Budget deficit to exceed Ks3tn in coming fiscal year

 

In the Union Budget bill submitted to parliament on January 26, the government proposed the expenditure of Ks 20.83 trillion, while expecting to generate Ks 17 trillion in revenue in the year.

The 2015-2016 fiscal year is the fifth budget year for the current government.

“Since taking office, the Union government has prepared the Union Budget and the Union Budget Law in accordance with the constitution on a yearly basis,” said Finance Minister Win Shein.

 The government is dealing with the clearance of local and foreign debts owed since the time of the previous government, as well as new debts. To control the local debt burden is crucial for an increased budget deficit. There is no a balanced budget or a budget surplus, as the government has to make strenuous efforts to become a modern, developed nation,” said Win Shein, the Union finance minister.

The minister also stressed the importance of maintaining the budget deficit at around 5 per cent of gross domestic product and the government debt at around 50 per cent of GDP. 

This will help the country avert any possible financial crisis that may hamper economic stability resulting from a huge budget deficit, the minister added.

Upper House Speaker Khin Aung Myint has criticised some government ministries for their irregular budget spending. MPs from the National league for Democracy (NLD) party have also pointed out that annual budget increases and spending and more overseas loans during the tenure of the current government may cause a huge burden to the Myanmar people.