Govt highlights fiscal achievements, targets for addressing
Govt highlights fiscal achievements, targets for addressing
Revenue collection and debt payment remain big challenges that the government has to deal with in the second half of fiscal year 2014-2015, especially debt, which has been on the rise over the past six months.
The situation was highlighted by Minister of Investment and Planning Mr Somdy Duangdy in his reporting on the implementation of the national socio-economic development plan at the ninth ordinary session of the National Assembly's Seventh Legislature, which opened yesterday.
According to the report, around 12 trillion kip in revenue has been collected in the past six months of this fiscal year, which amounted to 46.5 percent of the year's target, while around 13.8 trillion kip was spent, leading to a budget deficit of more than 1.7 trillion kip.
More than 2.4 trillion kip in grant assistance and loans was mobilised, which amounted to 46.3 percent of the annual target.
The report showed that despite the government having put up measures to limit the debt, the continued violation of financial discipline has seen debt continue to rise unabated.
Repayments for development projects remained a factor to the debt accumulation.
The value of earnings from the processing industries and handicrafts was predicted by the government to reach 2.7 trillion kip.
Another 6.5 trillion kip came from the production of minerals, which was 4.5 percent lower than the previous year.
Electricity production will also decrease by 15.9 percent because Nam Theun 2, which accounts for 40 percent of the total production throughout the country, lowered production in the first quarter to reserve water for production in the next period.
In its plan for the last half of the fiscal year, the government will instruct the concerned sectors and local authorities to tackle the completion of the works which have not been progressed as planned.
It aims to maintain the 7.5 percent economic growth as planned for this year through implementing the six measures of maintaining macroeconomic stability.
T he government will also tackle its preparedness for starting the project on food security and commercial production, seek to control M2 money and ensure quantity is appropriate, reach 52 percent of deposit mobilisation, and limit non-performing loans to less than 3 percent.
Showing remarkable success in socio-economic development in the past six months, government figures indicate that the number of families living in poverty has been reduced to 6.59 percent of the total families throughout the country while 20.5 percent of the total villages throug hout the country remained poor.
Many infrastructure development projects have also been completed such as the construction of the Laos-Myanmar Friendship Bridge, Don Khong Bridge, Road 1A from Napong village to Saravan province urban centre, National Road No.9 improvement under Japan's assistance section and Attapeu International Airport.
Meanwhile projects which have seen significant progress include Pakbeng Mekong Bridge (50 percent progressed), Nasak-Khokhaodor Mekong Bridge (70 percent progressed), Nongkhang Airport in Huaphan province (23.2 percent progressed), Road 1A Bounneua-Lantui (51 percent progressed), Road No.13 North Meuangxay-Pakmong (46 percent progressed), Ban Huak-Meuang Khop-Pakkhop-Konteun Road (11.4 percent progressed).
