Government proposes not to increase pensions in public sector in 2025

DNVN - Reporting to the National Assembly on the implementation of the State Budget, Deputy Prime Minister and Minister of Finance Ho Duc Phoc said that the estimated budget deficit in 2025 is VND471,500 billion. The Government proposed that the National Assembly not consider increasing public sector salaries, pensions, and preferential allowances for people with meritorious services in 2025.

On October 22, at the 8th Session of the 15th National Assembly , Deputy Prime Minister and Minister of Finance Ho Duc Phoc reported to the National Assembly on the implementation of the State budget in 2024, the State budget estimate, the central budget allocation plan in 2025; and the 3-year State budget - finance plan for 2025-2027.

Accordingly, in 2024, budget revenue is estimated to reach VND 1,870 trillion, exceeding VND 172,300 billion (equivalent to 10.1%) compared to the estimate. Regarding budget expenditure, the estimated expenditure for the whole year is VND 2,280 trillion, up 7.7% compared to the estimate. Thus, the budget deficit for the whole year is estimated at VND 389,400 billion (down VND 10,000 billion compared to the estimate).

In 2025, the Government estimates budget revenue at VND 1,960 trillion (an increase of 15.6% compared to 2024). Meanwhile, the budget deficit is estimated at VND 471,500 billion (equivalent to 3.8% of GDP); the public debt ratio is 36-37% of GDP, the government debt is 34-35% of GDP, within the scope allowed by the National Assembly (60% of GDP).

Deputy Prime Minister and Minister of Finance Ho Duc Phoc reported to the National Assembly on the implementation of the State budget.

This estimate is considered positive in the context of the domestic and international socio-economic situation that still has potential risks and challenges. In particular, the real estate market has not shown signs of stability, the progress of equitization and divestment of state capital in recent times has been slow. Meanwhile, the pressure to balance expenditures is great, especially expenditures on important infrastructure projects, urgent tasks, politics, foreign affairs, national defense, security, and social security.

To ensure the effectiveness of budget revenue and expenditure, the Deputy Prime Minister and Minister of Finance said that in 2025, in addition to saving 10% of expenditure to ensure the source of salary reform as prescribed, the Government requested ministries, branches and central agencies to save an additional 10% of regular expenditure. This is to reduce budget deficit and increase expenditure on necessary tasks that arise and supplement increased public expenditure.

The Government recommends that the National Assembly not consider increasing public sector salaries, pensions, and preferential allowances for meritorious people in 2025. At the same time, expand the scope of using accumulated funds for salary reform of the central and local budgets to adjust a number of policies on pensions, allowances, social security, and streamlining payrolls.

In administration, the Government will continue to review and report to competent authorities to handle shortcomings of some subjects and sectors such as health and education.

The Government also proposed allowing localities with large salary reform resources to be used to invest in regional and national connectivity projects and key national projects in cases where the localities commit to ensuring salary reform resources until 2030 and do not request support from the central budget.

Propose that the National Assembly consider and allow the use of a portion of the remaining central and local money accumulation fund, and incorporate it into the 2025 budget report, to allocate enough basic salary of VND 2.34 million/month for ministries, branches, central and local agencies.

Ha Anh

Source: https://doanhnghiepvn.vn/kinh-te/chinh-sach/chinh-phu-kien-nghi-khong-tang-luong-huu-khu-vuc-cong-nam-2025/20241022060551763