The government is expected to spend a total of K35.2 trillion between October 1, 2019 and September 30, 2020, registering a wider deficit of K6.7 trillion, or 5.7 percent of GDP, for the period.

“The budget deficit is expected to widen as government spending will increase this year,” said Daw Thida Tun, director general at the Budget Department under the Ministry of Planning and Finance (MOPF).

“A higher proportion of the Budget has been allocated to the energy and electricity sector for the benefit of the public” she added.

Parliament approved funds of over K8 trillion for the Ministry of Electricity and Energy (MOEE) in fiscal 2019-20, which is up by more than 28pc compared to the K6.2 trillion received by the ministry in the previous fiscal year.

The higher budget will cover a short-term emergency plan for 2020, for which a tender has been called with the aim of generating 1,040 megawatts of additional energy from five liquefied natural gas projects.

Electricity distribution sites have been specified in areas which are nearest to the main grids, including Kyauk Phyu, Kyun Chaung, Alone, Thalyin, and Thaketa. The budget will also cover investments in longer term projects like hydropower construction projects which are implemented yearly, while the national grid will be expanded as well.

“The budget for completing such construction projects is a bit higher this year. It means the projects are now in the prioritised category due to the country’s needs. This means more medium-sized projects will be completed in 2020,” said a senior officer at the MOEE.

Spending on the energy and electricity sector has been insufficient for years, resulting in delays in hydropower projects and other power generation sites.

But now that electricity prices have been raised, the government is expecting to collect more revenue from the sector to justify higher spending in the necessary infrastructure. The estimated revenue collected from the electricity and energy sector is expected to be K9.6 trillion this year.

Besides the MOEE, the MOPF and Ministry of Defence received the second and third largest Budget allocations this fiscal year. The government will also prioritise transportation and communications, education and health.

The Ministry of Education has received K2.7 trillion this fiscal year, up 19pc compared to last year, while the Ministry of Transportation and Communications has been allocated with funds totally K1.7 trillion, up by more than 25pc compared to last year. The Ministry of Health and Sports received around K1.2 trillion, up by around 9pc over the same period. – Translated

Source: https://www.mmtimes.com/news/spending-electricity-tops-budget-first-time.html