Nembang distributed a one-page description received from the ministry to members of parliamentary Business Advisory Committee (BAC) at the committee´s meeting later on the same day.[break]
The ministry has warned of serious financial implications in case of failure to endorse the annual budget for 2010-2011 in the next three weeks.
According to the ministry, the budget currently available at the state coffers is not sufficient even for the essential services until mid-November. The parliament had three months ago endorsed a Rs 49.7 billion budget under a special provision of the constitution as Prime Minister Madhav Kumar Nepal resigned from the post on June 30, but the parties failed to form new government.
"Of that budget the government has already released Rs 39 billion. The remaining Rs 10 billion is not sufficient even for delivering essential services for the next three weeks," the ministry said in the eight-point document presented to the speaker.
It has said the government will have no money left for services, for instance for payment of salaries to civil servants and teachers and allowances to cantoned Maoist combatants.
The government will also run short of money to provide ration and medicines to inmates, distribute free medicines from hospitals and health posts, deploy security agencies, supply food in remote districts and to operate government offices.
Similarly, the government will face shortage of money to provide salaries to the officials working at Nepali embassies abroad and to pay for the buildings rented by the Nepali embassies.
"It seems the government can´t supply passports due to lack of money," the ministry has said.
The government has predicted drastic decrease in revenue collection if budget gets delayed any further.
Unable to proceed with tender procedures due to delay in budget announcement, development activities have been held up. Under-construction projects have faced problems with necessary expenditures.
"Such a situation will seriously hamper infrastructure development," the ministry said.
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