VIENTIANE - Communist Laos plans to borrow 1,800 billion kip (225 million United States dollars) and sell 300 billion kip (37.5 million) in bonds to address its budget deficit, reports said on Tuesday.
In the fiscal year 2013-2014, ending on Sept 30, Laos plans to spend 17,830 billion kip, forcing the government to seek loans from international investors and sell bonds to local and foreign buyers to meet its target, the prime minister's office said.
"Economists have cautioned that the budget deficit level is high," the Vientiane Times reported.
Laos, a landlocked country of about 6 million people, is ranked among the world's poorest countries. More than 50% of its budget is covered by international aid donors.