In coping with challenging regional and international economic environment, the government
actively implemented financial policies especially on revenue collection which has continuously
increased exceeding the target and meeting the government’s expenditure demand at a fairly good
level. Budget expenditure can be controlled in accordance with the approved budget plan by the
National Assembly. A budget deficit during the two and a half year period is still within the range set
(3-5% of GDP). The debt service, particularly external debt was carried out by the Government in
timely manner and in line with contractual term, resulting in improved trust by the investors towards
the Government’s financial status. Significant effort has been put on domestic debt service which was
carried out in the form of discount and bond issuance, of which 5,379 billion kip was in a form of
discount, with 1,471 billion kip reduction; 3,872 billion kip was in a form of 2 and 3 year bonds.
These have contributed significantly to the reduction of the government’s and also creation of smooth
environment for business enterprises.