Laos government vows to pay state employees

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Vientiane flagsLaos’  ministry of finance has vowed that it will strive to make regular salary payments to state employees, starting from January 2014, the Vientiane Times reported.

The government intends to make the payment of employees a “key priority” in order to improve the livelihoods of officials and encourage them to make a greater contribution to national development. Currently, officials in some rural areas are yet to receive their salaries for September due to government budgetary tensions.

Ministry of Finance Office Head, Bounzoum Sisavath told Vientiane Times on November 1  that a recent revenue shortfall would continue to hinder the government in its efforts to make regular payments to officials throughout the rest of this year.

“As budget expenditure for 2012-13 projects cannot be cut, we are continuing to fund projects in the previous fiscal year,” he said.

The government released a report recently saying that the relevant sectors made inaccurate projections when the decision was made to increase the salary and allowances for officials last fiscal year. The projection asserted that the country had the financial capacity to respond to the needs of the rising budget expenditure, but the revenue shortfall has hindered the government’s efforts to fund all development projects, including salary payments.

In the 2012-13 fiscal year, Laos planned to earn 1,800 billion kip ($227 million) from gold and copper projects but sales only brought in 1,100 billion kip ($140 million). The budgetary tension has forced the government to halt the monthly allowance of 760,000 kip ($96) granted to state employees for 2013-14, starting from October 2013.

The government also tightened budget expenditure on various projects, particularly administrative expenses, aiming to prevent Laos from falling into a major financial crisis.

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Reading Time: 1 minute

Laos’  ministry of finance has vowed that it will strive to make regular salary payments to state employees, starting from January 2014, the Vientiane Times reported.

Reading Time: 1 minute

Vientiane flagsLaos’  ministry of finance has vowed that it will strive to make regular salary payments to state employees, starting from January 2014, the Vientiane Times reported.

The government intends to make the payment of employees a “key priority” in order to improve the livelihoods of officials and encourage them to make a greater contribution to national development. Currently, officials in some rural areas are yet to receive their salaries for September due to government budgetary tensions.

Ministry of Finance Office Head, Bounzoum Sisavath told Vientiane Times on November 1  that a recent revenue shortfall would continue to hinder the government in its efforts to make regular payments to officials throughout the rest of this year.

“As budget expenditure for 2012-13 projects cannot be cut, we are continuing to fund projects in the previous fiscal year,” he said.

The government released a report recently saying that the relevant sectors made inaccurate projections when the decision was made to increase the salary and allowances for officials last fiscal year. The projection asserted that the country had the financial capacity to respond to the needs of the rising budget expenditure, but the revenue shortfall has hindered the government’s efforts to fund all development projects, including salary payments.

In the 2012-13 fiscal year, Laos planned to earn 1,800 billion kip ($227 million) from gold and copper projects but sales only brought in 1,100 billion kip ($140 million). The budgetary tension has forced the government to halt the monthly allowance of 760,000 kip ($96) granted to state employees for 2013-14, starting from October 2013.

The government also tightened budget expenditure on various projects, particularly administrative expenses, aiming to prevent Laos from falling into a major financial crisis.

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