OBS / Broader PFM Reform in Myanmar :– Update from civil society perspective. David Allan, Spectrum -

Overview of PFM Themes … OBS Scores OBS Scores Revenue Transparency Revenue Transparency Overall PFM Reform Overall PFM Reform Citizen’s Budget Citizen’s Budget National Savings National Savings Social Accountability Social Accountability

OBS Scores … 

TIMELY INFO RELEASE

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 FY Restructured Budget Department for more policy and institutional control over PFM Initiated MTFF started from 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 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 8

9 Plans for the Future

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