Revenue shortfall drives budget deficit abnormally high
Revenue collection for this fiscal year reached only 95 percent of the annual plan, driving the budget deficit to 6.9 percent of gross domestic product, higher than the maximum of five percent usually adopted by the government. Economists have warned that such high deficits will increase public debt, with the country having already accumulated considerable debt that will eventually trigger budget tensions. The budget collection for the 2015-2016 fiscal year that ended in September fell short of the target, despite the national budget plan being adjusted to see lower revenue and spending from the original targets set, a report revealed recently. In April this year, the National Assembly passed the government’s proposal to adjust the budget plan. The adjustment came as the government realised it was hard to meet the original targets after revenue collected during the first six months failed to meet the target. The adjustment reduced revenue collection from the original annual target of 26.159 trillion kip to 23.7 trillion kip while expenditure was adjusted down from 31.946 trillion kip to 31.118 trillion kip.
