Lawmakers pass resolution on national financial plan, public borrowing and debt payment plan for 2021-2025

The resolution sets specific goals including total State budget collection of about VND 8.3 quadrillion (US$ 360 billion), percentage of state budget revenue mobilization and GDP to not lower than 16%, average share of domestic revenue collection of around 85-86% of total state budget collection. 

In the next five years, total budget spending would be about VND 10.26 quadrillion (US$ 445 billion). Of these, 28% of total budget will go to development investment; 62%-63% for regular spending. The resolution also aims to raise development expenditure by 29% of total budget spending while minimizing regular spending to about 60%. 

Total public investment capital was estimated at VND 2.87 quadrillion (US$ 124.5 billion) in the 2021-2025 period.  

State budget overspending is set to account for 3.7% of GDP of which central budget overspending will make up 3.4% of GDP and local state budget deficit will be equivalent to 0.3% of GDP; striving for further goal of under 3.7% of GDP. 

In the next five years, total debt is over VND 3.06 quadrillion (US$ 133 billion) including VND 2.9 quadrillion (US$ 125.8 billion) of central budget debt, VND 1.7 quadrillion of Governmental debt payment, VND 148 trillion (US$ 9.25 billion) of local budget debt, and VND 35.3 trillion of local budget debt payment. 

The resolution aims to ensure safe public debts in which public debt ratio will not exceed 60% of GDP with warning level of 55% of GDP. Government debt ceiling is 50% of GDP. The country’s foreign debt repayment obligation has been set to less than 25% of the country's total trade revenue./.

By Hoang Ha