Finance Minister Dr Ram Sharan Mahat on Friday disclosed that the government has allocated Rs. 125 million for the royal palace in the newly unveiled budget of Rs 168.99 billion for the fiscal year 2007/08.
Speaking in a press conference at the Ministry of Fianace, Dr Mahat said the King and the royal family would get Rs 25 million as allowances and Rs 20 million for repair and maintenance of the palace. However, this year, the amount will be disbursed through the Prime Minister's Office instead of sending it directly to the palace.
Of the total royal budget, Rs 80 million will be utilised in paying employees of the palace.
Dr. Mahat also informed that the budget for the employees working in the palace has been transferred to the Ministry of General Administration.
Dr Mahat also claimed that a significant cut has been made in the budget for the royal palace and royal family members.
" Although the King no more enjoys the right of the head of state or any other cultural rights, an institution still lies there and it's the state responsibility to provide budgetary support," Dr Mahat said.
In the budget 2006/07, the government had allocated the allowance of Rs 32.7 million for the King, queen, crown prince, crown princess and the queen mother.