Nepal to cut Palace, Army budget

Kathmandu, May 25 (UNI) The reinstated Nepal government has decided to cut the Palace budget and investigate the expenditure incurred during the King's public felicitation visits to different places.

To questions on the King's expenditure during his visits to various places raised by the parliametarians, Finance Minister Ram Sharan Mahat said the government would cut the budget of the Palace and the Army.

''Unnecessary expenditure would be probed and the administrators penalised,'' The Himalayan Times quoted Mr Mahat as saying.

The government would soon announce a new ''Loktantrik Economic Policy'', he said.

The King had visited different districts during his rule to get felicitation and a lot of expenditure was incurred, the MPs said.

New recruitment in the Army would be stopped to slice security expenditure, Mr Mahat said.

The MPs also questioned the announcement of the Cabinet expansion by the Palace this week.

According to the new regulation, the Prime Minister should announce the expansion of the Cabinet and fully exercise other executive powers.

The MPs also asked the Prime Minister to publicise the talks held between him the the King on Sunday.

UNI XC VJ HT1555