Eight ministers - four from the Communist Party of Nepal (Maoists) and four from the ethnic Madhesi People's Rights Forum - were sworn-in by the prime minister in the presence of Nepalese President Ram Baran Yadav.

However, continuing differences on the priority of ministries resulted in six proposed ministers of the moderate Communist Party of Nepal-Unified Marxist Leninist
(CPN-UML) boycotting the swearing in ceremony.

The announcement of the new government came after nearly a week of talks between the Maoists and the CPN-UML and the ethnic Madhesi People's Rights Forum
(MPRF) over the distribution of ministries.

The official announcement said the Maoists were keeping nine ministries including defence, finance, information and communications and local development.

Maoist second in command Babu Ram Bhattarai was given the finance ministry while Ram Bahadur Thapa, considered the main military strategist of the Maoists, is charged with the defence ministry.

The Maoists will also keep the Peace and Reconstruction Ministry which was specifically created to integrate the Maoists into the mainstream following the end of a decade long insurgency in November 2006.

The CPN-UML got six ministries, including the powerful home ministry, while the ethnic MPRF received the foreign ministry and three other ministries.

An official statement also said the cabinet will be expanded next week and will include members of parties that supported the prime minister's election last week.

There has been considerable concern over the Maoists controlling powerful ministries and their intentions. However, the three party alliance has said it will abide by democratic values and promote private enterprise despite strong Maoist ideologies that oppose them.

The Nepali Congress has already said it would not join the Maoist led government and would stay in the opposition.

Last month, the constituent assembly elected Nepal's first president in which a Maoist candidate was defeated triggering bitter rivalry between the Nepali Congress and the Maoists.

The Maoists were involved in a decade long insurgency to overthrow the monarchy and establish Nepal as a communist republic.

Following the election of the constituent assembly, the members overwhelmingly voted to abolish monarchy and end the 240-year old Shah dynasty.

The Maoists formally gave up fighting after signing a peace deal with the government in November 2006 which enabled them to enter mainstream politics.

Nearly 14,000 people were killed in the decade long insurgency which killed nearly 14,000 people. (dpa)