recent budgeting developments - nan mo kham, khin maung lwin, myanmar
TRANSCRIPT
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Fiscal Development in
Myanmar
December 2016
Present by
Ms.Nan Mo Kham
Mr.Khin Maung Lwin
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Outlines
Public Finance Management Reform
State Economic Enterprises Reform
Medium Term Fiscal Framework
Intergovernmental Fiscal Relationship
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Public Finance Management Reform
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General Government Fund Procedure
Union Fund
Union Level Organization
Development Organization
Extra Budgetary Fund
Region/State Fund
Region/State Level Organization
(1)Self-Administrative division (5)Self-Administrative Zones
Yangon City Development Committee
Mandalay City Development Committee
Development Organization
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Changing of Budgetary Management
Modernize budget process
Increase level of Social Sector expenditure
Modernization of Public Finance
Management project
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Modernization of Public Finance Management Project
6
Budget
Planning
PAC
IRD
Treasury
MEB
OAG
Key
Im
ple
men
tin
g A
gen
cies
IDA 16
Credit
WB
Grant from
DFID and
AusAid
Budget
Allocation
Pro
ject
Fin
an
cin
g
Executive Secretariat FMU & PCAU
Committees and Units for Implementation
M-MPFMp
A. Revenue Mobilization
B. Budget Preparation
C. Budget execution
D. External Oversight
E. Capacity Building
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Tax, Revenue, Expenditure and Deficit as
a percentage of GDP
Tax
Revenue
Expenditure
Deficit
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017
Tax Revenue Expenditure Deficit
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Overall Budget Situation in 2016-2017
Fiscal Year
Particular Union Region/State General government
Revenue 16,979 2,250 19,229
Expenditure 20,267 2,250 22,517
Surplus/ Deficit(-) - 3,288 -3,288
GDP 84,128
Deficit to GDP 3.91 % 3.91 %
Kyats in billion
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State Economic Enterprises Reform
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Role of SEE in Government Budget
Main Contributor
Revenue comes from Natural Resource
Introduced the new Financial Management
System
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New Financial Management System
25 % Income tax and 20 % commercial tax
Carry over the rest of profit
Introduced Own Fund Account
privatized and corporatized entities outside the Union
Fund :
I. Central Bank of Myanmar
II. Transport
III. Yangon Electricity Supply Corporation
IV.Mandalay Electricity Supply Corporation
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Medium Term Fiscal Framework
strategic allocation and alignment of expenditure to
policies
Bottom-up Planning and Top-down Budgeting
Projection of upcoming 3 fiscal years
Macroeconomic Indicator
a) Real GDP growth rate d) Exchange Rate
b) Nominal GDP growth rate f) Interest Rate
c) Inflation g) Interest rate of T-Bonds and T-Bills
d) Nominal GDP h) Import growth rate
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Intergovernmental Fiscal Relation
Structured Intergovernmental Fiscal Relation Division
Practiced MTFF for fiscal transfer of States/Regions in
line with the optimal six indictors :
In 2015-2016
• Total Population,
• Poverty,
• Per Capita GDP,
In 2016-2017, add three more indicators
• Area,
• Per Capita Tax Collection
• Urban Population as percent of total state
population
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Tax Sharing From Union to Region/State
• 2% of stamp duty
• 5% of individual income tax
• 15% of commercial tax
• 15% of special good tax
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Fiscal Transparency
Budget Law
Citizen’s Budget
First Report of Myanmar EITI
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