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Report of National Planning and Eco



Subject: Report of National Planning and Economic Dev: on Inflation

Secret

MONEY SUPPLY                                                             
GDP



Ministry of National Planing and Economic Development


Report pertaining to inflation and how to reduce it

BUDGET

CPI									INFLATION
Consumer Price Index

1998, September

Secret






















TABLE (1)

Rate of inflation in Burma, ASEAN and neighbouring countries
                                                   (1997)

----------------------------------------------------------------------------
-------------------------
Serial No: Country
           
Percentage 
----------------------------------------------------------------------------
------------------------
1.               Indonesia
                         
9  .7
2.               Malaysia
                         
2 .7
3.               Philippines
                          
6 .8
4.               Thailand
                         
4 .6
5.               Burma
                         
29.7
6.               Singapore
                        
2.8
7.               Laos
                           
- -
8.               Nepal
                           
3.6
9.               Sri Lanka
                           
7.9
10.             China
                          
2.8
11.             Bangladesh
                      
5.7
12.             India
                           
6.4
----------------------------------------------------------------------------
-------------------------             


TABLE (1.a)
TABLE (1.a)

                            
(Percentage) 
 
----------------------------------------------------------------------------
----------------------------------------------
      
No; /Country     / 1986/ 1987/ 1988/ 1989/ 1990/ 1991/ 1992/ 1993/ 1994/ 
1995/ 1996/ 1997/
----------------------------------------------------------------------------
--------------------------------------

                                 
A
1.     Indonesia    5.8     9.3   8.0   6.4   7.8   9.4    7.5   9.7    
8.5   9.4     7.9      9.7 
8.5   9.4     7.9      9.7 

                                                
B
2.     Malaysia     0.7     0.3   2.6   2.8   2.6   4.4    4.8   3.5   
3.7    5.3     3.5      2.7
                          

                          

                                                  
A
3.     Philippines  0.8    3.8  8.8  12.2  14.1  18.7   8.9   7.6   9.1    
8.1    8.4       6.8
 
 

                                                   
B  
4.     Thailand     1.8   2.5   3.8    5.4    6.0   5.7    4.1     3.4     
5.2    5.7    5.8    4.6 



                                                   
D                                                     
5.     Burma        9.2  23.9  16.8  27.2   17.7   32.3   20.9 31.8  
24.1  25.2  16.3  29.7
 
 

                                                   
E
6.     Singapore  1.4   8.5    8.5    2.3   3.5       3.4    2.3    2.3    
3.1   1.7    1.4     2.8



                                               
7.     Laos           *       *     *     61.3  35.6    13.4    9.9    
6.3   6.7    19.6  14.7    ---*



                                                   
C
8.     Nepal        19.0  10.8  9.0  8.8    8.2     15.6   17.1   7.5   
8.3     7.6    9.2      3.6
8.3     7.6    9.2      3.6

           

           

                                                   
G                                                                          
9.     Sri Lanka    8.0   7.7  14.0  11.6  21.5  12.2   11.4  11.7   8.4    
7.7    15.9  7.9 



                                                   
F
10.   China           0.0   7.2   18.7  18.3   3.1    3.5    6.3   14.6  
24.2  16.9    8.3    2.8
 
 

                                                  
G  
11.   Bangladesh  11.0  9.5    9.3   10.0   8.1   7.2    4.3     0.0   
3.6    5.8      2.7     5.7  



                                                   
G  
12.   India            8.7   8.8    9.4    6.2    9.0  13.9   11.8    
6.4   10.2  10.2    9.0     6.4
                                 
----------------------------------------------------------------------------
-------------------------
A-  October                                E-  September
B - August                                  F- Third Quarter
C- July                                       G-  Jun
D- December                              H- May
* -not received
Note: 1.  International Financial Statistics Yearbook 1997
          2. International Financial Statistics, December 1997 
          3. Central Statistical Organisation

























TABLE (2)

Consumer Price Index (Rangoon)
Consumer Price Index (Rangoon)

                     
(1986=100)

----------------------------------------------------------------------------
------------------------------------------------------------------------
Serial /   Subject                 /     1989     / 1990   /  1991   / 
1992   /  1993     / 1994    /  1995   /  1996   / 1997   / 1998    / 
1998 
  No:                                  /   Mar       /     Mar    /  Mar    
/  Mar   /    Mar      /  Mar     /  Mar    / Mar     /   Mar    /   Mar     
/ Sep
----------------------------------------------------------------------------
------------------------------------------------------------------------
1. Consumer Price Index    167.5.2   197.58    267.24   328.15  434.64    
533.31   673.87   758.39     960.40    1393.31  1786.00
2. Food Group                         174.46    209.29   299.03   371.76    
512.38    620.20   768.83   887.11     1148.61  1656.83  2133.69
   1. Rice                                  122.25    236.53   327.22   
387.68     855.15    916.28  1023.92  1204.32  1607.97  1870.43  2560.13
   2. Oil                                    129.71    177.06   162.07   
375.74     338.82    344.04   539.59   523.95      698.56  1268.43  
1491.29
   3. Meat Fish and Eggs         152.66    183.14   261.66   325.31    
500.09     680.34   815.54   916.22   1186.61   1902.38  2280.41
   4. Other Foodstuff               167.66    201.13   287.38   357.27    
442.28    532.46    695.45   863.62  1086.60  1442.09    2041.69
3. Other than                         154.66    175.90   208.39    
247.41    290.70    372.43   498.05   520.07    611.95    905.43    
1042.27                 
food group
   1. Clothing                           118.58   163.71  202.93   
257.78     340.97     357.72  423.26  500.25   567.12   918.32   1144.45
   2. House rent and repairs     104.08   124.17  169.24   206.00     
221.84     271.46  359.60  398.07   463.13   677.63     772.53
   3. Firewood and fuel            171.00   194.23  250.63   308.26     
373.04      511.62 761.08  767.06    901.40  1162.49  1305.55
   4. Miscellaneous                  173.45  185.45 197.30  217.52     
232.20      331.55  430.78  436.44   508.46   794.42   1129.00
       1. Education                       96.07    102.62  103.64  
105.23   106.54      111.97   115.97  133.60   171.50    289.58    
329.07 
       2. Health                          182.60     221.65  296.70  
304.60  317.98      319.27  425.18   379.74   558.22   702.31    726.55
      3. Travelling expenses      223.73    223.73  223.73   223.73  
223.73      509.05  708.75   708.75    725.25   1133.67   1551.18
      4. Commodities                 174.33    193.58  195.86   262.36   
291.38      271.87  305.29   331.10   474.64   824.79    1547.06
      5. Other                             159.19    161.48  188.99  
237.25   305.10      314.24  369.88   371.36   506.73    889.28    
1040.25
----------------------------------------------------------------------------
------------------------------------------------------------------------


























TABLE (3)

Cost of living for a family in Rangoon 
(1989 & 1997)

----------------------------------------------------------------------------
------------------------------------------------------------------------
 Serial /  Subject                           / 1989 Census
      
/ 1997 Census       /                            1997 - Increase 
(multiple) in                                                    
    No: /

      
cost of living
                                                  						               
(1989= 1)
                                                 /    Kyat          / 
Percentage        /  Kyat        /  Percentage          /
                             
----------------------------------------------------------------------------
------------------------------------------------------------------------
1. Family size (number of persons)               5.18
              
5.16
2. Monthly expenditure (Kyat)         2026.37      100.00              
16234.81         100.00                               8

3. Food group                                   1375.95       67.90
      
10417.19            64.17                               8
  1. Rice                                              255.21        
12.59                2249.27            13.85                               
9
  2. Edible oil                                      137.08         6.76
             
1124.80              6.93                               8
  3. Meat, Fish and Eggs                    386.51        19.07
    
2875.29           17.71                               7
  4. Other foodstuff                            597.15        29.48
        
4167.83            25.68                              7

4. Group of other                               650.42         32.10
        
5817.62            35.83                               9
 	than food
   1. Clothing                                    109.50            5.4
               
935.92              5.77                               9
   2. House rent and repairs                42.04            2.07
       
422.65               2.60                             10
            
   3. Firewood and fuel                     123.56            6.10
        
752.82               4.64                               6         
   4. Miscellaneous group
     1. Education                                 35.25             1.74
              
360.85               2.23                             10
    2. Health                                       52.36              
2.58                 275.75               1.70                                
5
    3. Travelling expenses                100.63              4.98
     
1373.47               8.46                             14
    4. Commodities                            78.64               3.88
           
432.64               2.66                               6
    5. Other                                      108.44               
5.35                1263.52              7.77                             
12

----------------------------------------------------------------------------
------------------------------------------------------------------------























TABLE (4)

Cost of living for a family (Union of Burma )
(1989 & 1997)

----------------------------------------------------------------------------
------------------------------------------------------------------------
 Serial /  Subject                           / 1989 Census               
/ 1997 Census                              /  1997 - Increase (multiple) 
in                                                    
    No: /
                                                                         
cost of living
                                                  
/-----------------/-------------------/----------------------------------/
     
(1989 = 1)
                                                 /    Kyat          / 
Percentage        /  Kyat        /  Percentage          /
                             
----------------------------------------------------------------------------
------------------------------------------------------------------------
1. Family size (number of persons)               5.27
              
5.25
2. Monthly expenditure (Kyat)        1795.50           100.00             
13784.51     100.00                              8
3. Food group                                   1329.19            74.03
           
9779.45        70.95                              7
  1. Rice                                               548.49            
30.10              2695.68        19.56                              5
  2. Edible oil                                      118.49               
6.60              1248.43          9.06                            11
  3. Meat, Fish and Eggs                     268.86            14.97
       
2256.17        16.36                             8
  4. Other foodstuff                             401.35             
22.36              3579.17        25.97                             9
4. Group of                       	   466.31              25.97              
4005.06        29.05                             9
other than  food
   1. Clothing                                       87.34                 
4.87               738.72          5.36                              8
   2. House rent and repairs                 25.08                 1.40
          
294.82          2.14                            12
   3. Firewood and fuel                      120.67                6.72
           
661.76          4.80                              5   
   4. Miscellaneous group
     1. Education                                  16.69                 
0.93                 197.10         1.43                             12
    2. Health                                        37.71                  
2.10                 249.13         1.81                               7
    3. Travelling expenses                   31.14                  1.73
             
421.53         3.06                             14
    4. Commodities                             47.87                  
2.67                  329.20        2.39                                
7
    5. Other                                          99.91                 
5.55                1112.79        8.06                              11
----------------------------------------------------------------------------
------------------------------------------------------------------------























TABLE (5)

Summary of the country's Income  and Expenditure Account
								
							In millions of Kyat
----------------------------------------------------------------------------
------------------------------------------------------------------------
No: /     Subject       / 1988-89 / 1989-90  / 1990-91 / 1991-92  / 
1992-93  / 1993-94   /  1994-95  / 1995-96  / 1996-97  / 1997-98
 										           (Adjusted
                                      

                                      


                                               
Estimate)
 
----------------------------------------------------------------------------
----------------------------------------------------------------------
1. State administrative 
Body
    Income                   6860.2     11249.8     14837.0     16178.3    
2472.0      28145.0     32766.4     40370.9    55253.6     72473.8
    Expenditure           8226.8     15787.8     21708.2     25340.4  
28494.9      35888.6     48493.2     65527.5    80439.6     93299.8
    Balance                -1366.6      -4538.8       -6871.2     
-9162.1  -7022.9        -7743.6    -15726.8   -25156.6  - 25186.0   - 
20826.0


2. State owned 
     Enterprises
    Income                  19100.1    26812.8     32041.7     36399.1    
43548.0    52944.5    73444.1     88182.9   109023.5    21456.7
    Expenditure          23998.3    29977.5     36361.4     40110.8    
48624.0    60723.8    87373.3   101853.6   135578.9    258997.9
    Balance                 -4898.2     -3164.7      -4319.7      
-3711.8     -5076.0    -7779.3    -13929.2    -13670.7  -26555.4    
-44471.2


3. Municipal bodies
     Income                    407.5       1008.6        1881.4      
2410.1      13.0            15.2           18.8            22.7         
18.3          21.8
     Expenditure            457.4       1325.6        1894.5      1847.6
   
9.0               9.7            10.0             14.9       16.3          
33.2
     Balance                   -49.9       - 307.0           -13.1      
+562.5      +4.0           +5.5           +8.8              +7.8      
+2.0          -11.4

4. Total
     Income                26367.8     39071.2     48760.1    54987.4    
65033.0     81104.7  106229.3    128576.5   164295.4   287022.3
     Expenditure        32682.5     47090.9      59964.1   67298.8    
77127.9      96622.1 135876.5    167396.0    216034.8  352330.9
     Balance               -6314.7      -8019.7     -11204.0   -12311.4   
-12094.9   -15517.4   -29647.2    -38809.5   -51739.4   -65308.6

5. GDP (at 
    Current prices)-    76242.7   124666.3   1519414.4  186802.4  
249394.7  360320.7 472773.7  604729.1   790877.3  1067521.9
         
6. Deficit/GDP 
Ratio(%)          8.3            6.4                  7.4            6.6
        
4.8           4.3           6.3                 6.4            6.5          
6.1

----------------------------------------------------------------------------
------------------------------------------------------------------------































TABLE (6)

Index of GDP annual growth




     
(Percentage)
----------------------------------------------------------------------------
------------------------------------------------------------------------
Serial  /   Subject                 /   1988-89/ 1989-90/ 1990-91/ 
1991-92/ 1992-93/ 1993-94/ 1994-95/ 1995-96/ 1996-97/ 1997-98
    No: /               									    Provisional
1.Value of Production          -13.3          6.5           2.6           
-1. 5         11.0          6.0             6.9         6.7           
6.4          5.3
  1. Agriculture                    -13.2           5.2           2.0
    
-3. 9         12.4          4.7             6.7         5.5           
3.8          3.0
  2. Meat and fish                 -10.5          -4.0         -0.6
   
5.7            4.5          4.8             6.0          3.0         
11.9         8.7
  3. Forest                                -1.6        28.4           
8.3           -1.7          -3.3           1.0         -14.3        - 
4.5          2.7          2.3
  4. Energy                               -               -               
-              -2.4           -5.7           2.4           -6.5          
8.9         -2.1          2.3
  5. Metal/mineral                  -20.1       30.6         -1.2          
18.5          32.0        13.8           21.3        18.5        11.6         
31.3
  6. Industry                            -15.9       11.3          0.1
     
-4.0         10.8           9.4             8.5          7.6          
5.0           5.9
  7. Electricity                          - 5.9      14.1          5.0
       
6 .7         31.1        24.4             4.8          6.6        10.0
     
9.5
  8. Construction                     -23.4      32.7        35.8          
17.1          11.2        11.7           15 .7       27.2        24.6
    
9.5
2. Services                                -3.3       -7.5          4.2
       
5.1             6.1          8.0           10.0          9.3           
8.2          7.6
   1. Transport                         -17.5        9.7          3.5
     
5.8             9.1          9.2           11.2          6.4           
6.0          5.8
   2. Communication                  6.2       11.6         3.9          
16.5           26.0          8.5           20.4        24.6        20.4
    
16.6
   3. Financial matters                7.1      -85.7       16.7          
17.9           15.1        38.4           47.3        34.8        21.9
   
14.2
   4. Social  & management       1.5       17.9         4.2             
4.3            2.9          7.2              6.8           6.2          
5.6          6.2
   5. Rental / other services      -4.2          1.5         3.5             
2.5            3.6          3.5              4.0           6.3          
5.9          6.0
3. Trade                                 -12.0          5.3         2.4
      
-2.5             8.9         4.6              7.0            5.7         
5.0           5.0
4.GDP                          -11.4          3.7         2.8           
-0.6             9.7         6.0              7.5            6.9         
6.4          5.7

----------------------------------------------------------------------------
------------------------------------------------------------------------


























TABLE (7)

Ratio of extent of change in money supply and GDP




            
(millions of Kyat)
----------------------------------------------------------------------------
---------------------------------------------------------------------
Serial /   Subject     /1988-89 / 1989-90   / 1990-91 / 1991-92   / 
1992-93   / 1993-94    /  1994-95   / 1995-96  / 1996-97  / 1997-98
  No:

                                          
(Adjusted        
(Adjusted        


                                             
Estimate)            
----------------------------------------------------------------------------
------------------------------------------------------------------------

1. Annual budget    -6314.7    -8019.7    -11204.0    -12311.4    
-12094.9    -15517.4     -29647.2    -38819.5    -57139.4    -65308. 6
       deficit

2. Extent of  
yearly  money 
supply increase
M1       7050.0     7203.0      13618.0      13389.0    18121.0     
13953.0       34680.0     33544.0      47240.  *
 	M2       6314.0     9264.0      15985.0      15785.0    22751.0     
20405.0      64130.0     55463.0      76522 *

Ð

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