Kathmandu (AsiaNews) – The first budget presented by Nepal's first post-autocratic government is full of ambiguities, short-sighted as far as farmers' problems are concerned, which are key to ensuring peace with the Maoist guerrilla and guaranteeing the country's stability, this according to many Nepali social analysts and economists.

Finance Minister Ram Sharan Mahat yesterday tabled before parliament the budget for fiscal year 2006-2007 totalling 144 billion rupees (€ 1.6 billion, US$ 2 billion).

It will "help revive the nearly defunct education and health systems, but ignores agriculture," said economist Chandrakishore.

In practice, this means that the government is going to invest 52 billion rupees in social spending, including 22.6 billion rupees on education—brought to its knees by the civil war—and almost 10 on health care. By contrast, agriculture is going get just under four billion rupees.

"Such an amount is nothing more than peanuts for a sector upon which 80 per cent of our population rely," Mr Jha said.

"The government," he explained, "must understand that farmers' problems top the list and that their dissatisfaction can breathe new life in the country's Maoist movement".

"I am afraid the Maoists don't really want peace with the government and that the king might try to regain power indirectly, exploiting public dissatisfaction," said Robert Thulung, a Christian sociologist.

Military spending is another bone of contention. Allocations are set at 10 billion rupees this year, "half of last year's," said Jai Prakash Agarwal, a Hindu activist. "However, the cuts are window-dressing. Anyone in power knows that their survival depends on the armed forces and that rubbing them the wrong way is not a good move. Money for them will come out in some other way."