Chairman of Finance Commission Chairman of State Administration Council Prime Minister Senior General Min Aung Hlaing addresses FC meeting 1/2022
NAY PYI TAW March 17
Finance Commission (FC) held its meeting 1/2022 at the meeting hall of State Administration Council Chairman’s Office in Nay Pyi Taw this afternoon with an address by Chairman of FC Chairman of State Administration Council Prime Minister Senior General Min Aung Hlaing.
Also present were Vice Chairman of FC Vice Chairman of SAC Deputy Prime Minister Vice-Senior General Soe Win, Fc Secretary Union Minister for Planning and Finance U Win Shein, Union Minister for Legal Affairs Dr Daw Thida Oo, Union Auditor-General U Kan Zaw and Deputy Minister U Maung Maung Win. The Nay Pyi Taw Councilchairman and the chief ministers of regions and states participated in the meeting through video conferencing.
The Senior General said the Union level organizations should draw their budgets according to the directives based on the fivepoint roadmap and nine objectives of SAC. Despite the obstacles to economic development in the financial year 2022-2023 caused by COVID-19 all must strive to meet the income targets. Only the expenditures that promote national economic growth must be prioritized.
Seventy percent of the country’s population is rural people and their livelihood is based on agriculture and breeding businesses.
The relevant government departments must act as pathfinders for the modernization of those businesses. They must also effectively implement the priority tasks with the funds allotted for the development of the infrastructure including roads, bridges, buildings, electricity, transport and communications and for health, education and social expenditures.
Currently, the government is exerting efforts for the resurgence of national economy. Hence, its expenditures should be directly supportive of the production, trade and services sectors which are the main pillars for national economic growth.
All must work towards socioeconomic development of the people, increase in per capita rate, job generation, development of micro, small and medium industries, boosting exports, import substitution.
The government will continue to increase its expenses for health, education, sports and social security for human resources development. It will also allot funds for healthcare and COVID-19 prevention as the virus has not died down yet.
Regions and states should give priority to road, bridge, water and power supply, that directly benefit the public, over management functions in allotting funds.
The country’s macroeconomic indicators call for striking a proper balance between the budget deficit and GDP ratio.
Only then will the country be able to save itself in advance from the burden of internal and external loans.
The Vice-Senior General said the budget is based on actual targets despite the possible follow-up economic obstacles caused by COVID-19 repercussions and decrease in income due to the political situation. According to the investment prioritized program covered by the COVID-19 Economic Relief Plan (CERP) businesses that promises quick or multiple benefits, essential infrastructures and human resources development programs will be permitted.
Staff employment and fuel oil usage are strictly scrutinized.
Only the current expenditures that directly benefit production and business operations are permitted. Under the capital expenditure, plans have been categorized according to their vitality and only the work plans that actually guarantee foreign loans and aids are permitted.
Expense reduction was carried out in accord with the policies and directives. A total of Ks-100 billion was earmarked for emergency funds for unforeseen natural disasters prevention, rescue and rehabilitation at the central level and Ks-15 billion at the Nay Pyi Taw council and region and state level.
Moreover, Ks-20 billion was set aside for National Natural Disaster Management funds.
He also explained the method of allotting the Union funds and spoke of the need to prioritize only the expenses that are beneficial and ensure regional development.
Union Minister U Win Shein explained the union budget for 2022-2023 fiscal, the union budget bill and the union revenue bill.
Union Auditor-General Dr Kan Zaw gave a suggestion about the points necessary to consider in future regarding the findings of the budgets of union level organizations, ministries and region and state governments.
In response to the reports, the Senior General said income decreased in the mini-budget period due to the COVID-19 outbreak and other various reasons. Various ways were considered and sought to remedy this. So efforts must be exerted to increase income. Mainly, manufacturing must be boosted. The country has already had basic needs such as land, water andhuman resources. Production of quality export items will increase foreign exchange income.
Domestic productivity can increase by manufacturing agricultural and livestock products. Being able to boost agricultural products more than ever will achieve a quick win and facilitate cash flow.
If productivity based on agriculture and livestock can be boosted, national economy will change and grow. Development of economy involving the people will ensure national prosperity.
Regarding national projects, priority should be given to the ones essential and beneficial to the State. Those currently unnecessary should be reduced.
The projects running at a loss must also be reviewed and supervised. The State will invest in health and other projects deemed necessary for security.
The union government is an organization adopting policies and respective administrative bodes need to implement them. As the region and state governments have to take close supervisory measures. All those responsible officials are urged to implement them earnestly and effectively.
In his concluding remark, the Senior General said the union budget for 2022-2023 and the union budget bill approved at today’s meeting will be sent to the State Administration Council together with the endorsement from the Financial Commission through the union government.
Then, measures will be taken to enact the union budget law on a timely basis.
As the SAC takes all State responsibilities, it is also paying special attention to the development of national economy. National prosperity and food security are the main aims.
To enhance production based on agriculture and livestock through modern techniques and strengthen all-round development in other sectors of the economy is the major objective of all.
While the State is encouraging the existing agricultural and livestock businesses and fulfilling the needs, efforts must be made to manufacture quality and marketable agricultural and livestock products. This is why the budgets should be spent efficiently in agricultural and livestock breeding undertakings.
Under current circumstances,focus in on increasing export and importing goods after careful scrutiny. So, it is necessary to make efforts to boost production of local quality products as an import substitute.
The respective ministries are urged to efficiently spend their allotted budgets to realize the future tasks and political, economic and social objects adopted by the government.
The departments responsible for seeking revenues also need to try to collect full taxes as targeted by setting aims. If any difficulties arise, measures must be taken in time to address them.
Spending money requires exactly following the financial rules and disciplines. All spending must be recorded and ready for auditing. It is also necessary to spend timely within the prescribed financial year. The Union, regions and states are to work earnestly and successfully in the 2022-2023 fiscal year in line with the budget laws by applying their public finance management skills in the interests of the State and the people, the Senior General said.