KATHMANDU, OCT 29 - As the advance budget expires in mid-November , the ruling and opposition parties are all set to engage in a fierce wrangling .

While the government has stepped up preparations to bring out a full budget through an ordinance in a bid to prevent a looming economic crisis, opposition parties are hell bent on stopping the Baburam Bhattarai-led government from announcing the fiscal estimates.

The Prime Minister's Political Advisor, Devendra Poudel, said the government has started efforts to forge consensus among parties on a full budget. He said the government is holding discussions on both the legal and economic consequences of non-announcement of a budget by mid-November .

"No political party should create a nuisance over the budget. The failure to bring about the budget will have negative consequences on the country's economy," said Poudel. "There is no alternative to announcing a budget, hence we are optimistic of consensus."

The Nepali Congress and the CPN-UML have demanded that the next budget be brought forth by a new national consensus government. They are insisting on a package deal covering the date of the next Constituent Assembly elections and the formation of a national unity government, ahead of a budget.

"If the parties fail to reach a compromise by mid-November , confrontation is inevitable," said former Finance Minister and CPN-UML leader Surendra Pandey. "The President [Ram Baran Yadav] has already made it clear that he will not approve a budget without political consensus. So far, chances of agreement among parties are remote."

Pandey said the President might dismiss the current goverment if there was no consesns and then ask parties to reach an agreement on a political roadmap and a budget by forming a new government.

Addressing a gathering of the business community in the Capital on October 13, the President had publicly called on parties to strike a package deal on a date for fresh elections, a candidate to lead the national unity government, a budget and appointments to vacant posts in constitutional bodies. "The president will approve a budget through ordinance only if there is understanding between parties," said Yadav's Press Advisor Rajendra Dahal.

On the other hand, NC leader Minendra Rijal said a "government of national dispute" had no authority to announce a budget. "Politics will now take either the path of consensus or confrontation," he said.

Meanwhile, President Yadav held separate discussions with NC President Sushil Koirala, UML Chairman Jhala Nath Khanal and UCPN (Maoist) Vice Chairman Narayan Kaji Shrestha on Sunday. Inviting the top leaders to Sheetal Niwas, Yadav stressed the immediate need to end the ongoing political impasse.