Myanmar’s budget deficit for 2013-14 could be as much as five percent, according to the reports from World Bank’s Branch Office in Yangon.
Myanmar saw 4.6 percent in budget deficit during 2011-12, and 3.7 percent in 2012-13. This year, it is expected to rise up to 5 percent, according to the World Bank’s estimates.
“For the government to be able to reduce the budget deficit, international financial organizations like International Monetary Fund, World Bank and Asian Development Bank can provide help. Although we are facing budget deficits, we need to try to avoid them in the future,” said Mr. Aung Thaung, chairperson of the Development Committee of Banks and Financial Institutions.
“The more we can minimize the amount [of budget deficit], the better it is. The country should therefore boost production sectors while cutting unnecessary costs,” Aung Thaung added.
Myanmar has run into budget deficits nearly every year. However, it did not use to publicize the budget situations in the past. It is only in these years that Myanmar has become transparent with the budget deficit.
“In most developing countries, budget deficits are common to occur. Other countries in the region face similar situations. Even in the United States, budget deficit is becoming a hot issue for discussion,” Khwima Nthara, World Bank’s economic representative to Myanmar, said at a press conference.
In the fiscal year 2013-14, Myanmar’s government income is expected to account for 23.4 percent of the country’s gross domestic products (GDP), while its expenses may represent 28.4 percent of the GDP, meaning there will be a gap as much as 5 percent.
Source: ELEVEN Myanmar