The cost incurred on the management of combatants is a capital investment as it brings good to the country by raising optimism, improving investment confidence and industrial environment. But as the government has not made any budgetary allocation for such a purpose, Prime Minister´s Office has instructed the Ministry of Finance (MoF) to instantly approach donors for financial support.[break]
"We will soon formally request with the development partners for the support as we have little scope in the existing budget to meet the integration and rehabilitation cost, which is estimated to add up to Rs 10 billion," said a senior MoF official.
Such a liability has been generated as the peace deal has pledged three major offers for managing combatants. First, the government will integrate up to 6,500 Maoist combatants in the national army. Second, it will provide rehabilitation package in a range of Rs 0.6 million to Rs 0.9 million to a combatant depending on his rank. Rehabilitation package includes the cost of training. Third, it has offered cash incentive in a range of half million to 800,000 million rupees to combatants eager to escape integration as well as rehabilitation package.
The number of Maoist combatants in cantonment was numbered at around 19,500 in the past, but the government believes the number is less now as some of the combatants have left the cantonment while others are facing actions for criminal activities.
"Nonetheless, we believe the slot allotted for integration will be completely fulfilled," said Rameshwore Prasad Khanal, economic advisor of the Prime Minister. The government further anticipates that it might need to offer rehabilitation and exit package, which have been promised in two tranches, to 12,500 combatants.
Though the prevailing recruitment cost estimates, which include annual salary, army gear and accessories including weapon and trainings, suggest recruiting an armyman exerts a financial burden of Rs 300,000 on the government, the government believes integration will jack up the cost by just around Rs 100,000.
"That is because we were already paying some Rs 100,000 in annual perks to a combatant and they will not need weapons as well," said a senior MoF official, estimating that integration process will exert additional burden of around Rs 650 million on the national treasury.
Likewise, officials estimate rehab cost will probably average at Rs 700,000 per combatant, and thus the rehabilitation package will generate another extra-budgetary liability of around Rs 9 billion.
"We will request the development partners to pledge the support either in the form of budgetary support or through the Peace Trust Fund," said the MoF official. Though bilateral donors like United States have denied support for direct handover of cash to combatants, the government is hopeful European countries will respond to its call positively.
"We are in a crucial phase of peace process. How the donors respond to our request will test the reliability of donors as well," said the source.
Some of the officials like Bodh Raj Niraula, chief of Budget Division, MoF, opined the government might need to come up with Supplement Budget to arrange the finances. But Khanal opined that might not be necessary as the government will not need all the money now.
"Foremost and immediate liability that the government will need to fulfill will be ´payment of money to Nepal Army´, as going by the peace deal, the process of integration will start immediately after December 1," said Khanal. "Otherwise, rehab packages can be implemented in a phasewise manner."
Besides, the government can buy time by offering initial tranche of committed package, and manage the rest through the budget of next fiscal year.
Related story
Let’s live in peace and embrace diversity
