NC to not support 'distributive budget'

KATHMANDU, July 2: The Nepali Congress (NC) has submitted a 16-point memorandum to Prime Minister Jhalanath Khanal on Saturday demanding that the government address its concerns in the upcoming annual budget.



The party has also warned that it would not support the government if its demands are not incorporated in the budget. [break]



“We hereby inform that Nepali Congress will not support the government if the demands made by the party keeping in view the party´s national responsibilities are not incorporated in the annual budget,” states the letter handed over by the party to Prime Minister Khanal.



NC leaders, including acting president Ram Chandra Paudel, Dr Ram Sharan Mahat and Narahari Acharya had reached the official residence of the prime minister at Baluwatar Saturday afternoon to submit the memorandum just ahead of the government´s scheduled plan to present policies and programs for the upcoming fiscal in parliament on Sunday.



Speaking at a press conference organized at the NC´s parliamentary party office after the meeting with the prime minister, Paudel said the NC won´t support the government if it brings distributive budget to appease cadres of the ruling parties.



Speaking on the occasion, former finance minister Dr Mahat said NC put forth such demands keeping in view the problems seen in the national economy. “We will decide whether or not to support the government after assessing the policies and programs for the upcoming fiscal year,” he said.



The main opposition party has asked the government to review capital gains tax on land and housing transactions and set up Liquidity Management Fund (LMF) to release money to the cash-strapped banks and financial institutions. The party has asked the government to introduce policy to punish those involved in financial crimes and bring a special package to restore depositors´ confidence in banking and financial sectors.



The NC has suggested to the government to bring the new budget in such a way that it would promote export-oriented, diversified and commercial farming. The party has also asked the government to ensure availability of seeds, chemical fertilizers and technical assistance at affordable costs to ordinary farmers, allocate budget for agricultural research programs and increase subsidies in shallow tube well.



While maintaining that the budget should ensure adequate investment in the development of infrastructures and productive sectors, the NC has suggested to the government to form an Automatic Price Adjustment Committee comprising representatives of consumer groups to ensure smooth supply of petroleum products in the country. It has stressed on the need for ensuring participation of private sector in the supply of petroleum products and also controlling leakage and corruption in the state-owned Nepal Oil Corporation.



It has also urged the government to review capital gains tax imposed on share transactions and demanded increase in the income tax ceiling for individuals in view of the rising inflation.



The NC said it is in favor of automatic adjustment of salaries of the government employees in line with the rate of inflation. It has suggested to the government to not create unnecessary vacancies in civil service and curtail expenditure on unproductive sectors.



Among other things, the main opposition party has asked the government to give continuity to the programs introduced by the NC such as Garib Sanga Bishweshwor, Ganeshman Peace Campaign, Karnali Employment, Women´s Awareness, Rural Development Banks and Women and Dalit Scholarships and bring relief programs for the families of those killed and rendered disabled during the Maoist conflict.



NC says no to representative councils



The Nepali Congress (NC) has refuted the claim of Local Development Minister Urmila Aryal that NC supports the idea of forming People´s Representative Council in local bodies. Speaking during a press conference organized at the party´s parliamentary office in Singha Durbar on Saturday afternoon, NC acting president Ram Chandra Paudel said there has not been any agreement with NC on the formation of such council at local bodies.



“Nepali Congress is in favor of holding fresh local elections to do away with anomalies seen in local bodies,” said Paudel. Minister Aryal had said that her ministry is soon taking the proposal to the cabinet to form such councils as she had already received a nod from NC.

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