HomeMMBIZ NewsGovt to Seek Budget, Taxation Approval from Parliament

Govt to Seek Budget, Taxation Approval from Parliament

The Myanmar government is preparing to submit its state budget bill for 2014-15 fiscal year (April-March) to the ongoing parliament sessions for approval.

The State Budget Bill 2014 and Taxation Bill 2014 are also expected to be submitted, according to government officials.

The 9th parliament sessions resumed on January 13.

President U Thein Sein told the government’s Financial Commission in Nay Pyi Taw last week that more funds could be allocated to the local governments.

Myanmar earned revenues of more than K16 trillion ($16.32 billion) to date in the current 2013-14 fiscal year and has spent K19 trillion ($19.39 billion), he said, adding that the central government shared about K1.5 trillion ($1.53 billion) with local governments, and loaned more than K25 billion ($25.5 million) to them.

The estimated gross domestic product (GDP) for 2014 is K66.197 trillion ($67.55 billion), according to official data.

The state government earned 86.32 percent of the total revenue while the local governments earned the rest. Of the total expenditure, the central government spent 88.13 percent and the local governments spent the rest.

In the upcoming budget, he revealed that the health and education sectors would see increased budget allocation, stressing the need to crack down on tax evasion and provide incentives to tax payers if more tax revenue is collected next fiscal year.

The president also disclosed that in the coming fiscal year, government employees’ salaries will be raised along with pension and other allowances on a proportional basis.

The government is drawing up a “people-centred plan” in a bid to achieve the goals for fiscal year 2014-15, he said.

U Thein Sein told the commission that the plan will conform to the need of Myanmar and its political, economic and social relations with neighbouring countries.

He stressed the need to attract foreign investment to develop technology and human resources, and double domestic production in seven sectors in order to reach an 8 percent gross domestic product growth.

He cited those seven sectors as industry, agriculture, infrastructure, energy, mining, tourism, finance and communication.

Myanmar’s draft national plan for 2014-15 targets a growth of 3.9 percent in the agriculture sector, 10.4 percent in the industry sector and 12.4 percent in the service sector.

The goal for growth of major regions is set at 9.3 percent for Yangon, 12.4 percent for Mandalay and 28.2 percent for Nay Pyi Taw.

The International Monetary Fund in its recent country report said Myanmar’s economy will grow 6.75 percent in the 2013-14 fiscal year, driven by natural gas sales, construction and foreign investment.

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