Fiscal deficit to stay at 4% of GDP next year: MoF
The Ministry of Finance has announced the State budget estimates for 2021, which target over VND1.34 quadrillion (US$58.2 billion) in State budget revenue.
Of the amount, more than VND1.13 quadrillion is expected to be sourced from domestic collections, VND23.2 trillion from sales of crude oil, VND178.5 trillion from imports and exports, and VND8.13 trillion from foreign financial assistance, according to the ministry’s newly-released decision.
State budget spending next year is projected to near VND1.69 quadrillion, including more than VND1.03 quadrillion in recurrent expenditures, VND477.3 trillion for development investment, VND110.06 trillion in interest payments, VND1.6 trillion in aid disbursement, VND25.5 trillion on wage reform and payroll reductions, and VND34.5 trillion for State budget reserves.
The fiscal deficit is expected to be VND343.67 trillion, or 4% of GDP. The figure comprises VND318.87 trillion for the central government and VND24.8 trillion for local administrations.
To fulfil the 2021 estimates, the Ministry of Finance plans to further accelerate public administrative reform, improve the business climate, and practice frugality to maintain the sustainability and security of the national finances.