Nepal govt announces budget; cut royal expenditure by 45 pc

Kathmandu, July 12 (UNI) The Nepal government today announced it's annual budget reducing the Royal expenditure by 45 per cent.

Finance Minister Ram Sharan Mahat presented Rs 143.91 billion annual budget for the fiscal year 2006/07.

''A total of Rs 749.1 million was released to the Royal Palace.

Of this amount, Rs 405 million was initially allocated in the different headings of the budget and additional Rs 344.1 million was released during the year. A total of Rs 219.7 million has been allocated to the Royal Palace for the fiscal year 2006/07,'' said Dr Mahat adding that 45 per cent Royal expenditure has been reduced.

The government said the budget mainly focused on strengthening democratic system and establishing peace through an election to a constituent assembly in the country.

It has allocated Rs 1.25 billion to conduct the constituent assembly elections.

The government has also increased the annual budget granted to VDCs from Rs 500,000 to Rs 1 million. It has allocated nearly Rs 8 billion for road construction and Rs 3.96 billion for agricultural development while Rs 100 million will go for women empowerment programmes and Rs 920 million have been allocated for judicial administration.

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