NA Standing Committee’s comments on the plan implementation by the Government

The Standing Committee of the National Assembly (NA) appreciated the Government for efforts in implementing the state budgetary plan for 2005-2006, said Dr Xaysomphne Phomvihane, NA Vice President and Member of the NA Standing Committee, said at the first day of the NA third ordinary session (sixth legislature).

            The Government generated national income beyond its target for the first time since 1999. The remarkable thing is the performance in the foreign trade, which allows the country to have a trade surplus of over USD 96 million, improving the balance in foreign exchange in the country.

            Some major successes were gained in the implementation of the socio-economic development plan and state budgetary plan for 2006-2007 by the Government. Even though the world oil price rose and Avian Influenza broke out, the Government made all efforts in maintaining the stability and consistent economic growth. GDP for the first six months of the fiscal year increased by 7.6% (the annual plan target is not less than 7.5%). The economic structure changed in line with the sixth five-year socio-economic development plan, the macro economy was better and foreign currency reserve was up.

            The Government attempted to mobilize funds from both domestic and foreign private sector and the investment environment gradually got better, particularly in energy, mining, tourism, agriculture and forestry. Laws in the economic and financial sector were amended. The Government made efforts in encouraging and promoting production of small and medium enterprises (SME) and entrepreneurs. Thanks to this, the domestic production bore fruit, particularly rubber tree plantation projects, freshwater prawn rearing, organic vegetable growing and establishment of village funds. Furthermore, the establishment of development-oriented villages and clusters of development-oriented villages, anti-flood and drought activities and Avian Influenza prevention yielded satisfactory success.   

            Though the Government gained achievements in many fields, there are some issues it should pay attention to. The revenue in 2005-2006 is not sustainable because it was gained from the sale of the country's natural resources, namely minerals and wood. In the economic and financial sector, the revision of the Decree No 02 on Fees and Services was slow, incomes gained technical operations of some ministries were not centralised and also not brought to the state revenue. Tax was collected ineffectively and there were loopholes in managing incomes gained from import tax. The goods production was not widely promoted and forest management and forest extraction were carried out ineffectively.  The State invested too small funds in the scientific research, particularly on rice seed, technical development and market seeking.  Illegal logging was found in some localities, even in the national forest conservation areas.