State budget collection forecast to surpass US$60 billion in 2019
The National Assembly has issued a resolution on State budget estimates for 2019, in which total State budget collection will likely reach over VND1.411 quadrillion (US$60.67 billion), while the total spending will hit more than VND1.633 quadrillion.
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Budget overspending is estimated to reach VND222 trillion, or 3.6% of the gross domestic product (GDP), in which central budget overspending will be VND209.5 trillion and local budget overspending VND12.5 trillion. The total state loans will top VND425.2 trillion.
The legislature agreed to use VND10.38 trillion left from the central budget in 2017 to offset lower State and local budget collections and assist localities lacking funds to pay salaries.
As much as VND138.5 billion funded by the World Bank will be used for banking management and the modernisation project during the 2016-2020 period, while more than VND79.8 billion in non-refundable official development assistance sourced from the Republic of Ireland’s Government will be allocated to a project on supporting particularly disadvantaged communes.
Upwards of VND8.2 billion will be provided for the northern province of Cao Bang and over VND14.8 billion for Bac Kan province to support farming households.
Up to VND70 billion in non-refundable aid from the Belgian Government will be used for a project on water resource management and urban development amidst the impacts of climate change in the central province of Binh Thuan.
The legislative body urged the Government to closely direct fiscal policy and combine it with monetary policies to develop production, stabilise the macro-economy, curb inflation, and promote economic growth.
The Cabinet was also required to intensify inspections to ensure the transparent use of State budget, as well as the prevention of trade frauds, tax loss, and transfer pricing.
