Officials are also banned from using state vehicles for personal use over the course of the festival, according to the two-page announcement issued by the Government Office.
The announcement comes amid tension over the budget that has resulted in the government being more restrained with its spending and the suspension of more than 200 projects this financial year.
Despite the prohibition, the government is encouraging officials and members of the public to celebrate the New Year frugally and in line with Lao culture.
Festival activities include giving alms to monks, visiting elderly relatives and senior and retired officials and organising baci, a traditional family ritual.
The announcement said New Year gifts should not be expensive, including gifts to senior officials.
The government is also encouraging state officials and members of the public to use flowers grown by local farmers for decorations to promote local production and reduce spending on expensive imported flowers. The amount of flowers must be appropriate to avoid overspending, the announcement said.
As Lao New Year is a long holiday, the government has instructed authorities to pay greater attention to maintaining security and social order. Officials and the public were asked to be vigilant to the risk of fires and to manage road traffic during this peak time.
Driving under the influence of alcohol has been prohibited to limit road accidents.
The government instructed all authorities to arrange a rotation of guards to maintain security at villages, offices and organisations throughout the festival.
Minister of Public Security Thongbanh Seng-Aphone recently issued an announcement asking security forces at all levels to work harder during the festival to ensure safety and orderliness.