Govt sets state budget forecast

Govt sets state budget forecast

The government has set its budget collection targets for next year, declaring a variety of policy expenditures for the coming financial term.

The government will try to collect a state budget of about 23.9 trillion kip or 18.46 percent of GDP but the deficit figure is expected to reach 8.4 trillion kip or 6.52 percent of GDP, Deputy Prime Minister Somdy Duangdy, who is also Minister of Finance, said.

Mr Somdy made the statement at the annual state budget implementation meeting in Vientiane yesterday.

About 21.4 trillion kip of the total state budget or 16.55 percent of GDP is from domestic income and it is expected that all expenditure will be listed at under 32.4 trillion kip, which compared to this fiscal year is an increase of 7.5 percent, he explained.

The government is aiming for 7 percent economic growth next year or almost 129.7 trillion kip with a Gross National Product of US$2,341 and US$1,850 GDP per capita.

Despite different countries in the region and the world being impacted by the financial crisis, the high responsibility of the government and relevant sectors have developed the Lao economy to expand at seven percent with stability, Mr Somdy said.

We were also able to manage the rate of inflation at 1.35 percent, while the money exchange is still within the allocation level, while the poverty rate has reduced as per the target and integration with the region and internationally has proceeded well, he said.

We have also attracted more investment, received good cooperation and assistance from foreign countries, financial institutes and international organisations, Mr Somdy added.

Despite the state budget plan for 2015-2016 meeting different challenges it still achieved good progress and success, he said.

During the 12 months of this year, the government was able to collect a budget income of about 95.17 percent of the annual plan, of which domestic income reached 94.56 percent and expenditure 96.82 percent, Mr Somdy reported.

Budget revenue collection could not reach the target plan due to the financial crisis from overseas and world market issues which caused the price of ores to drop, he explained.

This impacted mines producers and exports, miners particularly, as well as some agricultural products such as coffee and rubber.

These issues also caused difficulties for the expenditure of the state budget in this fiscal year, Mr Somdy explained.

However, the Ministry of Finance tried to find solution measures and pave the way for the budget plan in order to guarantee the government's implementation of state projects and plans.

But we still see many works that should improve and be resolved in regards to financial issues and the state budget in Laos in order to facilitate the new era of development.

The meeting participants also consulted and shared experience on different issues regarding salary management and payment, the monetary policies of the National Treasury, state property management, tax, customs, state investment and insurance.

vientiane times