Minister of Finance Santiphab Phomvihane

(KPL) The Ministry of Finance has announced substantial revenue growth for the first 10 months of 2024, with total revenue reaching 46.17 trillion kip, equating to 92% of the annual target. This figure represents 15.72% of the nation’s GDP, marking a 40% increase compared to the same period in 2023, when revenue totaled 13.08 trillion kip.

Minister of Finance Santiphab Phomvihane presented the data at the ongoing 8th Ordinary Session of the 9th National Assembly on November 18.

Domestic revenue amounted to 43.17 trillion kip, achieving 96% of the annual target and reflecting a 35% increase year-on-year, equivalent to an additional 11.29 trillion kip. Central-level revenue reached 29.90 trillion kip (87% of the target), while local revenue exceeded expectations, reaching 13.27 trillion kip, or 125% of the target.

The total revenue target for 2024 stands at 55.11 trillion kip, equivalent to 18.76% of GDP, as specified in Parliamentary Resolution 17%. This target excludes technical revenues and a proposed revised fund of 941 billion kip.

The impressive revenue performance can be attributed to several factors, including strong economic growth, buoyed by the success of Visit Laos Year and Laos’ role as ASEAN Chair, increased foreign investment and expanded business activities, enhanced policy measures to address budget leakages and enforce tax compliance, modernized revenue collection systems, which improved transparency and efficiency.

Economic growth has translated into increased revenue across various sectors, with notable growth rates including transportation: +142%, hotels and guesthouses:  +97%, vehicle sales: +91%, entertainment and lottery: +85%, electricity and trade: +60%, fuel: +57%, banking and insurance: +44% mining: +45%, and beverage production: +37%.

Foreign currency revenue during the period totaled 438.9 million USD and 1.25 billion baht, equivalent to 10.15 trillion kip or 21% of the total revenue target. This reflects a 32% increase in USD and an 11% rise in baht compared to 2023. Stable exchange rates helped minimize the impact of currency fluctuations on revenue collection.

To boost revenue collection, the government implemented various fiscal measures, including increasing excise taxes on selected goods, expanding the tax revenue system to include vehicles, introducing a centralized fee and service collection system at seven key checkpoints, and strengthening enforcement to combat tax evasion.

Government expenditures for the first 10 months of 2024 totaled 41.51 trillion kip, or 68% of the annual target. Central-level expenditures reached 32.42 trillion kip (67% of the plan), while local-level spending amounted to 9.09 trillion kip (70% of the plan). The government has prioritized cost-saving measures and adherence to budget ceilings to ensure efficient use of funds.

Looking ahead, the Ministry of Finance is developing a 2025 budget plan focused on reducing domestic and foreign debt through prudent revenue and expenditure management. Key projections for 2025 include total revenue: 68.10 trillion kip (+36% from 2024), domestic revenue: 62.70 trillion kip (+39%) and total expenditures: 71.85 trillion kip, or 18.16% of GDP.

Of the total expenditures, 53.55 trillion kip (14.28% of GDP) will be allocated to regular budget expenses. The government is committed to maintaining fiscal discipline while fostering sustainable economic growth.

This strong financial performance underscores Laos’ economic resilience and lays the groundwork for continued progress in 2025.

KPL