Proposal for no more unapproved debts

Published on July 16, 2014

NA President Ms Pany Yathortou says, the government proposes that no more unapproved debts will be created from now and on

Introduction: NA President Madame Pany Yathortou says, the government proposes that no more unapproved debts will be created from now and on as National Assembly members have expressed their support for the government’s decision to not create more unapproved debt, with a special focus on provincial authorities.

Story: NA President Madame Pany Yathortou made the comment on Friday the 12th of July when concluding the discussion between the national legislature and administrative bodies over the first week of the ongoing NA ordinary session.

She said, “The government has proposed that no more unapproved debts will be created from now and on.” Adding that, “The National Assembly supports this government decision.”

The high government debt, which has been a consequence of creating development projects authorised by the government without the NA’s agreement, became a hot issue of debate at the session. The NA reached a resolution in 2011 to disallow public sectors who had unapproved debts in creating new investment plans. However, it was found that they had continued to do so despite the resolution and effectively burdened the state budget.

On the other hand, the government may be given a green light to use the state budget to achieve the millennium development goals or MDGs as the country is struggling to overcome the final steps.
Madame Pany Yathortou said unapproved debt may be supported in the MDG plan, with the NA’s Economic, Planning and Finance, the Ministry of Planning and Investment and the Ministry of Finance joining for further discussions on this possibility.

The government is more than 3.3 trillion kip in unapproved development project debts.

According to the NA President, who referred to the NA members’ comments, if the government and provincial authorities did not create unapproved debt anymore, the financial difficulties would be successfully addressed.

NA members requested that the government review articles regarding investment law, in order to facilitate private investment in rural areas in relation to prioritised projects.

Many of the NA members’ comments have focused on loans, deposits and interest rate policies, which urged the government to improve so that small and medium sized entrepreneurs are able to access financial sources.

NA members suggested the planning and investment sector to consider the budget allocation for rural development, health and education, as well as sports sectors so they will be able to have sufficient funds for their activities.

Next year is the final year of the government’s Ninth Party resolution and the Seventh Five-Year National Socio-Economic Development Plan implementation.

NA President Madame Pany Yathortou stressed that the NA members oversee the implementation of the government’s priorities closely, with the ministers’ promises and explanations at the session also being closely followed and overseen.

Source: Lao National Television News in English
Broadcast on July 15, 2014