Newly appointed Finance Minister Dr. Ram Sharan Mahat has blamed the erstwhile royal government of pushing the country’s economy on the verge of collapse and has warned of serious fiscal crisis in the country.

Presenting the “White Paper” on the state of the country’s economy at the meeting of the reinstated House of Representatives on Monday, Minister Mahat warned that the government was likely to come across serious fiscal deficit in the days ahead. He admitted that the government was not in a position to meet its recurrent expenditure through existing sources of revenue.

Dr. Mahat said this year the economy was likely to grow at 1.8 percent only—less than the current population growth of 2.4 percent. “Instead of improving country’s economy, the situation is such that people might be poorer,” he said.

According to the 17-page long “White Paper,” inflation has gone up by 8 percent in the first eight months of the current fiscal year compared to that of 4 percent last year. The previous government had proposed to raise revenue worth Rs 81.81 billion in this fiscal year, but the Paper said there is likely to be a revenue shortfall of Rs eight billion.

Dr. Mahat said successive governments since October 4, 2002—when King Gyanendra dismissed a multi-party government—had spent scarce resources recklessly and security expenses had spiraled. Four years ago, the strength of security forces stood at over 121,000 — which rose to over 165,000 now. Similarly, security related expenses rose to nearly Rs 19 billion—up from nearly Rs 12 million four years ago. This year, the government has already spent nearly Rs 16.5 billion in security related expenses by mid-April this year.

The minister further said budget allocated for the royal palace had gone up by over six times over the last four years. In the fiscal year 2058/59 B. S., the government had allocated Rs 126.3 million for the royal palace. But, this year the government has already allocated Rs 751.2 million for the royal palace, he said.

Minister Dr. Mahat said the royal government created a liability of Rs 3.30 billion by purchasing plane and helicopters and an annual expenditure of Rs 1.21 billion by recruiting additional 10,000 soldiers this year. Rs 360 million was spent in high-level visits while Rs 280 million was spent in organizing controversial municipal level elections early this year.

The Seven Party Alliance government has already invalidated the municipal polls.

The Finance Minister said the government had adopted the policy of curtailing unnecessary expenditure in view of widening fiscal deficit. He said the government had suspended the purchase of new planes and no new positions will be created. He further announced that the government had imposed ban on ‘unnecessary’ foreign junket involving officials. He didn’t specify.

Minister Mahat said the government would soon announce a relief package so as to provide assistance to the family of martyrs and those who were injured during the pro-democracy movement, to rehabilitate people displaced due to the conflict and for the reconstruction of the infrastructure.

The Finance Minister called upon Nepal’s donors and multilateral agencies to release the assistance which they had suspended since the royal takeover last year, provide direct budgetary support to address the ‘cash crunch’ of the government and offer ‘liberal support” to help the government in its economic reconstruction programme.

Dr. Mahat also urged friendly countries to cancel their old travel advisories and encourage tourists to pay visit to Nepal as a “safe destination.”

Tourism entrepreneurs have opposed the continued strike at the Nepal Tourism Board (NTB) since a week.

Talking to Nepalnews Monday, tourism entrepreneur Ashok Chandra Pokhrel said the continued strike at the NTB has affected daily administration of tourism industry.

“NTB has to provide regular service to the tourists. Not only that, many promotional programs have been affected due to the strike. This is against the interest of tourism entrepreneurs and is hampering promotion of the ailing tourism industry,” he commented.

He further said that closing down the office is not a solution. “Sitting for negotiation to find out solution and reach an agreement is the democratic way in real sense,” he added. The protesters are acting undemocratically under the banner of “Democratic Tourism Society”, Pokhrel commented.

The protesters led by Deepak Mahat of the Society have padlocked the NTB office since last Monday. They have said the office will not be opened unless NTB’s Chief Executive Officer (CEO) Tek Bahadur Dangi resigns from his post.

Spokesperson of the NTB Aditya Baral said the NTB has cancelled the promotional campaigns to be launched in India to attract more tourists from there this summer. “We were in final preparations for the campaign. Agreements with Indian tourism agents and airlines were being finalized. But unfortunately all these have to be cancelled,” he added. The obvious results would be low tourist arrivals from India this summer, he said.

Baral urged the protesters to allow the functioning of the Board even though they demand the resignation of the CEO. “We are not concerned who leads the NTB but our duty is to provide service to the tourists,” he said.

“Such activities have hampered the NTB’s attempts to capitalize on the open and peaceful environment afforded by the restoration of multi-party democracy in the country,” CEO Dangi had said to Nepalnews a couple of days earlier.

Meanwhile, various tourism-related organizations including Hotel Association of Nepal (HAN), Nepal Association of Tour and Travel Agents (NATTA), PATA Nepal chapter, Trekking Agents Association of Nepal (TAAN), Nepal Association of Tour Operators (NATO) and Nepal Mountaineering Association (NMA) have condemned the act of gheraoing the NTB office and said they had reservations towards the ‘anarchic activities’ carried out within the premises of the NTB. Presenting a memorandum to Prime Minister Girija Prasad Koirala today, representatives of these organizations asked him to intervene to end the strike.

A statement issued by HAN on behalf of these organizations said the PM was urged to direct the concerned authority to work towards ending the strike.

Newly appointed Attorney General Yagya Murti Banjade was sworn in by Chief Justice Dilip Kumar Poudel at the Supreme Court Monday.

The swearing in ceremony at the Supreme Court broke the tradition of taking oath of office and secrecy by the King at the Narayanhiti Royal Palace.

Banjade was appointed as Attorney General the on Friday.

Visiting Special Advisor to the United Nations Undersecretary General for Political Affairs, Samuel Tamrat, has held second-round meetings with senior political leaders including Prime Minister Girija Prasad Koirala, discussing the prospective UN role in Nepal’s peace process.

Tamrat, who returned from New Delhi after consultations with Indian officials on Saturday, separately met with Prime Minister Koirala and Rashtriya Prajatantra Party chairman Pashupati SJB Rana and advisor of the Prime Minister on foreign affairs, Dr Suresh Chalise, on Monday.

Reports quoted Tamrat as saying that he found the views of the political leaders on the prospective UN role positive, but “it will be too early to talk about the nature and modalities of the UN role in Nepal’s peace process.”

Tamrat, who arrived in Nepal on May 6, had gone to New Delhi to win confidence of the Indian political leadership on Thursday, and is said to have ‘convinced’ the Indian side for the UN’s role in Nepal. However, the visiting UN envoy has not said anything on this.

Before leaving for Delhi, he had held a series of discussions with the Prime Minister, ministers and other political leaders. A senior official from the UN peacekeeping operations also visited Nepal and accompanied him to Delhi, according to reports.

His visit comes in the context of the Maoist demand for UN mediation in the peace process. The UN has said it is ready to assist in restoring peace in Nepal.

Tamrat is scheduled to leave Kathmandu on Tuesday.

Nepal’s league champion Manang Marsyangdi Club’s hope to enter into the semis of the AFC President’s Cup was shattered as the team lost 0-2 to Dordoi Dynamo Club of Kyrgyzstan in a match played in Sewarak, Malaysia, on Monday.

The MMC that had beaten FC Vashkh 3-1 in a match on Sunday, lost today’s match to the Kyrgyz Club, ending its chance to make it to the semis, reports said.

The row in the People’s Front Nepal (PFN), one of the constituents of the seven party alliance (SPA) has further intensified after the central committee decided to take action against the dissident group.

The party has decided to take disciplinary action against three of its members including parliamentarian Dilaram Acharya for six months.

Other members include central committee vice-chairman Manoj Bhatta and member Govinda Singh Thapa. This has pushed the party to a near split.

The party took the action after they expressed dissatisfaction over the decision of the party central committee to join the coalition government.

Earlier, holding a press conference, PFN lawmaker Dilaram Acharya had said that the party’s central committee made the decision to join the coalition government against the party principle and vowed to continue their protest against the party’s decision.

The dissident faction also expressed dissatisfaction over the central committee’s decision to elect Pari Thapa for the post of leader of the parliamentary committee of the party, ousting Chitra Bahadur KC. The dissident group also charged the establishment side for promoting the Maoists’ agendas.

Though the dissident faction claimed that of the six lawmakers of the PFN, three are on their side, the party is yet to make any decision against two lawmakers Chitra Bahadur KC and Hari Acharya.

In clear violation of a ceasefire and their 12-point agreement with seven political parties, Maoist cadres on Friday night beat to death a former Maoist cadre, Prem Bahadur Thokar, 40, a resident of Jagatpur VDC-6, Nayabasti.

According to local villagers, around six Maoists beat up Thokar at Krishna Chowk at around 5:30 pm and threw his body in a field near Thokar’s house before fleeing.

Locals claimed that slain Thokar had no links with the rebel outfit recently although he was involved in their activities earlier.

According to reports, during their mass meeting at ward-4, Krishna Chowk few days ago, the Maoists had warned that they were taking action against those “defaming their party”. At that time, Thokar, along with four others, were threatened by the Maoists that action would be taken against them.

Condemning the incident, different district-based human rights organisations urged the Maoists not to repeat such incidents.

Meanwhile, in another incident, two persons including a minor were injured when a Maoist-left socket bomb went off at Manpang-8 in Tanahun district, Saturday.

Sanjeev Kumal, 8, and 16-year-old Som Bahadur Thapa, were those injured. “As soon as he (Sanjeev) gave that object to me, it exploded with a loud bang on my hand,” reports quoted Thapa as saying. According to locals, a group of Maoists had come there in the morning.

Meanwhile, in yet another incident the Maoist-obstructed postal service in the mid-western region is yet to resume even after truce.

This has badly affected people in the remote districts. The area post offices in Dailekh, Jajarkot and Surkhet districts have completely closed down, report quoted Dinanath Lamsal, chief of the Regional Postal Service Directorate at Surkhet.

Maoist leaders said people should not fear the rise of a Communist dictatorship in the coming days and pledged to deal with those extorting money from the public in the name of Maoists.

Speaking at an interaction organized by Human Rights Organisation of Nepal in Kathmandu on Saturday, central committee member of the Maoists, Suresh Ale Magar said, “There is no need to fear that an autocratic communist regime will take over in this day and age of the twenty-first century.”

However, Maoist leaders said they should be allowed to accept donations from people since the party relies on public funds.

Politburo member of Maoist Matrika Prasad Yadav said, “Our party runs through public donations and support and we do not take any international funding like the government.”

He further said that the pro-royalists are attempting to tarnish the image of the Maoists.

However, there have been reports of Maoist extorting money and threatening people in different parts of the country.

Yadav also criticised the media for hyping the Maoists’ minor mistakes and hinted the media would be given conditional press freedom. “We will give press freedom to the media but not to work against the people,” he said.

The leaders said that they would take up the civil society’s suggestions in the party headquarters soon.

Human rights activist Padma Ratna Tuladhar urged the Maoists to go for a peaceful revolution and win the people’s hearts. “Sovereignty should lie with the Nepali people and issues of minorities and ethnic communities should be addressed,” he said.

On international mediation on the peace process, human rights activist Malla K Sundar said facilitation is crucial for a successful negotiation between the government and the Maoists.

A civic committee formed to investigate disappeared people during the recent pro-democracy movement of the country has said 38 people went missing during the movement.

The committee formed under the Chairmanship of the former Justice of the Supreme Court Laxman Prasad Aryal publicized the names of the 38 people who went missing during the pro-democracy movement.

According to Basudev Devkota, member secretary of the committee, the list was prepared on the basis of different records of various human rights organizations and committees.

According to the committee, Suman Khattri, Tanka Ghimire, Kuma Kami, Ramhari Kharel, Dinesh Ghimire, Ganesh Sapkota, Yadav Khadka and Bijay Rai were missing from Gongabu.

Similarly, Nal Kumar Rai, Rajendra Rai and Dinesh Gopali disappeared from Kalanki, with Usha Kusum Oli and Hari Bahadur Thapa from Chakrapath.

The committee further said Dijuti Adhikari and Bishnu Prasad Aryal went missing from Thamel and Rupesh Dhakal from Sorakhutte.

Other went missing during the pro-democracy movement are Yagnya Dangal, Narendra Lohani from Chabhil, Juju Man Maharjan from Kirtipur, Bishnu Kafle from Dolakha, Lokendra Bhandari from Lamjung and Sachinanda Sapkota and Dipak Ruchal from Tripureshwore and Satdobato respectively.

According to the committee, Yuva Raj Pudek, Madan Silwal, Yuva Raj Pathak and Hem Khadka from Jhapa, Rajendra Bishwokarma from Palpa, Dal Bahadur Budhamagar from Rolpa, Netra Mani Gautam from Chitwan and Bipul Shakya from Lalitpur are also missing.

The committee further stated that Min Prasad Gautam, Rajendra Ghimire, Sunil Moktan and Balika Giri also went missing from the pro-democracy movement of the country, but it was not disclosed from where they went missing.

The committee has also urged people to inform the committee if some other people are also missing and added that people can give information by calling 2130193.

21 people were killed and hundreds injured during the pro-democracy movement of the country.

The new government is working to issue a proclamation through the reinstated House of Representatives (HoR) that will curtail King’s powers and privileges, reports said.

Finance minister Ram Sharan Mahat said on Saturday that the declaration will ascertain the sovereignty of the people and Parliament, which would have the same effect as a law. He said that the declaration was prepared by the government and discussed among the seven parties of the alliance.

However, Mahat did not make it clear what powers of the king will be slashed and if taxes will be levied on properties and annuities of the royal family.

Associated Press quoted Ram Prasad Shrestha, one of the members of the judicial commission formed by the government as saying that, “The king is not above the Constitution, but (whether there can be) punishment for him, it is not clear.”

Similarly, UML general secretary Madhav Kumar Nepal also hinted that the HoR would soon take such a significant decision while addressing the HoR session after the election of new Speaker. He called on the Speaker to overcome the challenges and obstructions ahead by acting boldly.

According to various reports, the proposed proclamation will declare the HoR as the supreme body of the country. It is said that the parliament will have right to formulation, amendments and dismissal of regulations regarding heir to the throne, the privileges and annuities to the king will be determined by the parliament, questions can be raised at the court regarding illegal deeds of the king and that His Majesty’s government will henceforth be called Nepal Government. The proposal also states that the position of the supreme commander of chief of the army will be canceled and that commander of the army will be nominated by state management committee of the parliament on the recommendation of the prime minister.