[Nepal] PAF hails 'pro-poor' budget

from Nepal News

The Poverty Alleviation Fund (PAF) has welcomed the budget presented by Finance Minister Dr Ram Sharan Mahat for the fiscal year 2006/07 for its special focus on poverty alleviation, inclusive development, upliftment of Dalits, Janajatis and marginalized communities and special programmes for Karnali zone.

The PAF has also expressed appreciation for allocating Rs 1.25 billion for the fund, to be invested in community sub-projects, which is aimed at poverty alleviation.

"The budget allocation and recognition towards PAF demonstrates government's true commitment for the marginalized communities excluded by the reason of sex, gender and ethnicity," a press statement issued by PAF on Thursday quoted Raj Babu Shrestha, Executive Director of PAF, as saying.

Finance Minister Mahat presented Rs 143.91 billion budget for the year 2006/07. He said the budget was mainly aimed at institutionalizing democracy, election to constituent assembly, reconstruction and rehabilitation.

The Finance Minister allocated a total of Rs 52 billion for the social sector including Rs 22.66 billion for education, Rs 9.3 billion for health, Rs 6.19 billion for drinking water, Rs 8.81 billion for the overall power sector, Rs 4 billion for irrigation and water-induced disaster prevention programs.

Similarly, Rs 7.71 billion has been earmarked for road construction and maintenance, Rs 3.96 billion for agricultural development and Rs 920 billion for judicial sector. Similarly, programmes worth Rs 100 million will be initiated for empowerment of women.

The PAF further said that through the allocated budget of Rs 1.25 billion, it would implement 667 income-generating programmes, 379 community infrastructure development programmes, and 1,714 creative programmes in 1,200 VDCs of 25 districts including 7 districts of far-western region, 10 districts of mid-western region.

About 50,000 low-income households are expected to benefit from the programme.

The annual budget has also mentioned that employment and income-generating activities will be created by implementing income generating infrastructure development and programmes based on new concepts in all five districts of Karnali zone under the Fund.

Established through an ordinance in 2004, the PAF is directly linked with the’ third pillar’ of the tenth plan, i.e. ‘the targeted programme’ which emphasizes the need for special programmes to bring the excluded communities into the mainstream of development.

Starting from the fiscal year 2004/05, the PAF started its programmes in six pilot districts - Siraha, Ramechhap, Pyuthan, Darchula, Kapilbastu and Mugu, while new set of 19 districts were added from the fiscal year 2005/06