The announcement by the main opposition in the CA came a day after the government said it will present policies and programs on May 10 and table the new budget on May 23.[break]
"We protest this schedule announced unilaterally. We will not endorse the budget if the government went with the plan," said Dr Ram Sharan Mahat, former finance minister and leader of Nepali Congress.
Nepali Congress has mainly argued that May 28 was critical timeline and decision on the fate of CA could lead to emergence of a new situation, something which might have to be addressed through the budget.
"But the government´s decision to announce the budget prior to the crucial date has ignored the possibility of emergence of new political situation after that," said Dr Mahat.
Interacting with business journalists, Dr Mahat also questioned the intention of Deputy Prime Minister and Finance Minister Bharat Mohan Adhikari for ´hurrying´ to bring new budget when the present budget still has two and a half months to run.
"Former Finance Secretary Rameshore Khanal has already spelled out government trying to exempt fines to fake VAT receipt racketeers that challenged the country´s tax system and also the intention of the present government to dole out money to its pet institutions adopting distributive budget. These are dangerous intentions," said Dr Mahat.
Nepali Congress, moreover, urged the government to hold consultations with opposition parties; agree at least on common minimum policies and agendas and prepare the budget accordingly.
Referring to the dip in national savings, burgeoning trade and balance of payment deficit, low industrial output and low economic growth, liquidity crisis and slowed spending of capital expenditure, Dr Mahat said the economy was in severe strain and heading toward crisis.
The situation demands prudent steps and the new budget should focus on forming productive capital, not consumption, said Dr Mahat. "However, the ´white paper that the Deputy Prime Minister and Finance Minister Adhikari made public a few weeks ago has given enough indication that his budget will be distribution-oriented. This will doom the economy," he stated.
Dr Mahat also flayed Adhikari for disclosing in the white paper sensitive issues like areas where he will slash tax rates and hike them.
"The white paper also does not shed light on how the government plans to deal with core problems of the economy like power crisis, labor problems, deteriorating investment and industrial climate and eroding competitiveness of Nepali goods," he stated.
Dr Mahat also alleged that the UCPN (Maoist) is not expressing commitment to the peace process.
"Instead of returning confiscated property, Maoists are still continuing to seize private property in different districts," said Dr Mahat.
He said that such a lack of commitment on the part of the Maoists clearly does not justify the rationale for extending the CA´s term.
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