'Inflation will rise, development works affected if budget gets delayed'

An economist has warned that inflation will go up and development works will be affected in the country if the budget is delayed owing to the continued obstruction of the House by the Maoists since May 5.

Chirinjibi Nepal, former chairman of the Security Board of Nepal, told a leading daily that an advance expenditure bill the government is preparing to introduce for the second time in a row will only be sufficient to disburse salaries to government employees.

He also said that failure of government to present its annual budget will mean that all the development works will be adversely affected and the inflation that is hovering around 12 percent will go up, leading to prices hikes.

It does not bode well for the country's economy, he said.

He also warned that Nepal may also lose its credibility before the international community if its fails to make development expenditures. nepalnews.com