Nepal fails to present annual budget in parliament

Kathmandu - The Nepal government on Thursday failed to present the annual budget in parliament after the Madhesi Morcha, a bloc of opposition parties, obstructed the proceedings.

The Madhesi Morcha, the fourth-largest grouping in parliament, has been pressing the government to incorporate its demands in the budget.

'The government has rescheduled the budget announcement for Friday,' said Nepali Congress leader Ram Chandra Poudel. 'We will hold talks with the Madhesi Morcha in the morning (Friday) to try to strike a deal.'

The budget announcement was also delayed last year because of differences between various political parties, which lead to violence as Maoist lawmakers attacked their colleagues. The government then introduced the budget through an ordinance.

The budget announcement delays have impacted the economy and stalled development work.

The Madhesi Morcha has demanded compensation for more than 20 people killed in 2007, as the parties in Nepal's southern plains launched a revolt against 'centuries of marginalization' by the government.

Nepal is also up against a deadline of writing its constitution by the end of August. The Constituent Assembly was elected in 2008 to write a new constitution for the Himalayan nation.

The term of the Constituent Assembly was extended in May after politicians failed to meet an earlier deadline. 

Jul 14, 2011, 18:20 GMT