Posted in Budget Transparency, Political Institutions on Aug 05, 2019

On 29th July the Region/State Budget Preparation and Reporting Bill was posted to the Pyidaungsu Hluttaw website, which sets out the process and timetable for States and Regions to follow in preparing and approving their annual budgets. The following sets out the main provisions in the Bill:

Reporting and examining estimate

By 7th of March each year, the Region/State Government must submit a budget estimate to the relevant State/Regional Hluttaw. The estimated budget is prepared by the Budget Department according to a framework set by the Union Finance Commission, which is in turn intended to be in line with national policy. After the budget estimate is scrutinised by the Budget and Finance Committee, the Chair provides the Committee’s financial and legal analysis to the Hluttaw alongside the budget. Once approved, the State/Regional Hluttaw then send on the budget estimate on to the Government.

When the State/Regional Government submits its budget estimate to the respective Hluttaw, this Bill requires that the following be included:

  • budget estimate and summary table
  • Region/State Chief Minister’s recommendations
  • background and context from government officials, to include:
    • the mid-term budget situation
    • macro-economic data (the Bill provides more detail on what this is to include)
    • a robust explanation of calculations behind the estimated figures
    • notes on last year’s achievements, including updates on implementation of projects
    • information about Region/State debt
  • A clear description of the budget summary in accessible language for the public
  • plans in the Region/State for investments and taxation
  • grants and loans to the Self-Administered Division or Region/State (including foreign loans or grants to any government entities, which must be made in line with the Public Debt Management Law 2016)

Submitting and approving the bill

Within 7 days of the Union Budget Law being signed by the President, the Region/State Government must submit its Budget Bill to the relevant Hluttaw. After the examination of the Bill by the Budget and Finance Committee, the Chair must again submit financial and legal analysis to the Hluttaw to accompany the Bill. There are relevant laws and by-laws that must be followed governing the power the Hluttaw has to approve, reject or reduce the budget in the Budget Bill.

Submitting supplementary budget allocation estimate bill

If the Region/State Government wants to submit supplementary budget allocation estimates, it can do so to the Hluttaw by 1st of February. The submission should be within 3 working days of the Union Supplementary Budget Allocation Bill being signed into Law by the President.

Reporting

A mid-term report updating the Hluttaw on progress with implementation against the budget must be submitted by the Minister in charge by the last week of May, who must also submit an annual report at the end of the financial year.

To implement this law, the Minister for Planning and Finance is able, with the consent of the Union Government, to issue by-laws, rules and regulations. The Budget Department in the Region/State can, with the consent of its Government, issue announcements, orders, directives and procedures.