Maoist boycott of the budget vote has been accompanied by demonstrations and sit-ins across the country. Yesterday, they took to the street in Nepal’s cities and blocked 75 district administrative offices to demand guerrillas be integrated into the national army. They also accuse the government of violating the rights of the population.

To avoid clashes, police issued a state of alert for the whole country.

“The country is gradually emerging out of the global recession, but political instability has induced foreign companies to put their investments on hold,” economist Biswambhar Pyakurel said. “About one third of all local industries are closed.”

Opposition boycott over the budget is also hurting the Maoist party. “If the government runs out of money, current spending to maintain guerrillas in camps and development plans to integrate them in society will stop,” former Economy Minister Ram Sharam Mahat said.

When the Republic of Nepal was founded in 2006, Maoist guerrillas were supposed to disarm and be absorbed into the regular armed forces. Since then, little has been done. About 19,000 Maoist fighters are still waiting in camps.