recent budgeting developments - nan mo kham, khin maung lwin, myanmar

Fiscal Development in

Myanmar

December 2016

Present by

Ms.Nan Mo Kham

Mr.Khin Maung Lwin

Outlines

Public Finance Management Reform

State Economic Enterprises Reform

Medium Term Fiscal Framework

Intergovernmental Fiscal Relationship

Public Finance Management Reform

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

Changing of Budgetary Management

Modernize budget process

Increase level of Social Sector expenditure

Modernization of Public Finance

Management project

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

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

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

State Economic Enterprises Reform

Role of SEE in Government Budget

Main Contributor

Revenue comes from Natural Resource

Introduced the new Financial Management

System

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

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

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

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

Fiscal Transparency

Budget Law

Citizen’s Budget

First Report of Myanmar EITI