State-owned enterprises 'must finance themselves'
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Expenses of state-owned enterprises will not be covered by the state budget in the coming fiscal years, according to Finance Minister Win Shein, in a push to make them more market-oriented.
In future these enterprises will need to spend from their own annual reserves of capital, the minister explained to parliament while sharing the findings of the Auditor General on the 2012-13 budget reports of the Public Accounts Joint Committee.
“State-owned enterprises must establish separate accounts to record their daily income and expenses,” said Win Shein.
“If they have profits at the year’s end, some will be contributed to the state budget and some will be retained as capital reserves. When the amount of the reserves grows, the enterprise’s expenses will not be paid by the state budget, but from the capital reserves,” he added.
The government is busy analysing reasons behind the profit and losses of state-owned businesses to make them more market-oriented as they play an important role in the national economy, added the minister.
The ministry is conducting studies with the help of the International Monetary Fund and the World Bank to liberalise state-owned businesses from the state budget.
The government is considering whether to privatise some enterprises or engage in joint ventures to increase their efficiency.
