Govt allocates US$960 million for development schemes

The Ministry of Planning and Investment has approved a budget of 20,957 billion kip (US$960 million) to finance 746 state-funded development projects in 2025.

The government’s annual National Planning and Investment Meeting on December 26.

The ministry announced the provision of funding to drive social and economic development across Laos during its annual National Planning and Investment Meeting on December 26.
Deputy Minister of Planning and Investment Phonevan Outhavong also outlined the ministry’s recent key achievements, including progress on the 2023 development plan, updates to the State Investment Law, and new investment guidelines for 2025.
One major change is that local governments can now approve projects costing up to 50 billion kip, an increase from the previous limit of 20 billion kip.
In addition, officials reported paying off 8,000 billion kip (US$366 million) in debts owed on state projects and the drafting of local development plans to support the 10th five-year National Socio-economic Development Plan for 2026-2030.
Sixteen ministerial meetings were held to assess the rollout and cost of state-funded projects. Following evaluations, the total budget for 2025 projects was reduced to 20,657 billion kip, saving 176 billion kip in government funds.
Thirty-one projects have been fully completed.
In the first nine months of 2024, the government carried out 6,839 state-funded projects at a cost of 4.01 trillion kip, accounting for 80 percent of the plan for 2024.
These figures were reported by the Ministry of Planning and Investment at the 8th Ordinary Session of the 9th National Assembly last month.
The National Assembly approved state expenditure of 5 trillion kip for 2024 - a 15.8 percent increase on 2023. Of this amount, 808 billion kip was allocated for the payment of debts owed on 2,610 projects, amounting to 16 percent of the total.
The expenditure plan for 2025 will prioritise foreign aid projects (ODA), initiatives that yield significant economic returns, and projects that align with the country’s two National Agendas.
Key sectors and localities will be prioritised based on socio-economic development needs and the Politburo’s Resolution, which focuses on building an independent and self-reliant economy with particular emphasis on resolving the country’s continuing economic and financial problems.

By Times Reporters
 (Latest Update December 30, 2024)