minister Adhikari and his team briefed the President Dr Ram Baran Yadav on the new budget on Monday. During the meeting, the president urged the government to bring budget through n consensus. “The president stressed on a production-oriented budget and urged giving priority to religious tourism,” said sources.
Civil servants' salary may go up by 20 percent.
Finance Ministry still struggling to fix actual budget size.
Finance minister admits keeping budget under the NPC ceiling looks impossible.
Some Maoist demands incorporated in budget.
Youth self employment programme to be revived.
50,000 youths likely to be given employment.
Rs 8 bn for populist programmes.
Source: Kantipur
Incorporating some populist programmes and giving thrust to peace and constitution writing process, the Ministry of Finance (MoF) is giving last touches to the new budget that focuses on social inclusion and infrastructure.
Sources say the budget will increase civil servants’ salary by 20 percent. “The salary and perks of the civil servant will increase by 20 percent,” said finance ministry sources.
The increment in the salary would put additional burden of Rs 16 billion on the government.
With three days left for the budget presentation, the finance ministry is under pressure from parties including coalition partner UCPN (Maoist) and the ministries to incorporate their demands.
The Samyukta Loktantrik Madhesi Morcha (SLMM) on Sunday submitted a 6-point ultimatum to the government demanding that programmes for addressing the Madhesi issues be presented in the budget.
As demands from all quarters are coming, the ministry is struggling to fix the actual size of the budget.
Such is the pressure that even Deputy Prime Minister and Finance Minister Bharat Mohan Adhikari admitted keeping the budget under the ceiling given by National Planning Commission (NPC) looks impossible.
“There might be a fluctuation of Rs 3 to 4 billion from the ceiling set by the NPC,” said Adhikari. “However, it won’t cross Rs 390 billion.”
Even though Adhikari told Nepali Congress leaders on Monday that the budget won’t be distributive one, ministry sources say some of the demands forwarded by the Maoists have been incorporated in the budget.
Sources say the kin of conflict hit families will receive Rs 200,000 each even though the Maoists are demanding Rs 500,000 for each family. The finance ministry has proposed Rs 2 billion for this.
The budget has revived the youth self employment programme, launched by the then Maoist-led government. A total of 50,000 youths will be provided employment through this programme. As mentioned in the government policies and programmes, the budget will announce one model village in all 75 districts. “Altogether, Rs 8 billion has been allocated for programmes that are populist,” said ministry sources.
The budget has allocated sizeable amount to projects of national importance—Rs 1 billion each for Kathmandu-Tarai Fast Track, Mid Hill Highway and Sikta Irrigation Project. Also in the offing is a package to address the liquidity crunch that the country’s financial system is grappling with.
In keeping with past tradition, Minister Adhikari and his team briefed the President Dr Ram Baran Yadav on the new budget on Monday. During the meeting, the president urged the government to bring budget through n consensus. “The president stressed on a production-oriented budget and urged giving priority to religious tourism,” said sources.
Civil servants' salary may go up by 20 percent.
Finance Ministry still struggling to fix actual budget size.
Finance minister admits keeping budget under the NPC ceiling looks impossible.
Some Maoist demands incorporated in budget.
Youth self employment programme to be revived.
50,000 youths likely to be given employment.
Rs 8 bn for populist programmes.
Source: Kantipur
