KPL
(KPL) The Lao government aims to collect state budget revenue equivalent to no less than 20% of GDP in 2026 as part of its drive to build an independent and self-reliant economy.
The government will focus on expanding revenue sources, modernising tax collection systems, and enhancing efficiency in managing existing revenue bases, Prime Minister Sonexay Siphandone told the 10th Ordinary Session of the 9th National Assembly on 10 November.
Mr. Sonexay said the government’s priorities for 2026 include maintaining macroeconomic stability, managing inflation, ensuring exchange rate stability, and guaranteeing debt repayment. The government will also improve mechanisms for effective expenditure management linked to saving and anti-waste policies.
He added that fiscal and monetary policy coordination will remain central to the government’s strategy, including revising the base interest rate and reserve ratio of the Bank of the Lao PDR to align with economic conditions. Efforts will also continue to regulate money supply growth and maintain exchange rate stability under market mechanisms.
The government plans to strengthen the foreign currency management system, encourage the use of the Lao kip in domestic transactions, and develop mechanisms for local currency payments with neighbouring countries.
Mr. Sonexay also highlighted the need to create a more attractive investment environment by simplifying procedures, removing bottlenecks, and improving oversight of approved projects.
Economic growth in 2026 will be driven by clean and alternative energy projects, including the Laos–China 500 kV transmission line and the internal 230 kV power network to ensure stable domestic electricity supply. The government will tighten management of mineral exploration and promote value-added processing before export.
Other priorities include promoting local production of agricultural inputs and food products, boosting tourism, strengthening small and medium-sized enterprises, and accelerating the development of the digital economy.
Infrastructure development will remain a key focus, with ongoing upgrades to roads, railways, and airports along key economic corridors. The government will also continue to repair infrastructure damaged by recent floods and promote public-private partnerships for major projects such as the Vientiane–Hanoi Expressway, Vientiane–Boten route, R3 parallel expressway (Houayxay–Boten), and the Vientiane–Thakhek–Vung Ang Railway.
In addition, the government will prioritise upgrading telecommunications infrastructure to meet international standards and strengthen regional and global connectivity.
KPL
