Thursday,  Nov 15, 2018,13:24 (GMT+7) 0 0
NA sets 2019 budget deficit at VND222 trillion
The Saigon Times Daily
Friday,  Nov 9, 2018,21:44 (GMT+7)

NA sets 2019 budget deficit at VND222 trillion

The Saigon Times Daily

A teller at BaoViet Bank arranges a huge stack of banknotes – PHOTO: THANH HOA

HCMC – The National Assembly (NA) at its ongoing sixth sitting has approved next year’s budget deficit at VND222 trillion (US$9.5 billion), VnEconomy news website reported.

The total budget revenue for next year is estimated at VND1,411.3 trillion (US$60.6 billion), while the total expenditure is approved at VND1,633.3 trillion (US$70.1 billion), according to a resolution on the 2019 State budget estimates passed by some 86.2% of NA deputies today, November 9. The national law-making body also set the total loans for the State budget at VND425.2 trillion (US$18.2 billion).

The resolution states that the base salary will rise from the current VND1.39 million to VND1.49 million next year. Therefore, pensions, social insurance allowances and other monthly benefits will be adjusted accordingly.

The NA Standing Committee stated in a report that with a gross domestic product (GDP) growth rate of 6.81% in 2017, the figure for this year could surpass 6.7%. Therefore, nominal GDP growth, including economic growth and inflation, could be around 11% on an annual basis.

The committee noted that the public debt growth rate of an estimated 10% in the 2016-2018 period is lower than the nominal GDP growth rate. Thus, the scale of public debts in nominal terms is following a downward trend.

Given the cash-strapped State coffers and the high demand for capital for development projects, taking out loans is necessary to create funds to serve these needs, according to the committee.

The committee asked the Government to keep public, government and foreign debts under control in line with the NA’s resolution and to restructure debts in a way that reduces dependence on foreign loans and increases the amount of domestic loans so that national financial security is guaranteed.

The total value of government bonds issued next year is expected to stay below VND40 trillion (US$1.7 billion), according to the resolution. Their proceeds will be used for various programs and projects.

The legislative body has also allowed the Government to use the remaining VND10.38 trillion (US$446 million) from the central State budget of 2017. The amount will be used to offset central and local budget balances and support salary payments in some cash-strapped localities.

As many as 32% of oil and gas interests in the host country (Russia) and profits earned from Vietnam-Russia petroleum joint venture Vietsovpetro, as well as 30% of after-tax profits from State-owned telecom firm Viettel will be accounted into the central State budget next year.

In the resolution, the NA asks the Government to bring under tight control State and local budget overspending and the debts of local budgets. The Government has been assigned to adopt measures to reduce overspending and strengthen its inspection and supervision of loan usage and debt repayment.

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