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May 27, 2020

Finance Commission holds 1/2020 meeting

President U Win Myint delivers the speech at the 1/2020 meeting of the Finance Commission in Nay Pyi Taw yesterday. Photo: MNA
President U Win Myint delivers the speech at the 1/2020 meeting of the Finance Commission in Nay Pyi Taw yesterday. Photo: MNA

The Finance Commission, chaired by President U Win Myint, discussed approval of supplementary budgets requested by the Union government and State/Regional governments for 2019-2020 fiscal year, and the submission of 2019-2020 Union Supplementary Budget Allocation Bill to the Pyidaungsu Hluttaw.
The first meeting of the commission for this year held at the Presidential Palace in Nay Pyi Taw was also attended by Finance Commission Vice Chairmen and Vice Presidents U Myint Swe and U Henry Van Thio, Union Minister U Soe Win, Commission members Union Attorney General U Tun Tun Oo, Union Auditor General U Maw Than, the Chairman of Nay Pyi Taw Council, chief ministers of States/Regions and officials.
The supplementary budget is requested for additional funds when the original budget allocated for expenditure was insufficient and it was not possible to transfer funds within the original budget allocation framework.
President U Win Myint said the supplementary budget requests should be used for projects that could be completed within the period of the current fiscal year as it was not good for the requesting departments and organizations if the proposed funds were returned without using properly.
The request of supplementary budgets for 2019-2020 are mainly due to salary, gratuity , travel allowance, pension, interest, payment for debts, tax, commercial tax, government expenditures, additional funds caused by increasing electricity bills, foreign aid, expenditures from external loans, ongoing infrastructural projects and land compensation.
Supplementary budget requests by Union level departments and organizations were initially scrutinized by the Ministry of Planning, Finance and Industry, and were counter-checked by Vice President U Myint Swe. Moreover, the budget requests by states and regions were also scrutinized by the ministry and Vice President U Henry Van Thio.
The President emphasized systematic and proper use of budgets in line with financial rules and principles, and reduction of expenditures in foreign currencies.
He also pointed out possible impacts of COVID-19 on the world’s economy. The slowdown in the global economy would also have an impact on Myanmar’s growth rate. Since investments in the global economy and within Myanmar could decline, it was necessary to calculate in advance the fact that Myanmar’s development growth rate could be impacted.

President U Win Myint attends the 1/2020 meeting of the Finance Commission in Nay Pyi Taw yesterday. Photo: MNA
President U Win Myint attends the 1/2020 meeting of the Finance Commission in Nay Pyi Taw yesterday. Photo: MNA

He also put emphasis on Directive No. 1/2017 of the Office of the President relating to the tender processes.
Vice President U Myint Swe, the Vice Chairman of the Commission, explained the requests of supplementary budget by the Union-level agencies for 2019-2020/FY: K2,100.476 billion for ordinary expenditure, K421.478 billion for capital expenditure, K88.858 billion for debt expenditure, and K 50.175 billion for the state agencies conducting works outside of the Union budget, totaling K2,660.987 billion.
The ratio between required amount of supplementary budget and the GDP was found to be 5.53 per cent.
The government has allocated K59.518 billion under the account of supplementary budget for socioeconomic development projects which can directly benefit the public in States/Regions for 2019-2020 /FY, and K2,660.987 billion for the state agencies out of their requested K2,997.656 billion.
Vice President U Myint Swe remarked that the GDP to deficit ratio of 5.53 per cent as the value of GDP was K118,935. 106 billion, compared to the net deficit of K6,577.855 billion.
Vice President U Henry Van Thaio, who was also the Vice Chairman of the Commission, presented the net deficit of budget K2,114.386 billion of State/Region governments in 2019-2020/FY. However, this deficit has been allowed by the Union government.
The request of State/Region governments for supplementary budgets in 2019-2020/FY was allowed only 3 per cent increase in maximum based on the budget allocations, revenue and estimated amount.
After scrutinizing, the supplementary budget allocation for States/Regions was cut to K304.104 billion in 2019-2020/FY.
Commission’s Secretary Union Minister U Soe Win presented the allocated supplementary budget of the Union, the revised estimated amount and the Union Supplementary Budget Allocation Bill, followed by the discussions of the Chairman of Nay Pyi Taw Council and State/Region Chief Ministers.
President U Win Myint concluded that the budgets and the bill will be summited to the Pyidaungsu Hluttaw, and called for systematic use of budgets at the relevant departments and organizations for the development of country and people. –MNA(Translated by Aung Khin)

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