Ministry targets reform through public finance projects

The Ministry of Finance believes the management of the public finance system will be more effective, transparent and auditable after two supporting reform projects were officially launched last Friday.
The two-newly launched initiatives are the Enhancing Public Finance Management through Information and Communication Technology and Skills Project (E-FITS) and Public Finance Management Reform Project (EU-WB TF).

EU-WB TF is a 5 million euros project funded by the European Union (EU) through the World Bank with E-FITS being a US$20 million project, funded through a loan from the World Bank.
The two projects aim to support the implementation of the 2030 vision and the strategic development plan for public finance until 2025 with a focus on reform to ensure the effectiveness of public finance management based on transparency, integrity and auditability.
In his keynote address at the official launch ceremony for the two initiatives on Friday, Director General of the Fiscal Policy and Law Department under the Ministry of Finance, Mr Bounleua Sinxayvoravong said the implementation of Public Finance Management Reform Project would continue to help enhance the management of the tax system and implement relating laws.
“This will also continue to improve the budgetary plan and other fields of the finance management system to integrate public finance management with the national payment system,” he said.
He said that the two projects would play a vital role in the management of public finance and enable the government to achieve goals as planned. The Director General also outlined how the ministry had prioritised and implemented finance management policy in recent times.
“Until 2016, six laws had been created in relation to financial management. About three to four laws will continue to be amended until the end of 2020,” Mr Bounleua explained saying that several important projects had been initiated to support the modernisation of finance management. Earlier this year, the ministry announced the use of a new Tax Revenue Management Information System (TAXRIS).
The system is a government investment to modernise revenue management following the strategic plan and in line with international best practices of accountability and transparency. With a precise plan to modernise public finance management, Mr Bounleua noted the ministry had gained a great deal of experience shared by experts from the European Union (EU), World Bank and other organisations. 
“We also learnt a lot from our neighbours, Vietnam and Cambodia, in regards to public finance management before drafting the implementation plan and its proposal to the government. We will also select the best information from the world’s most recognised systems to be used in Laos’ public finance management,” he added.

By Bounfaeng Phaymanivong
(Latest Update June 24, 2019)