Nepal budget to cut Gyanendra's funds

KATHMANDU: A year after his fall from power, Gyanendra's fortunes continue to decline with the new budget set to drastically reduce the allowances of the palace. On the other hand, the Maoists' red star is touching new heights with chief Prachanda readying for his maiden trip abroad. On Saturday, the 51-year-old rebel chief heads for Switzerland for a week-long sojourn when he will interact with Swiss government representatives, intellectuals and members of the public.

The rebel leader's interaction with European officials comes after ex-US president and Nobel peace laureate Jimmy Carter met them in Kathmandu and urged the US to engage them in dialogue. The Maoists' diplomatic blitzkrieg in the West comes after Gyanendra's overtures abroad failed. During his 15-month regime, Gyanendra was snubbed by US president George Bush, which resulted in his not attending the UN General Assembly in New York while Nelson Mandela pleaded other engagements and declined to meet him in South Africa. A fresh blow will befall the palace on July 13, when finance minister Ram Sharan Mahat announces the budget for 2007-08. A local daily, Annapurna Post, on Thursday carried an interview with the minister, quoting him as saying that the new budget will allocate just about NRS 30 million for the royal family. Last year, the palace was allocated about NRS 210 million, substantially down from the nearly NRS 6600 million that Gyanendra spent during his own reign.

The Maoists and the Marxist-Leninists had been putting pressure on the government to reduce the royal allowances in the new budget, pointing out that according to the new constitution, promulgated in January, Gyanendra has no official role and therefore, should not have allowances too. The budgetary allocation is meant for “administrative” costs - which means paying the palace staff, maintenance and power and water bills. The palace has been treating the cuts with disdain. So far, it hasn't given the government an account of its properties, so that they can come under the tax bracket.

Source: The Times of India, June 30, 2007