The budgets of Union ministries and of organizations at Union level are to be checked under the aegis of a Vice-President nominated by the President of the State

YANGON, 26 Feb — On behalf of the Panel of Chairmen, member of Panel of Alternate Chairmen Dr U Thein Oo Po Saw of the Delegates of Intellectuals and Intelligentsia presented the panel of chairmen’s collection of excerpts from a compilation of suggestions presented by delegates concerning the laying down of detailed basic principles concerning formation of Financial Commission, and Taxation and funds allotment among the Pyidaungsu and Regions or States at the Pyidaungsu Hall of the Nyaunghnapin Camp in Hmawby Township, Yangon Division on 21 February.

The following is a translation of presentation made by U Thein Oo Po Saw.

In connection with the basic principles to be laid down for the ‘Formation of Financial Commission, and Taxation and funds allotment among the Pyidaungsu and Regions or States’ on grounds of the matters relevant to the sharing of legislative power that shall be included in writing the State constitution, I will continue to present the panel of chairmen’s collection of excerpts from the suggested proposals submitted by some delegate groups to the National Convention and from those by certain delegates to the National Convention.

At the Plenary Meeting of the National Convention held on 21 May 2004, the Chairman of the National Convention Convening Work Committee clarified that: “Detailed basic principles relevant to finance including the formation of the Financial Commission are:

(a) The budgets of Union ministries and of organizations at Union level are to be checked under the aegis of a Vice-President nominated by the President of the State, and budget appropriations of Union ministries and organizations at Union level are to be submitted to the Financial Commission.

(b) The budgets of regions or states are to be checked under the aegis of the other Vice-President nominated by the President of the State, and budget appropriations of the regions or states are to be submitted to the Financial Commission.

(c) To submit to the Pyidaungsu Hluttaw the draft of Union budget containing the Union budget with the expenditures of Union territories, the distribution of appropriate funds from Union Fund Account to regions or states, the provision of funds as a special issue and loans permission; or the draft of financial allotment; to give suggestions on financial matters worth undertaking; and to carry out the duties assigned by the Pyidaungsu Hluttaw through the promulgation of law, the Financial Commission is to be formed with following persons:

(d) (1) When forming the Financial Commission, the President of the State has the right to appoint a suitable person as a member on a temporary basis, if the post of member remains vacant for a certain reason.

(2) The President of the State is to announce the formation of the Financial Commission. However, orders and directives necessary for the Financial Commission can be announced by either the President of the State or the person to whom duties are assigned by the President of the State.

(e) To submit to the Pyidaungsu Hluttaw the draft of Union budget containing the Union budget, the distribution of appropriate funds from Union Fund Account to regions or states, the provision of funds as a special case and disbursing of necessary loans, the Financial Commission is to submit them to the President of the State.

(f) The Financial Commission, if need be, may seek advice from finance experts.

(g) On behalf of the Union Government, the President of the State or the person to whom duties are assigned by the President of the State is to submit the draft of the Union budget to the Pyidaungsu Hluttaw.

(h) (1) Salary and allowance of heads and members of organizations set up according to the Constitution of the State and expenditures of those organizations at Union level;

(2) Debts the Union has to settle, expenditures related to those debts, and other expenditures related to money borrowed by the Union;

(3) Expenditures to be paid according to verdict or order or decree released by the court or a particular tribunal; and

(4) Other expenditures to be paid according to a particular existing law or a particular international treaty, for which discussions can be held at the Pyidaungsu Hluttaw. However, rejection and deduction are not allowed.

(i) The Pyidaungsu Hluttaw should exercise in accord with majority consent the right to pass approval and to make rejection and deduction for other expenditures, save the expenditures mentioned in above paragraph (h).

(j) The Union Government is to take necessary steps according to the Union budget law enacted by the Pyidaungsu Hluttaw.

(k) Additional funds allotment law is to be enacted in accord with the procedures mentioned above, if appropriations and permitted expenditure contained in the Union budget law promulgated by the Pyidaungsu Hluttaw for the fiscal yer concerned in addition to the appropriations of extra income and expenditure are necessary to be allowed.

(l) The Union Government is to take necessary steps according to the additional funds allotment law enacted by the Pyidaungsu Hluttaw.

(m) Region or State Hluttaws concerned are to be in harmony with majority consent to exercise the right to pass approval and to make rejection and deduction to the budgets of regions or states through negotiation on the chief minister concerned including the funds received by respective regions or states from the Union Fund Account according to the Union budget law or the additional fund allotment law.

In doing so:

(1) Salary and allowance of heads and members of organizations set up according to the Constitution of the State and expenditures of those organizations at Union level;

(2) Salary and allowance of heads and members of leading bodies of self-administered area set up according to the Constitution of the State and expenditures of those bodies;

(3) Debts the region or state has to settle, expenditures related to those debts, and other expenditures related to money borrowed by the region or state;

(4) Expenditures to be paid according to verdict or order or decree released by the court or a particular tribunal; and

(5) Other expenditures to be paid according to a particular existing law enacted by Region or State Hluttaw, for which discussions can be held at the Region or State Hluttaw. However, rejection and deduction are not allowed.

(n) Taxes to be collected according to the law of the region or state and to be put in the Region or State Fund Account are as follows:

(1) Land tax;

(2) Excise;

(3) Water tax, embankment tax of dams and embankments the region or state has the right to manage, and tax on the use of electricity produced by such facilities managed by the region or state;

(4) Tolls from roads and bridges the region or state has the right to manage,

(5)     (aa) Royalty collected from fresh water fisheries,

         (bb) Royalty collected from marine fisheries located in limited distance;

(6) Tax collected according to vehicles and vessels law of the region or the state;

(7) Other benefits and profits reaped from the sale and rent of property owned by the region or state;

(8) Charges, taxes and other incomes realized from services provided by the region or state;

(9) Fines imposed at Region or State Judicial Hluttaws including Region or State courts, taxes and other incomes collected for services provided;

(10) Interests realized from the lending of money of the region or state funds;

(11) Profits realized from investment made by the region or state;

(12) Taxes collected for extraction of such items from forests in the region or state;

       (aa) Taxes collected on all other timber except teak and designated hard woods;

      (bb) Taxes collected on firewood, charcoal, rattan, bamboo, birdnest, cutch, thanatkha, turpentine, eaglewood, and honey-based products;

(13) Registration fees;

(14) Taxes on entertainments;

(15) Salt tax;

(16) Funds received from the Union Fund Account;

(17) Contributions by organizations relevant to development affairs in the region or state;

(18) Unclaimed cash and property;

(19) Treasure trove;

(o) The region or state has the right to use their funds in accord with the law.

(p) Except the taxes to be collected by the region or state, the Union is to collect all other taxes according to law and put them in the Union Fund Account.

(q) On condition that incomes and types of taxes to be collected by the region or state are to be gathered by the regions or states, the Union is to collect them according to law and put them in the Union Fund Account.

(r) The Union has the right to use the Union Fund Account in accord with the law.

As regards these clarifications, the Union PaO National Organization, which is a member of the delegate group of political parties, one of the delegate groups to the National Convention, discussed that all the clarifications made by the Work Committee Chairman from Points (a) to (r) should be adopted as detailed basic principles in the financial sector.

The Mro (a) Khami National Solidarity Organization discussed that it found appropriate all the Work Committee Chairman’s clarifications including those on the delegation of legislative power to the leading bodies of self-administered areas.

The Lahu National Development Party discussed that all the points from (a) to (r) mentioned in the sector for the formation of Financial Commission and the Taxation and funds allotment among the Pyidaungsu and Regions or States are worth adopting as detailed basic principles. It continued that these points will contribute to all-round development of the country and raise the living standard of the people.

The Union Kayin League discussed that the points clarified by the Work Committee Chairman will enable the State machinery to run smoothly in all the spheres and will ensure the social advancement of the people. Therefore, all the points from (a) to (r), it added, should be adopted as detailed basic principles.

The Kokang Democracy and Unity Party discussed that according to the basic principles laid down at the National Convention, the Union will be constituted with seven regions and seven states as well as Union territories. Therefore, measures are to be taken, it added, to adopt appropriate systems on the delegation of legislative power to Pyidaungsu Government, and the Region or State Government in connection with the matters related to finance. Only then will the whole country enjoy equal progress and prosperity. The party then agreed to all the points mentioned in the formation of Financial Commission and the Taxation and funds allotment among the Pyidaungsu and Regions or States.

The Wa National Development Party discussed that as regards the allowances and expenditures mentioned in paragraph (h), it is stated that the Pyidaungsu Hluttaw has only the right to give counsel to the approval of the draft of the Union Budget and the draft of the additional fund allotment law, and it has no right to make rejection and deduction. It is not appropriate to use such terms for the Pyidaungsu Hluttaw, which is the highest authoritative body.

The party continued that similarly, in paragraph (m), it is also stated that the Region or State Hluttaw concerned has only the right to give counsel to the approval of the Chief Minister of the Region or State concerned in connection with the allowances and expenditures, and it has no right to make rejection or deduction. It is not appropriate to use such terms for the Region or State Hluttaw.

The party then agreed to the adoption of all the points from (a) to (r) as detailed basic principles.

The panel of chairmen’s collection of excerpts from the suggested proposals submitted by delegates to the National Convention on formation of Financial Commission, and Taxation and funds allotment among the Pyidaungsu and Regions or States presented by Maj-Gen Aung Thein of Delegates of State Service Personnel will be published in tomorrow’s issue.