Political stability will be achieved only when the economy is good, and it is necessary to balance supply and demand in domestic manufacturing, and if not, the country will face high prices, said Senior General Min Aung Hlaing, Chair of the State Administration Council (SAC) and Prime Minister while giving a speech at the ceremony to transfer fund from the National Economic Promotion Fund held at the Bayintnaung Villa in Nay Pyi Taw on August 12.
Financial provision for investments faced difficulties during previous year during the earlier period after assuming the State duties. The SAC faced a lot of political and economic attacks and internal and external disturbances to stop the banking business, with the intention of causing an economic collapse. Moreover, the national economy was hit hard by COVID-19. Hence, there were difficulties in providing capital for businesses, he said.
Efforts should be made to promote the economy for national development. Economy and politics has relations and only the good economy can ensure political stability. The economy has two parts – production and trade. The Ministry of Planning and Finance makes calculation and set economic targets and lays down annual plans. Every country earmarks annual budgets for economic development. The country’s GDP is growing annually. Changes in currency value as well as production grown can also increase GDP. Relations between local demand and exports should be taken into account. Chief Ministers should ensure a balanced development and certify the economic development through scrutiny process. In the domestic production sector, supply must meet the demand, and if not, there will be a price hike, he added.
Promote production, the core of the economy Production is the core of the economy. As the country must promote farming-based production, the national economic development fund is set up. The fund can ensure a quick win and the support for summer paddy and cold season crops. Hence a specific fund has been set up for summer paddy and green beans, which is one of the country’s export crops. The fund will help generate job opportunities and enable farmers to spare their cultivation cost for other purposes. As jobs will generate income there will be a rise on local buying power, which will eventually increase the local supply. Hence, business operations will become faster, he continued.
The presently disbursed funds are the capital given by the State, and those funds to be retaken will be disbursed again in the next season to be able to make investments. Therefore, it is necessary to consider that the investments are for manufacturing goods, and foreign exchange earnings are to be made through export of the goods. The foreign exchange earnings could be spent for imports of agricultural imports and other necessary items. So, region and state governments and self-administered regions are urged to successfully implement the tasks. Accordingly, measures are to be taken successfully to ensure successful and smooth operation of small and medium enterprises such as rice mill, edible oil mill and bean separator. It is necessary to analyze spending and wasting in order that there will be no unnecessary wastes, he said.
