Lao Prime Minister Thongsing Thammavong has ordered state agencies not to spend extravagantly when celebrating the New Year which takes place next week.
The prime minister warned cabinet members in a monthly meeting last week to be careful about the budgets to be spent on activities during the traditional new year holidays, the Vientiane Times reported on Thursday.
Director-general of the National Economic Research Institute, Leeber Leebouapao, supported the call as state officials in the past had wasted money on unnecessary activities during the new year holidays.
"As our country is facing financial difficulties, it's critical for us to ensure that we don't spend our budgets extravagantly or waste money on unnecessary things such as organising a New Year party," he said.
Laos is facing a revenue shortfall which has forced the government to halt the monthly allowance of 760,000 kip (3,000 baht) for state employees and to freeze many development projects.
Laotians will celebrate their New Year from April 14-16 with activities in the capital Vientiane and all towns. One of the highlights is the celebration in Luang Prabang.
The old capital will hold several activities for 10 days starting April 10, and the province promises that the events this year, including Sangkhan, or Songkran in Thai, would be bigger than ever, according to the Lao News Agency.