Pillar 1Peace & Stability<12 Point Economic Policy /> Goal 2Economic Stability & Strengthened Macroeconomic Management<12 Point Economic Policy /> Strategy 2.1Effectively manage the exchange rate and balance of payments<12 Point Economic Policy /> 2.1.1Allow the kyat to float more freely in response to market supply and demandA more market-oriented exchange rateCBM<12 Point Economic Policy>EP8 2.1.2Ensure greater exchange rate flexibility as the CBM moves from a foreign exchange auction to an interbank transaction-based mechanism for setting the reference rateAlignment of the CBM’s reference rate to the market rateCBM<12 Point Economic Policy>EP8 2.1.3Stabilize high volatility of the exchange rateVolatility of exchange rate movements will be minimized.CBM<12 Point Economic Policy>EP8 2.1.4Develop an exchange rate intervention mechanismAbnormal exchange rate movements due to shocks will be stabilizedCBM<12 Point Economic Policy>EP8 2.1.5Stabilize inflation both from a monetary and fiscal policy perspectiveStabilization of inflation will help stabilize exchange rate volatilityCBM, MoPF<12 Point Economic Policy>EP8 2.1.6Promote more effective foreign exchange management through concentration of foreign exchange reserves in the CBMCBM able to make more effective intervention if necessaryCBM<12 Point Economic Policy>EP8 2.1.7Allow authorized foreign banks to provide both kyat and foreign currency loans to domestic borrowers, and to engage in interbank lending with local institutionsSupply and demand for foreign currency stabilizedCBM<12 Point Economic Policy>EP8SDG 8.1 2.1.8Develop the currency swap auction market through which foreign and domestic banks are more comfortable in conducting foreign currency interbank transactions, minimizing foreign exchange risk and uncertaintyLocal banks' demand for foreign currency will be met more easilyCBM<12 Point Economic Policy>EP8 2.1.9Develop a mechanism to allow all government foreign currency revenues to flow into national foreign exchange reserves held by the CBM rather than into other State-owned banksForeign currency reserves will be accumulatedCBM, MoPF<12 Point Economic Policy>EP8 2.1.10Formalize hundi and similar informal remittance systemsRemittances attracted to strategic sectors with potential for productive investment while managing currency appreciation risksCBM. MoPF<12 Point Economic Policy>EP8 Strategy 2.2Reduce inflation and maintain monetary stability<12 Point Economic Policy /> 2.2.1Continue monetary policy prudence with a view to stabilizing inflation and ensuring balance between economic growth and stabilityInflation stabilisedCBM<12 Point Economic Policy>EP8SDG 8.1 2.2.2Continue conducting deposit auctionsExcess liquidity in the market will be absorbedCBM<12 Point Economic Policy>EP8SDG 8.2 2.2.3Continue enforcing reserve requirement instructions on banks with flexibility to account for seasonalityCredit growth will be controlled to stabilize inflationCBM<12 Point Economic Policy>EP8SDG 8.3 2.2.4Strengthen treasury securities auctions and expand public understanding of bonds, bills and similar instrumentsCBM’s financing will be reduced, and inflation will be stabilizedCBM<12 Point Economic Policy>EP8SDG 8.4 2.2.5Acquire sufficient budget to pay higher interest at the auctions to make auctions more effectiveTreasury securities' yields will be more in line with the marketMoPF<12 Point Economic Policy>EP8SDG 8.5 2.2.6Develop the interbank money market, and ultimately liberalize bank interest rates based on borrower risk profilesSupply and demand for liquidity of the banks will be metCBM<12 Point Economic Policy>EP8SDG 8.6 2.2.7Develop the REPO market through which the CBM can absorb excess liquidity from the market through open market operations, including possibly REPO auctionsCentral bank will be able to use this channel to absorb excess liquidity of the banks to stabilize inflationCBM<12 Point Economic Policy>EP8SDG 8.7 2.2.8Reduce CBM financing to negligible levelsInflation will be stabilizedCBM<12 Point Economic Policy>EP1, EP8SDG 8.8 2.2.9Strengthen BOP shock absorptive capacity and build up foreign exchange reserves to support a more favourable BOP positionThe economy will be more resilient to shocksCBM<12 Point Economic Policy>EP8SDG 8.9 Strategy 2.3Increase domestic revenue mobilisation through a fair, efficient and transparent taxation<12 Point Economic Policy /> 2.3.1Reform the structure and governance mechanisms of IRD and other relevant entities, and establish functionally based departments organized to best administer the tax system for different groups of taxpayersTax collections will be more effectiveMoPF<12 Point Economic Policy>EP10SDG 17.1 2.3.2Expand electronic payment systems throughout the countryTax payments will be more convenientCBM<12 Point Economic Policy>EP10, EP4SDG 17.1 2.3.3Implement new information technology systems for registration, processing, accounting, and case workTax collections will be more effectiveMoPF<12 Point Economic Policy>EP10SDG 17.1 2.3.4Develop modern tax laws, including a new Tax Administration Law, a new Income Tax Law and a new VAT LawTax revenues will be higherMoPF<12 Point Economic Policy>EP10SDG 17.1 2.3.5Introduce anti-corruption and tax evasion counter-measures to protect the integrity and reputation of the tax system, including expanding the focus of internal audit and establishing an Internal Affairs UnitTax collections will be more effectiveMoPF<12 Point Economic Policy>EP10SDG 16.5 2.3.6Expand the implementation of a Self-Assessment System to Medium Taxpayer Offices.Tax payment will be more convenientMoPF<12 Point Economic Policy>EP10SDG 17.1 2.3.7Implement a risk-based approach to tax administration using a Compliance Improvement Strategy to guide the administration of taxpayer services and enforcement strategies.Tax collection will be more effectiveMoPF<12 Point Economic Policy>EP10SDG 17.1 2.3.8Streamline tax processes and procedures to reflect good international practice and maximise opportunities provided by modern technologyTax payment will be more convenient and effectiveMoPF<12 Point Economic Policy>EP10SDG 17.1 2.3.9Develop IRD staff capabilities by providing clear expectations of staff roles and responsibilities, relevant training, modern work practices including effective performance managementTax collection will be more effectiveMoPF<12 Point Economic Policy>EP10SDG 17.1 Strategy 2.4Strengthen public financial management to support stability and the efficient allocation of public resources<12 Point Economic Policy /> 2.4.1Significantly increase overall budget transparency, including the continued publication of Citizen Budgets, presentation of tax expenditures in annual budgets and other measuresStrong and transparent public finance management (EP1)MoPF<12 Point Economic Policy>EP1SDG 16.6 2.4.2Implement recommendations of Public Expenditure Reviews Strong and transparent public finance management (EP1)MoPF<12 Point Economic Policy>EP1SDG 16.6 2.4.3Strengthen fiscal prudence to narrow the deficit Strong and transparent public finance management (EP1)MoPF<12 Point Economic Policy>EP1SDG 16.6 2.4.4Strengthen scrutiny and oversight of budget proposals and cut unnecessary expendituresStrong and transparent public finance management (EP1)MoPF<12 Point Economic Policy>EP1SDG 16.6 2.4.5Enhance the capacity of national and sub-national PFM, including provisions for nationally-led strategic infrastructure planning and investment and related revenue generation and asset managementStrong and transparent public finance management (EP1)MoPF, All S/R Gov<12 Point Economic Policy>EP1SDG 16.6 2.4.6Encourage greater and more inclusive public participation in budgetary processes at all levelsStrong and transparent public finance management (EP1)MoPF<12 Point Economic Policy>EP1SDG 16.6 2.4.7Integrate gender responsive budgeting at all levels to ensure the budget is adequately structured to address gender inequalityStrong and transparent public finance management (EP1)MoPF, MoSWRR<12 Point Economic Policy>EP1SDG 16.6 2.4.8Introduce revenue sharing mechanisms, including revenues generated from the extractives industry, to support more equitable allocation of tax revenues across all States and RegionsStrong and transparent public finance management (EP1)MoPF, All S/R Gov<12 Point Economic Policy>EP1SDG 16.6 Strategy 2.5Enhancing the efficiency and competitiveness of State Economic Enterprises<12 Point Economic Policy /> 2.5.1Develop a national SEE policy based on a comprehensive review and assessment of existing SEEsSEEs operate on commercial principles, with independence, transparency, and accountability (PSD-AP Pillar 4)MoPF<12 Point Economic Policy>EP2SDG 8.3 2.5.2Corporatize, commercialise, restructure, or, where appropriate, privatize SEEs which operate in competitive marketsSEEs operate on commercial principles, with independence, transparency, and accountability (PSD-AP Pillar 4)MoPF<12 Point Economic Policy>EP3SDG 8.3 2.5.3Identify SEEs that should be fully or partially equitized and identify possible strategic partnersSEEs operate on commercial principles, with independence, transparency, and accountability (PSD-AP Pillar 4)MoPF<12 Point Economic Policy>EP4SDG 8.3 2.5.4Standardize financial reporting structures across SEEs and release financial data on SEEs to the publicSEEs operate on commercial principles, with independence, transparency, and accountability (PSD-AP Pillar 4)MoPF<12 Point Economic Policy>EP5SDG 8.3 2.5.5Develop competitive salary schemes for SEEs employees to boost SEEs competitivenessSEEs operate on commercial principles, with independence, transparency, and accountability (PSD-AP Pillar 4)MoPF<12 Point Economic Policy>EP6SDG 8.3