The meeting was chaired by Mr. Santhiphab Phomvihane, Minister of Finance, and attended by deputy ministers, representatives from provincial finance departments, and relevant sectors.

Addressing the meeting, Mr. Santhiphab noted that 2025 marked the final year of implementing the resolutions of the 11th Party National Congress and the 9th Five-Year National Socio-Economic Development Plan (2021–2025). Despite challenges in both the international and domestic environment, the Lao economy continued to grow through strong efforts and increased responsibility at central and local levels under Party and Government leadership.

He reported that economic growth in 2025 reached 4.8 percent, with an average growth rate of 4.24 percent over the five-year period. Inflation declined to single digits, at approximately 8.8 percent, while overall macroeconomic stability was maintained. Poverty reduction progressed in line with targets, regional and international economic integration advanced steadily, and the country continued to attract investment and development assistance.

In the financial sector, the implementation of the state budget achieved notable results, laying a solid foundation for future development. However, the Minister emphasized that several challenges remain and require further improvements to ensure financial and budgetary management is efficient, modern, and responsive to the country’s evolving development needs.

The meeting also reviewed resolutions, decrees, laws, and reports to support implementation of the 10th Five-Year National Socio-Economic Development Plan and the 2026 state budget. Particular attention was given to preparations for 2026, when the Lao PDR is expected to graduate from Least Developed Country (LDC) status and will no longer benefit from certain trade, investment, financial, and technical assistance privileges. Looking ahead to 2035, Laos aims to achieve upper-middle-income status, with targeted economic growth averaging 6–7 percent and per capita income reaching USD 4,600–5,000 annually.

For the 2026 state budget, the meeting stressed the need to raise government revenue to 20.02 percent of GDP, focusing on strengthening tax and duty collection, expanding new revenue sources, improving logistics-related revenues, modernizing revenue databases, reducing exemptions inconsistent with legal frameworks, and applying modern revenue collection tools.

On the expenditure side, participants emphasized continued strict budget discipline from planning through inspection, prioritizing efficient use of limited resources, restructuring the budget toward balance and surplus, reducing unnecessary recurrent spending, improving expenditure procedures, expanding electronic disbursement through the banking system, and strengthening post-disbursement inspections to ensure transparency and effectiveness.

KPL