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Absence of full budget will have dire consequences: FM Pun

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KATHMANDU, July 9: Finance Minister Barsha Man Pun said that the ongoing peace process, the upcoming general elections and development programs would be severely affected if the government failed to announce a full-fledged budget for the coming fiscal year.



“A partial budget amounting one-third of the current budget would be enough just to provide salary to civil servants. Other important programs relating to the ongoing peace process, integration of ex-Maoist combatants into Nepal Army (NA) and development programs cannot be implemented in the absence of a full budget,” said Pun.[break]



Pun said the government will not be in a position to provide due amount to voluntarily retired ex-Maoist combatants and budget worth Rs 2 billion demanded by NA for the integration process and Rs 7 billion demanded by the Election Commission for conducting elections, without a full budget.

“We will not be in a position to allocate budget even for the national priority projects,” said Pun at an interaction on Sunday in the capital.



He said foreign assistance worth Rs 70 billion will be affected along with the negative impact on implementation of Melamchi Drinking Water Project and Tarai Postal Road project. Stating that private sector would also be affected in the absence of a full-fledged budget, he said programs aimed at generating employment and promoting investment in the country too would have to be kept on the back burner.



Opposition parties, including Nepali Congress and CPN (UML), are demanding resignation of the prime minister as a condition for a national consensus and a full budget for the coming fiscal year.



He said the government was still holding regular discussions with major political parties to forge a consensus for announcing a full-fledged budget. The National Planning Commission (NPC) has set a ceiling of Rs 429 billion for the coming budget.



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