Soe Nandar Linn Research Associate MDRI-CESD 26 September 2012 - - PowerPoint PPT Presentation

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Dec 20, 2023 807 likes •938 views

Myanmar Development Resource Institute Centre for Economic and Social Development Soe Nandar Linn Research Associate MDRI-CESD 26 September 2012 ladynandar@gmail.com Pre-reform: Budget and Governance Budget Strictly top-down

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Myanmar Development Resource Institute Centre for Economic and Social Development

Soe Nandar Linn Research Associate MDRI-CESD 26 September 2012 ladynandar@gmail.com

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Budget

♠ Strictly top-down ♠ Discretionary power of Head-of-State ♠ Special Project Committee – large slush fund

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Governance

♠ Centralised administration – British legacy ♠ Line ministries maintain authority to the lowest unit

26-Sep-12 Sub-national Budgeting in Myanmar 2

Pre-reform: Budget and Governance

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26-Sep-12 Sub-national Budgeting in Myanmar 3

New Administrative Structure of Myanmar

Union

7 States and 7 Regions

6 Self Administrative Zones and Region

64 Districts 324 Townships 2,471 Wards 13,747 Village Tracts Sub-national parliaments Sub-national governments Chief Ministers

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Fiscal reform:

♠ Budget deficit was reduced in FY2012/13(10% of previous year) ♠ Abolishing and streamlining ministries (Industrial development for special and defense projects; Electricity Production) ♠ President encourages ministries to trim down uneconomical and redundant State Economic Enterprises  Privatization ♠ Emphasize on-going review of public utilities performance and reforms: communication, electricity, energy, forestry, education, health and financial sectors where the ratio of government

wnership is large

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Monetary reform:

♠ Exchange rate unification ♠ Central Bank autonomy

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Significant Initial Steps of Reform in Myanmar

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The government took a key step towards fiscal transparency through the publication of the FY 2012/13 budget

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However, Ministry of Information still controls the legal and regulatory framework to require the publication of budgetary information

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Media plays an important role in introducing transparency and budgetary execution

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Parliamentary oversight – thorough scrutiny of public expenditures and spending priorities

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Public Access to Budgetary Information

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26-Sep-12 Sub-national Budgeting in Myanmar 6

Budget System of Myanmar

Current Budget Union-level

rganisations

States and Regions Ministry of Finance and Revenue Ministry of National Planning and Economic Development Capital Budget Union-level

rganisations

States and Regions

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The Process of Budget Bill

National Plans, Annual Budget, Taxation

Union Ministers

President
2 Vice Presidents
Union-Attorney

General

Union-Auditor General
Chief Ministers
Chair of Naypyitaw

Council

Minister of Finance &

Revenue

Financial Commission Pyidaungsu Hluttaw (Union)

Budget estimates are submitted to the parliament. It takes at least two months to review and debate the budget proposals.

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Sustaining agriculture towards industralisation

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Balanced and proportionate development across States and Regions

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Inclusive growth

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Quality of statistics

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Four Priority Reform Objectives of Myanmar Government

C

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26-Sep-12 Sub-national Budgeting in Myanmar 9

National Food Poverty Shared by State/Region (2010)

Integrated Household Living Condition Survey, UNDP

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26-Sep-12 Sub-national Budgeting in Myanmar 10

Budget Allocation by State/Region FY2012/13

6% 1% 1% 3% 8% 4% 5% 15% 6% 3% 13% 5% 15% 13% 1% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18%

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26-Sep-12 Sub-national Budgeting in Myanmar 11

Per-capita Budget Allocation by State/Region FY2012/13

12,047 12,636 2,473 15,105 3,941 8,149 2,721 8,831 2,460 2,685 12,554 2,108 8,642 5,132

2,000

4,000 6,000 8,000 10,000 12,000 14,000 16,000 Myanmar Kyat

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Budget reform

♠ Horizontal resource allocation rules and regulations of the transfer from Central to State/Region governments ♠ More systematic formulation of sub-national fiscal plan ♠ Increasing sharing of State/Region budget ♠ More equitable resource sharing – step towards fiscal federalism?