The State Audit Organisation and Luxembourg advance preventive budget oversight to strengthen public accountability in Lao PDR

The State Audit Organisation (SAO) of Lao PDR has launched a two-day high-level consultative workshop, supported by the Grand Duchy of Luxembourg through the Rule of law, access to justice and good governance (ROLAG) programme, to finalise guidelines on its early involvement in state budget planning and revision, marking an important step towards strengthening transparency, fiscal discipline and public accountability. Held on 2 and 3 November 2026 in Vang Vieng, Vientiane Province, the workshop brought together 69 participants, including senior SAO officials, director and deputy director general of Departments and regional audit leaders, to develop a practical framework for integrating preventive audit oversight into the national budget process.

Opening the workshop, H.E. Mr Toy PHONTHILATH, Vice President of the SAO, emphasised that the state budget is a fundamental instrument for translating national socio-economic development policies into concrete results. He stressed the need to move beyond traditional post-audit practices, which often identifies financial weaknesses only after public resources have been spent, towards a proactive approach that helps prevent problems at their source.

Mr Robert DE WAHA, Regional Representative of the LuxDev Asia Office, commended the SAO's leadership and highlighted the broader development implications of sound public financial management. He underscored that every public budget represents a commitment to citizens, translating government priorities into essential services, opportunities and improved living conditions.

He reaffirmed Luxembourg’s continued commitment, through the ROLAG programme, to supporting the SAO in strengthening professional capacities, improving information technology resources and promoting alignment with internationally recognised auditing principles, including the Lima Declaration. He concluded by emphasising the fundamental responsibility of public institutions to ensure that public resources serve the public interest : 

Throughout the workshop, participants engaged in technical discussions and reviewed draft guidelines that establish a structured process for the SAO’s early engagement. This includes collecting and examining budget data and supporting documents from central and local authorities, preparing comprehensive analytical observations and recommendations, and participating in relevant budget review and consultation platforms involving the Ministry of Finance, government bodies, the National Assembly Standing Committee and the National Assembly.

The workshop concluded on 3 November 2026 with the final review and formal adoption of the guidelines, paving the way for their integration into the upcoming national budget cycle.

Through this initiative, the SAO and the Luxembourg Development Cooperation are advancing a shared vision of public auditing that goes beyond detecting irregularities and seeks to prevent them before they occur. It reinforces the principle that effective public financial oversight is not only about ensuring that public money is properly accounted for, but also about ensuring that it is wisely allocated, responsibly managed and, ultimately, delivers tangible benefits to the people of Lao PDR.

The ROLAG programme is financed by the Grand Duchy of Luxembourg and jointly implemented by the Ministry of Education and Sports, the Ministry of Justice, LuxDev, the Luxembourg Development Cooperation Agency, ILSTA and the University of Luxembourg.