Despite such a situation, neither has the government managed to win the confidence of the opposition nor have the parties in opposition shown enough sensibility to allow announcement of a budget.
This state of affairs, meanwhile, has exposed the country to serious fiscal deadlock. Milan Mani Sharma of Republica caught up with Finance Minister Surendra Pandey to ask him about the steps the government is taking to avert the looming crisis. Excerpts:[break]
What is the government doing to avert a possible crisis?
We have decided to announce the budget by mid-November. We have no other option because the country will face a serious financial crisis if it does not get a buget by the next three weeks. The government will not have a budget to meet even basic expenses, leave aside fulfilling the development aspirations of the people. We are planning to present the budget in parliament soon.
But will it get parliament´s endorsement ?
The situation has left us with no other choice. Instead of worrying about the outcome, we are working out ways to build a political understanding to get it through parliament. When the prime minister resigned, we had chosen not to announce the budget because we believed that that was the new government´s legitimate and moral right. But unfortunately, repeated failure by parliament to elect a new PM has forced us to take a course we had preferred not to take months ago.
What have you done to pave the way for announcing the budget?
We are holding repeated talks with the senior leaders of major political parties. We have informed lawmakers about the crisis that will surface in the absence of the budget. I have personally submitted papers to the speaker, highlighting the gravity of the situation. He has circulated them to all 25 political parties in the legislature-parliament. All senior political leaders and parties are aware of the trouble we are in.
Everyone knows that if the country does not get a budget by mid-November, it will seriously derail the political process. It will put a brake on the normal operations of the government, parliament, the market and development work, among other things. Government staff, police and other security agencies, constituent assembly members and ministers will not get their salaries. Worse still, it will hurt social security schemes like payment of senior citizen allowances and hit social inclusion programs especially targeted at women, dalits and ethnic groups. Hence I am confident the political leaders will act sensibly.
The UCPN Maoist recently floated the idea of a ´technical budget´, urging the government not to unveil its policy and programs. What is your response to that?
We are ready to forgo the announcement of policy and programs, as the Maoist have demanded. However, we cannot agree to the proposal of a ´technical budget´ because it is not compatible with existing legal provisions. The budget is a national document and is backed up by a number of legal texts like the Finance Bill. We cannot just announce the budget and leave the supporting legal documents unannounced. Besides, parliamentarians might raise questions over the budget, and as finance minister it becomes my duty to respond to them. The Maoists will have to forgo their stance for a ´technical budget. Politically, I feel ´no policy and program´ and ´only budget´ will be a meeting point between government and Maoist stances.
In that likely scenario, what can people expect from the new budget?
The new budget will focus on infrastructure development, including development of hydroelectricity to end power outage. Basically, my aim is to make sure that the country produces at least 1,000 MW of electricity within the next five to six years. We will also expand social security schemes and increase subsidy for agriculture. There will be a special program on education so that all Nepalis can graduate at least from secondary school. It will also pledge special incentives for commercial livestock farming and export industries, among other things. It will also take a new approach to bring new aircraft for Nepal Airlines Corporation.
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