Minister of Planning and Investment Bui Quang Vinh has warned that the State budget in 2016 would be extremely stretched while demands for investments and debt payments will remain high.


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Minister of Planning and Investment Bui Quang Vinh speaks at a group discussion of the NA about socio-economic development on October 22 



He told the Daily about the State budget constraint after presenting a budget report at a group discussion on socio-economic development as part of the ongoing tenth meeting of the 13th National Assembly (NA) in Hanoi on October 22.

Vinh said the State budget could have VND45 trillion (over US$2 billion) left for new expenses after allocations for the approved programs and projects. The figure is small compared to huge demands of the Ministry of Transport, the Ministry of Agriculture and Rural Development and localities for investment projects and payment of debt owed to basic construction projects.

Vinh said the Ministry of Finance reported to the NA that next year’s budget collections would pick up VND60.75 trillion compared to this year.

Vinh explained such a projected increase comprised the additional official development assistance (ODA) loans, and proceeds from land lot sales and lottery.

According to Vinh, such amounts did exist in previous years but were not added to the State budget. The Ministry of Finance had not included them until recently but they cannot be spent as lottery revenues belong to local authorities.

Vinh told the group discussion that the State budget had VND255.75 trillion in 2014, of which VND131 trillion (52%) came from cities and provinces to fi nance approved programs.

NA Chairman Nguyen Sinh Hung said with budget constraints, it would be tough to achieve the sustainable development target envisioned for the 2016-2020.

Hung earlier stressed the need to develop more new rural areas and take care of people. “With the socialist-oriented market economy, policies and national targets concerning new rural areas and poverty reduction must be enhanced to benefit disadvantaged people,” Hung said.

According to the draft socio-economic development plan of the 2016-2020 period, the Government would borrow VND3,020-3,090 trillion, with VND1,360 trillion used to finance budget deficit, around VND280 trillion for re-lending and the remainder for debt payments.

Total ODA and preferential loans provided by foreign donors in the next five years are projected at VND250 trillion.

SGT