Lao People’s Democratic Republic
Peace, Independence, Democracy, Unity and Prosperity

Prime Minister No. 144/Nor.Yor.
Vientiane Capital City Date: 08/05/2017

on Role and Function of
the Ministry of Finance

– According to the law on government No. 04/Sor.phor.chor. dated 08/11/2016.
– According to the resolution of the national council meeting No. 05/Sor.Phor.Chor. dated 20/04/2016 on certification of structure and personnel of the government.
– According to the proposal of the Minister of Finance No. 3589/Kor.Ngor. dated 25/10/2016.
– According to the proposal of the Ministry of Interior No. 98/ Por. Nor. Dated 25/04/2017.

The Prime Minister issues this decree with the following details

Section 1

General provision

Article 1: Objective

This decree specifies location, duties, scopes, rights, organization structure, principle and plan as reference for operation and movement of the Ministry of Finance according to party regulation, guideline and policy. It includes compliance with laws and regulation of the state to protect and develop financial work nationwide to support development of the national economy and society.

Article 2: Location and role

The Ministry of Finance is referred to as “MF” in short and it is one of the mechanisms of the government that plays a role as a staff of the government and protects sectors related to financial work and public budget, and protects work fields such as tax, revenue department, and national finance nationwide.
Section 2
Duty and scope of rights

Article 3: Duty

1. Comply with the constitution, law and resolution of the national council as well as provisions of the nation’s leader, order and resolution of the government.
2. Study and implement party policy, strategies, plans and resolutions of the government about financial work as a strategic plan, principle and projects as well as being responsible for operations to acquire good and actual results.
3. Research, create, and amend laws and legal acts of finance division proposed to the
government for consideration.
4. Research, create, improve, advertise, propagate and perform principles, strategic plan, policy of finance, annual budget plan of the state for the middle and long term as a plan, protocol and project by sectors from central to local according to their roles.
5. Protect, support, monitor and inspect persons, juristic persons and organizations that perform accounting and independent audit as well as target to be audited to abide by the laws associated with accounting and independent audit.
6. Protect, monitor, and inspect the operation of public benefit nationwide, business unit, government and private sector, budget unit, state fund and academic administration organization in executing budget obligation. Coordinate with government agencies and other relevant sectors in monitoring and inspecting compliance with laws and regulations of finance, close budget accounts and disclose budgets by its roles.
7. Protect debt of the state to be at a level certified by national council with safety and guarantee of economic balance and report debt status to the government and national council as specified by law.
8. Protect treasury of the state, properties and valuable objects of the state.
9. Study and do research about investment plan of the state in state enterprises and projects for the government to agree, protect and develop state enterprise, invest in insurance field and other financial services according to laws and regulations.
10. Do scientific research about budget work, financial development, debt protection and saving as the fundamentals of transforming financial work to meet international standard.
11. Develop and protect the bond market, real estate market and other markets by its roles.
12. Research, develop and maintain information database network system to be implemented for protecting financial work, public budget so it is comprehensive and modern.
13. Do scientific research about the economy, internal finance at the domestic and international level to report to the government regularly.
14. Protect operations about collection of income tax, revenues and non-tax income, income
from free help and income from social participation, correctly and completely, in a timely
manner before integrating with the national finance system according to laws and regulations.
15. Improve and renovate establishments of the financial sector, protect, maintain, create, employ, assess, and implement policy and discipline to employees, legal officers, financial sector by chain of command. This includes protecting work on recruiting personnel, technical work, academic affairs, budget, workplace, vehicle and equipment of tax sector, revenue department and national finance according to the laws and regulations for up-to-date operations.
16. Protect management of finance, property and documents of the government along with
making budget plan, summary and report on a regular basis.
17. Coordinate, collaborate and act as intermediary in exchanging lessons with foreigners,
international and domestic organizations about financial work.
18. Protect, monitor, inspect and assess performance of compliance with laws, regulations, strategies, plans, protocols and projects as well as legal acts that the government and Ministry of Finance specify from time to time.
19. Perform other duties specified in law, regulations and assignment of the government.

Article 4: Scope of rights

1. Propose the government to create and amend laws, legal acts and measures about the finance sector.
2. Issue orders, agreements, advice and inform to protect the finance sector by law.
3. Agree to inform budget use of the government from one sector to other sectors in annual budget plan of the budget unit.
4. Order government organizations or other related organizations that are central or local to make revision or cancellation when detecting that income collection and expense spending is not legal.
5. Issue and allow opening, withholding or revoking deposit account of any budget sectors as specified in laws and regulations.
6. Order suspending or cancelling agreement on budget in procurement with public budget of the government of central and local organizations that is not in accordance with laws and regulations.
7. Issue order to confiscate or seize, inquire, investigate and take measures for violation of laws and regulations of the finance sector.
8. Order to gather income of the central sector in public budget, issue annual budget payment plan according to the plan of the national council, certify, and order money movement in the national finance system.
9. Agree to establish or revoke second-class public budget unit under supervision of the first-class budget unit at central and local government organizations.
10. Issue license of tax enterprise, duty-free shop, transport service district and insurance business.
11. Appoint, transfer or close a position of compliance with policy and discipline to employees, legal officers of the Ministry of Finance including tax sector, revenue department and national treasury in local areas.
12. Appoint, switch position of administrative council, discharge position of board of director of state enterprise in which the government invests. The government has the right to make appointment as per agenda or before agenda according to business operation condition or duty performance or other requests of the organization.
13. Inspect and monitor the finance sector at the central and local level, persons, juristic persons regarding compliance with laws and regulations of finance.
14. Protect and use properties, equipment and annual budget of the Ministry of Finance as specified by the national council.
15. Exercise other rights as specified in laws and regulations and assignment of the government.

Section 3
Organization structure

Article 5: structure

Structure of Ministry of Finance consists of
1. Ministry office
2. Department of organization of personnel
3. Audit department
4. Accounting department
5. National budget department
6. Foreign finance and debt protection department
7. State property protection department
8. State enterprise and insurance protection and development department
9. Financial policy and legal act department
10. State saving department
11. Financial information development institute
12. Financial economy institute
Protection structure by chain of command located at central level includes
1. Tax department
2. Revenue department
3. National treasury
Head of second-class academic unit is under the ministry on a yearly basis
1. Northern financial college
2. Southern financial college
Protection structure in local areas
1. Tax protection division
– Office of academic affair
– Border tax checkpoint, international tax checkpoint, local tax checkpoint, custom tax
2. Revenue department at provincial level and capital city
– Revenue department at city, municipality and capital city
3. National treasury at provincial level and capital city
– National treasury at city, municipal level and capital city
Local organizations under academic guidance of Ministry of Finance include
1. At provincial level: finance division
2. At second-class level: finance office

Article 6: personnel structure
Personnel of the Ministry of Finance includes

A. Ministry
1. A minister taking responsibility of the government, Prime Minister, deputy prime minister and leader of protection in sectors in charge with rights and duties as specified in law of the government.
If unavailable, the minister shall grant right to a deputy minister to be an attorney.
2. Deputy Ministers supporting the minister, under guidance, to be responsible for any work assigned by the minister.
A deputy minister will work for the minister if unavailable.
3. Chief of office, chief of department, head of organizations equivalent to department, deputy chief of office, deputy chief of department, deputy chief of organizations equivalent to department, head of division, deputy head of division and legal officers according to work positions.

B. Provincial finance division and district finance office
1. At provincial level, there is the head of division, deputy head of division, head of sector, deputy head of sector and legal officers according to job specification.
2. At district level, there is the head of office, deputy head of office, head of sector, deputy head of sector and legal officers according to job specification.

Employment, appointment, transfer or discharge of duty will be subject to the laws and regulations.

Section 4
Principle and work culture

Article 7: Principle
1. Practice principles in democracy by agreement of the group about problems of the Ministry of Finance.
2. Exercise leadership system of distributing work to other persons clearly and extending creativity and invention of employees at all levels.
3. Every movement of the Ministry of Finance will be referred by legal officers according to laws and principles of the government and party policy and guideline that are implemented to obtain good result.

Article 8: Work culture
1. Work with plan, protocol and projects completely with target in each period. Coordinate
with other sections and local administrative organizations based on rotation of workforce
in every sector to develop finance division.
2. Work to inspect, monitor, support, summarize, extract lesson, and evaluate consequences as well as drawbacks and report making.
3. Follow the custom to arrange meeting in every month, three months, six months and every
year or academic conference and practice reporting process to the government and prime
4. Operate and coordinate in and out of the organization to be consistent with regulations and
Section 5
Final provision

Article 9: Budget, seal, mark and emblem

Ministry of Finance has budget to produce its seal used for movement of legal action according to laws and regulations.
Ministry of Finance has its own emblem and legal officers in the finance sector have a uniform and emblem for each group while discharging duties.

Article 10: Assignment

This is to assign the minister of finance to issue an agreement on roles and function of office, ministry, department, institute, college and local organizations in article 5 of this decree to be clear, thorough, concise and suitable for work operation with effective results.
Article 11: Implementation

Ministry of Finance, Office of the prime minister, ministries, organizations equivalent to ministry, province, and capital city will acknowledge and strictly implement this decree.

Article 12: Validity

This decree is valid from the date of signing and it replaces the decree of the prime minister on the roles and functions of the Ministry of Finance No. 80/Mor.Yor. dated

Prime Minister


Thongrun Sisurit

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