Myanmar government is calling for speeding up monetary reform in addressing fiscal challenges as the country experienced some instability with its local currency.
Finding that Inflation is caused by consecutive deficit and imbalanced demand and supply, President U Htin Kyaw made the call to accelerate reform in the monetary sector.
The president urged at the Finance Commission meeting Monday to revise budget estimate submitted by region and state governments for the 2016-17 fiscal year.
When the new government took office in April, budget estimate for the 2016-17 financial year and the budget law were amended at the new parliament as ministries were reformed.
The president urged the finance commission to submit laws on allotment of the revised budget to the coming third session of the parliament.
The president disclosed that the government is planning to seek more subventions or grants of money for the country's small and medium enterprises and to build national industries, calling for frugally and systematically spending money in times of slow global economies.
In fact, the International Monetary Fund (IMF) had urged the government to make necessary reform because of the slow growth of the global economy.
As a consequence, progress in Myanmar's trade sector is slowing, the IMF estimates.
According to the president, as per the current situation of the state's macro-economy, the nation's gross domestic product (GDP) may be lower than expected, attributing the reason to a decline in agricultural produces due to natural disaster, reduced wood production, shortage of income in the oil and petroleum sector due to decreasing oil prices worldwide and a reduction in the mining of minerals to lessen the effect on the environment.
Timing at the lifting of US sanctions, Myanmar enacted a new investment law, laying down 12 economic principles for promoting economic development and prioritizing policies on investment.
Citing the figures of revenue and spending during the first six-month tenure of the new government, Vice President U MyintSwe called for approving the draft law on revised budget estimate for the financial year 2016-17 assessed by the finance commission.
Government organizations are being urged to undertake responsibility and accountability in the wake of growing concerns over the national economy.
Meanwhile, Myanmar State Counsellor Aung San Suu Kyi has called for transparency and accountability in economic system to relieve concern of entrepreneurs as well as capacity building of the citizens, stressing the importance of the measure introduced for national development in the long run.
She emphasized the prevalence of rule of law to attract foreign investors, inviting government members, donors and local entrepreneurs to get involved in formulating the national economic policy.
For rapid economic development, Suu Kyi called on the participants to help the new government with genuine efforts to be able to overcome the challenges.
Courtesy Global Times