The majority of the investments of the Lao Government will focus on next year will be economic - about 40 percent, followed by socio-culture - about 35 percent, and 25 percent for services to ensure that the GDP growth is at least 7.5 percent.

This is next year’s plan for the eighth five year national socio-economic development plan (2016-2020).

The focus of the investment of the government is to reduce poverty and develop infrastructure and human resources.

Minister of planning and Investment, Mr Souphanh Keomixay provided the information at a summary meeting to conclude the implementation of the socio-economic development plan (2015-2016) and set up a budget plan for 2017.  The meeting was held at the Ministry of Planning and Investment on July 14.

All state investment projects aim to support socio-economic development, ensure environment sustainability, and increase food production and market-oriented production to enable local people to increase their incomes.

The state investment projects for the upcoming fiscal year aim to prevent the government from taking on additional debt, Mr Souphanh said.

To ensure that the GDP grows by at least 7.5 percent per year, it needs to invest in socio-economic development in 2017.  The amount earmarked for socio-economic development represents about 30-35 percent of GDP, of which 25 percent will be used for state investment or the equivalence of 4.3 trillion kip (over US$532 million) of the domestic budget with an additional 5.6 trillion kip (US$693 million) coming from Official Development Assistance.

Next year’s state investment plan expects to attract 21.42 trillion kip (over US$2.65 billion) (55 percent) of domestic and foreign investment with 20 percent (about 7.8 trillion kip) of state investment expected to come from financial institutions.

“We will focus on government’s priority investments including the reduction of poverty among local people, the development of infrastructure and human resources, and the use of new technologies,” added Mr Souphanh.

Source:
courtesy of KPL NEWS AGENCY

by Malayluck

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