MACHHAPUCHEHHRE BANK LTD TO BEGIN OPERATIONS NEXT MONDAY Kathmandu, 2 July: Machhapuchehhre Bank Ltd and Standard Finance Co. will resume banking activities from 9 July following completion of their merger, an announcement said. The merged bank will operate under the name Machhapuchehhre Bank Ltd. Nepal Rashtra Bank has given final permission for the merger, an announcement added. Nnnn MATRIKA YADAV TO JOIN BAIDHYA Kathmandu, 2 July:: CPN (Maoist) coordinator Matrika Prasad Yadav today [Sunday] said that his party was ready to unite with the recently formed the CPN-Maoist party led by Mohan Baidhya should he amend his view regarding the issues of Madhes liberty, The Himalayan Times reports from Siraha. . Speaking at a programme organised by the CPN (Maoist) District Committee, Siraha, he said, “The views of Baidhya regarding Madhes are wrongly placed,” and adding, “If he considers Madhes issues positively, then we are ready to join with him.” The CPN (Maoist) leader said Baidhya has split from the Unified CPN-M due to his personal differences with party Chairperson Pushpa Kamal Dahal and not due to theoretical difference regarding the welfare of people. He went on to say, “Baidhya stayed in the UCPN-M till he got Constituent Assembly allowance, but split after the allowance stopped. That reveals his character.” Yadav pointed out the importance of revolutionary government in the present situation of the country. He blamed the UCPN-M, UML and Nepali Congress for fighting with each other for the sake of power. These parties, he went on to say, are not interested to promulgate constitution in favour of people before CA’s dissolution but now are involved in power game. He urged the people to join his protest programme, which would be staged after paddy plantation season. The welfare of people is not possible until and unless the revolutionary government is formed, Yadav added. Yadav termed the declaration of polls by the incumbent government as meaningless. He said political parties would be involved in purchasing votes, capturing booths and corruption would be on rise after the formation of government even after election. nnnn AGRICULTURE TO BE PRIORITIZED IN BUDGET Kathmandu, 2 July: The government will bring new programmes to modernise and commercialise agriculture, coupled with an emphasis on infrastructure in the budget for fiscal year 2012-13, The Himalayan Times reports. “Agriculture and infrastructure will be key priorities in the budget that will also help boost the confidence of the private sector,” said caretaker finance minister Barshaman Pun while addressing entrepreneurs here today. The government is also serious about creating a business-and investment-friendly environment, the finance minister said, adding that the government is trying to forge political consensus to bring a full-fledged budget on time. “A common minimum economic agenda could be key to political consensus,” he added. The political parties must forge a political consensus soon to bring a full-fledged budget through a common minimum economic agenda on time, said acting president of Confederation of Nepalese Industries Narendra Basnyat. Despite the political instability, policy stability could help attract investment in the country, he said, adding that the budget for next fiscal year should address politically motivated labour problems, security of investment, and effective implementation of policies. The trend of the budget in the last four years seems to be more distributive than productive, said Basnyat. “The government’s inability to spend capital budget and over spending of recurrent budget apart from rising non-budgetary expenses is not good for the economy,” he said, adding that the ballooning trade deficit and over dependency on imports that has fuelled revenue is also not a good sign. The government must ensure smooth supply of diesel — in absence of regular electricity supply — and a separate feeder for an industry with over 50 employees operating outside the industrial zone could help promote domestic industries, the entrepreneurs said, asking the government to come clear on whether to promote domestic industries or trading. “The current tax structure is promoting trading and destroying domestic industries,” they blamed, asking the Finance Ministry to ensure a level playing field for domestic industries, if the government is in support of entrepreneurship and creating employment in the country. “The budget should reduce corporate tax and cost of production to generate employment in the country and to make domestic products competitive,” the entrepreneurs urged, blaming the government for being more focused on revenue and promoting imports, which is not good for the economy in the long run. However, the finance secretary Krishna Hari Baskota defended that the government is not revenue-centric. “The tax to Gross Domestic Product (GDP) ratio is still only around 15 per cent,” he said, adding that the government has to either borrow domestically or depend on foreign aid to even meet the recurrent expenditure that are regular administrative expenses and salaries. Of the total budget of Rs 384.90 billion for the current fiscal year, the government’s revenue target stands at Rs 242 billion. Similarly, it has earmarked Rs 266 billion under the recurrent expenditure which means that there is still a shortfall of Rs 24 billion for the regular expenses and to pay the salaries of the government employees. “The government must be able to meet its recurrent expenditure from its own r Nnnn ORPHANED CHILD ADOPTED BY ARMY CHIEF RETURNS TO VILLAGE Kathmandu, 2 July: After Army Chief Chattraman Singh Gurung took him in custody, Chowkman Praja, a two-year-old boy of Chaukidada, Kabilash, is now a changed child. The boy, who was in army fatigue, saluted villagers with panache when he visited his village on Sunday, Chandni Hamal writes in Republica from Chitwan.. The suave child also had a word of advice for the villagers: “Don´t eat poisonous mushroom.” Gurung, his wife along with the child had reached Chaukidada for the 13th day ritual of the child´s dead parents. The army chief had taken custody of the child after both his parents died after consuming poisonous mushroom over a week ago. Villagers envied Praja for his new found life. Ironical that the death of his parents turned out to be a blessing for the poor child, Praja now has polished mannerisms and looks clean and tidy. He also seems fearless. “Look at Chowkman! He is the same kid with dirty black nail and ears filled with earwax. It took doctors four days to clean him up,” Gurung told villagers. Gurung also asked the villagers not to consume wild mushroom and to maintain cleanliness. “Be careful, keep your homes and village clean and eat healthy food,” he suggested to the villagers. “He may not even recognize us when he grows up,” said Praja´s grandmother Sansari, 73. “I wish he returns to the village as a great man in future.” She, however, said she would not give Praja´s six-month old brother to anyone´s care. When news about Praja´s arrival spread in the village, the entire village had gathered at a local school to have a look at the child. “He has totally changed. Had he stayed in the village, he would have looked like one of us,” said Maya Gharti, a local. nnnn GOVT. DOLE TO CRONIES AGAINST ELECTION CODE Kathmandu, 2 July: In blatant violation of the code of conduct set by Election Commission (EC), the caretaker government led by Baburam Bhattarai is found to have been distributing financial assistance to individuals close to the UCPN (Maoist), Kosh Raj KOirala writes in Repubica. . Sources close to Prime Minister´s Office said a cabinet meeting held on June 15 decided to provide Rs 500,000 to four Maoist cadres purportedly for medical treatment. As per the decision the four will receive the money through the Ministry of Health. Sources said the cabinet decided to provide Rs 200,000 to Nawaraj Budhathoki from Chaukhabang of Rukum. Likewise, Mahesh Kumar Mahara a.k.a. Sudhir from Alitaal of Dadelhdura district, Bam Bahadur Thapa from Babarkot of Dadeldhura, and Amrit Thapa Magar from Chainpur of Chitwan district will receive Rs 100,000 each for medical treatment. The decision of the Prime Minister´s Office comes against the election code of conduct as CA elections have already been announced for November 22. Clause 12 of the code of conduct, which was issued on June 6, bars the government from providing financial assistance, donation and grant of any sorts to individuals or institutions. Talking to Republica, Election Commissioner Ayodhi Prasad Yadav, who also heads the code of conduct monitoring committee, said the EC is not aware about the government´s disbursement of financial assistance. "We will take necessary action if we receive complaint" he said. The caretaker government breaching its jurisdiction has been involved in transferring and promoting security personnel and making appointments in various government offices drawing concerns from political parties outside the government. Earlier, the EC had directed the government to scrap its decisions to transfer five AIGs and 19 DIGs. The commission also sought clarifications from the Ministry of Information and Communications over its decision to demote Acting General Manager of state-owned Nepal Television Dipak Mani Dhital. Prime Minister Bhattarai was highly acclaimed from various quarters as he announced various austerity measures including ban on distributing money from state coffers in the name of financial assistance shortly after assuming his office in last August. But the austerity measures he introduced by riding a Nepal-assembled Mustang Max vehicle proved to be a hollow promise after he decided to form a 49-member cabinet, the largest ever in the history of Nepal, and failed to check corruption in different ministries under his cabinet. nnnn ________________________________________