State budget overspending estimated at $16.4B in 2023

By Anh Minh   October 7, 2023 | 10:35 pm PT
State budget overspending estimated at $16.4B in 2023
An employee counts Vietnamese banknotes at a bank in Hanoi. Photo by VnExpress/Giang Huy
The state budget deficit is estimated at $16.4 billion, or 4% of GDP, this year, according to the Finance Ministry's report to the government.

Import-export and foreign investment, important growth drivers of the economy, have so far this year stagnated or decreased compared to the same period last year, according to the report.

Meanwhile, many exporters have had to reduce production or labor. Difficulties in the real estate and banking markets have also negatively impacted the state budget balance.

In addition to overspending, public debt is set at the safety threshold decided by the National Assembly.

By the end of this year, public debt is estimated to reach 39-40% of GDP, while government debt is set to hit 36-37%, and the country’s foreign debt will likely land at 37-38% of GDP.

The government's direct debt repayment obligation is estimated at 20-21% of total budget revenue, and repayment of the country's foreign debt 7-8% of total export turnover of goods and services.

According to resolution from the company's top legislature, this year’s total loan amount to offset the state budget deficit and repay principal is VND621.015 trillion ($26.3 billion).

On this basis, the Government plans to borrow VND604.38 trillion, or 94% of the plan. Specifically, over 90% of the money to offset budget overspending will come from domestic borrowing through the issuance of government bonds, and the rest from foreign loans.

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