MOF seeks Speaker's help to avert looming crisis

KATHMANDU, Aug 20: Finance Minister Surendra Pandey has informed Speaker Subas Nembang that the present financial arrangements made through the introduction of a special budget can address country´s basic financial needs only for one more month.[break]



At a meeting held on Friday, Minister Pandey drew the attention of Nembang toward the impending financial crisis that the nation might face due to delay in bringing annual budget in the absence of new government following the prime minister´s resignation.



According to a source present during the meeting, Pandey also shared the difficulties that the ministry has been facing due to the government´s caretaker status. He requested Nembang to help find an amicable solution to avoid such a financial crisis. "Under the present financial arrangement, the country financially can run only for a period of one more month. There must be some immediate arrangements to avoid looming crisis," the source quoted Pandey as saying. Minister Pandey also informed the Speaker that almost all the development activities have come to a standstill due to lack of a full-fledged budget.  



Responding to Pandey, Speaker Nembang asked the minister to provide him a detailed picture of the overall financial situation. The minister and senior officials from the ministry have expressed commitment to come up with the details and hand it over to the Speaker within a couple of days.



During the talks, the minister had briefed the Speaker how the development activities have been stalled due to delay in introducing budget. "If the situation persists, some sections of government employees are likely to be deprived even from Dashain allowances," the source quoted the minister.



Earlier in July, the parliament had endorsed a proposal for a special budget tabled by Finance Minister Surendra Pandey that allowed the caretaker government to spend up to Rs 110.21 billion.



As per a special arrangement made in the Article 96 (A) of the Interim Constitution, the parliament passed a bill proposed by the caretaker government, seeking authority to spend one-third of the actual expenditure of the previous fiscal year for expenditure heads falling under the appropriate items category.

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