ECONOMIC SYRVEY REPORT BEING RELEAED SATURDAY MORNING AHEAD OF NATIONAL BUDGET Kathmandu, 14 July: Economic survey report for the year 2068/69 is being released by the government Saturday morning a news conference. Governments release the report normally one day ahead of presentation of the annual budget. New fiscal year 2069/70 year begins Monday. Prime Minister Baburam Bhattarai and Finance Minister Barsha Man Pun briefed President Dr.. Ram Baran Yadav Thursday night. Without parliament, government is bringing a budget through ordinance not exceeding one-third of money set aside in the current fiscal year. The Baburam Bhatarai was planning to announce a complete populist budget after declaring now uncertain constituent assembly (CA) elections 22 November with official declaration of sweeping the vote by two-third majority to promulgate a constitution of its choice. nnnn MEDIA GOOGLE “Round table talks or the revival of CA could be the options for drafting constitution. But for that the present government should resign and pave way for consensus.” (UML leader Madhav Kumar Nepal, The Kathmandu Post, 14 July) NAC IN SETLEMENT DISUPTE WITH NAC Kathmandu, 14 July: Nepal Airlines Corporation (NAC) has formed a committee to study the actual payment record of the corporation to Tribhuwan International Airport (TIA), The Himalayan Times reports. The committee has been formed under coordination of deputy managing director of the corporation Ganesh Thakur and will study the actual outstanding dues to TIA. It will also organise a series of meetings with representatives of TIA to bring out the actual payment data and settle the dispute between them. “We will organise a meeting with TIA representatives next week and will discuss the issue related to outstanding dues,” said finance director of NAC Keshab Sharma. “The issue has been raised due to mismanagement of the payment data,” said Sharma. According to Sharma, there have been some payments made for which NAC does not have the exact records from the past. TIA has claimed for some dues from NAC that date back to 2003– 04. However, according to NAC, it has photocopies of some payment receipts but TIA is not ready to accept it. Meanwhile, spokesperson at NAC Saroj Kasaju said committee along with Civil Aviation Authority of Nepal (CAAN) and TIA will jointly arrange a meeting to settle the dispute. “TIA is also positive towards settling the dispute. It has provided some more time for NAC to clear the outstanding dues and confirm the past records of payments,” said Kasaju. According to TIA, it has yet to receive payments of Rs 360 million from NAC. “There is an outstanding due of about Rs 360 million that NAC should clear,” said general manager of TIA Ratish Chandra Lal Suman. Out of Rs 360 million, NAC has already paid about Rs 150 million, state NAC officials. “If NAC fails to clear its outstanding dues we will have to take further action,” said Suman. Nnnn FOOD PRICES SOAR Kathmandu, 14 July: Disruptions in supply and increased fuel prices once again fuelled the price rise of food items in June after going through a moderation in the past few months, The Himalayan Times writes.. The series of strikes nationwide due to the conflict regarding the structure of a new federal Nepal brought about a large scale disruption in supply in April and May hitting food prices hard. Likewise, Nepal Oil Cooperation’s move of increasing diesel price by Rs four to Rs 93 per litre will affect transportation cost which will in turn put more pressure on prices. “Such a continuous increase in fuel prices is a major concern for food security due to its likely contribution to the rise in transportation costs, thereby raising food prices,” according to a joint report published by UN World Food Programme (WFP), Ministry of Agriculture Development MoAD), Federation of Nepalese Chambers of Commerce and Industries, and Forum for the Protection of Consumer Rights - Nepal. Increasing food prices have also started pushing the overall inflation up since last couple of months. Index of food and beverages group increased by 7.1 per cent during first 10 months of the current fiscal year, according to the macroeconomic report published by Nepal Rastra Bank which a month back was a mere 4.6 per cent. Moderated food inflation was attributed for the general price level staying close to the target level of seven per cent but with the increasing food prices, national inflation might also see an upward trend once again, pointed out vice president of Forum for the Protection of Consumer Rights - Nepal Ramesh Chandra Poudel. Moreover, a delay in the monsoons combined with insufficient fertilisers has affected timely plantation of paddy across country and the growing maize mainly in the hilly belt, indicating a negative outlook for summer crop production as compared to last year. The index of non-food and services group increased by 10.1 per cent during the review period that stood at 4.2 per cent last year. In retail markets regularly monitored by MoAD and WFP, most prices showed a slightly upward trend over the past one month. National average price of coarse rice went up by 1.9 per cent in a kilo. Likewise, prices of soybean oil and red potato went up by 1.4 per cent and 1.7 per cent in review period. Price index of vegetables went up by 27.8 per cent while it had increased by 48.3 per cent during same period last year. nnnn