Curtain drops on budget

It decided on setting aside VND100 trillion ($4.83 billion) for aid and loan repayment next year, up VND14 trillion ($676 million) against 2011. Overspending was forecast to slide 0.1 per cent to 4.8 per cent of the gross domestic product (GDP).

In light of the Resolution recently approved, total budget collections in 2012 would be around 762.9 trillion ($36.8 billion) and total expenditure set at approximately VND903.1 trillion ($43.6 billion). The budget deficit will then come to around VND140.2 trillion ($6.7 billion), tantamount to 4.8 per cent of the GDP, according to VnExpress.net.

With this budget estimate, the National Assembly assigned the government to continue exercising tightening fiscal policies, outline bank restructuring plans, ensure social welfare and increase investment expenditure to facilitate growth model transformation.

In case collections exceed estimations as in 2011, at most 30 per cent of the surplus will be put into investment.

The government also green-lighted issuing VND45 trillion ($2.17 billion) worth government bonds to service transport, hydraulic works, health care and education areas.

In light of wage reforms, the National Assembly dedicated a VND59.3 trillion ($2.86 billion) budget for the purpose, double 2011 figure. The sum will be used to enforce state employees’ proposed salary hikes starting from May 1, 2012.

Proposed 2012 budget sets aside VND100 trillion ($4.83 billion) for loan repayment and aids, tantamount to 11 per cent of total budget spending which is lower than 2011’s 12 per cent.

In light of the Resolution on socio-economic development in 2012, the National Assembly agreed to prioritise using 2011 budget surplus to ease overspending, increase debt repayment or slash borrowing cost.

Earlier according to a government report, by end of 2011 Vietnam’s public debt would equal to 54.6 per cent of the GDP. This figure will be around 58.4 per cent and 60-65 per cent of GDP by end of 2012 and 2015, respectively.