VIENTIANE, Oct. 19 (Xinhua) -- The Lao government has urged actions to boost national revenue while promoting frugal spending to ensure effective use of the state budget in overcoming economic challenges facing the Southeast Asian country.
According to a Lao national Television report on Thursday, among the measures to be adopted, Lao government stressed the need to reduce the amount of foreign currency spent on overseas travel by Lao delegations and cut non-essential foreign trips.
The instructions were issued at the cabinet's monthly meeting for October held in Lao capital Vientiane on Tuesday, chaired by Lao Prime Minister Sonexay Siphandone.
Due to budgetary tensions, depreciation of the Lao currency kip and the high volume of foreign debt, the Lao government is cutting its spending and funding only priority programs.
It called on related departments and sectors to work to stabilize currency exchange rates, regulate the price of goods on local markets, as well as further implement the national agenda on tackling economic crisis and stemming drug trade.
Efforts were also urged to take enabling measures towards more national revenue.
According to the Lao national Television report, the government fully understands the importance of removing barriers to the inflow of foreign investment and the growth of businesses, and urged to bolster domestic production so that more home-made goods can replace imports.
It is also essential to increase the value of exports, particularly of agricultural produce, in order to increase foreign currency in income and money supply.
According to the report, one of the main challenges for the government in the coming months will be to rein in inflation, as continuing rise in the cost of goods and services is creating extra hardship for poverty reduction.
Laos' inflation eased slightly in September at 25.69 percent, down from 25.88 percent recorded in August, official data showed. ■