return icon Vietnamnet.vn

Government succeeds in reducing public debt to safety level

“As taut as a violin string" was the phrase used to describe the state of the budget and public debt. After five years of applying flexible solutions, the situation has now become different.

{keywords}

 

The Government has submitted to the National Assembly a report on state budget income and expenditures in 2020 and the deployment of the 2021 state budget estimates.

In the 2016-2020 period, the total receipts of the state budget were VND6,890 trillion, while the total expenditures were VND7,660 trillion.

The average state budget expenditure was 28.8 percent of GDP (it was 29.5 percent in 2011-2015). There were changes in the expenditure structure with spending on investment and development accounting for 30 percent (higher than the targeted proportion of 25-26 percent), and regular expenses accounting for 63 percent of total expenditures (the target was below 64 percent).

The state budget overexpenditures in the last five years represented 3.45 percent of GDP, lower than the target of 3.9 percent of GDP as stipulated in the National Assembly’s Resolution 25/2016.

Commenting about the public debt, the Government said there are more bright signs.

By the end of December 31, 2020, the public debt was equal to 55.3 percent of GDP, Government debt was 49.1 percent of GDP, and the country’s foreign debt to GDP was 47.3 percent.

These levels were lower than the ceiling of 65 percent, 54 percent and 50 percent of GDP, respectively, stipulated in the National Assembly’s Resolution 25 on the national finance plan for 2016-2020.

Minister of Finance Dinh Tien Dung, reviewing the last five years of state budget management, said he now can "sigh with relief".

 

By the end of December 31, 2020, the public debt was equal to 55.3 percent of GDP, Government debt was 49.1 percent of GDP, and the country’s foreign debt to GDP was 47.3 percent.

 

The continued fairly high budget collections amid Covid-19 shows the resilience of the economy and enterprises, and affirms the effectiveness of the Government’s solutions that aim to fight the pandemic but also maintain socio-economic activities.

However, the Government warned that if the pandemic cannot be controlled soon, state budget collections will be affected in coming months.

Support for people, businesses

In 2020, the State adopted a series of financial policies to help businesses and people overcome difficulties caused by Covid-19, worth VND128.33 trillion.

Of this, exemption and reduction of tax, fees and charges, and payment deadline extensions totaled VND111.5 trillion. Meanwhile, VND16.83 trillion was spent to prevent and fight the pandemic, and to support the public.

The government said pandemic control depends on the effects and usage of vaccines. Some experts believe that the pandemic will only be contained in 2022. Other countries are continuing to launch big bailouts to support their economy.

In Vietnam, natural calamities, epidemics, climate change, drought and saline intrusion remain problems affecting production and people’s lives.

The third Covid-19 outbreak showed that there are risks for community transmission. Moreover, it is still difficult to access Covid-19 vaccine supply sources globally and develop the vaccine in Vietnam.

Vaccinations are being implemented in accordance with the priority order and actual conditions.

In such a situation, the Government believes that continuing to implement monetary and fiscal policies to support enterprises and people is a necessity.

The Government has proposed continued extension of tax and land rent payment deadlines in 2021 for those affected by Covid-19.

For enterprises, the payment deadline for VAT will be extended for five months, and three months for Q1 and Q2 corporate income tax.

For business households and individuals, it plans to extend the deadline for payment of VAT and personal income tax in 2021; and extend the deadline for the first-period land rental payment for businesses, organizations, business households and individuals.

In addition, the Government will continue to reduce different kinds of fees and charges to help reduce input costs for enterprises and business households. 

Luong Bang

2020: over-expenditures increase, public debts still within safety line

2020: over-expenditures increase, public debts still within safety line

Because of over-expenditures, the public debts in 2020 are estimated at 56.8-57.4 percent of GDP and the government’s debt 50.8-51.4 percent of GDP, within the safety line set by the National Assembly.

Public debt: one fourth of state budget collections used to pay debt

Public debt: one fourth of state budget collections used to pay debt

The public debt to GDP ratio has been controlled well and has decreased in recent years. But the public debt repayment to budget revenue ratio has steadily increased because of many due debts.

MORE NEWS

Over US$34 billion set to pour into Vietnam’s real estate market this year

During the first seven months of 2022, over VND420 trillion (US$18 billion) was pumped into the real estate market. The figure could be raised to VND800 trillion ($34 billion) by the end of the year in case of favorable conditions.

VIETNAM NEWS HEADLINES AUGUST 19

Government offers support to additional 243,000 pandemic-hit labourers

Tourism businesses struggle to get cut-rate loans

Struggling tourism businesses in HCM City are in dire need of credit to recover but are finding it very difficult to access the subsidised loans under the Government’s Decree 31 that took effect in May, according to the city's Department of Tourism.

VIETNAM BUSINESS NEWS AUGUST 19

Ministry of Finance seeks to drop fuel price stabilization fund

Vietnam to tighten management, increase supervision to prevent tax loss

Nowadays online shopping becomes more popular than in-store shopping and more people have taken take full advantage of social networking platforms to put an ad on social network platforms about their products.

Foreign firms required to store users' data in Vietnam

Foreign firms shall be required to store users' data within Vietnamese territory and set up local offices, according to the Government's Decree No. 53/2022/ND-CP scheduled to take place from October 1, 2022.

40 Vietnamese people flee Cambodia's casino

Long Binh Border Gate Station in the southern province of An Giang has just detained 40 Vietnamese people who illegally entered the country by a local river.

Vietnam’s corporate bond market hits over US$11.2 bln in seven months

Vietnamese enterprises issued bonds worth a total ofVND262.25 trillion (more than US$11.2 billion) over the first seven months of 2022, a year-on-year decrease of 10.9 percent, announced the Ministry of Finance.

Foreign traveler suggests 10 most unique Vietnamese cities

Canadian freelance writer Matthew Pike, who departed his homeland to settle in Vietnam, has listed the 10 most unique Vietnamese cities for travelers to visit.

Estate businesses face capital deadlock

To solve the problem of lacking capital, real estate businesses must change to suit the situation. They must focus on the capital market (issuing corporate bonds, stocks).

Thao aims to be first Vietnam's IBA champion

Tran Van Thao hopes to reach another milestone in his career and national boxing by winning the International Boxing Association (IBA) belt next month in HCM City.

VN representative to introduce image of Saint Giong at Man of The Year 2022 contest

Nguyen Minh Khac, Vietnam’s contestant at The Man Of The Year 2022 pageant, disclosed his national costume for the contest on August 17.

A 'miracle' for Vietnam to catch up with Thailand and Malaysia

In 2030, the income of Vietnamese is expected to be equal to that of Malaysia in 2007. Experts calculate that if Vietnam tries its best, it can catch up with Thailand and Malaysia, but it will still be far behind China and South Korea.

Vietnam’s chess star Le Quang Liem defeats World Cup champion for second time

Vietnam’s top chess player Le Quang Liem defeated World Cup champion Jan-Krzysztof Duda of Poland at the FTX Crypto Cup 2022 in Miami, Florida UAS on August 18.

FLC names new vice president to replace Dang Tat Thang

The Board of Directors of FLC Group has approved the resignation of Vice Chairman Dang Tat Thang and elected Mr. Doan Huu Doan to replace Mr. Thang as of August 17.
back_to_top