Govt to collect high revenue, manage expenditure
Govt to collect high revenue, manage expenditure
The government says it is expecting to collect budget revenue of around 96.3 percent of its target and will try to manage expenditure on the approved plan.
The Second Ordinary Session of the National Assembly that took place in October had approved the 2016/2017 budget target total of 23.9 trillion kip but expected to collect only 22.9 trillion kip, the Deputy Prime Ministrer and Minister of Finance Mr Somdy Duangdy reported on the first day of the Third Ordinary Session of the National Assembly that took place yesterday.
Domestic revenue is expected to reach 20.4 trillion kip or 95.7 percent of the target and 2.5 trillion kip in grants or 101.6 percent of the plan, while expenditure will try to manage paying 32.4 trillion kip, Mr Somday noted.
To endure increasing the budget deficit and financial stability the government will seek some expenditure measures that can be suspended or postponed, he added.
“We will also strictly implement mechanisms on money approval, if it’s not necessary there will be no need to approve such planning and activities that are not yet implemented,” Mr Somdy explained.
This should promote every sector to implement frugality measures, especially their administration and expenditures around buying new things.
The first quarter of this year the government, especially the Ministry of Finance, had collected about 4.6 trillion kip or 77.89 percent of its first quarter target or 19.30 percent of the annual plan as compared to the same period of the last fiscal year an increase of 1.57 percent, he said.
Domestic revenue was 4.18 trillion kip or 77.78 percent of the first quarter plan or 19.49 percent of the annual target, an increase of 18.52 percent as compared to the same period of the last fiscal year, he said.
Grant revenue reached 438 billion kip or 78.87 percent of the first quarter or 17.68 percent of the annual plan but decreased 57.06 percent over the same period of the last fiscal year, he said.
While the total budget expenditure was 5.57 trillion kip or 75.69 percent of the first quarter or 17.22 percent of the annual plan compared to the same period of the last fiscal year which was an increase of 24.93 percent, Mr Somdy said.
Budget revenue collection of the first quarter of this year compared to the same period last year increased by only 1.57 percent but expenditure was higher with an increase of 24.93 percent as compared to the same period of the last year, he said.
Budget revenue collection issues have created pressure around planning implementation due to the basic economy still expanding slowly.
Some policies and measures around revenue collection are still in initiation or in limited implementation as well as inspection and new revenue data should take more time to accumulate, he said.
To strictly adapt the regulations around implementation the government must spend more time in improving the basic economy such as stopping the timber export and rechecking its mining projects, Mr Somdy said.
