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Budget deficit for fiscal 2020-21 in Myanmar at K6.8 trillion
Myanmar is expecting a budget deficit of K6.8 trillion in fiscal 2020-21, or 5.4 percent of the GDP, according to the Finance Commission chaired by President U Win Myint.
According to the Finance Commission’s estimates revealed at a meeting on June 22 in Nay Pyi Taw, national revenue will total K27.8 trillion in fiscal 2020-21, while total expenditure should add up to K34.6 trillion.
Included in the country’s expenditure is spending for COVID-19 rehabilitation and the November General Election as well as the regular allocations for education, healthcare, infrastructure and agriculture, U Win Myint said.
Spending on social security and welfare will be increased over the previous year, while a financial support program for the disabled people was also added to the budget.
In the coming fiscal year, tax revenue is expected to be lower due to COVID-19 but the government has taken steps to soften the economic impact, said Vice President U Myint Swe. He added that an emergency fund totalling K100 billion set up last year has been increased to K150 billion for fiscal 2020-21. Meanwhile, spending allocations for the states and regions has been raised by K267 billion to a total of K2.3 trillion.
At K6.8 trillion, the deficit is expected to be around 5.4pc of GDP in fiscal 2020-21 compared to 5.9pc in the current fiscal year. In the current fiscal year of 2019-20, total revenue is expected to be K25.3 trillion and total spending is K32.3 trillion, resulting in a deficit of K7 trillion.
Source: https://www.mmtimes.com/news/budget-deficit-fiscal-2020-21-myanmar-k68-trillion.html