Nepal

Nepal Monthly Update - July 2012

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This report is issued by the UN RCHCO with inputs from its UN Field Coordination Offices and other partners and sources. The report covers July 2012. The next report will be issued the first week of September 2012.

Political update

More than two months after Nepal’s Constituent Assembly (CA) was dissolved at midnight of 27 May without promulgating a new constitution, the political and constitutional crisis in the country continues as Nepal remains without a Legislature/Parliament. The Government’s declaration to hold fresh CA elections on 22 November 2012 has been strongly opposed by the major opposition political parties, mainly the Nepali Congress (NC) and the Communist Party of Nepal – Unified Marxist Leninist (UML). As the Government could not undertake the necessary legislative and constitutional provisions allowing for elections in November, the Election Commission (EC) formally announced that it would not be possible to hold elections on such a date. The Government has formed a ministerial committee to look into new option for holding elections. Towards the end of the month, there was more discussion amongst the parties regarding elections for a CA or a parliament as a preferable option for ending the current political and constitutional crises. It is clear that the parties, whatever decision they take to expedite the way forward, will have to redouble their efforts to salvage the gains of the last four years of the CA and to complete constitution writing.

As a consequence of the current political crisis, the demobilization and integration of Maoist Army personnel into Nepal’s security forces has stalled just as it was on the verge of completion. The parties’ differences on entry criteria and norms have served as the main obstacle threatening the partial failure of this crucial component of the Comprehensive Peace Agreement. In other developments, the Government made public a ‘special budget’ of Rs. 161.02 billion on 14 July through an ordinance that would allow the Government to spend a third of the current fiscal year’s1 (2011-2012) expenditure for the next four months. The amount will largely cover the regular expenses of government but will not allow for programs of economic expansion.