Lao Economy

Gov’t Faces Budget Deficit Of Over 950 Billion Kip

Source: KPL

The Ministry of Finance has admitted that the government faced a deficit of government budget of over 950 billion kip in the first quarter of this fiscal year.

This was reported by the Minister of Finance, Mr Somdy Douangdy, at the 3rd Ordinary Session of the National Assembly (8th legislature) which opened on Tuesday in Vientiane Capital.

Mr Somdy gave a briefing on the government budget deficit, saying that in the last three months of 2016, it was over 3,150 billion kip (USD 388.7 million).

Mega investment projects worth over 400 billion kip (USD 50 million) which were approved by the National Assembly include the Lao-China Railway Project worth over 540 billion kip (USD 66.6 million) and 12 projects worth over 11,200 billion kip (over USD one million).

This year, the Ministry of Finance will strive to collect over 22, 900 billion kip (USD 2.82 billion) in revenue (96.30% of the year plan), of which 20,000 billion kip come from domestic income and 2,518 billion kip from grant aid, Mr Somdy said.