Chairman of Financial Commission Chairman of State Administration Council Prime Minister Senior General Min Aung Hlaing delivers address at Financial Commission Meeting (2/2023)
Nay Pyi Taw December 15
Financial Commission Meeting (2/2023) was held at the meeting hall of the Office of the Chairman of the State Administration Council in Nay Pyi Taw this afternoon and Chairman of the Financial Commission Chairman of the State Administration Council Prime Minister Senior General Min Aung Hlaing delivered an address at the meeting.
Also present at the meeting were Vice Chairman of the Financial Commission Vice Chairman of the State Administration Council Deputy Prime Minister Vice-Senior General Soe Win, Secretary of the commission Union Minister for Planning and Finance U Win Shein, Union Minister for Legal Affairs Dr Thida Oo, Union Auditor General Dr Khin Naing Oo and Deputy Minister U Maung Maung
Win and the chairman of the Nay Pyi Taw Council and chief ministers of regions and states participated in the meeting via video conferencing.
First, the Senior General delivered an address, saying additional budgets of the Union and regions and states for 2023-2024 fiscal year will be approved by the Financial Commission at meeting (2/2023) by the commission.
After the additional budgets have been approved, the union government will submit the bill for the additional budgets to the SAC for its approval.
It should be aware that there are only four months left as the additional budgets can be spent only after the bill has been approved by the SAC. Union ministries and region and state governments are required to scrutinize the additional budget proposals thoroughly to prevent seeking excessive amounts and returning parts of them because they cannot be spent fully.
Moreover, additional budgets in foreign currencies must be proposed only for spending that must be paid in foreign currencies in the fiscal year and items that cannot be purchased locally.
As state economic promotion funds have been allocated for respective ministries and regions and states, the funds must be beneficially and effectively.
Region and state governments are urged to emphasize development of production in order to increase incomes in respective regions and states. In implementing policies adopted by the government, it is necessary to boost the production of the agriculture and livestock breeding sector and to promote creation of job opportunities to increase the incomes of local residents. Region and state governments are urged to find ways and means to generate their own revenues without relying only on budgets allocated by the Union.
Moreover, the government has allocated budgets not only for the agriculture and livestock breeding sector but also for the health, transportation, electricity and energy and other sectors for the security of food, water and basic needs and socioeconomic development.
Union ministries and region and state governments are required to spend the budgets beneficially and effectively.
Therefore, the Committee for Prior-Scrutiny of Union and Region or State Budget Proposals has now been formed and scrutinizing measures are being taken in order to spend budget allocations properly.
Union Ministries and Region and state governments need to use the supplemental funds approved by the State for regional development activities that meet the needs of the respective regions and people and activities that will facilitate the economic development of the country. In addition, it is necessary to ensure that the projects to be implemented are of high quality, complete them on time within the specified period and make sure that there is no wastage of expenses.
The Vice Chairman of the Financial Commission Deputy Prime Minister said in verifying the supplemental appropriation requests of union level departments and organizations and regions/states for the 2023-2024 fiscal year in accordance with the Constitution, the expenses that are necessary due to the difference in foreign exchange rates mainly in the ordinary expenses section, additional income tax, commercial tax and revenues to be paid to the State, and salaries, rewards, travel expenses that are required to be paid additionally without fail were scrutinized and approved.
In order to support the welfare of the employees who are not included in the original allowance but are performing the duties of the State, additional grant expenditure authorized from October 2023, rehabilitation expenses and other necessary expenses for damages caused by Cyclone Mocha, and expenses for the construction of 34 single-story RCC buildings in 34 industrial, agricultural and livestock high schools for 2024-2025 academic year were approved. The Union has also approved subsidies and tax shares for the deficits of the regions and states. For the 2023-2024 FY, the supplemental budget ill and the Union's additional budget allocation bill should be submitted for approval by the Financial Commission, he said.
Next, Commission Secretary Union Minister U Win Shein explained the supplemental budget, estimated budget and supplemental expenditure bills of the Union.
Then, Union Minister for Legal Affairs Dr Thida Oo explained matters related to those bills and Union Auditor General Dr Khin Naing Oo findings of the budget accounts of the union level organizations, ministries and regions and states and points to be considered in future.
Then, the Nay Pyi Taw Council chairman and region and state chief ministers reported on their respective sectors.
Later, the Senior General said that in the use of funds, it is necessary to use what is really needed in accordance with the procedures. The excess funds of the State can be used for the development of the country.
As such, only activities that can actually be implemented need to be carried out. Those responsible officials need to review the activities that cannot be implemented except those that cannot be implemented due to natural disasters and other acceptable difficulties.
It is necessary to implement all the tasks that can be carried out with local currency in carrying out tasks for development of the country with the reserve funds allotted due to various reasons. It can be implemented in the rural development sector, education development sector, health sector and transportation sector. It is necessary to spend the funds in the areas, where it is beneficial, in accordance with the law, rules and regulations. Regions and states are to successfully carry out the tasks within the mandates given by law. Union-level ministries and chief ministers of states and regions are to spend the budget beneficially in the tasks for development of the country.
Afterwards, the Prime Minister gave concluding remarks saying that union-level departments, organizations and governments of regions and states are to look forward to the interests of the nation in implementing their planned tasks for the fiscal year of 2023-2024.
Governmental departments and organizations are urged to collectively work together to ensure improvement of socioeconomic life of the people, more development of modern techniques in the manufacturing industry based on agriculture and livestock, long-term promise for MSME businesses and job opportunities.
As the foreign exchange is spent on the importation of edible oil, it will be seen that the State Administration Council is implementing the No. C point of its economic objectives which is “to spur the cultivation of oil crops to meet targeted production levels, thereby achieving self-sufficiency in local oil supply and striving towards both local adequacy and overseas export of surplus oil crops” with the aim to improve the production of edible oil for adequate domestic consumption and reduce the spending of foreign exchange.
Similarly, the Foreign Exchange Supervisory Committee scrutinizes and supervises the importation of fuel from abroad.
As for the government sector, it is necessary to spend foreign exchange under special scrutiny.
Due to the efforts made to ensure recovery of the state’s economy affected by natural disasters such as Cyclone Mocha and COVID-19 pandemic, it is seen now that manufacturing businesses, commodity trading activities and services have been on the path to recovery.
Therefore, union ministries and governments of regions and states are urged to make efforts and work together for development of the nation’s economy.
All are urged to effectively and efficiently spend the allocated budget by the State including the supplementary funds granted now without any waste, make efforts to achieve the targeted revenue, meet the budget targets at the nearest by the end of the 2023-2024 fiscal year, and complete the projects timely.