Nepal Maoists table first budget

By Charles Haviland
BBC News, Kathmandu

The budget contained grand promises and help for the poor

The new government of Nepal, which is led by Maoist former rebels, has presented its first national budget.

Some of its measures are likely to be highly popular, including the cancellation of debts and a series of allowances for the poorest people.

Others are likely to provide a measure of reassurance for people believing in capitalism but afraid that the Maoists may lead the country towards communism.

The Maoists came to power in April after a convincing election victory.

Payments rescinded

The budget was another transforming moment in Nepal.

For a decade Baburam Bhattarai, an austere intellectual, was the hardline underground voice of Maoist rebel ideology.

The Maoists say they want to improve agricultural output

But today, as finance minister, he delivered his budget speech, seeking to start on delivering some of the Maoists's promises.

Disadvantaged people, including widows, disabled people and so-called untouchables, will get a monthly allowance of about $8 - a large sum in a Nepalese village.

There will be four extra years of free education for some poor children.

Many bank loans taken out by the poorest people will be cancelled, or interest payments rescinded, at the government's expense and families of those who died or were made to disappear during the 10-year war will get compensation of around $1,500.

The Maoists insist they see a role for the private sector and Dr Bhattarai says there will be more competition in transport provision.

He has also made grand promises: that this coming year will be a year of construction while 2011 will be designated a year of tourism.

He said that fallow land will be cultivated and idle industries resuscitated.

This budget is 40% more costly than last year's.

It will impress many people, including perhaps the senior Indian politicians who the new Maoist Prime Minister, Prachanda, has been visiting this week.

There is, however, a debate now happening within the Maoist party about which path the country should follow.

Prachanda and hardline leaders have actually been saying they do not like the present system of parliamentary democracy.

One weekly paper has compared Prachanda to the elephant mentioned in a well-known Nepalese proverb.

It has tusks on the outside for show - in this case, soothing references to the free market and democracy.

But the real chewing teeth are concealed inside - that is, the statements against parliament and in favour of what the Maoists call a "people's republic", communist-style.