Laos is facing issues in managing its state budget, with billions of kip unaccounted for, according to the Vientiane Capital People’s Assembly on 19 December.
President of Central Region Audit Office No.1, Khammone Bouaphanh revealed that LAK 4.77 billion (about USD 217,000) had not been transferred to the official state budget. Of this, LAK 3.62 billion (USD 165,000) was spent outside the national budget system, while LAK 1.15 billion remains in unauthorized treasury deposits.
Meanwhile, He also identified several factors including weak law enforcement, poor cooperation among budget units, and delays in adjusting revenues and expenses for the discrepancies.
In a related report, investigations into corruption uncovered losses of USD 2.2 million and LAK 1.7 billion (USD 77,321) in 2024, involving 31 cases of abuse of office, illegal land sales, and improper allocation of state land.
As a result of the investigations, three individuals were disciplined, with penalties ranging from dismissals to transfers.
In contrast to its financial governance challenges, Vientiane Capital reported robust economic growth of 5.85 percent in 2024, exceeding the National Assembly’s target by 0.30 percent.
The findings highlight significant gaps in financial oversight and accountability. In response to this, the State Audit Authorities have set 18 targets for 2025 such as audits of state budgets, enterprises, and state investment projects in order to address the identified gaps.
