2002年-世界发展银行全球_Lao_PDR_-_Public_Expenditure_Review___Country_Financial_Accountability_Assessment_Volume_1_Summary_Report_40页_2mb

Lao PDR Public Expenditure Review and Country Financial Accountability Assessment Summary

Core Content

This report, a joint effort by the Asian Development Bank (ADB), International Monetary Fund (IMF), and World Bank, evaluates the public expenditure management and financial accountability systems in Lao PDR. It aims to improve the planning and management of public resources to achieve sustainable economic growth and poverty reduction. The report is structured into two volumes, with Volume I being a summary of the key findings and recommendations.

Main Themes

1. Spend What You Plan

• The government should manage public spending in accordance with the budget plan to ensure fiscal discipline and intended outcomes.
• Control over budget execution and management is critical to maintaining macroeconomic stability.
• Key areas of focus include:
  • Implementation of appropriate budget systems and procedures (e.g., budget classification, expenditure control, cash management).
  • Minimizing fiscal risks from revenue forecasting errors, underperformance of state enterprises, and unanticipated expenditure demands.

2. Plan What You Spend

• The expenditure planning process should result in balanced, poverty-focused budgets that are efficient and effective.
• The report highlights the need to:
  • Achieve a better balance between recurrent and capital spending.
  • Shift the focus from economic to social sectors.
  • Improve coordination between the planning process and the annual budget.
  • Enhance the capacity of lower levels of government, especially in the context of decentralization.
  • Strengthen communication and coordination between provinces and central ministries.

3. Tell the Public What You Plan and What You Spend, and Hold Those Doing the Spending Accountable

• Transparency and accountability in the budget process are essential to build donor confidence.
• The report recommends:
  • Publishing the budget and expenditure outcomes.
  • Implementing mechanisms for accountability, such as audits and procurement procedures.
  • Ensuring that off-budget transactions are made public or brought on budget.
  • Improving the reconciliation of revenue, expenditure, and budget financing at all levels of government.

Key Recommendations

• Improve Budget Systems and Procedures: Strengthen revenue forecasting and mid-year budget adjustments, and introduce better reconciliation between revenue, expenditure, and budget financing.
• Continue Revenue Enhancement Measures:
  • Implement Value Added Tax (VAT) by 2004 to replace the turnover tax, increasing revenue by up to 1.5% of GDP.
  • Improve tax and customs administration, especially at the Large Taxpayer Unit (LTU), and reduce the scope of tax exemptions.
• Address Fiscal Risks:
  • Take steps to measure and contain losses and contingent liabilities from state-owned enterprises (SOEs) and state-owned commercial banks (SOCBs).
  • Restructure SOEs and SOCBs, including stopping lending to loss-making entities and eliminating non-commercial social mandates.
  • Implement processes for resolving non-performing loans (NPLs) between borrowers, banks, and other creditors.
• Enhance Decentralization:
  • Ensure that the decentralization process is supported by adequate institutional frameworks and technical capacity.
  • Develop effective post-audit systems to monitor provincial and district-level expenditures.
  • Improve coordination between the Ministry of Finance and provincial authorities, especially in civil service hiring and payment practices.
• Develop a Medium Term Expenditure Framework (MTEF):
  • Create a more formal macroeconomic framework linking growth, inflation, and fiscal, monetary, and external sectors.
  • This will provide a better basis for budgetary projections and guide policy discussions.

Key Information

• Fiscal Year: October 1 – September 30.
• Currency: Lao Kip (1 US$ = 9480 Kip).
• Population and Economy:
  • Population density is 22 per square kilometer.
  • Economy is primarily agricultural (53% of GDP) and rural (77% of population).
  • Annual population growth is 2.6%, increasing the demand for public services.
• Poverty and Public Services:
  • Despite some improvements, poverty remains high.
  • Life expectancy is 59 years, lower than in neighboring countries like Thailand and Vietnam.
  • Literacy rates have improved, but illiteracy is still high compared to East Asia.
  • Public sector wages have fallen significantly, affecting service delivery in education and health.
• Donor Dependency:
  • Donor support accounts for about 9% of GDP.
  • Donors are concerned about fiscal integrity and transparency, which are essential for continued financial assistance.
  • Donors play a significant role in the capital budget, which affects the ability to control recurrent spending.

Conclusion

The report emphasizes the importance of addressing systemic weaknesses in budget planning, execution, and control to ensure effective public expenditure management. It calls for both immediate and long-term reforms, including improved revenue forecasting, better coordination between central and provincial authorities, and the development of a robust MTEF. The success of these reforms is critical to achieving sustainable growth, poverty reduction, and maintaining donor confidence in Lao PDR's financial systems.