Kathmandu - Parts of Kathmandu were tense on Saturday after one of the major festivals was halted over a government decision not to give money for animal sacrifice which is part of centuries-old tradition.

Thousands of people from Newar community, considered the original inhabitants of Kathmandu Valley, gathered outside the royal palace in old part of the city early Saturday morning accusing the government of trying to wipe out their culture.

The heightened tension stopped Indra Jatra festival and halted the chariot procession of the living goddess Kumari.

It is the first time that the procession was halted since the tradition began more than four centuries ago.

The tensions and scuffles overnight also prevented President Ram Baran Yadav from receiving a blessing from the living goddess.

As part of tradition, the head of state receives blessing during the five-day festival in a symbolic gesture to rule the country for another year.

Until last year, the blessing was received by the king, but the president as the head of state took up the cultural duties as the country abolished the monarchy earlier this year.

On Friday, Nepal's Maoist led government announced it would not give money to fund animal sacrifice during Hindu festival as part of its efforts to cut government spending.

"The government is trying to wipe out our culture," Deepak Maskey said as he watched the abandoned chariot of Goddess Kumar. "If they really want to cut cost, the minister could stop travelling in luxury cars which costs millions of rupees... stopping our tradition is not a good sign"

"We will not involve the government in the festival from now on," said Manik Shakya, who comes from the community of people from which the Kumari is chosen.

Nepalese media reports said the government decision to stop giving money for animal sacrifice would affect all major festivals across Nepal.

Last year, the Nepalese government spent nearly 12.3 million rupees (166,000 dollars) on animal sacrifices. It spent another 54 million rupees organising and funding various festivals, Kathmandu Post newspaper said.

"The concerned departments are not allowed to spend state funds on animal sacrifices, but they can carry on the tradition in an economical way," the newspaper quoted government circular as saying.

However, there were indications that the government was backing down on its decision. By late Saturday morning and in the face of protests, the government said it would give money for animal sacrifice.

But the people seemed unmoved by the decision and the Indra Jatra festival remained suspended.

"We face difficulties in bringing about sudden changes in ancient cultural traditions as people have deep faith in them," an official with a government agency which funds and organizes festivals said on condition of anonymity. (dpa)