Update news state budget
The government has begun implementing the plan on mobilizing capital in large quantity after getting the go-ahead from the National Assembly as the state budget is becoming exhausted.
VietNamNet Bridge - The Ministry of Finance (MOF) has planned a $3 billion international bond issuance following National Assembly approval.
VietNamNet Bridge - Just within three months, the Ministry of Finance (MOF) has announced a series of plans to borrow money for the state budget totaling $5.3 billion.
VietNamNet Bridge – Nguyen Quang Thai, vice chairman of the Viet Nam Union of Economics and Science spoke to the Viet Nam Economic Times newspapers of measures for the country to reduce public debt.
The Ministry of Finance (MOF) last week submitted to the National Assembly’s Standing Committee a plan to issue government bonds to call for capital in the international market for domestic debt swap, though current laws do not allow this.
VietNamNet Bridge - The State Bank of Vietnam (SBV) and the Ministry of Finance (MOF) are discussing a plan to withdraw overseas deposits of credit institutions to fund state investments.
The crude oil price in the world market has dropped to around $40 per barrel, as predicted by management agencies. However, the situation may become even worse, as international analysts believe the price could drop to $20 per barrel.
VietNamNet Bridge - Economists say that the National Assembly’s request to issue government bonds more than five years “goes against all financial management theories” and “does not fit Vietnamese practice”.
VietNamNet Bridge – Punishing economic corruption and showing leniency to repentants were issues still being debated,
VietNamNet Bridge - To make up the budget deficit, the government needs to issue bonds to raise funds from the public rather than borrow money directly from the central bank, economists say.
VietNamNet Bridge - Local authorities have asked for state financial support of $1 billion for oil refinery projects, but the amount of money goes far beyond the state budget capability.
The Hanoi People's Committee has forbidden officials and staffs from making numerous business trips abroad or participating in study tours organised or funded by local enterprises or directly invited by international companies.
VietNamNet Bridge – The government says the 2014 state budget will be “safe”, though the crude oil price has been falling in the world market. However, government officials admit that the continued oil price decrease has raised major concerns.
VietNamNet Bridge – Many residential areas in districts 1,3,5,6 and Binh Thanh are expected to implement waste classification at each household on a trial basis from this month with funding from State budget.
VietNamNet Bridge – Phung Quoc Hien, chairman of the National Committee for Financial and Budgetary Affairs, told Hai quan newspaper that Viet Nam's spending structure was ‘irrational'.