Their Majesties leave for China today

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Kathmandu, 8 July: Their Majesties the King and Queen are leaving for Beijing by special aircraft tomorrow morning on a state visit to the People's Republic of China at the friendly invitation of Chinese President Jiang Zemin. Her Royal Highness Princess Prerana Rajyalaxmi Devi Shah is to accompany Their Majesties on the visit. His Majesty the King will also be accompanied by Minister for Health Sharat Singh Bhandari, Royal Nepalese Ambassador to China Rajeshwar Acharya, senior officials of the Royal Palace service and the Foreign Ministry and a l0 member team of journalists. Also accompanying Their Majesties will be l0 office bearers of the private sector. According to information given by the Ministry of Foreign Affairs here today, Their Majesties the King and Queen will be received by Vice-Minister of the Ministry of Foreign Affairs of China Wang Yi and two girl children will offer bouquets. Their Majesties will have dinner at the Diaoyutai State Guest House. Their Majesties the King and Queen are scheduled to be formally and heartily welcomed by President of China Jiang Zemin at the eastern part of the Great Hall of the People on Wednesday at 5 p.m. local time. His Majesty the King will visit the Science and Technology Development Company Limited at Hualixing, Beijing, also on Wednesday. Meanwhile, His Majesty King Gyanendra Bir Bikram Shah Dev has stated that the relations that have existed for years between the Kingdom of Nepal and the People's Republic of China on the basis of cordial friendship, trust, equality and co-operation are a symbol of good neighbourliness. His Majesty made this remarks in a message to the countrymen prior to departure on a state visit to the People's Republic of China. Stating that our relations characterised by always respecting each other's sovereignty, integrity and freedom have been nurtured by the heads of state, political leaders and from the people's level as well, His Majesty the King has expressed the confidence that the visit will add a new dimension.

The full text of His Majesty's address is as follows:

Beloved countrymen,

We are leaving today for Beijing on a week long state visit to China at the friendly invitation of His Excellency Jiang Zemin, President of the People's Republic of China. The relations that have existed between the Kingdom of Nepal and the People's Republic of China on the basis of cordial friendship, trust and equality are a symbol of good neighbourliness. Respect for each other's sovereignty, integrity and freedom has been nurtured by the heads of the state, political leaders and from the people's level as well. Against this context we are confident that the visit will add a new dimension. We have constituted a Council of Royal Representatives under the chairmanship of His Royal Highness Crown Prince Paras Bir Bikram Shah Dev to carry out our functions during our absence. We hope that all the countrymen will be aware of their respective duties and always extend their cooperation in the interest of Nepal and the Nepalese.

May Lord Pashupatinath protect us all.

Jaya Nepal

Nepal to learn from China: His Majesty

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Kathmandu, 8 July: His Majesty King Gyanendra Bir Bikram Shah Dev has said that Nepal attaches importance to her relations with China and these relations are based on the principles of equality, mutual respect and good neighbourliness.

His Majesty said this in an interview to the Chinese News Agency Xinhua on the eve of His Majesty's state visit to the People's Republic of China at the invitation of Chinese President Jiang Zemin.
Asked how His Majesty looked forward to the bilateral relationship between Nepal and China in the 2lst century and in what fields His Majesty thinks the two countries can further enhance the long friendship and cooperation, His Majesty the King said given the mutual trust between the two countries and the understanding we have of each other's aspirations, we are confident that these traditional bonds of friendship will always remain firm and steadfast.

His Majesty said Nepal admires the remarkable socio-economic transformations taking place in China and hopes to learn from China's experience, especially in human resource, infrastructure development and science and technology.

Observing that ever since diplomatic relations were established between the two countries in 1995, China has remained a generous partner in Nepal's development endeavours, His Majesty appreciated China's understanding of Nepal's problems, adding, we feel that we must now focus on economic cooperation, especially in the private sector to the mutual benefit of our peoples.

Asked what His Majesty would be aiming to achieve in the forthcoming visit, His Majesty said we look forward to discussing matters of mutual interest with the President.

The visit will also afford an opportunity to exchange views with other leaders of China and make new friends, His Majesty further said and expressed confidence that it will make significant contributions to the further consolidation of the excellent ties of friendship existing between the two countries.
Asked how His Majesty would describe the changes and economic achievements in China that impressed His Majesty the most, His Majesty said- I have been keenly following the impressive socio-economic progress China has made over the years, adding that the reform policies adopted by China since 1978 have brought much progress and prosperity to the people of China, making it one of the leaders in the comity of nations.

His Majesty also said that besides Beijing, Their Majesties will visit Dalian and Shanghai, and Yichang where Their Majesties will be seeing for themselves the on-going works of the three gorges project, which will help China achieve an impressive economic growth.

Nepal looks to developing her water resources to the benefit of our people and we feel there is much we can learn from our visit to the projects site, His Majesty said.

Deuba presents Rs. 96.12 B budget
Poverty reduction, security receive top priority

By A Staff Reporter

Kathmandu, 8 July: Prime Minister Sher Bahadur Deuba today unveiled an estimated budget of Rs. 96.12 billion for the fiscal year 2002-2003 that has laid major emphasis on poverty reduction, improving security and revamping the economy that has recorded the lowest growth rate of 0.8 per cent since 1990.

The budget was brought through an ordinance for the fourth time after the restoration of multi-party democracy in 1990. The budget has shrunk by Rs. 3 billion compared to the previous year.
The budget has made provision for the effective implementation of mid-term expenditure on prioritised development projects to achieve the set economic goals.

Out of the total budget of Rs. 96.12 billion, Rs. 57.45 has been allocated for regular expenditure and Rs. 38.68 billion for development.

The regular expenditure has gone up by 16.9 per cent while the development expenditure has increased by 16.3 per cent, with the total expenditure increasing by 16.7 per cent.

General expenditure has increased by 16.5 per cent, but the development expenditure has plummeted by 23.4 per cent compared to the previous budget.

The total volume of the budget has declined by 3.7 per cent. The budget deficit for the coming fiscal year is Rs. 3.86 billion. The government has plans to raise internal loans worth Rs. 12 billion and foreign aid worth 14.56 billion rupees.

Adequate budget has been earmarked to equip and mobilise the security bodies for the maintenance of peace and security.

Prime Minister Sher Bahadur Deuba said it is the primary responsibility of the government to protect the lives and property of the people and to maintain peace and security in the country.

"At a time when the Maoists are perpetrating violence, terror and killings in the country, the government must earn the confidence of the people through a reliable security mechanism," the Prime Minister said.

"That is why," Prime Minister Deuba said, "our first priority is security."

Dwelling on the challenges of the economy, Deuba said 38 per cent of the people still live below the poverty line, down from 42 per cent at the beginning of the Ninth Plan. "However, the poverty alleviation programmes have failed to achieve the targeted goals."

The lack of improvement in the legal, institutional and administrative sectors still pose a hindrance for the development of the private sector. The task of controlling unproductive expenditure and making the development expenditure more result-oriented is equally challenging along with the reconstruction of infrastructure destroyed by the terrorists.

The running of public enterprises that have been financially burdensome is no less challenging. "We have not been able to take ahead the decentralisation programmes in an effective manner to ensure the self-reliance of the local bodies," Deuba said.

Salient features of the budget

o Priority focus on security management
o Budget allocation to finance the upcoming general elections
o Priority programmes to reduce poverty.
o 100,000 Nepali youths to be sent abroad for employment
o Rs. 550 million allocated for the proposed IT Park at Banepa
o Income tax exemption limit for the individual taxpayer increased from Rs. 55,000 to Rs. 65,000 and for the family from Rs. 75,000 to Rs. 85,000.
o Nepal Rastra Bank will arrange for Rs 1.5 billion to revamp sick industries.
o Provision to mark 2003 as Export Year.
o Provision for 10-year multi-entry visas to non-resident Nepalis (NRNs) willing to invest in Nepal.
o Budget for the National Dalit Commission as well as for the disabled and children to ensure social welfare.
o Bonds to be issued to garner resources for Melamchi drinking water project
o Budget for printing, office equipment, newspapers and other services and maintenance slashed by 20 per cent (on this year's allocation). Miscellaneous expenses cut by as much as 50 per cent.
o Government offices, committees and public enterprises banned from procuring vehicles.
o A call center to be established in the Kathmandu Valley to provide tax payers with all kinds of information, advice and consultancy.
o An internal auditing committee represented by experts to be set up for the monitoring and evaluation of internal revenue administration and to check revenue leakage.
o Excise on items hazardous to health such as alcohol and cigarettes slightly increased.
o Customs duty on some goods imported under the DRP from India slightly increased.
o Tax on agricultural imports fixed at 10 per cent.

Those calling themselves special police fake: Govt

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Kathmandu, 8 July: The Home Ministry has requested all concerned to inform the Ministry or the District Administration Office or the nearest police unit if anyone claims to be an employee of the Special Police on the pretext of carrying out investigations on behalf of the Department of Special Police even if he shows his identity card, as this Department has already been disbanded.
Meanwhile, an investigation committee with joint secretary at the Mnistry of Home Susheel Jung Bahadur Rana as convenor and comprising co-Attorney General Kedar Parasad Paudel and deputy chief officer of the National Investigation Department Sripurush Dhakal as members has been constituted to find out the facts in connection with the news item concerning a person named
Krishna Sen published in various newspapers and other periodicals and submit a report within 15 days from the start of its work, the Home Ministry has stated.

Budget addresses key problems

By A Staff Reporter

Kathmandu, 8 July: Today's pressing need is investment in peace without which development becomes impossible, Prime Minister Sher Bahadur Deuba said while delivering the annual national budget today. "To maintain peace, enough budget has been allocated to the security agencies. The money will enhance the logistics and other means that will boost the morale of the security personnel who, in turn, will ensure the security of the people and implement the development budget. This will lead to effective project execution for bringing momentum to the entire economy."

While determining poverty alleviation programmes, a wide, high and sustainable economic growth, quality enhancement of social works, infrastructure development, population management, strengthening of the people living below the poverty line and disabled and helpless ones, conservation and creating opportunities for income have been taken as the basis, he said.

Projects relating to poverty alleviation will be effectively run through the Poverty Alleviation Fund. To strengthen poverty alleviation activities, a Civil Rights Charter will be issued.

The grant provided to local agencies will be pegged with the poverty situation. A mechanism will be developed to provide more grants for areas suffering from acute poverty. A monitoring system will be developed to see whether such grants have reached the targeted community. A tradition of community auditing will also be developed.

For loans of upto Rs 40,000 borrowed by farmers from the Agriculture Development Bank (ADB) before 2051, the remaining interest will be waived off if they pay interest equal to that of the principle. Other rebates have also been worked out for those farmers who will pay back the principle.

The ADB will introduce a special relief package for the farmers who have taken loans from the bank and were displaced by Maoist terrorism. For those opting to abandon terrorist activities and lead a peaceful life, skill-oriented training will be organised for running business through the Poverty Alleviation Fund. There will also be arrangement for the renovation of development infrastructure, administrative, educational institutions and industrial units that were destroyed by the terrorists.
A women's scholarship scheme has been simplified to ensure educational opportunities for all girl children, especially those who are dalits (downtrodden communities).

A special agro-production programme to supply fertilizer and seeds in the remote districts without road facilities will continue. Under the Karnali Zone Special Agriculture Programme, the goat exchange programme, poultry farming, bee-keeping and sericulture will be continued.
Expansion of food for work programme, and effective operation of informal education and employment and skill-oriented programme will be carried out for the former Kamaiyas so that they can lead a respectful life. The professional skill-development programme to create self-employment for the blind and handicapped ones will continue.

In the coming fiscal year, 24,000 gobar gas plants will be built in 65 districts. An additional 5,000 families in 47 districts will benefit from energy generated by micro-hydropower plants.

A minimum of 100,000 youths will be sent abroad for foreign employment in the coming fiscal year. Under this programme, youths from areas affected by terrorism will be given the first priority.
Private sector investment will be encouraged in areas of comparative advantage in a bid to utilise the opportunity created by international and South Asia's economic cooperation. Nepal Rastra Bank will arrange for Rs 1.5 billion to revamp sick industries but having potential.

In a bid to attract foreign investment, non-resident Nepalis willing to invest here will be provided with 10-year multi-entry visa. With simplified processes for such investors, they will also be allowed to take back their benefits and principle investment in the same currency they have invested.

Finance sector reforms

In a bid to improve and enhance the working capacity of the financial institutions, the government is to hand over the management of Rastriya Banijya Bank and Nepal Bank Limited to the contracting parties within the next four months.

Likewise, the government will begin studying how the management capacity of Agriculture Development Bank and Nepal Industrial Development Corporation can be enhanced.
Premier Deuba said that the government will introduce organisational reforms to develop Nepal Rastra Bank into an able, autonomous and efficient monetary authority.

Nepal Rastra Bank will bring out an appropriate fiscal policy by the end of this fiscal year to regularise liquidity.

An asset management company will be established to manage bad credits. Likewise, a "loan recovery judicial authority" will be set up to assist banks recover loans.

Process to set up a separate insurance fund will be set in the next fiscal year with the joint investment of HMG, Insurance Committee and insurance companies to insure terrorism-related damages to property, said Deuba.

Tourism development

Outlining HMG's policy on tourism, Premier Deuba said that promotional programmes will be carried out in major tourist generating cities. And to promote regional and internal tourism, the private sector will be encouraged to introduce various packages.

In a bid to diversify tourism spots and programmes, the elderly and pensioners from abroad will be encouraged to spend long periods of time in Nepal. Nepal will be promoted as a sports and conventional tourism destination, and in this context the government will try to promote Nepal as a venue for cricket and other sports, Deuba said.

Management of general expenses

So as to keep the regular expenditure within limits, expenditure on printing, office furniture, services and papers have been slashed by 20 per cent on the budget allocated for these purposes in the current fiscal year. Other expenses have been slashed by 50 per cent.

Similarly, no government office, committee or public corporation will be allowed to procure vehicles. Even security-related agencies will be allowed to buy only trucks and pick up vans, that too with the prior approval of HMG.

Melamchi Development Bond

For the effective implementation of the mid-term expenditure programme, the government will provide the necessary resources to the prioritised projects.

The government will issue Melamchi Development Bonds to clients of Nepal Water Supply Corporation in the next fiscal year to garner the necessary resources for the construction of the Melamchi Project.
After five years, the clients can either sell the bond at 8. 5 per cent interest or turn it into shares or use it to pay their water bills. The bond will be worth Rs. 5,000 each.

The government will make the National Development Problem Resolution Committee, headed by the Prime Minister, more effective.

KMC to bring new tax policy

By A Staff Reporter

Kathmandu, 8 July: Kathmandu Metropolitan City (KMC) is all set to bring owners with land and houses costing more than one million rupees into the tax net.

This is being done to systematise the process of evaluating land and house tax in the KMC area and collect the tax due. The KMC is in its final stage of collecting all relevant data.

The KMC began collecting data of plots, structures and the condition of lands and houses in 2057 BS so that their owners could be billed through the computer system. All necessary data have been collected except in ward No 15, where data collection is in its final stage.

The government has been raising taxes on land and houses in Kathmandu since 2016 BS. The KMC received the right to collect these taxes after the Local Self Governance Act was enacted in 2056 BS.
But due to absence of authentic data, Kathmandu's residents have so far been paying a nominal amount voluntarily.

The KMC said that it had a target of raising Rs. 200 million in land and house taxes since 2056 has been able to raise only Rs, 120 million, according to the Tax Collection Unit at the KMC. It now hopes to raise over 400 million rupees in taxes from 85,000 houses in the KMC area.

An all-party committee has been formed to evaluate the land and house of the KMC areas.
According to the Local Self-Governance Act 2056, residents who own houses and land that cost upto one million rupees need not pay any taxes. But the KMC has been charging 200 rupees per house in registration fees.

The KMC currently collects the tax in wards No. 1, 2, 5, 11, 31, 32 and 33.

Nepal exchanges mind with donors

By A Staff Reporter

Kathmandu, 8 July: General Secretary of the Communist Party of Nepal (United Marxist-Leninist) Madhav Kumar Nepal interacted with representatives of Nepal-based donor agencies at the party's central office, Balkhu today.

The UML General Secretary Nepal briefed the donors about the problems and challenges facing the nation at present, said an UML press release.

Nepal presented a realistic picture of the country's political, economic, social, administrative and educational sectors, it said.

Country Director of the World Bank, Resident Representative of the International Monetary Fund, Representative from the Asian Development Bank and Assistant Representative of the UNDP took part in the interaction.

UML Standing Committee member Bharat Mohan Adhikari, Jhalanath Khanal, ex-lawmakers Dr. Mangalsiddhi Manandhar, Dr. Dilli Raj Khanal and Bhim Neupane participated in the meeting.
Calling for an effective poverty alleviation programme in the country, Nepal pointed out the need to bring the downtrodden, women, ethnic and marginalised communities from the Terai and remote areas into the mainstream of development.

Nepal outlined the UML's stand and commitment on the issues of good governance, prioritisation of development projects and the Maoist problem, said the press release.

At the meeting, Nepal focused on the shortcomings of the country's development vision and apprised the representatives about the serious problems facing development projects.

The representatives commended the UML for putting forward its outlook on the future of the nation, it stated.

PM stresses need for flow of correct info

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Butwal 8 July: Prime Minister Sher Bahadur Deuba has said that the need of the day is flow of correct information to help maintain law and order as even a small mistake in journalism can create social disorder.

In a message of best wishes to the "Janasangharsh" daily published from Butwal on the occasion of its 12th anniversary , Deuba said the role of journalism is vital in promoting constitutional monarchy and multi-party democracy.

Expressing the confidence that "Janasangharsha" daily published from the historic town of Butwal in Lumbini Zone, the birthplace of Lord Buddha, the propounder of peace, will continue to be successful in despatching truthful and factual news to the rural community with little access to information, Prime Minister Deuba said that the achievements of the daily that saw the light of the day soon after the restoration of democracy are praiseworthy.

The daily is aware of its responsibility of providing factual information and maintaining social harmony, he observed.

Earlier, inaugurating the annual function, president of Nepal Press Council Harihar Birahi pointed out the need to accord top priority to the interests of the nation, society and citizens and to take up professional journalism at a time when the situation of the country is turning out to be more complicated.

MP Ram Chandra Bhattarai said that matters such as the just struggle of the people, nationalism and democracy should be written about.

Chairman of Rupandehi DDC Chhatra Pati Singh and a host of other speakers also expressed their views at the function chaired by chairman of "Janasangharsha" and the Hitech Offset Press Pvt Ltd Benuram Pradhan.