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Huge cut in Nepal palace expenditure

Ameet Dhakal

KATHMANDU: Finance Minister Ram Sharan Mahat on Wednesday proposed $1.9 billion budget for 2006-2007 fiscal year, a major feature of which is a massive cut in the royal palace expenditure. Mr. Mahat has slashed the palace budget by 70 per cent compared to the actual expenditure of the last year and has now allocated only $2.9 million. It is about 55 per cent of the last year's original allocations.

The budget has also put a break on the rising trend in the security budget for the last few years. It will be actually less by $3.3 million this year.

Presenting the budget in the House of Representatives, Mr. Mahat said the budget gave high priority to peace, rehabilitation, reconstruction and rural development.

King might face probe

He also allocated $16.8 million to conduct Constituent Assembly elections and $19.2 million for reconstruction and rehabilitation.

A member of the High Level Probe Commission (HLPC) on Friday said it might collect statements from King Gyanendra for his alleged role in the atrocities committed on the protestors during the pro-democracy uprising in April. Harihar Birahi, member of the HLPC, told journalists, "King Gyanendra has taken many crucial decisions as the chairman of the Council of Ministers and we want to ask him about the intention and legitimacy of those decisions."

Koirala back home

Prime Minister Koirala, who was admitted to hospital 10 days ago with respiratory problems, returned to his official residence on Wednesday. The octogenarian leader was diagnosed with pneumonia. He also suffers from chronic bronchitis and injury to the left ribs. Mr. Koirala still suffers from oxygen saturation problem and is put on oxygen supply for a few hours everyday.

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