VIENTIANE: The government has amassed 44.96 trillion kip (US$2 billion) in state revenue in the first six months of 2026, achieving 54 per cent of the target set for the whole of 2026 and marking a 19 per cent increase over the same period last year.
The Ministry of Finance reported the figures at a teleconference held on Monday (Aug 24) to review progress under the national socio-economic development and state budget plans during the first half of the year, and to set priorities for the remaining six months.
Domestic revenue accounted for the bulk of the payments made to the state, amounting to 43.97 trillion kip, or 56 per cent of the annual target. Central government revenue collection was recorded at 31.53 trillion kip, while local authorities collected 12.44 trillion kip.
Revenues from grants and foreign aid totalled 986 billion kip, equivalent to 19 per cent of the annual target.
At the same time, budget expenditure was recorded at 30.13 trillion kip, or 37 per cent of the amount allocated for 2026, with spending mainly going to salaries, debt servicing, disbursements incurred by important national events, and operation of the Party and State apparatus.
The review meeting was chaired by Deputy Minister of Finance Soulivath Souvannachoumkham and attended by senior officials from the ministry, Vientiane and provincial Finance Departments, and representatives of other relevant sectors.
Soulivath called for expansion of the revenue base, modernisation of financial management and an end to budget leakages, saying that financial policies and implementation mechanisms must be aligned with current economic conditions.
He said the review should help identify practical solutions to ongoing economic and financial challenges and support the building of an independent and self-reliant economy.
The economy grew by an average of five per cent during the first six months, with GDP reaching 199.99 trillion kip, equivalent to 48 per cent of the annual target.
Soulivath urged all government departments to broaden revenue collection during the second half of the year, strengthen expenditure management, and ensure that state budget targets approved by the National Assembly are achieved.
According to a government report presented at the 12th National Congress of the Lao People’s Revolutionary Party earlier this year, state revenue is targeted at 554,400 billion kip, equivalent to at least 20.95 per cent of GDP, with domestic revenue expected to contribute 528,000 billion kip, or 19.95 per cent of GDP.
In addition, the government aims to achieve annual economic growth of at least six per cent and GDP per capita of US$3,104, maintain inflation at less than five per cent, keep public debt below 70 per cent of GDP, and achieve nationwide forest cover of 70 per cent by 2030. - Vientiane Times/ANN
