House passes policies and programmes

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KATHMANDU, July 8 – The Nepali Congress government today passed its policies and programmes document despite boycott by communist opposition parties, paving the way for the unveiling of the coming fiscal year’s budget in parliament tomorrow.

Amidst the boycott by the leftist opposition parties who were demanding the Prime Minister’s resignation, the programmes and policies of the government was passed by a majority of the voice votes of the ruling lawmakers, defeating opposition parties all the six amendment motions.

Only Rastriya Prajatantra Party (RPP) and Nepal Sadbhawana Party (NSP) were present from the opposition benches when the Speaker, Taranath Ranabhat, read out the half-dozen amendment proposals. The policies and programmes were presented in the House by His Majesty King Gyanendra through Royal address on June 29.

The proposals were rejected and the customary "vote of thanks" to the Monarch for his address to parliament was eventually passed, signifying the passage of the policy document.

The boycott occurred while Prime Minister Girija Prasad Koirala was replying to the questions raised by the opposition lawmakers. The opposition lawmakers were not satisfied by the PM’s reply he read out as soon as the House convened earlier on the day.

Refusing to bow down to the opposition’s demand to quit, Koirala asked the opposition to oust him by adopting constitutional means. If that failed, added the PM, the decision to quit should be left to the choice of the individual. He also expressed his firm resolve to take his 14-point agenda to its "logical end".

Before the boycott, the opposition lawmakers voiced objections to several of the points mentioned in the programmes and policies. Their objections ranged from the palace massacre on June 1 for which they held the government responsible, the related security of the royal family members, the controversial Public Security Regulations (PSR), the Armed Police Force Ordinance, and to the recent Maoist butchering of 41 policemen.

They demanded the immediate withdrawal of the Regulations and the two ordinances, asked the PM to quit as a pre-condition for their support to Koirala’s 14-point agenda for national consensus and demanded a House probe in the Palace massacre.

Dr P C Lohani of RPP quizzed the government over the proposed extradition treaty with India and termed the PM’s reply as "normal" while saying that the situation was not normal. Rajendra Mahato of NSP asked about the fate of the Citizenship Bill and the report on the riots in December in the country in the wake of the alleged derogatory remarks of Hrithik Roshan.

Earlier replying to the lawmakers’ concerns raised last week during the debate on the vote of thanks, PM Koirala tried to allay the fears of the opposition. Although it was not possible to incorporate his entire agenda in the programmes and policies, the PM said that he was holding discussions to reach consensus with the opposition on the agenda.

The PSR, said the PM, have defined the undefined powers of the Chief District Officer. He added that the government was working to set right the rules that were in conflict with the Local Self-government Act. He also expressed the government’s firm commitment to the women’s equal rights to ancestral property.

He also spoke of his resolve to work for the upliftment of the ethnic communities, protection and conservation of the endangered birds and animals and heritage sites, reforms in the electoral process and distribution of voters’ identity cards, tapping the water resources and promotion of swadeshi (domestic) goods. He clarified that the entry to the WTO would not be in conflict with the slogan to use swadeshi.

Likewise, he announced the formation of a department to tackle natural calamities and the drug abuse, sought the opposition’s help in combating corruption, informed that the work was in progress to make laws to realise the right to information, and stated that steps have been taken to reform the education sector as per the recommendation of the high-level committee formed for the purpose.

Later in the day, the Deputy Prime Minister Ram Chandra Poudel presented the 10th report of the Commission for the Investigation of Abuse of Authority (CIAA), the Finance Minister Dr Ram Sharan Mahat tabled the Economic Survey 2000-1 and the eight chairmen and a member of the nine parliamentary committees presented the report on their activities.

Economic survey paints bleak picture

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KATHMANDU, July 8 - Despite strong growth prospects and sound macroeconomic stability, the economic survey 2000/2001, tabled in the Parliament today, paints a bleak picture in the areas of poverty alleviation, social services and basic infrastructure.

The survey, which covers the first eight months of the current fiscal year ending mid-July, projects an impressive Gross Domestic Product (GDP) growth rate of 5.8 percent, that too accompanied by historic low average price increment of 2.1 percent.

Similarly, the survey presents a rosy picture in the external front with a squeezing trade deficit, down by 3.5 per cent to touch Rs 27.4 billion, as a result of higher growth rate in exports as against imports in the review period.

Furthermore, the survey also reflects a comfortable foreign currency reserves, which grew by 14.7 per cent to Rs 107.61 billion. The growth in convertible currency is to the tune of 6 per cent, while that of non-convertible currency is 66.2 per cent. The foreign currency build-up is sufficient to cover merchandise imports for almost a year. Similarly, the Balance of Payment summary reveals a decrease in reserves net from Rs 5.57 billion to Rs 3.51 billion.

However, despite all positive performance, the budget deficit widened despite the positive trends in revenue mobilization and receipt of foreign grants. Also, the foreign debt service liability, as a result of devaluation of the Nepalese currency vis-a-vis the convertible currency, is on the rise.

Though the survey doesn’t supply comparative data on education and schooling, the tentative figures given in the survey portrays a depressing scene. Similar is the situation in the case of the extension of health services.

So far, the survey reveals, only two hospitals were added in the review period. While the number of health posts has actually declined from 711 last year to 676 presently, the number of health centres remained constant at 13. Also, the number of primary health centres has risen by only 20, while the number of sub-health posts has fallen from 3,179 to 3,174.

At this rate of health services extension, the government is unlikely to fulfill its election manifesto commitment, which promises to extend sub-health posts to all the Village Development Committees within two years starting the fiscal year 1999/2000.

In the like manner, the extension of drinking water and sewerage facilities has also been dismal. Only an additional population of 175 thousand benefited from new or repaired projects, as against the last years total of 544 thousand. The total availability of water stood at only 12,220 thousand liters per day, again down against the twelve month total of last year’s 31,271 thousand liters.

On the road construction front, given the current pace, the government’s target to connect all headquarters would most likely remain unfulfilled for the next few years. In the first eight months of the current fiscal year, only 150 kilometers of road was added to the total transportation network. This is against an addition of 5,660 vehicles in the review period, up from the last fiscal year’s total of 3,887.

The performance in the irrigation front is also not good. An additional 1732 hectares of land was irrigated in the first eight months of the current fiscal year compared to 2592 hectares of land that had been irrigated during the similar period of the earlier fiscal year. Telephone extension has also been low compared to burgeoning demand. Only additional 19,781 telephone lines were added during the review period, while 23,346 lines were distributed in the same period last year.

As a whole, poverty alleviation programs, due to the inadequate social service and infrastructure add-up has received no impetus.

Poverty alleviation features as prime objective yet again

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KATHMANDU, July 8 - The upcoming budget for the next fiscal year, scheduled to be presented Monday, has, as usual, targeted poverty alleviation as its core objective, revealed a high-level source at the Ministry of Finance (MoF).

The source informed The Kathmandu Post that the budget, which will be around Rs 100 billion, has allocated additional funds for the protracted Poverty Alleviation Fund (PAF), a mega-umbrella plan that aims to bring all anti-poverty programs under its net. The PAF failed to make much headway in the current fiscal year despite the Rs 100 million earmarked for the purpose in the last budget.

The budget is all set to integrate the various poverty alleviation programs being undertaken by different government agencies and non-governmental organizations. In addition, new programs are also set to be introduced in the budget. The government last year had introduced around 19 poverty alleviation programs.

The process of bringing all poverty-related programs under the PAF will be started during the next fiscal year, the source said. Finance Minister Dr Ram Sharan Mahat too had revealed last week that all scattered poverty alleviation programs would be integrated.

"Since a separate PAF Act would be formulated in the next fiscal year, poverty alleviation programs would be brought under the PAF net," the source said. The PAF Act was initially targeted to be cleared in the last Winter session of the Parliament, but failed due to the disruption of House’s proceedings by the opposition.

Similarly, a source at the National Planning Commission (NPC) said that new programs, especially targeted at the insurgency hit and remote areas, would be launched in the new budget. "However, the operation of all such programs will be left at the district level," the source said.

Similar programs for the rural and Maoists hit districts had been launched in the last budget, with the control, however, at the center. The decision to hand-over the reins of such programs to the districts were taken to do away with the inefficiencies arising due to the lack of district-center coordination, the NPC source added. Furthermore, against expectations that the security budget would see a substantial increase, the budget for the purpose would not be as high.

In addition to poverty alleviation, the other major area of emphasis laid by the new budget is the containment of the regular expenditure. In the light of excess regular expenditure in the current fiscal year, the source said that several measures will be taken to contain the expenditure at a manageable level.

The drive to reduce the regular expenditure will be taken by implementing the suggestions of the Public Expenditure Review Commission (PERC), said the source. The budget will slash over a hundred government-run projects to reduce expenditure and manpower burden, merge various regional offices, cut down the number of civil employees and establish a separate pension fund. Also, public enterprises would be compelled to maintain fiscal discipline.

Moreover, to narrow the wide gap between regular expenditure and development expenditure, the development expenditure has been increased miserly, the MoF source added. In addition, expenditure on roads and bridges would also be brought down.

On the revenue front, the new budget will continue to emphasize the implementation of the Value Added Tax (VAT) as the main source of government revenue. The then Finance Minister Mahesh Acharya in his budget speech last year had pledged to create VAT as the main base of revenue mobilization.

Despite the implementation of VAT for over three and half years now, the taxation system has not yet proved effective. To enhance its effectiveness, the budget is all set to increase the tax base and to give additional powers to tax and revenue related authorities, the source revealed. Furthermore, to complement the successful implementation of VAT, the customs valuation process would also be simplified.

Besides, in the area of financial sector reform, the major thrust area, the government will continue implementing the reform programs introduced in the last budget, the source said. Over half a dozen financial sector reform programs were introduced last year, of which not even a single one has been fully executed.

Among the financial sector reform programs announced last year, the budget would lay major emphasis on restructuring and strengthening the Agriculture Development Bank (ADB), Rural Development Banks (RDBs) and Nepal Industrial Development Corporation (NIDC). Funds have been allocated for pumping capital into the capital-depleted RDBs, the MoF source informed. RDBs had requisitioned Nepal Rastra Bank (NRB) for Rs 300 million for restructuring purposes.

The other targets of new budget will be on attracting Foreign Direct Investment, promoting domestic industries and undertaking administrative reforms. Besides, the budget will also introduce provisions by which foreign trade can be promoted, the source said.

PM moots new Palace security system

KATHMANDU, July 8 (PR) - The government today pledged better and "fresh" collaboration between itself and the Royal Palace in disseminating information as well as providing security to the Royal family.

Speaking in Parliament, Prime Minister Girija Prasad Koirala said that the a new security system is being devised for the Palace which will be "more accountable."

"We have already moved ahead in making the security at the Palace more accountable. Now we are devising a new procedure for disseminating information," said PM Koirala, while replying to the opposition’s queries over the government’s programs and policies today.

"So far, the system had remained very traditional," he added.

However, PM Koirala still failed to reply to queries raised by the opposition as to who should be held responsible for the Narayanhity Palace massacre that killed late King Birendra and nine other members of the Royal family.

"Under whose responsibility was the massacre site left un-attended until the probe committee reached there?" questioned Subash Nemwang of the main opposition CPN-UML. "Even the post mortem wasn’t conducted upon the dead bodies that could have provided vital evidences."

Both PM Koirala, who is also the Minister for Royal Palace Affairs, and Chief of Army Staff Prajwalla Shumsher J.B Rana have denied their responsibility over the massacre.

Furthermore, PM Koirala also remained totally silent on amending the ‘Heir to the Throne Act’, which gives the King absolute powers to lay down the rules of succession. The Act has now come under increased scrutiny in Parliament.

"Will the PM speak on whether it would be wise to proclaim the heir a person who had been proved to be a source for providing drugs to the Crown Prince?" asked Pradip Nepal of CPN-UML. The probe report on the Palace massacre mentions that Prince Paras was the last person who passed hashish filled cigarettes to the then Crown Prince Dipendra.

Gokarna Bista of CPN-UML also demanded that the government punish the culprit behind the killing of musician Praveen Gurung. Prince Paras, the son of King Gyanendra, had run over Gurung with his vehicle in August last year but was never charged for the murder though there was protests both in the streets and in the Parliament.

Pashupatinath to Dolkha drive in reverse gear!

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KATHMANDU, July 8 – In hope of removing the bad spell believed to have pushed the country into the present crisis, two men are preparing to drive their respective vehicles all the way from Pashupatinath temple in Kathmandu with water from the holy Bagmati river to Dolkha Bhimsensthan, in Dolkha. Nothing is special about it. Just that they are covering the entire distance of 136 Kilometers of dangerous hilly road in reverse gear!

According to the religious and popular belief it is considered a bad omen (especially for the Royal family) if the stone idol of Dolkha Bhimsen "sweats" on its left side. In 1990 the Bhimsen statue sweated a number of times. And according to the beliefs, it was one of the reasons why the years were ominous for the Royal family.

As per the traditions the sweat of the idol is wiped with pieces of cotton and it is believed that keeping these pieces of soaked cotton in one’s home brings in good luck. Such pieces of cotton were also sent to the Royal Palace and according to the tradition Holy rituals were conducted by the palace and offerings and sacrifices made to Bhimsen.

In January, the stone idol had sweated again and the event was widely talked about by the people that something bad would happen to the Royal family. Some newspapers had written elaborately on the matter. The popular belief has gained strengthen after the Royal carnage of June 1.

The two drivers, prepared to take on the daring reverse drive are Sampurna Shrestha from Palung VDC-6 in Makwanpur district and Jhalak Bahadur Thapa from Dolkha Bhimeswore Municipality, ward no 10. Shrestha will be driving truck Na 2 Kha 2251 whereas Thapa will drive a Jeep Ba 2 Cha 3113. Both are scheduled to start their journey from Pashupatinath temple at 5 o’clock Monday morning. They expect to reach Dolkha Bhimsensthan in three days.

These two men plan to offer the Bagmati Holy water to Bhimsen and pray for peace and stability in the country. The feat, if successful, will be a rare event as this is going to be one of the most dangerous vehicular drive ever attempted in the whole world say observers.

The two men will be taking 10 priests from Pashupatinath along with them in their vehicles who are to bathe the Bhimsen idol with the Holy water. A police team, an ambulance and number of volunteers are expected to escort the vehicles.