World Bank expects Myanmar to see 5-per-cent budget deficit for 2013-14
Myanmar's budget deficit for 2013-14 could be as much as 5 per cent, according to the reports from the World Bank office in Yangon.
Myanmar had a 4.6 per cent budget deficit during 2011-12, and 3.7 per cent in 2012-13.
This year, the deficit is expected to rise to 5 per cent, the World Bank estimates.
“For the government to be able to reduce the budget deficit, international financial organisations like the International Monetary Fund, World Bank and Asian Development Bank can provide help. Although we are facing budget deficits, we need to try to avoid them in the future,” Aung Thaung, chair of the Development Committee of Banks and Financial Institutions, said.
“The more we can minimise the amount [of budget deficit], the better it is. The country should therefore boost production sectors while cutting unnecessary costs,” he said.
Myanmar has had budget deficits nearly every year.
However, it did not publicise annual accounts in the past. This has only occurred since Myanmar opted to be transparent about its budget deficit.
“In most developing countries, budget deficits are common. Other countries in the region face similar situations. Even in the United States, a budget deficit is becoming a hot issue for discussion,” Khwima Nthara, the World Bank representative in Myanmar, said at a press conference.
In the 2013-14 fiscal year, Myanmar government income is expected to account for 23 per cent of gross domestic product (GDP), while its expenses may represent 28 per cent of GDP, meaning there will be a gap of about 5 per cent.
Deloitte Consulting reportedly set to enter country
US-based Deloitte Consulting, which works in Southeast Asian countries, plans to invest in Myanmar, sources say.
A representative from ICS Pte Ltd of Deloitte Consulting went to the Directorate of Investment and Companies Administration (DICA) on Thursday to discuss about rules and regulations about investment and opportunities in the country.
Deloitte Consulting offers advice on mining, oil and natural gas, energy, water resources, banking, insurance, real estate, education, technology and travel sectors in over 140 states. It has branches in Singapore, Indonesia, Malaysia, Thailand and Vietnam.
Myanmar has seen a surge of interest from foreign groups in most sectors since it amended and rewrote its foreign investment last year.
On October 7, US-based insurer Metlife Insurance got approval to open an office in Myanmar from the DICA. And Colgate-Palmolive, a US firm specialising in household, health-care and personal products, visited DICA to discuss possible investment in Myanmar last Wednesday.
Billions of foreign investment has been pledged this year, since the new law was amended. The proposals have come from firms in the UK, Vietnam, Hong Kong, South Korea, China, Australia, Japan, India and Canada.
Government to conduct survey in effort to set workers’ wage scale
A survey will be carried out to try to establish a wage scale for Myanmar workers, according to Myo Aung, head of the Ministry of Employment, Labour and Social Welfare.
“At present, the first phase for defining the lowest wage has been completed. Therefore, we have planned to do a survey for a second phase. I think it will take a lot of time so I have no idea when we are able to set the date of the lowest wage for workers,” Ministry Director-General Myo Aung said.
Reliable facts and figure are needed to define the lowest wage. As in other countries, it needs to assess people’s annual expenses, the number of families in the nation, number of workers in a family, price lists of products and services, national GDP, the amount of salary given by employers, and so on. But some of this data has previously not been collected in Myanmar.
