Budget deficit set at 4.95% of GDP in 2016

National Assembly (NA) deputies have formally adopted the 2016 estimated budget revenue and expenditure with 392 in favour out of 435 voting, accounting for 79.35% approval.

NA deputies vote to adopt the estimated budget revenue and expenditure for 2016 at the ongoing 13th NA’s tenth sitting in Hanoi on November 11. (Image credit: quochoi.vn)

Accordingly, the budget deficit is set at VND254 trillion (US$11.43 billion), equivalent to 4.95% of GDP.

Presenting the draft budget allocation in 2016 at the parliament this morning, Vice Chairman of the NA Committee for Finance and Budget Dinh Van Nha said that the estimated budget revenue is VND1.0192 trillion while total expenditure in 2016 is estimated at VND1.2732 trillion, an increase of VND28 trillion compared with 2015.

The NA also assigned the government to implement tight fiscal and monetary policies in 2016 to support businesses, maintain macroeconomic stability, control inflation, and monitor budget transparency.

The parliament also asked for governmental operating of State budget expenditures under the assigned plan, reducing regular expenditures of individual ministries, branches and localities, and minimising funding for conferences and the purchasing of expensive equipment, in addition to promoting reform of administrative procedures in State budget management and strictly implementing the Law on Thrift Practice and Waste Combat.

Also at the session, NA deputies agreed with the salary increase of civil servants by 5% from VND1.15 million to VND1.21 million per month, starting on May 1 next year. Pensions will be kept at a yearly increase of 8% as implemented in 2015.

The NA also agreed to issue government bonds worth VND60 trillion for investment projects using the government bonds, while requiring strict control of the State budget deficit, measures to reduce the deficit and paying debts, and restructuring of loans by increasing the proportion of medium- and long-term loans with reasonable interest rates, ensuring public debt, government debt, and external debt are within the limits prescribed.

Concerning implementation of a number of 2015-2016 budget tasks, the congress agreed to pour an additional VND30 trillion in ODA disbursement, up from spending plans for 2015, and required the government to report on the allocation and use of the funds.

It also gave a nod to the disbursement of VND40 trillion from State share sales for development tasks and the allocation over VND14 trillion from the government bond surplus to invest in projects on National Highway No. 1A and the Ho Chi Minh Trail running through the Central Highlands.

(Source: nhandan.org.vn)