OBS / Broader PFM Reform in Myanmar :–

Update from civil society perspective.

David Allan, Spectrum - djallan7@gmail.com

Overview of PFM Themes Overview of PFM Themes ……

OBS ScoresOBS Scores Revenue TransparencyRevenue Transparency Overall PFM ReformOverall PFM Reform Citizen’s BudgetCitizen’s Budget National Savings National Savings Social AccountabilitySocial Accountability

OBS Scores …2012-2015OBS Scores …2012-2015

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TIMELY INFO TIMELY INFO RELEASERELEASE

EITI – MYANMAR REPORT?

Myanmar Sectors – Oil & Gas, Mining (including jade & gems emporium info) + feasibility study on hydropower + extra forestry information.

Establish Treasury Department under MoF in order to enhance PFM by the systematic performance of Treasury function to ensure effective management of cash and financial reporting

Drafted the Public Debt Law and building capacity on debt management

Introduced quarterly cash flow forecasting program started from 2015-16 FY

Restructured Budget Department for more policy and institutional control over PFM

Initiated MTFF started from 2015-16 FY in order to improve budget formulation process year by year in accord with the international standard to support macroeconomic stability and development

Tax revenue increased from 3.6 % in 2011/12 (PA) to 7.4% 2014/15 (BE); with implementation of self assessment for large taxpayers

Major Progress to Date

Other Achievements of PFM Reform Analytical work (PEFA, PER, IMF reports) conducted, published PFM Modernization Strategy published, Program developed and launched Improved budget process- Incremental to policy based by MTFF, Issued expenditure ceiling

and revenue floors to spending agencies in the budget calendar in 2015-2016 FY Improved fiscal transparency –

Published Budget Law in newspaper Submitted Citizen’s Budget to parliament Negotiated with DFID for short term Expert on fiscal transparency Implementation of EITI

Institutional restructuring (Large Taxpayers Office established, Budget Department Restructured and Treasury Department established for more policy and institutional control over PFM

taken actions to finance the budget deficit including a treasury bill auction and a reduction of the Central Bank financing of the public debt

Ensure that the PFM system has continued to evolve and support the bottom up planning process and interaction with Parliament

Development Partner working group fully operationalized and support coordinated

Challenges

• Tax revenue from Natural resources sector

• Intergovernmental revenue transfer and developing fiscal

management of States and Regions

• Effective and efficient expenditure allocation by policy

priorities- revenue collection & expenditure spending

• Sound macroeconomic indicators and reliable data for MTFF

• Skill for effective cash and debt management functions

• Better understanding on DP’s Finance projects

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Plans for the Future

Summary…Summary… PFM interest rising very rapidly…PFM interest rising very rapidly… Progress on so many frontsProgress on so many fronts EITI progress continuingEITI progress continuing Citizen’s budget imminentCitizen’s budget imminent Budget transparency tools time lagBudget transparency tools time lag Online budget tracker will be betterOnline budget tracker will be better Various taxation issues remainVarious taxation issues remain National savings interest highNational savings interest high Fiscal discipline needs high for SWFFiscal discipline needs high for SWF Social accountability tools comingSocial accountability tools coming