Budget deficit sees 34-pct surge

By Anh Minh May 24, 2022 | 09:48 pm PT

An employee counts money at a bank in Hanoi. Photo by VnExpres/Anh Tu

Vietnam’s budget deficit widened by 34 percent in 2020 but remained within the limit set by the National Assembly, Minister of Finance Ho Duc Phoc has said.

Revenues were VND2.28 quadrillion and spending was VND2.53 trillion, resulting in a VND216.4 trillion ($9.3 billion) deficit, or around 3.44 percent of GDP.

The deficit was sharply up from VND161.5 trillion the previous year, but was below the cap of VND368.3 trillion set by lawmakers.

State Auditor General Tran Sy Thanh said revenues fell short of estimates, especially accruals from land use fees, which were only 72 percent of the target, and income from state-owned companies, which was a mere 37 percent of the target, he added.

Public debts rose by 6 percent to VND3.52 quadrillion (55.94 percent of GDP), or around VND35 million per capita.

The National Assembly’s cap for public debt is 65 percent of GDP.