Revenue collection in the first 11 months of this year reached 77.89 per cent of the Lao government’s annual plan, while domestic revenues touched 82.76 per cent or a three per cent increase compared to the same period last year.

These figures were part of a report released on Monday by the Ministry of Finance at its annual meeting in Vientiane to review achievements in the implementation of the yearly plan and to outline the plan for 2020.

The ministry said the revenue collection was 77.89 per cent of the annual plan or 20.64155 trillion kip ($2.3 billion), and domestic revenues contributed 82.76 per cent of this figure.

The government’s income came from different sources such as grant assistance, taxes and customs at the central and local levels.

The three northern provinces of Luang Namtha, Bokeo and Phongsaly, exceeded their plans, according to the approval of the National Assembly, and six provinces were able to implement more than 85 per cent of their plans. The rest of the provinces implemented less than 85 per cent of their plans.

For the remaining of this year, the ministry expects to reach 96.85 per cent of the annual plan for revenue collections, equivalent to 25.665 trillion kip, and domestic revenues are expected to account for 96.84 per cent of this figure.

Total expenditure is expected to be 33.082 trillion kip or 98 per cent of the revised plan, which decreased to 216 billion kip.

At the same time, the budget deficit for this year will not exceed 7.416 trillion kip, which is equal to 4.52 per cent of gross domestic product (GDP). The government reported to a recent National Assembly meeting a figure of about 7.553 trillion kip or 4.6 per cent of GDP.

If the implementation of the domestic revenue collection is successfully carried out at 96.84 per cent of the annual plan and government expenditure is lower than 98 per cent of the annual plan, the budget deficit will be equivalent to 4.52 per cent of GDP or 7.416 trillion kip.

Next year, the ministry expects to collect a total of 28.99700 trillion kip or 16.31 per cent of GDP, an increase of 9.4 per cent over the 2019 plan.

At the same meeting, representatives from different departments under the ministry reported on their achievements during this year and set plans for 2020.

Deputy Prime Minister and Minister of Finance Somdy Duangdy presided over the meeting that was joined by deputy ministers and representatives from other ministries and the finance sector across the country.

In his concluding remarks, Somdy said the financial sector would continue to work on difficulties and challenges that remain.

“To achieve the 2020 financial plan, reform of public financial management is needed with a focus on the use effective of advanced technology, strategic measures and regulatory steps,” he said.

VIENTIANE TIMES/ASIA NEWS NETWORK