Restructuring the state budget system for disinflation and exchange rate unification in Myanmar

Koji Kubo

No 320, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

Abstract: The installment of a new government has augmented the prospect for implementing disinflation and exchange rate unification in Myanmar. A close look at the state budget shows that the reform of the budget system for state economic enterprises (SEEs) is essential. Reforms need to hold the replacement of controlled prices including the official exchange rate with market prices in SEE operations, and the separation of the SEEs from the state budget. But separating the SEEs from the state budget will necessitate careful planning to cope with SEE bankruptcies which would imposes another fiscal burden on the government. Therefore, economic viability must be a criterion for the continuation of their operations.

Keywords: Myanmar; Government enterprises; Budget and accounts; Inflation; Foreign exchange; State economic enterprises; Disinflation; Exchange rate unification (search for similar items in EconPapers)
JEL-codes: H61 L32 O24 O53 (search for similar items in EconPapers)
Date: 2012-01-01
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Published in IDE Discussion Paper = IDE Discussion Paper, No. 320. 2012-01-01

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