Myanmar's highest ever budget deficit has shown itself in the government's final fiscal year and spending is likely to increase further, leading economists to forecast an even bigger deficit, fuelling inflation and damaging citizen's lives.
The worries were expressed at this year's post-budget meeting, jointly held by the National Economics and Social Advisory Council, Action Aid Council and Union of Myanmar Federation of Chambers of Commerce and Industry.Under the current administration, 2011-12 saw a trade deficit of Ks215.9 billion, compared to Ks2.75 trillion in 2014-15. Additional budgets were requested, pushing the deficit above Ks3.6 trillion.
President Thein Sein's term has seen a Ks12-trillion budget deficit build, causing inflation and price hikes.
Economist Zaw Phay Win said: "In addition to running a budget deficit, permission by the president has been granted to add to the budget annually around October and November. At this point, since there are no solutions on how to finance this spending, it shows only deficit. Looking at the 2014-15 fiscal year and its deficit of Ks2.75 trillion, it can be taken that the deficit is actually at Ks3.8 trillion due to the additional imbursement of Ks1 trillion. The same thing will probably happen again during October and November, increasing the budget deficit again. Are these matters not going to be discussed in Parliament?"
He said even though the government was allowing many requests to increase ministerial budgets, deficits had not been reported regularly.
A representative of the National League for Democracy, Sandar Min, said the Ministry of Construction, which deals with importing items using foreign currency, would probably ask for a budgetary boost.
There have been many concerns that this year's budget will used to influence voters ahead of the general election.
Political analyst Kyaw Lin Oo said it was a common international practice that ruling parties vying for control would use the citizen's budget to buy votes and that the funding for operations such as humanitarian work, loans, paving of roads and providing electricity would be used to win seats.
"When elections are near, governments often use budgets to get votes and boost their popularity with the public. Thailand does things like asking for an increase in the loan limits for farmers and peasants. The Parliament is extremely important at this time. How will the Budget Review Joint Committee control the situation? It is important that foul play does not happen. They are asking for bigger budgets because they are soon to leave office," said Kyaw Lin Oo.
"In 2016-17, the new ministers will have to report on the 2015-16 budget. When it has been reported and inappropriate activities are found, action needs to be taken."
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