Vietnam government struggles with overspending

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HCM palaceVietnam’s Prime Minister Nguyen Tan Dung told a National Assembly session opening on October 21 that state budget overspending this year would likely be significantly higher than desired, Thanh Nien News reported.

Dung made the statement while delivering a report on the country’s current socio-economic situation that estimated Vietnam’s GDP growth at 5.4 per cent this year. He told lawmakers that state budget overspending in 2013 may reach 5.3 per cent of GDP, while the government’s goal was to keep it below 4.8 per cent.

According to the report, total public spending this year will reach an estimated at $46.75 billion, 0.8 per cent higher than the government’s budget forecast. This is the first time the government has conceded that state budget overspending has exceeded the ceiling rate set by the National Assembly, Vietnam’s legislature, earlier this year.

Early in October, the government urged the house to increase the debt ceiling from 4.8 per cent of GDP this year to 5.3 per cent next year, saying it needs money for public spending. However, no one from the government or the Ministry of Finance mentioned state budget overspending at the committee meeting.

Dung reassured the house that Vietnam’s government debts, public debts and foreign debts were still “at safe levels”. The prime minister also pointed to some positive developments in his speech. He said inflation has been cut from 18.13 per cent in 2011 to 6.81 per cent in 2012, and is expected to hover around 7 per cent this year.

He also mentioned that the country is still enjoying “reasonable” growth and people’s living standards have continued to improve over the last few years.

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Reading Time: 1 minute

Vietnam’s Prime Minister Nguyen Tan Dung told a National Assembly session opening on October 21 that state budget overspending this year would likely be significantly higher than desired, Thanh Nien News reported.

Reading Time: 1 minute

HCM palaceVietnam’s Prime Minister Nguyen Tan Dung told a National Assembly session opening on October 21 that state budget overspending this year would likely be significantly higher than desired, Thanh Nien News reported.

Dung made the statement while delivering a report on the country’s current socio-economic situation that estimated Vietnam’s GDP growth at 5.4 per cent this year. He told lawmakers that state budget overspending in 2013 may reach 5.3 per cent of GDP, while the government’s goal was to keep it below 4.8 per cent.

According to the report, total public spending this year will reach an estimated at $46.75 billion, 0.8 per cent higher than the government’s budget forecast. This is the first time the government has conceded that state budget overspending has exceeded the ceiling rate set by the National Assembly, Vietnam’s legislature, earlier this year.

Early in October, the government urged the house to increase the debt ceiling from 4.8 per cent of GDP this year to 5.3 per cent next year, saying it needs money for public spending. However, no one from the government or the Ministry of Finance mentioned state budget overspending at the committee meeting.

Dung reassured the house that Vietnam’s government debts, public debts and foreign debts were still “at safe levels”. The prime minister also pointed to some positive developments in his speech. He said inflation has been cut from 18.13 per cent in 2011 to 6.81 per cent in 2012, and is expected to hover around 7 per cent this year.

He also mentioned that the country is still enjoying “reasonable” growth and people’s living standards have continued to improve over the last few years.

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