Finance Minister presents 'ambitious' budget
Police gets more fund, Salary hike for civil servants

By a staff reporter

Finance Minister Mahesh Acharya presented a budget of Rs. 91.62 billion for the coming fiscal year yesterday (Tuesday). The budget is almost 35.6 per cent more than the revised budget of the current fiscal year. Rs. 43.51 billion (47.5 per cent) have been set aside for general expenditure and Rs. 48.10 billion (52.5 per cent) have been set aside for development expenditure. The allocation of funds for general expenditure include: Rs. 12. 76 billion for debt services, Rs. 3.89 billion for defence, 5.27 billion for police, Rs. 8.20 billion for education and Rs. 1.66 billion for health.

Finance Minister Acharya

This shows a huge increase of budget for the internal security. Even an additional Rs. 1.86 billion has been set aside for the formation of armed police force and for strengthening and equipping the police force. One of the highlights of the budget is the significant increase in the salary of the civil servants and the government employees. The increment has been about 50 per cent. This is the first increment in the salary of the civil servants for almost 7 years, and the Finance Minister expects it will help the servants of the country more efficient and productive. Among the development expenditure, the share of the social sector will be 35.1 per cent, education 7.1 per cent, health 6.3 per cent, drinking water 8 per cent and for local development 10.7 per cent of the budget have been set aside.

However, the Finance Minister has said out of the total funding Rs. 47.92 billion will come from revenue collection. The foreign components of the budget are Rs. 11.84 billion as foreign aid and Rs. 19.79 as
foreign loan.

There will be a deficit of Rs. 12.05 billion.

Out of the deficit, the Finance Minister said, Rs. 5 billion will be met through the reforms in direct taxes, administrative reforms  and the remaining Rs. 7 billion will come from internal loans.

Reviewing the country's performance of the last 10 years his almost two-hour long budget speech, the Finance Minister said in the last 10 years the country has achieved significant progress in sectors like
education, roads, health, population growth, electricity maternal and infant mortality rates. This is the 50th annual budget of the country. However, he said, the results of the last 10 years has been a mixed one with the achievements failing to benefit the majority of the populace.  He also said the trend of misuse of the resources and the challenges of the previous years has remained.

The Finance Minister said the budget of the coming fiscal year has focused on poverty alleviation through high growth rate and the main objectives of the budget is management of resources in the public
sectors economic reforms and institutional reforms.

The Finance Minister has made VAT the mainstay of revenue collection and for the collection of revenue he has said revenue leakage through administrative will be curtailed by administrative reforms and by
managing the tax system. Politicians, economists as well as the business community expressed
mixed reaction to the budget estimate for the fiscal year 2000/2001, which was presented yesterday to the joint session of the Parliament.  Talking to this scribe, prominent economist Dr. Bishwambhar Pyakuryal pointed out taxing on commercial agriculture as the bold step to be taken by the government. "There are some areas in agriculture sector that are as lucrative as the industrial sector and they must be taxed," he said.

However, he was very critical about increment on fund being provided to the MPs. "Increasing of funds to MPs from existing amount of Rs. 500,000 to Rs. 1 million is a tragedy," he opined.

Another positive aspect of the budget he highlighted on is the provision of initiation of Industrial Perspective Plan. After the Agriculture Perspective Plan, this budget has brought forth the idea of preparation of Industrial Perspective Plan. "The government must develop such plans for different priority sectors and initiation of Industrial Perspective Plan can be considered a positive step," Dr. Pyakuryal said. He also pointed out the budget as 'ambitious'.

Salient features of budget 2000/2001

* Rs. 43.51 billion has been earmarked for regular (up by 27%) and Rs. 48.10 for development expenditure (up by 44.5%)
* On the revenue side, it is expected that Rs. 47.92 billion (up by 7.6%) will be raised through existing resources and new proposals.
* Rs. 11.84 billion has been expected to meet from Foreign aid and Rs. 19.79 billion from loan.
* Rs. 12.05 billion has been estimated as deficit amount. 
* Significant increase in the salary of the civil servants.
* Proposed to tax on the services provided by private sector health institutions, lawyers, doctors, engineers and accountants, etc.
* Proposed to tax on commercial agriculture.
* Income tax is slated at the income of more than Rs. 55,000.00 in case of a person and Rs. 75,000 in case of a couple.

SALARY INCREMENT

Post and level         Initial scale
Peons & equivalent Rs.   3000
Non-gazetted 4th Rs.   3,300
Non-Gazetted 3rd Rs.   3,630
Non-gazetted 2nd Rs.   4,100
Non-gazetted 1st Rs.   4,900
Gazetted 3rd Rs.   7,500
Gazetted 2nd Rs.   8,650
Gazetted 1st Rs. 10,500
Special Class Rs. 14,000
Chief Secretary Rs. 15,000

What's up       What's down

Cigarette Aluminum, copper and
Beer brass utensils
Alcohol Organic Tea
Tobacco Clothes
Pan parag Cotton sari
Pan masala and other
Bricks fabrics

'Border issues will be solved through silent diplomacy'

By a staff reporter

The House of Representatives on Monday passed a motion of thanks to His Majesty the King by a voice vote, thereby approving the government's policies and programmes as mentioned in the Royal Address  to the joint session of the parliament on May 19.

There was no doubt about the outcome when the motion was put up before the parliament because of the majority strength of the Nepali Congress. The motion was tabled by the Chief Whip of the Nepali Congress Binay Dhoj Chand and as expected all the opposition bench  raised their voice against the motion. Meanwhile, the parliament also rejected the amendment proposals of the opposition parties.. They had proposed about 150 amendments to the government's policy statement.

Earlier, before the voting took place, Prime Minister Girija Prasad Koirala replied to the queries raised by the MPs regarding the government's policies and programmes.

The Prime Minister said it was impossible to strengthen democracy without economic development and for that, he said, the government has proposed massive reforms in economy for poverty alleviation.

These reforms, he said include effective management of the government's expenditure and revenue mobilisation and the expansion of the private sector. The reforms will also include financial sector reform, good governance and pushing ahead with local governance.

Despite the government refusing all the other amendment proposals of the opposition parties, the prime minister said he has taken positively the demand to review the activities of the last ten years.

The Prime Minister, however, put a veiled blame about the sorry state of the country in the last ten years on the suppressed and isolated state of the past. He said the country spent the first half of the last century in a secluded and darkened state, and the majority period during the second half was spent on struggle for democracy.

"The present anomalies, distortions and deviations could be because of the sudden burst of the enthusiasm in a free and democratic society." Meanwhile, Koirala said that the government would also pursue a policy of discussion and dialogue to solve the Maoists' violent campaign along with strengthening the legal and security apparatus to fight any law and order disturbance.  According to the Prime Minister,  budget will be allocated to the Maoist-affected districts through a basket system.
He said the border problems with India and the Kalapani issue will be resolved through   'silent diplomacy' and that Nepal will not concede even an inch of land to others.

Talking about reforms in the social and economic sectors he said the government will work towards abolishing bonded labour system and a national women's commission will be formed soon. He also said the government will start reforming the education sector from this year. One thing that is significant is that the Prime Minister said the unions in the civil service will be abolished, but instead a Federation will be formed to end policising the civil service.

After the  voting on the government's policy and programmes, chairpersons of the various parliamentary committees submitted the annual reports of the committees to the parliament.

After the voting, Finance Minister Mahesh Acharya presented the economic survey of the current fiscal year as a forerunner to the budget.

According to the survey, the country will achieve a growth of six per cent this year, which is higher than the first two years of the running five-year plan. The agriculture sector will achieve a growth of five per
cent and the non-agriculture sector 6.7 per cent.

While the projected growth rate was promising, the survey says the negative aspect of the economy was the slow revenue mobilisation, increase in general expenses in comparison to development expenditure and growing rate of expenses.

The country's GDP is expected to reach Rs. 94.11 billion taking the fiscal year 2041/42 as the base.

With five per cent growth in the agriculture sector, the country's total production is expected to reach to Rs.35.44 billion and that of the non-agriculture sector is expected to reach Rs. 55.02 billion.
However, the survey says despite encouraging increase in export the country's balance of payment is increasing with exports expected to reach Rs. 32.50 billion and import reaching Rs. 69.30 billion.

Who is the real second generation leader in NC?

By Dhana Thapa

Former Prime Minister Sher Bahadur Deuba may have started the trend, but now there seems a serious threat to the two old "Godfathers" of the Nepali Congress, former Prime Minister Krishna Prasad Bhattarai and incumbent PM Girija Prasad Koirala from others also.

After the death of B.P. Koirala, these two, along with late Ganesh Man Singh had led the Nepali Congress, through the good times and the bad. But looking back in time, it unfortunately seems the leaders were united while in adverse times only. Otherwise, they were at each other's throats, as soon  as the party achieved what it had to.

First it was the re-establishment of multi-party democracy in the country and then to ensure a majority victory for the Nepali Congress in the general election. The leaders were solid in their unity till both
the objectives were fulfilled, but sadly, the "Troika" within the party could not stick together for even one year after that.

To come back to the present, with Koirala and Bhattarai not seeing eye to eye, in spite of what they say to soothe ruffled feathers, younger leaders than them are slowly emerging and starting to looking for their own place in the sun.

Maybe unknowingly, Sher Bahadur Deuba did it first, when he was elected as the party's parliamentary leader, after NC's humiliating defeat in the second general election in November 1994. Now others like Deputy Prime Minister Ram Chandra Poudel and former minister Shailaja Acharya too are in the fray to be the next Koiralas and Bhattarais of the party. These three also like to call themselves the "second generation"  leaders within the party.

But are they only the second generation of leaders who can replace Bhattarai and Koirala?

"No, definitely not," said a full time Congress activist. "In terms of popularity among his constituents and also among the party's MPs, perhaps Minister for Water Resources Khum Bahadur Khadka enjoys the most clout," he pointed out.

It is true that Minister Khadka's support enabled PM Koirala to become the Prime Minister this time. Had he not come over to the Koirala camp, it would not have been possible for Koirala to win in the parliamentary party election held two months back. Koirala polled 69 votes against 43 of Deuba.

Now with the general convention of the party approaching within less than six months' time, talk of who will support whom is again surfacing. Such queries are being raised, as it is certain that Koirala or any his supporter will definitely be challenged by some one or the other. Here again, Khum Bahadur Khadka's support will be vital, as he commands a huge support among the delegates as well. But sources close to him revealed that Khadka himself may contest for the post of party general
secretary. "In terms of support at the grassroots, leaders like Shailaja and Ram Chandra Poudel are no match for him," the source revealed. Going by conventional wisdom, it can be seen that the days of PM Koirala are already numbered and Bhattarai is virtually in retirement. So it can be analysed that the two powerful leaders within the Nepali Congress now are Sher Bahadur Deuba and Khum Bahadur Khadka.

Well wishers of the party say it will be better if these two worked together, instead of trying to go one up on each other, like Koirala and Bhattarai have done, if they really are serious of the party's and the
country's future in mind.

Khatri: Controversial appointment

By a staff reporter

The appointment of former Chief Justice Nayan Bahadur Khatri as the chairman of the Human Rights Commission has come as a surprise to many. Eyebrows have been raised further with the controversial remarks Khatri made as soon as he was appointed to this important post. Khatri said in an interview to a vernacular weekly that the panchayat system was better than the present multi-party one. It was not
surprising that several MPs raised the issue in the parliament. For many congressmen the appointment of Khatri could be a bitter pill. This is because it was Khatri, who as chief justice had sent several
congressmen such as Captain Yagya Bahadur Thapa to the gallows for attempting an armed revolution against the panchayat system. Although Khatri's appointment has raised a controversy, the good thing
is that the Commission has finally been formed. The Nepali Congress and the main opposition UML, themselves should be blamed if they have made a wrong choice. The other members of the commission are Dr. Gaurishanker Lal Das, Kapil Shrestha, Sushil Pyakurel and Indira Rana.

Appa sets another record at Mt. Everest

By a staff reporter

Appa Sherpa (left) and Babu Chiri Sherpa (right) at a reception in Kathmandu.

Only after a week of new record setting by Nepalese mountaineer Babu Chhiri Sherpa by climbing the Everest peak in just 16 hours 56 minutes, another world-renowned Nepalese mountaineer Appa Sherpa set the new record by scaling Mt. Everest for as many as 11 times.

Appa Sherpa, 44, reached the summit of the 8850-meter high Mt. Everest on Wednesday with James Williams, 46, a mountain guide from Wyoming, USA, Francoise Slakey, 37, a physicist from Washington D.C., USA, Lily Leonard, 44, from Hong Kong and nine other fellow Sherpa guides. The
climbers began their journey to Mt. Everest as a part of a nine-member American Everest Expedition led by American Robert Hoffman, 43. The team reached  their goal from the southeast ridge route.

Lakpa and Pemba, the women who climbed Mt. Everest, after being honoured in Kathmandu last week at the reception in their honour.

According to the Ministry of Tourism and Civil Aviation, Appa Sherpa was accompanied by Pemba Nuru Sherpa, 34, Arita Sherpa, 38, Ang Nima Sherpa, 42, Lhakpa Chhiring Sherpa, 30, Pemba Tharke Sherpa, 27, Kami Rita Sherpa, 23, Pemba Thoti Sherpa, 26, and Dawa Jangbu Sherpa, 26, all from
Solukhumbu district of Nepal.

With his eleventh ascent, Appa broke the record first set by Nepalese mountaineering hero Ang Rita Sherpa a few years back. However, he may not be able to keep this record to his credit for a long  time. Last week, another emerging mountaineering hero Babu Chhiri Sherpa  also equalled the previous world record by climbing Mt. Everest for the 10th time.

Appa Sherpa first climbed Mt. Everest in 1989 with famous the New Zealand mountaineer Rob Hall, who died in an Everest disaster in 1996. Before he became a professional Mt. Everest guide, he too used to work as a porter to high altitude tourists to the Himalayas.

Since Mt. Everest was first conquered in 1953, this mighty peak has been scaled for over 800 times. However, its majestic charm still attracts hundreds of mountaineers around the world every year.

Solid steps needed to clean up Khumbu region

By a staff reporter

In a bid to clean up Mt. Everest and Khumbu region, trekkers from Austria, Germany and Switzerland organized 5th Association of Trekking and Expedition Tourism (ATE) Clean up Trek 2000, in the Khumbu region of the country.

The clean up team supported by The Explore Nepal Group also presented an open letter to the government suggesting  how such tourist region can be well managed.

The 5th ATE Clean-up Trek 2000, consisting of 15-member team that undertook the 15-day project of cleaning up of the region demanded the government to take solid steps to manage garbage littered in and around the Mt. Everest and the Khumbu region. The team consisted of 42 members, which initiated the clean up  starting May 7, collected 42 sacks of garbage during their 15-day campaign trek to the region.

The inauguration of the modern communication and photographic technology exhibition organized by the Nepal Press Union on its 10th anniversary.

However, according to the organizers, the route of Lukla-Shyangboche-Gokyo-Luka, one of the most famous trekking routes in Himalayas of Nepal still contains litters scattered around the area.
"We are shocked to find garbage scattered around the route," said Christopher Sachsenmaler, an Austrian scientist who participated at the campaign at a press conference organized after their return to
Kathmandu.

Sachsenmaler and ten other trekkers from the Western European countries were part of the clean up campaign. The Explore Nepal Group, Nepal, supported the campaign. The clean up trekking campaign ended on May 22, 2000.

Speaking at the press conference, participants informed that the team members burnt the biodegradable wastes collected. Other non-degradable items like plastic, cans and bottles were collected.

The ten-point suggestion in the open letter, among others, demanded that the government as well as the NGOs working on to protect the mountain environment; think about ways to promote environmentally sound trekking, make provision of incentive for people returning the waste, start active patrolling in the region by Sagarmatha National Park officers and make travel and tour operators accountable to   pollution caused by tourists.

VC Rai no more

By a staff reporter

Captain Agan Singh Rai VC, died in a hospital in Kathmandu on the night of Saturday 27 May 2000.

Captain Agan Singh Rai was born in Asmara village of Okhaldungha District in 1920. He enlisted in the British Army in April 1941 and on completion of his recruit training joined the 2nd Battalion, 5th Gurkha
Rifles (Frontier Force). 2/5th Gurkha Rifles was part of the 48th Gurkha Brigade of the 17th Indian Division that played a major role against the Japanese forces in the Burma campaign during World War II. He won his VC for his daring action against far superior Japanese forces on the Chin Hills of Burma on 26th June 1944. An Indian Army pensioner, he retired in 1971 as Subedar Major and was granted the Honorary Rank of Captain. The deepest sympathy and condolences of the British Government, British
Embassy and British Gurkhas Nepal go to his bereaved family, says a press release of the British Embassy here in Kathmandu.

Impact of highland ecosystem

Book: Dynamics and Development of Highland Ecosystem (Highlights on the Hills in Far-Western Nepal). Authored by: Dr. Ek Raj Ojha. Published and distributed by: Walden Book House, Kathmandu. Published in: November 1999. Printed at: Jagadamba Press, Lalitpur. No. of Pages: 316. Price:
Not mentioned.

As suggested by the title, the book in review deals basically with the importance of highland ecosystem and its impact on the dynamics of development. In making development endeavors the ecosystem approach has been found to be very effective. In this connection, the author, who has already six books to his credit, presented a case study of highland ecosystem in the Far-Western development region of Nepal.

Highlands constitute the major portion of Nepal's total area, it also covers almost a quarter of the Earth's surface. Similarly, it serves as a complete habitat for about 10 percent and support nearly 50 percent of
the world population; supplying various resources such as fuel, fodder, timber, water, energy, food, minerals and recreation. Moreover, highlands are the most diverse, dynamic as well as fragile ecosystems specially in the tropical region where their slopes are relatively much more steep.

In this context, the author has rightly chosen the case study of highlands of Far-Western development regions of Nepal. This very topic was the one that he undertook for his doctoral dissertation during his
study at Asian Institute of Technology, Bangkok.

Human beings and their actions are the most powerful factors that influence the dynamics of highland ecosystems. In some cases they are disturbed from people's excessive habitation and intervention while in some others, maintenance is hampered for the lack of adequate labor force. As such, the book has emphasized on the need for a healthy interrelationship among socioeconomic, political and environmental factors that are sometimes delineated as human, spiritual and natural
components of the ecosystem.

The writer also mentions that despite the realization, especially since the early 1970s when the country adopted the regional planning approach to development, that the Far-Western region is the least developed region of the country, it has remained in the same status until now. Although it did receive considerable attention in the last few decades, the corresponding care and emphasis that would be essential have yet been missing.

This book, dealing with the dynamics and development of remote and complex settings of human habitation; may be most appealing to development planners, policy makers, environmentalists, agriculturists, conservationists, economists, social economists, anthropologists and extension workers.

Researchers, teachers and students involved in the above subjects may find it a significantly useful reference document. Some advanced and progressive farmers and learned tourists too might consider the book substantially beneficial. It should serve as a source of valuable insights for people interested in classical, traditional and indigenous knowledge systems and informal community-based institutions.

-Reviewed by NV