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Finance sector looks to improve five-year strategy
The Ministry of Finance has urged finance officials in all provinces to provide inputs for a draft five-year financial sector strategy development plan for the 2011-2015 period.
Ms. Viengthong Siphandone (Left) speaks at the financial strategy development plan meeting.
Deputy Finance Minister Ms. Viengthong Siphandone said “The plan should be suitable or related to the current situation in the country and the world.”
Ms. Viengthong was speaking at a recent technical meeting on the five-year financial strategy development plan held in Champassak province.
The meeting aimed to gather ideas from about 140 officials to improve the draft and information detailed in the plan. Officials from the provinces of Borikhamxay, Khammuan, Savannakhet, Saravan, Xekong, Attapeu and Champassak attended the meeting.
The information in the plan will include locations, business unit quantities and major income sources from each sector in the provinces.
The government's 7th five-year social-economic development plan outlines expected GDP growth of at least 8 percent per year over the period.
“The national budget contribution will be 19 to 21 percent of total GDP, while expenditure will account for 22 to 25 percent and result in a deficit of between 4 to 5 percent of GDP,” Ms. Viengthong said.
To meet the plans, the finance sector has to continually improve financial and budget management and regulations, and build a strong financial system at the village level.
It is also necessary to improve the use of IT systems to link related sectors such as such as the tax and duty management systems, and to use the bank system in budget administration and management, such as salary payments to state employees through ATMs.
“Another important need is to upgrade staff knowledge and experience and build local financial policy to integrate with the region and the globe,” she said.
The meeting also aimed to ensure officials are up-to-date with budget and national income figures, and revisions of the previous budget plan implementation, including the areas that need improvement.
Current challenges and problems need to be solved or improved to ensure budget plans are met, including mechanisms relating to budget management.
Many financial regulations have not been revised to reflect the prevailing situation, administration improvements, and impacts from natural disasters and the global financial crisis.
“The main national revenues and incomes are from the export of natural resources and imported goods from overseas,” she said.
Champassak province has the potential to earn more income compared to other provinces nationwide because the province has a growing economy based on services, and natural and cultural tourism and heritage sites that are attracting more and more local and foreign visitors.
“It's the second largest economy following Vientiane,” Ms. Viengthong said.
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