KATHMANDU: UCPN-Maoist Chairman Pushpa Kamal Dahal and Nepali Congress President Sher Bahadur Deuba held a meeting at the former's residence in Lazimpat on Thursday.

During the meeting, Dahal told Deuba that forming a new government under his party's leadership was difficult in present situation.

Dahal said that he could not presuade his party leaders on forming the new government under his leadership.

Dahal, however, thanked the Nepali Congress for the proposal.

"I could not persuade my friends. Thank you all for the proposal. New government could not be formed under my leadership at present," he said.

He said that the new government could not be formed at present as the Parliamentary Regulations contained a serious error.

Dahal opined that the incumbent KP Sharma Oli-led government should be allowed to present its policy and programme and the budget for the new fiscal year.

Earlier in the morning, CPN-UML Vice-Chairman Bamdev Gautam had met Dahal on behalf of the party and asked him to let the government present the policy and programme and the budget.

In a meeting last night, CPN-UML leaders including Prime Minister Oli had told Dahal they and ruling allies will support Dahal as the new prime minister after the budget is brought in.