Govt on track to achieve revenue collection target

The government is on track to achieve 49 percent of its annual revenue collection plan by the end of this month despite facing a number of economic challenges, according to a new official report.
The Minister of Planning and Investment, Dr Souphanh Keomixay, this week unveiled the latest report, which indicates the government is on track to collect about 12,128 billion kip at the end of June, or 49.2 percent of the annual revenue collection plan.
On May 5, the government told the 7th session of the 8th legislature of the Lao National Assembly that it was able to collect 6,320 billion kip during the first four months of this year, or 24 percent of the annual revenue collection plan. This had left the authorities with the big task of achieving 50 percent of the plan within two months.
Many lawmakers urged the government to introduce concrete measures to collect revenues and ensure that the country has sufficient financial resources to implement the national initiatives as planned.
In order to speed up revenue collection, the government has launched several campaigns, including one that urges people to pay road taxes by the end of June. Those who fail to pay the tax will be subject to a fine.
According to the report on the implementation of the current National Socio-Economic Development Plan, which Dr Souphanh delivered at the joint meeting of cabinet members, the Vientiane Mayor and provincial governors, the collection of domestic revenue will be 51 percent of the annual plan or 12,128 billion kip.
However, the challenges the government is facing include a shortfall of Official Development Assistance (ODA) over the first six months of this year. The government projected it would receive foreign aid worth 834 billion kip by the end of this month or 40 percent of the annual plan, according to the report.
With the current revenue collection projection, the government expects to face a budget deficit of 346 billion kip for the first six months of 2019. The government also expects to face a total budget deficit of 7,088 billion kip for the whole of 2019 or 46 percent of GDP.
Due to ongoing revenue collection challenges, the government has announced it will mobilise all the financial resources to secure funding for development projects that are being carried out. Some of the planned projects will be postponed until 2020.
Other key economic data that Dr Souphanh unveiled at the joint meeting showed that exports during the first six months of the year were worth 55 percent of the annual plan, while imports were worth 39 percent of the plan. At the end of April, Laos had foreign currency reserves to secure the import of goods for a period of three months, according to the report.

By Ekaphone Phouthonesy
(Latest Update July 1, 2019)