VietNamNet Bridge – National Assembly (NA) chairman Nguyen Sinh Hung on October 9 urged ministers to solve problems in connection to budget collections and spending to secure budget safety in 2014 and 2015.



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“Please, go back to the point of balancing collections and payments. Collect to spend! Don’t issue bonds or borrow to spend,” Hung talked to Minister of Finance Dinh Tien Dung and Minister of Planning and Investment Bui Quang Vinh at a session of the NA Standing Committee on October 9.

With over 72% of the budget used for routine spending and nearly 28% on development investments and debt payment, Hung said this budget structure is not healthy. As a result, the Government still has to raise overspending, issue bonds and reschedule loans, he said.

Next year, public debt is expected to reach 65% of gross domestic product (GDP), so there will be nothing left for development investments from 2016 to 2020, the chairman noted.

Finance Minister Dung said the ministry had yet to arrange sources for wage hikes as the spending on debt payment and national defense is still high. The budget will face further challenges in 2015, he said.

Earlier, the Government often issued bonds with tenors from 15 to 20 years but now has slid to two, three or even one year, pushing up the debt payment pressure.

Given the risk, Hung urged the ministers to calculate to achieve 50% for regular spending, 30% for investments and 20% for debt payment.

According to the Finance Ministry, budget collection has inched up slowly while spending has soared. Budget overspending was 4.9% of GDP in 2011, 4.8% in 2012 and 5.3% in 2013.

State budget deficit hits nearly VND132 trillion

*The State budget ran a deficit of nearly VND132 trillion in the January-September period, or nearly 59% of the level approved by the National Assembly early this year, according to the Ministry of Finance.

Speaking at a press conference in Hanoi on October 9, the ministry put budget collections at VND636 trillion, meeting 81% of this year’s estimation and rising over 17% year-on-year.
 

2015 key economic targets

compared to 2014:

GDP growth of 6.2%

Exports up 10%

Trade deficit at 5%

State budget deficit at 5% of GDP

Total social development investments

at 28% of GDP

Consumer price index (CPI) increase at 5%

Notably, the State earned VND32.5 trillion from dividend paid by State-owned enterprises and remaining profits of the firms.

Total expenditure was estimated at VND768 trillion, up 12% year-on-year. Spending on development investments was VND128 trillion, or 78.5% of the estimation.

Besides, the State spent VND101.8 trillion on debt and aid payments, up 30% year-on-year, and VND538 trillion on socio-economic development, national defense and administration, or 76.4% of estimation.

 

SGT/VNN