The government has proposed adjusting the State Budget Plan for the fiscal year of 2015-2016 because the amount of revenue collected is expected to be 2.459 trillion kip less than the set target.

According to the Law on the State Budget, if the revenue collection fails to reach five percent above the set target, the Ministry of Finance must propose that the government submit to the National Assembly for adjustment consideration.

The proposal was made by Deputy Prime Minister and Minister of Finance, Mr Somdy Douangdy, who was voted in as the new Deputy Prime Minister and Minister of Finance at the ongoing session on 20 April.

Based on the revenue collection in first half of the fiscal year, the expected figure for revenue collection for the whole fiscal year will be only 23.7 trillion kip, but the total revenue plan approved at the 9th Ordinary Session of the NA’s 7th Legislature was 26.159 trillion kip.

This means that the revenue collection will reach only 90.6 per cent of the plan, according to Minister Somdy.

Given this problem, the ministry has proposed that the NA session reduce its plan for domestic revenue collection by 2.459 trillion kip, which represents a decrease from 26.159 trillion kip to 23.7 trillion kip.

Meanwhile, this year’s planned expenditures also had to be reduced as well from 31.946 trillion kip to 31.118 trillion kip or equal to 828 billion kip.

The decrease of the plan for expenditures will include a decrease of 200 billion kip in government reserve and a 500 billion kip decrease in government investment.

Because of the adjustment of the State Budget Plan, the budget deficit will increase by 1.631 trillion kip from 5.787 trillion kip to 7.418 trillion kip.

The amount of the deficit will be 6.43 per cent of Gross Domestic Product.

However, the revenue collection for the last three months of this fiscal year is expected to reach 3.06 trillion kip, Mr Somdy said.

The target for revenue collection from excise tax for the entire fiscal year is 1.5 trillion kip, from import and export tax 1.15 trillion kip, from state property 380 billion kip, and investment of state enterprises and insurance 30 billion kip.

The revenue collection plan for the last three months of this fiscal year cannot rely on any grant aid from overseas.

Meanwhile, the expenditure plan is expected to reach 3.56 trillion kip, of which expenditure for administration is 2.75 billion kip and domestic and foreign debt payments are 810 billion kip.

The next fiscal year will start on 1 January 2017 and next year’s budget plan will be amended in accordance with the change in the beginning of the next fiscal year. 

Source:
courtesy of KPL NEWS AGENCY

by Singkham

If you have any stories or news that you would like to share with the global online community, please feel free to share it with us by contacting us directly at [email protected]