Salient Features of Fiscal Budget 2008-2009

The First budget of the Republic Nepal is Passed by the Parliament. Here I am trying to present a brief information about the important features of the budget presented by Finance Minister Dr. Baburam Bhattarai.

The Jawaharlal University, New Delhi Graduate Nepal’s first Maoist Finance Minister Dr. Babu Ram Bhattarai had read out a more than two hours lengthy “3.5-billion-dollar Fiscal Budget-2008-09”, at the Constituent Assembly-that has been limited so far to act as a legislative body let alone drafting the all important Constitution in a mere one and half years period remaining.

Nevertheless, the Maoists’ highly ambitious budget which has been increased by 39.7 % than the previous year promises to cancel debts of the poor and provide allowances to the so far neglected group and regions in the country and allocates big chunk of budget in Education.

Total Budget: 236 Billion

Regular Expenditure: 128 Billion

Capital Expenditure: 98 billion 310 million

Projected Revenue Sources:

Current Source: 129 Billion

Foreign Assistance: 65 billion

Foreign Loans: 18.07 Billion

Revenue Deficit: 41.11

Budget Allocation (Sector wise)

Education: 38 Billion 980 million (Rupees)

Health: 15 billion 580 million

Women: 32 billion 910 million

Electricity: 12 billion 690 million

Road Infrastructure: 12 billion 910 million

Irrigation: 5 billion 800 million

Agriculture: 5 billion 910 million

Tourism: 97.8 million

Populist Slogans

“Make our Village Better and Beautiful”

“In clean water lies Nepal's power”

"New Nepal, Learned Nepal"

"Cooperatives in every village, food storage in every house"

''Know Letters, Be Civilized"

"Slogan of Drinking water: Taps in the Villages".

"New Nepal, Secured Nepal and New Nepal, Healthy Nepal"

Price goes up in:

Custom duty and excise duty on alcohol, cigarette, and tobacco have been increased.

Vehicle Import tax has been increased

House/Land registration fee in Kathmandu has been increased to support the “Clean Bagmati Campaign”

Price goes down in:

Import of Vehicle for Disabled people

Women Salary Tax

Import of CFL lamp

Vat in Hydro Electricity

Industrial tax for Industries employing five hundred Nepali workers

Some Salient Features of the Budget

• Monthly Allowance of 500 rupees to people above 60 years belonging to the group of endangered ethnicities, dalits, Single Women and Karnali Zone and others who are above the age of 70
• Monthly Allowance of 1000 rupees for fully handicapped and disabled and 300 rupees for partially handicapped
• Debt waiver up to the principal amount of Rs. 30 thousands, and full interest due and all kinds of penalties on the loan amount of above Rs. 30 thousands up to Rs. 100 thousands.
• Salary Increase of all classes of the government employees by Rs. 2 thousand per month effective from 17 September, 2008
• Movement against corruption control
• Various programs will be carried out to utilize the property of former kings and royal families for the benefit of general public
• The village development grant will be increased ensuring a minimum of Rs. 1.5 million and a maximum of Rs. 3.0 million
• Compensation will be provided to the physically deformed people, and the martyrs of the people's war, people's movement and Madhesh movement
• Production of 10,000 MW hydro powers in the next 10 years
• Tourism Revolution within few years
• Special emphasis will be placed to extend north-south road and railways to accrue due benefit from the rapid economic development of the two big neighbors: India, and China.
• Ease the supply of petroleum products, the monopoly of Nepal Oil Corporation will be ended momentarily and a Regulatory Agency will be set up
• Provide immediate relief to the affected people from food crisis and to help farmers to increase food production, Rs. 1 billion 225 million has been earmarked
• A High Level Scientific Land Reform Commission will be formed for the abolition of feudal land ownership and production relations
• The load shedding in the industrial corridor will not be ended. To ensure uninterrupted power supply, initiative will be taken to establish a thermal plant on public-private partnership near dry ports in Biratnagar and Birgunj
• Foreign investment will be encouraged for the exploration of minerals where feasibility studies have been already completed. Multinational companies will be invited for the exploration and extraction as well as production of petroleum products.
• The legal provision of not requiring licenses for the production up to 1 MW hydro power projects will be extended up to 3 MW.
• The construction of Upper Tamakoshi- 456 MW, Upper Trishuli A-60 MW, Rahughat– 30 MW and Naumure 245 MW, totaling 791 MW, will be started this year. Likewise, necessary works will be initiated to start the construction of Upper Trishuli 3 B - 40 MW, Tamor-Mewa - 110 MW, Upper Seti - 127 MW, Dudhkoshi - 300 MW, Tamakoshi 2 and 3 - 500 MW, West Seti - 750 MW, totaling 1827 MW from both the government and private sectors
• A free of cost operation service will be provided through Martyr Gangalal Heart Center to prevent heart disease of the children below the age of 15, of the senior citizens above the age of 75, and of all endangered ethnic citizens. Likewise, a free of cost service for the dialysis of kidney will be provided through National Kidney Center to the endangered ethnic citizens, and to the senior citizens above 75 years of age
• More than 91 percent people shall have access to primary education in the current Fiscal Year
• Constructing new airports of international and regional level and developing an intensive triangular tourism infrastructure between Kathmandu, Pokhara and Lumbini thereby causing a tourism revolution in the next couple of years
• The construction of Kathmandu-Terai Fast Track Road under BOOT will be initiated with high priority from this fiscal year

Army integration: The toughest job facing post-conflict Nepal

The world has witnessed many countries passing through transitions from war to peace. Transitions often reach their climax during the ordeal of integrating two formerly conflicting armies into one.Nepal, a South Asian country that reeled under a bloody war for about a decade, is now confronting the issue of integrating the two powerful armies - the government's Nepal Army and the Maoist People's Liberation Army (PLA)- which had been in armed conflict with each other until a cease-fire two years ago. The national army has some 95,000 professional army personnel and the Maoists have 20,000 battle-hardened guerrillas. As a part of the peace process, the government and the Maoists invited the United Nations to jointly monitor both their armies in cantonments. The issue of integration is further complicated by the number of parties involved: the formerly rebel Maoists headed by Prachanda, the new prime minister and head of government, the Nepal Army (that was formerly in conflict with Prachanda), and the newly emergent Madhes. The Madhes live in a region of southern Nepal that borders India and are seeking autonomy and representation in the army dominated by non-Madhesis.The parties are still at odds on integration and the UN is helpless, as it has no mandate to step in on this sensitive issue. In fact, the issue has become increasingly complex, and understanding this complexity is necessary before reaching any decision on army integration. As of now, there are five major issues and drawbacks to which the parties need to give serious thought. The first is the parties' immature policy of avoiding discussions on army integration by an act of continuous deferral. As the issue always tends to be the bone of contention, the conflicting parties choose to defer it contentiously for the sake of (hallow) consensus. And now, none of the peace agreements can clearly speak on the issue.Second, the parties never gave any thought to what will be the arrangements for balancing defenses once the king, who headed the national army, was abolished. What if the supreme commander of the Maoist PLA wins the election and gets the authority to "use and operate" the national army as well? The reality today is the king is gone, the Maoists have a majority and they have the power to use both armies. A challenging situation for the other democratic parties! In fact, this miscalculation prevented the parties from having a clear road map for integrating Maoist combatants. Third, while wrangling over powers, the political parties in the constituent assembly ended up giving almost absolute power to the Maoists. Some of the parties were cajoled into supporting the Maoists by passing a parliamentary proposal, which allowed the Maoists a monopoly in the National Defense Council. It became a problem only when the Maoist-led Council lost faith in the state army. Under such a condition, any Maoist unilateralism in dealing with army integration would invite a disaster because that would provoke the national army to step in.Fourth, the parties, after the abolition of monarchy, gradually broke away from the alliance that they had forged to fight against the king in 2005 and began misinterpreting what was already agreed upon. In between the period of the 2005 New Delhi pact and the 2006 Nov. 22 peace agreement, the parties changed their mood. The distrust of the Maoists has increased and the word "integration" mentioned in the first agreement was replaced by "possible integration" when it came to the Nov. 22 agreement. Fifth, the country's politics took a U-turn in the post-April Movement days when a new force emerged from the southern plain along the border with India: the Madhesis. Their genesis itself is described in terms of their revolt against the Maoist excesses. They have demanded regional autonomy and an equal representation in the national army. The Maoists and the other parties have committed to ensure them these rights. This would demand a complete change in army integration statistics.Given these complexities, the Maoists would do better if they realized this and took into confidence the two equally compelling forces: the existing national army and the dissent voices from Madhes. Prime Minister Prachanda's recent remarks said that he would complete the task of army integration within six months, however, a provocative response from the Chief of Nepal Army demonstrated that the integration will not be easy.If Prachanda insists on integration, then he should also explain how that won't impact the national army's neutrality. More importantly, the stakeholders should make it clear what "integration" exactly means. For the problem is that "integration" is interpreted only in terms of entry into the national army. If we consider their integration in educational, economic and social sectors, 90 percent of the problem will be solved. These alternatives could be sought by forming a high-level committee on integration comprising of representatives from all groups, including the newly emerged parties in the Madhes and the national army.

Artical by

Kamal Raj Sigdel

Where are they ???

Where are they? A National Conference on Enforced Disappearances in Nepal Disappearance in Nepal: In the later years of armed conflict, Nepal was defamed as the country with highest number of disappearances. The UN Working Group of Enforced and Involuntary Disappearances (UNWGEID) reported that Nepal was the country with the highest number of reported enforced disappearance cases for 2002 and 2003. According to the report of ICRC, more than 1000 people have been disappeared during armed conflict. NHRC report reveals that 645 people are still disappearing. Further, the families of disappeared citizens claim that there are about 5000 people missing. The ten-year conflict in Nepal resulted in thousands of temporary disappearances through the practice of unofficial detentions both by the security forces and the Maoists. Although the International Covenant on Civil and Political Rights and the Convention against Torture require the state to protect the liberty and security of the person in several ways, it has not been translated into practice in Nepal. Over the period of armed conflict, more than 15000 people lost their lives, thousands displaced, and about 1500 people disappeared. In the beginning years of armed conflict, the case of disappearance was comparatively less. But after the declaration of the state of emergency in 2001, the cases of enforced disappearances increased significantly. Me and Disappearance Campaign: I am also one of the active members of the Campaign against Disappearance. I have generated the concept of "The trans country cycle rally" from Jhapa in the eastern region to Kanchanpur in the far-western region which was organized in January through February 2008. During that rally we met more than 2oo families of the disappeared. Finding them in the everlasting agony I was very much worried on the issue. So, I strongly put the idea of the conference in the Anual General Meeting of COCAP (the organization which is handling the campaign). The AGM passed the agenda and now we are preparing for the conference. National Conference on Disappearance: Proposed national conference is planned as a follow-up of the previous campaigns on the issue of disappearance. The main aim of the conference is to contribute towards ending the culture of enforced disappearances in Nepal by linking the families of the disappeared citizens with policy makers, development communities and the government to take appropriate action to publicize the condition of the disappeared citizens and bring the perpetrators into the process of law. During the previous campaigns, COCAP volunteers collected case studies, prepared documentaries and reports on the issue. Moreover COCAP volunteers organized signature campaign, street dramas, press conference, and interactions with the families of the disappeared citizens. Objectives: 1. Link the families of the disappeared citizens with policy makers, civil society actors and the government. 2. Create citizens' pressure to government and policy makers to take the disappearance as an urgent issue to be addressed. 3. Make concerned parties responsible in observing the real condition of the families of the disappeared citizens and provide them with the compensation. 4. Put pressure to take appropriate actions to those involved in such inhuman act of forcing people to be disappeared and to end impunity. 5. Put pressure on the concerned authorities to form a high level commission about the issue of disappearance. 6. Put pressure to ratify and enforce international treaties relating to disappearance. Participants: The national conference is attended by the families of the disappeared citizens, leaders of political parties, government authorities and policy makers. The participants also include the members of constituent assembly, civil society leaders, journalists, volunteers, intellectuals, local NGOs and INGOs and organizations dealing with the issue of disappearance. It is expected that about 600 people will participate the conference. 1. 200 members of disappeared families from various parts of the country 2. 100 Constituent Assembly members 3. 100 volunteers 4. 150 participants including the civil society leaders, other various organizations, students, journalists, intellectuals political parties and their sister organizations 5. 50 from organizers Conference Modality: The national conference is a collective effort of various organizations, individuals and volunteers. About two dozen civil society organizations have been involved in organizing the conference. The cost of the conference will be shared by individuals, organizations and interested donor organizations. Since it is a collective effort no donations more than NRS. 50,000 will be accepted form national organizations. However, international donor agencies can contribute maximum up to NRS. 100,000. Venue: Staff College, JawalaKhel, Lalitpur

Date :Sep 19 2008

Time : 11 am onwards

I would like to invite you too.

Prachanda the first prime minister of the Republic Nepal

On May 28, 2008, Nepal was declared a federal democratic republic at the first CA meeting. Prachanda was elected as the first prime minister of the Republic Nepal.

Here is his background "From His Childhood to Primeminister" Personal life and early career Born in Nepal's Kaski district,Prachanda spent much of his childhood in the Chitwan district. He received a Bachelor of Science in Agriculture (BSc-Ag) from the Institute of Agriculture and Animal Science (IAAS) in Rampur, Chitwan, and was once employed at a rural development project sponsored by USAID, the project site being Jajarkot. And he was also the teacher in high school in Aarught of Gorkha district. Moved by witnessing severe poverty among Nepalis, he has said, Prachanda was drawn to leftist political parties in his youth. In 1981 he joined the underground. He became general secretary (party leader) of the Communist Party of Nepal (Mashal) in 1989. After a number of permutations, this party became the Communist Party of Nepal (Maoist). He lived underground even after the restoration of democracy in 1990. Until then a little-known figure, he controlled the clandestine wing of the party, while the parliamentary representation in the United People's Front was headed by Dr. Baburam Bhattarai. Since 1996, Prachanda has become internationally known as the leader of CPN (M), presiding over its military and political wings. Maoist insurrection On February 4, 1996, Bhattarai gave the government, led by Prime Minister Sher Bahadur Deuba, a list of 40 demands, threatening civil war if they were not met. The demands related to "nationalism, democracy and livelihood" and included such line items as the "domination of foreign capital in Nepali industries, business and finance should be stopped", and "discriminatory treaties, including the 1950 Nepal-India Treaty, should be abrogated", and "land under the control of the feudal system should be confiscated and distributed to the landless and the homeless. Prachanda directed the military efforts of the CPN (M) towards establishing areas of control, particularly in the mountainous regions and western Nepal. Relations with Bhattarai In late 2004 or early 2005, relations between Prachanda and Bhattarai soured. This was reportedly due to disagreement on power sharing inside the party. Bhattarai was unhappy with the consolidation of power under Prachanda. At one point Prachanda expelled Bhattarai from the party (he was later reinstated). But in reality it was not like that the news which came in public media houses. They reconciled at least some of their differences. Twelve point agreement On November 22 2005 Prachanda and the Seven Party Alliance released a "twelve-point agreement" that expressed areas of agreement between the CPN (M) and the parties that won a large majority in the last parliamentary election in 1999. Among other points, this document stated that a dictatorial monarchy of King Gyanendra is the chief impediment to progress in Nepal. It claimed further that the Maoists are committed to human rights and press freedoms and a multi-party system of government. It pledged self-criticism and the intention of the Maoists and the Seven Parties to not repeat past mistakes. Ceasefires Several ceasefires have occurred over the course of the Nepalese civil war. Prachanda announced a ceasefire with a stated duration of 90 days. The move followed weeks of massive protests—the April 2006 Nepalese general strike& mdash; in Kathmandu and elsewhere that had forced Gyanendra of NepalKing Gyanendra to give up the personal dictatorship he had established on the February 1, 2005, and restore the parliament that was dissolved in May 2002. After that a new government was established by the Seven-Party Alliance. The parliament and the new government supported the ceasefire and started negotiations with the Maoists on the basis of the twelve-point agreement. The two sides agreed that a new constituent assembly will be elected to write a new constitution, and decide on the fate of monarchy. The Maoists want this process to end with Nepal becoming a republic. Interim government Prachanda met for talks with Prime Minister Girija Prasad Koirala on June 16 2006, in what was thought to be his first visit to the capital Kathmandu in more than a decade. This meeting resulted in an agreement to dissolve parliament, incorporate the CPN (M) into a new interim government, draft a new constitution, and disband the CPN (M)'s "people's governments" operating in rural Nepal. The two sides also agreed to disarm at a later date, under international supervision the CPN (M) pulled themselves out of the coalition government ahead of the [[Nepalese Constituent Assembly election, 2008Constituent Assembly election, demanding the declaration of a republic by parliament and a system of proportional representation in the election. The CPN (M) rejoined the government on December 30, 2007 after an agreement to abolish the monarchy following the election and to have a system of partial proportional representation in the election. Head of the government On January 25 2008, the CPN (M) said that it wanted Prachanda to become President of Nepal when a republic is established. In the April 2008 Constituent Assembly election, he was elected from Kathmandu constituency-10, winning by a large margin and receiving nearly twice as many votes as his nearest rival, the candidate of the Nepali Congress. With the CPN (M) appearing to have won the election, Prachanda pledged that the party would work together with other parties in crafting the new constitution, and he assured the international community, particularly India and China, that the party wanted good relations and cooperation. He also said that the party had expressed its commitment to multi-party democracy through the election. Following power-sharing discussions that lasted several months, Prachanda was elected as Prime Minister by the Constituent Assembly on August 15, 2008. The CPN (UML), the Madeshi People's Rights Forum, and 18 other parties supported him. But the Nepali Congress supported Sher Bahadur Deuba. Prachanda received 464 votes, while Deuba received 113 votes.

In favor of Government in CPN Maoists’ Leadership

This peace of writing was aroused in me while I was very much worried about the future of peace process and the future of the nation itself.
The politics has changed its direction since the election of president and vice president. I said it has been changed because the politics took the path of majority and minority breaking the culture of consensus. The purpose of going to the simple majority in spite of two third majorities was to break the politics of consensus. Though Maoist was resisting this provision at first, it could not remain firm in its stand. So the provision of simple majority to elect the top positions of the nation and to form the government was included in the 5th amendment of interim constitution. After that amendment, the Nepali politics headed towards the same way of so called democratic period of 1990 to 2006.
Again the politics of betrayal and disloyalty had started. The three party’s alliance of NC, CPN (UML) and MJAF was formed in the last hour of the election of the president. The coalition became success to elect the president and his vice of their candidates. I have already mentioned my disappointment with the person in the post of vice president. So the first mistake of this coalition was to elect the controversial person in such a position.
Now the coalition is making mistakes by claiming the right to form the government in the name of mathematical majority. Even they are acting as they have forgotten the result of the CA election! The verdict of the people in the election is very clear which is, form the government in the leadership of Maoists with common agreements among all the parties. I think this was the mandate of the Election. But some of the leaders of the three parties’ alliance are claiming for their leadership in the government.
This is the matter of great concern. If such a government formed excluding Maoists, it would be the great mistake in the History and the misfortune for the country. I think it is not easy to run the country excluding Maoists because they will not remain silent. They will be forced to take the offensive actions against such government. That may be in any form. Ultimately, that will invite a different type of conflict which will be very harmful for the peace process and constitution making process. The country will again be the hostage of uncertainty.

At last, if we are questing the real democracy and we want peace, lets raise the voices in favor of Maoists government!!!!!