VIENTIANE, May 26 (Xinhua) -- The Lao government has banned construction of public office buildings from now until 2020 as part of efforts to implement the nation's frugality policy.
The government has also reaffirmed that open bidding processes must strictly be followed in all state investment projects as stipulated in the country's laws.
These instructions were made via Prime Ministerial Order No.9 signed by Lao Prime Minister Thongloun Sisoulith on May 19, local daily Vientiane Times reported Friday.
The order aims to ensure the frugal and effective use of the state budget to maximize the interests of the nation and retain the resources required for poverty reduction efforts.
Over recent years, the Lao government has increasingly imposed a number of measures in pursuit of a national frugality policy including the issuance of a 2016 decree regarding thrift and anti-extravagance.
In support of measures to control spending, the government has decided to prohibit the construction of new public offices.
In a case of necessity, proposals for construction of new office buildings must be submitted to the government for consideration and approval.
In 2014, the Lao government made a major cut in spending on development projects in response to the country's revenue shortfall to enable the government to maintain financial liquidity.
Instead, the government sought to increase focus more on projects that provide swifter returns on investment to minimize the impacts from such development projects stalling.
Over the past years, state investment projects have been plagued by allegations of misappropriation of funds and inflated budgets.
The prime minister order told relevant sectors to monitor such investment projects to ensure the state budget is being put to the most effective use possible while addressing any irregularities that may arise.
In addition, purchases of new vehicles for administrative affairs will not be permitted for 2018.
A single purchase
