Fiscal Arrangements in Myanmar and Its Implication for Fiscal Federalism

• In Event: Federalism in Action

Abstract

Generally, fiscal management was weak in Myanmar. Fiscal institutions were highly centralized by past governments despite the country being slowly decentralized as of the 2010s. For instance, Schedules II and V were amended in 2015 and added further opportunities for increasing own source revenues. The transition government restored a measure of fiscal discipline, reorienting fiscal priorities, and establishing a clear set of fiscal objectives in the Framework for Economic and Social Reforms (FESR), which was finalized in June 2013. Nevertheless, relatively little work has been done in Myanmar around issues of the efficiency and effectiveness of public expenditures. Hence, this paper examines resource allocation and various aspects related to resource mobilization, assessment of accountability, transparency, system reform, and institution building. The implication of the research is careful management of the links between political, administrative, and fiscal decentralization played crucial roles in the case of Myanmar. The analysis was based on fiscal data from government reports, and other expert reports.

Author

• Aye Aye Htun, Willy Brandt School of Public Policy at the University of Erfurt