Meanwhile, a six-month budget will be drawn for the period between April 1, 2018 and September 30, 2018, which is the six month gap between the ending of the current 2017-18 fiscal year and the new 2018-19 fiscal year, Pyidaungsu Hluttaw Public Accounts Joint Committee member U Aung Min told The Myanmar Times.

“A budget for the six-month gap is necessary,” he said.

Myanmar has been practicing the April-March fiscal year since 1974. With the change, it will now be one of just 12 countries including the US, Laos and Thailand to use the October-September period.

The reason for changing the fiscal period is to facilitate purchasing and infrastructure budgeting for socio-economic development during the dry months between November and May. As the construction of much-needed infrastructure is gaining momentum, a continuous dry season is required. Under the current fiscal period, which ends March 30, the dry season is cut short. 

As such, the government wants a budget period which can provide the longest open, or dry, season, U Maung Maung Win, Deputy Minister for Planning and Finance, said in Parliament.

“As construction works can be carried out in full during the open season, it can help circulate money, create jobs and support the development,” he said. Moreover, it will simplify the budgeting process for many construction companies, he added. 

Capital expenditure, including the construction of infrastructure, currently constitutes 75pc of total expenditure, while construction works comprise 70pc of capital expenditure. 

Still, the change was approved amid scepticism in Parliament. “We can’t say the fiscal period shouldn’t be changed. But the current government has only two years of experience. We are worried that they cannot handle the change very well,” said U Thaung Aye, a Hluttaw MP from Pyawbwe township and member of Union Solidarity and Development Party (USDP). “I don’t think budget period needs to be changed.” 

 Hlaingbwe MP U Khin Cho pointed out that in changing the period for construction, other difficulties could arise. He said that delays due to poor management and implementation of new procedures under the change of fiscal year are likely to arise. Instead, steps to smoothen the budgeting process under the current fiscal period should be implemented.  

While he conceded that some difficulties may arise when negotiating with foreign countries and organisations, U Aung Min, MP from Zalun constituency and a member of the National League for Democracy government, was more positive. 

“Today is the age of computers. There is no reason to think that adapting to a change in the fiscal year is impossible with the aid of information technology,” he said. 

Source: https://www.mmtimes.com/news/change-fiscal-year-approved-despite-high-level-scepticism.html