Identifier
Created
Classification
Origin
09VIENTIANE170
2009-04-07 03:47:00
UNCLASSIFIED
Embassy Vientiane
Cable title:  

2009 LAO CENTRAL GOVERNMENT BUDGET TRANSPARENCY

Tags:  EAID ECON PREL 
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VZCZCXRO1067
RR RUEHCHI RUEHCN RUEHDT RUEHHM
DE RUEHVN #0170 0970347
ZNR UUUUU ZZH
R 070347Z APR 09
FM AMEMBASSY VIENTIANE
TO RUEHC/SECSTATE WASHDC 2538
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
UNCLAS VIENTIANE 000170 

SIPDIS

STATE FOR JULIA JACOBY

E.O. 12958: N/A
TAGS: EAID ECON PREL
SUBJECT: 2009 LAO CENTRAL GOVERNMENT BUDGET TRANSPARENCY

REF: STATE 28885

UNCLAS VIENTIANE 000170

SIPDIS

STATE FOR JULIA JACOBY

E.O. 12958: N/A
TAGS: EAID ECON PREL
SUBJECT: 2009 LAO CENTRAL GOVERNMENT BUDGET TRANSPARENCY

REF: STATE 28885


1. Information below is in response to reftel questions:

--Yes, the Lao central government is expected to receive U.S.
foreign assistance funded using fiscal year 2009 (FY09) funds.

--The Lao Government (GOL) budget, a summary of revenue and
expenditure for the current fiscal year, and a projection for
the following fiscal year are generally published by the
Ministry of Finance (MOF) in March or April. A budget law
promulgated in early 2007 sets a 12 month fiscal year from
October 1 to September 30th. The GOL publishes the budget in
hard copy, which is available for a $15 fee. It is not yet
available via the internet. Quarterly data on revenue and
expenditure performance during the fiscal year are provided
to the IMF. According to the MOF, all revenues and
expenditures are included within the publicly available
document. Midyear performance, as well as a detailed
presentation on the previous year's budget, is reported by
the MOF to the National Assembly in June. Some details on
revenue and expenditures are also provided in the Minister of
Finance's "Mid-term Review of the Budget" speech.

--The accuracy of the budget is difficult to assess. The
central government relies upon provincial and local officials
to accurately transmit proper figures. The GOL is working to
improve its financial management systems and centralize
revenue previously collected by the provinces and then passed
to the central government. As the country remains a
communist one-party state, with weak central oversight and
indications of rising corruption, improving fiscal
transparency will be difficult. The authority of the MOF can
be countered by a directive from the Politburo or the
President's Office, although the close observation of
macroeconomic policy by the IMF and World Bank discourages
such interventions. The state audit organization was given
autonomy from the Prime Minister's office in July 2007 with
the passing of a new audit law.

HUSO