Nepal focuses on rural development, cuts Royal income
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There is a lot of optimism in Nepal that the shaky peace process, born out of a ceasefire some months ago, will lead to improved security in rural areas as well as more public money for development projects that the country sorely needs.
The Nepalese government’s US$ 1.9 billion “peace budget” for 2006-07 will give a fillip to rural development and leave the monarch of the newly-declared democratic republic with less cash in the current fiscal year. Presenting the budget to parliament in the Nepalese capital Kathmandu on July 12, Nepal’s Finance Minister Ram Sharan Mahat said that around US$ 17 million had been allocated to the Poverty Alleviation Fund, which aims to benefit over 50,000 low-income households. Mahat said the interim government was committed to rural advancement at a time when Nepal was moving towards peace after several years of civil unrest. “Economic activities, suspended during the period of conflict, insecurity and absence of peoples’ representatives, are waiting to pick up. The rural areas need new opportunities for employment and income-generation,” the minister said, referring to the impact of the decade-old conflict between Maoist rebels and the government. The newly-created fund will implement 667 income-generating programmes and 379 community infrastructure development programmes in the poorest 25 districts of the country. The minister added that around US$ 54 million had been set aside for irrigation development, a key sector in a country where agriculture remains a major economic activity, employing over 76% of the population. In addition, around US$ 122 million has been earmarked for rural infrastructure development, including building roads in 20 remote districts of the Himalayan kingdom. In all, the government says it has allocated around US$ 700 million for education, health and drinking water supply projects. Around US$ 24 million has also been earmarked for rural electrification, to benefit over 200,000 poor households. There is a lot of optimism in Nepal that the shaky peace process, born out of a ceasefire two months ago, will lead to improved security in rural areas as well as more public money for development projects. Meanwhile, the interim government has cut King Gyanendra’s allowance by 70%. Mahat said the royal palace would get US$ 3.1 million for 2006-07, down from US$ 10.5 million in the fiscal year about to end. The move follows stripping the king of most of his powers, including crucial control over the army. SOURCE: Infochange India News and Features |
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