Nay Pyi Taw, Jun 16 (IANS): The new Myanmar government will effectively spend the budget on higher living standards and economic growth, President U Htin Kyaw said on Thursday.

Speaking at the first meeting of the Financial Commission in capital Nay Pyi Taw, U Htin Kyaw, who is also the commission chairman, revealed the amendment to the 2016-17 budget, which was drawn up according to the cabinet structure of the previous government, will be submitted to parliament for approval, Xinhua news agency reported.

U Htin Kyaw promised increased spending on education, health and social welfare to ensure more human resources, adding that development policy would be focused on the implementation of rural development, electrification, poverty alleviation and infrastructural development.

A 5 per cent commercial tax placed on mobile top cards has collected 7.5 billion kyats ($6 million) revenue to be spent on sectors that directly contribute to public interest, he added.

While including the budgets for the new Ministry of the Office of the State Counsellor and the Ministry of Ethnic Affairs, the expenditures for the ministries are being cut by 2 per cent, the commission's vice chairman U Myint Swe, who is also vice president, told the commission.

Another commission vice chairman U Henry Van Thio, who is also vice president, disclosed that over 1 billion kyats ($1 million) has been allocated to regions and states for the present 2016-17 fiscal year.