The political deadlock has delayed the budget, but a standby Appropriations Bill will be passed next week.

The formation of a Maoist-led government will take at least another two weeks, and no one knows what its priorities are. The budget is usually passed by 16 July, usually after debate on policies and programs.

The bill will allow for one-third of the current budget of Rs 163 billion to be released so that the state can function until a government is formed. However, the bill has no targets for revenue and no new tax decisions.

The Maoists have not taken part in the budget planning exercise, but have bluntly warned officials not to make decisions without their nod. The NC and the UML also haven't consulted with the Maoists on the bill.

"This is a shame for the country that they can't work together," says economist Bishwambhar Pyakurel.

The Maoists are waiting to push through populist spending like pensions for women and debt-forgiveness
to farmers.

"They are being over-optimistic on the revenue side," said one official, "it's hard to see how all this is going to be
paid for."

The Maoists also want development expenditure disbursed through the YCL and government-run fair price shops. These ideas are not popular with Nepal's donors who have warned of aid cuts.

Kiran Nepal