The Myanmar parliament has cut the government budget by more than MMK 400 billion for the 2019-2020 fiscal year. Lawmakers cited shifting policies and reducing excess spending as reasons for the reduction. The reduction leads to a budget of roughly MMK 32 trillion designated for the year.
U Aung Min, deputy chair of Joint Public Accounts Committee, explained that research groups audited several government ministries and cut funding for projects that will not be completed this year. This amount accounts for about MMK 20 billion of the reduction.
“Another point is that electricity prices were increased. We have calculated consumption of up to 300,000 units. As the expenses are now 1.5 times of the previous rate, we have allowed spending of up to 1.8 times and cut the rest,” The Myanmar Times quoted U Aung Min as saying.
U Aung Min was referring to a steep rise in power tariffs that took effect in July. The price hike was designed to reduce the need for power industry subsidies. The government spends around USD 500 million each year on power subsidies. Economists and media members largely praised the move to raise power prices.
The trimmed-down government budget was also popular, thus gaining parliamentary approval with no objections.
