This public expenditure review/countryfinancial accountability assessment (PER/CFAA) examines themeans by which Laos can improve the planning and managementof public resources to establish sustainable economic growthand reduce poverty. It is meant to support the goals of thegovernment's National Poverty Eradication Program, aswell as those of the Interim Poverty Reduction Strategy, thePoverty Reduction and Growth Facility, and the PovertyReduction Partnership Agreement. This report is a fullcollaborative effort by the Asian Development Bank, theWorld Bank, and the International Monetary Fund. The reportis organized in six chapters. Following the introductorychapter, Chapter 2 focuses on the macroeconomic frameworkand the resources envelope. Chapter 3 considers issues ofbudget execution and control. Chapter 4 is on budgetplanning and preparation. Chapter 5 explores the dimensionsof poverty in Laos and how expenditures planning andmanagement can support the objective of poverty alleviation.The final chapter provides an analysis of public expenditureissues in the context of six major sectors: education,health, agriculture, energy, transportation, and forestry.These explore further the means alleviating poverty, as wellas highlighting the cross-cutting issues relating to publicexpenditure planning and management.