Finance Minister Dr Ram Sharan Mahat, who presented his annual budget of 169 billion rupees on Thursday ‘scrapping’ the allowances for King Gyanendra and his family, has said the palace will still get around Rs 45 million for the new Fiscal Year.

Addressing a news conference at the Finance Ministry on Friday, Dr Mahat said that budget had not been allocated under the usual ‘palace category’ because the King had lost the position of the head of the state at this period. The budget for the palace will be managed by the Office of the Prime Minister and the Council of Ministers.

Last year, the government had allocated Rs 32.7 million for the King and the royal family members.

Dr Mahat said the King and the royal family would get Rs 25 million as allowances and Rs 20 million for repair and maintenance of the palace. However, the budget for the employees working in the palace has been transferred to the Ministry of General Administration.

The Finance minister said Rs 80 million had been allocated for the palace employees, who would be brought fully under the civil service within the next Fiscal Year.

Political parties, ethnic groups and civil society activists had asked the government not to allocate any money for the palace.