Chairman of State Administration Council Prime Minister Senior General Min Aung Hlaing addresses ceremony to transfer fund from national economic development fund
NAY PYI TAW August 12
Ks-400 billion from the National Disaster Management Fund of the Ministry of Planning and Finance have been set up as a separate fund for national economic growth. In realizing the goal, efforts should be made to improve the socio-economy and economy of the people of regions, states and respective areas, said Chairman of State Administration Council Prime Minister Senior General Min Aung Hlaing at the ceremony to transfer a portion of the national economic development fund held at Bayintnaung Villa here this morning.
Also present were SAC Vice Chairman Deputy Prime Minister Vice-Senior General Soe Win, SAC members, the Secretary and the Joint Secretary, Union ministers, the Nay Pyi Taw Council chairman, chief ministers of regions and states, chairmen of self-administered area administration bodies and officials.
Arrangements for nationaleconomic development
The Senior General said the ceremony was held to develop the national economy through better means. Ks-400 billion from the National Disaster Management Fund of the Ministry of Planning and Finance were spared for a separate fund for national economic development.
The task is divided into two channels -- agro-business promotion and economic development of regions, states and self-administered areas.
Financial provision for investments faced difficulties during previous year During the earlier period after assuming the State duties, SAC faced a lot of political and economic attacks and internal and external disturbances to stop the banking business, with the intention of causing an economic collapse. Moreover, the national economy was hit hard by COVID-19. Hence, there were difficulties in providing capital for businesses.
Economy and politics
Efforts should be made to promote the economy for national development. Economy and politics has relations and only the good economy can ensure political stability. The economy has two parts – production and trade. The MoPF makes calculation and set economic targets and lays down annual plans. Every country earmarks annual budgets for economic development. The country’s GDP is growing annually. Changes in currency value as well as production grown can also increase GDP.
Relations between local demand and exports should be taken into account. Chief ministers should ensure a balanced development and certify the economic development through scrutiny process. In the domestic production sector, supply must meet the demand, and if not, there will be a price hike.
Promote production, the core of the economy Production is the core of the economy. As the country must promote farming-based production,the national economic development fund is set up. Thefund can ensure a quick win and the support for summer paddy and cold season crops. Hence a specific fund has been set up for summer paddy and green beans, which is one of the country’s export crops. The fund will help generate job opportunities and enable farmers to spare their cultivation cost for other purposes. As jobs will generate income there will be a rise on local buying power, which will eventually increase the local supply. Hence, business operations will become faster.
The presently disbursed funds are the capital given by the State, and those funds to be retaken will be disbursed again in the next season to be able to make investments.
Therefore, it is necessary to consider that the investments are for manufacturing goods, and foreign exchange earnings are to be made through export of the goods. The foreign exchange earnings could be spent for imports of agricultural imports and other necessary items. So, region and state governments and selfadministered regions are urged to successfully implement the tasks. Accordingly, measures are to be taken successfully to ensure successful and smooth operation of small-tomedium enterprises such as rice mill, edible oil mill and bean separator. It is necessary to analyze spending and wasting in order that there will be no unnecessary wastes.
Promotion of domestic tourism
Besides, the tourism industry is a business beneficial to the nation. As the industry is much related to other business including lodging, transport and entertainment services, it is necessary to achieve a systematic tourism industry, which will be helpful to all-round development. Therefore, it is necessary to ensure smooth roads and communications and security,which is linked to the tourism industry in the regions. Smooth roads and communications will help ensure a speedy and good flow of goods, which makes the economy of regions con cerned developed. As there are many businesses to be run with the help of this stimulus package for boosting the nation’s economy, these funds are to be spent profitably.
Domestic textile industry
Similarly, the domestic textile industry should be encouraged. Despite the adequate cultivation of cotton in the country, it is seen that the domestically produced cotton is exported and on the other hand, cotton clothes are imported. Therefore, import items can be substituted through concerted efforts in upgrading equipment and raw materials to boost textile and garment industry of the country.
Today’s function to promote the economic sector of the country is based on agriculture.
Coordination and discussion will keep going to be able to spend the remaining cash out of Ks-400 billion in other industries.
If necessary, regions with the needs could present their plans separately. Some businesses could be carried out with the green project, and it is to make bigger investment through use of the stimulus package for them. The funds are the capital provided for regional development.
Afterwards, the Senior General provided the stimulus funds through Union Minister for Agriculture, Livestock and Irrigation U Tin Htut Oo, Union Minister for Cooperatives and Rural Development U Hla Moe, chief ministers of region and state governments, and chairmen of self-administered regions of Naga, Danu, Pa-O, Palaung, Kokang and Wa. Later, the Minister for Planning and Finance briefed on use of the funds.
After the event, the Senior General and party cordially greeted the attendees. Of Ks-400 billion, Ks-170 billion were transferred to the Ministry of Agriculture, Livestock and Irrigation, Ks-60 billion to the Ministry of Cooperatives and Rural Development, Ks-10 billion each to Kayah, Chin and Rakhine states for independent implementation of the green projects, eight billions each to Kachin, Kayin, Mon and Shan states and Taninthayi Region, and Ks-5 billion each to the selfadministered regions of Naga, Danu, Pa-O, Palaung, Kokang and Wa, which are Ks-330 billion in total.