State Budget According to SPDC [May

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Subject: State Budget According to SPDC [May 6]

The folowing report is from an open source of the SPDC.Authenticity of the
document is guranteed despite the content: calculations and figures.

Source:Review of the Financial, Economic and Social Conditions for 1996/1997
Ministry of National Planning and Economic Development

  State Budget For 1997/98

1.      Mobilization and effective utilization of domestic and external
financial resources are essential for economic development. The 1997/98
budget for the State Law and Order Restoration Council, Multi-party
Demoncracy General Elections Commission, Government, Chief justice, Attorney
General, Auditor General Offices, Ministries and Departments has been drawn
in co-ordination with the organizations concerned. Having converted debts of
State Economic Enterprises into State equity on 31 March 1989, budget of the
State Economic Enterprises are drawn on the basis of the new financial
management programme. Consequently, the SEEs have to deposit the income to
State Fund and expenditures are to be incurred from the Fund and profitable
organizatios have to pay a certain portion of profits as contribution to the
State. The budget of Cantonment Municiplities are drawn in co-ordination
with committees concerned.

2.      In the 1997/98 State budget estimates, total investment was
estimated at K 35569 million of which K 21023 million was allocated for the
State Administrative Organizations, K 14534 million for the State Economic
Enterprises and K 12 million for the Cantonment Municipalities respectively.
A summary of the State budget and the balance of payments for 1997/98 are
shown in tables 169 to 173.

3.      State Law and Order Restoration Council, Multi-party Demoncracy
General Elections Commission, Government, Chief Justice, Attorney General,
Auditor General Offices, Ministries and Departments: The receipts of the
State Law and Order Restoration Council, Multi-party Demoncracy General
Elections Commission, Governmet, Chief Justice, Attorney General, Auditor
General Offices, Ministries and Departments are as follows:-

        (1)     Revenue from taxes is estimated at K 25555 million.

        (2)     SEEs contribution to the State from their profits after
deducting income tax is estimated at K 17067 million.

        (3)     Receipts under debts account including foreign loans and
repayments of subsidiary loans, recovery of                        housing
loans from the Department of Human Settlement and Housing Development and

Agriculture and                     Livestock breeding project loans for
employees is estimated at K 210 million.
4.      The expenditures of the State Law and Order Restoration Council,
Multi-party Demoncracy General Elections Commission, Government, Chief
Justice, Attorney General, Auditor General Offices, Ministries and
Departments are as follows:-

        (1)     Current expenditure for  State Administration, Defence and
Social Services 
                   are estimated at K  36823 million.

        (2)      Expenditure under debts account including repayments of
internal and external debt is estimated at K 526                    million.

        (3)     Payments for investment are estimated at K 20 million, and
includes compensation for nationalized                   enterprises and
subscription to joint ventures.

        (4)     Expenditure on redemption of saving certificaates is
estimated at K 0.3 million.

        (5)     A reserve fund of K 100 million is provided for unforeseen
expenditures.

5.      The budget estimates of the State Law and Order Restoration Council,
Multi-party Demoncracy General Elections Commission, Government, Chief
Justice, Attorney General, Auditor General Offices, Ministries and
Departments, show that the total current receipts amounted to K 48060
million, while the total current expenditure is  
K 36823 million, showing a surplus of K 11237 million. The receipts of the
debts and investment account amounted to K 210 million, while the
expenditures are K 546 million, showing a deficit of K 336 million. The
surplus of the current account being K 11237 million, the deficit of the
debts and investment account being K 336 million, capital receipt being K
782 million, and the capital expenditure being K 21023 million resulted in
the deficit of K 9340 million. K 100 million being provided for the reserve
fund, the net deficit totalled K 9440 million.

6.      State Economic Enterprises: Total current receipts of the SEEs
including foreign grants are estimated at K 125375 million, while total
current expenditure is estimated at K 138965 million, showing a deficit of K
13590 million in the current account.

7.      Total receipt of the SEEs under the debt and investment account
including recovery of internal and external loans, receipt for investment
amounting to K 1008 million. The total expenditures on debt and investment
account are estimated at K 1486 million, comprising repayments of internal
and external loans, subsidiary loans and subscription of shares to joint
ventures.  Thus the deficit under the debt and investment account is K 478
million. Capital receipts including foreign grants amounted to K 8 million,
while the capital expenditure is estimated at K 14534 million, showing a
deficit of K 14526 million in the capital account.

8.      The deficit of the current account of SEEs is estimated at K 13590
million, the deficit of the debt and investment account K 478 million and
the deficit of the capital account K 14526 million resulting in the total
deficit of K 28594 million.

9.      Cantonment Municipalities: The receipts and the expenditures of the

Cantonment Municipalities are as follows:-

        (1)     Current receipts amounted to K 20 million, while the current
expenditure is K 14 million, showing a surplus of                   K 6
million.

        (2)     The targeted capital expenditure is K 12 million showing a
deficit of K 6 million.

10.     Balance of Payments: In the 1997/98 Balance of Payments, merchandize
exports is estimated at K 5945 million and merchandize imports at K 11194
million including K 1742 million for import from external loans and grants.
Receipt from foreign investment account is estimated at K 2250 million.

11.     In 1997/98, debt service for conventional loans is estimated at K
1617 million, comprising K 274 million of interest payment and K 1343
million for repayment of principqal and interest for the short-term loan is
estimated at K 25 million ans interest payment to the International Monetary
Fund at K 15 million. Thus the total det service is estimated at K 1657
million.