Laos lowers spending by cutting galas, gov’t vehicles
LAOS’ government said on Wednesday it is confident that austerity policies – including cutting down on lavish events and state-owned cars for officials – will lower budgetary tensions and reduce financial difficulties in the coming year despite slow progress in implementing measures to curb wasteful spending.
Minister of Finance Somdy Duangdy said the ministry would continue to use measures, decrees and agreements to push forward the effective implementation of the policy.
“The ministry is now focusing on the actual implementation of the austerity policy with the aim of it becoming a model for government bodies at the central and local levels, as well as the adoption and implementation of decrees and the Prime Minister’s Order on purchasing and hiring activities,” said Duangdy, who is also deputy prime minister.
He said Laos would, however, continue to face financial difficulties because revenue collection had not increased as anticipated, while expenditure had risen significantly over the past few years.
In a bid to control spending, the ministry is charged with drafting a presidential decree and prime ministerial decree on the management of state-owned vehicles, according to Somdy.
“We will also continue to carry out inspections of state-funded projects to ensure investment costs are reasonable. This will be another measure to control spending. Additionally, various decrees, measures and laws will be disseminated within the ministries concerned,” Somdy said.
Government ministries will play a key role in tackling wasteful spending, especially when it comes to hosting grand ceremonies, cultural and festive celebrations, gala dinners and other lavish events, according to Somdy.
The government saved nearly $18 million in the purchase of vehicles for officials, Somdy said, adding that more than $6 million was saved this year alone.