Public debt in 2024 is more than 4.26 million billion VND, far from the ceiling

Minister of Finance Nguyen Van Thang speaks at the meeting on the morning of April 24. Photo: QH

At the meeting to review the Government's report on thrift and waste prevention of the National Assembly Standing Committee, on the morning of April 24, under the authorization of the Prime Minister, Minister of Finance Nguyen Van Thang said that public debt by the end of 2024 is estimated at 34.7% of GDP. This implementation level is 1.3 - 2.3% lower than the forecast given by the Government in October 2024.

With the size of the economy last year being about 476.3 billion USD, public debt was equivalent to nearly 165.3 billion USD, or over 4.26 million billion VND. This level increased by about 490,000 billion VND compared to 2023.

In addition, government debt is estimated at 32.2% of GDP, and the country's foreign debt is estimated at 31.8%. The government's direct debt repayment obligation in total budget revenue is 20.8%. These data are all within the scope allowed by the National Assembly for the 2021-2025 period.

According to the 2024 public debt borrowing and repayment plan approved by the Prime Minister, the Government will mobilize a maximum of VND676,057 billion, of which nearly 98% will be borrowed from the central budget. The borrowing structure is mainly domestic (VND538,889 billion) through mobilizing government bonds. The amount of ODA loans and foreign preferential funding is about VND25,310 billion.

Regarding budget revenue and expenditure, Minister Nguyen Van Thang said that last year, budget revenue reached over 2 million billion VND. This level increased by 342,700 billion VND (or 20%) compared to the estimate.

Budget expenditures are estimated at VND1.83 trillion, equal to 86.4% of the estimate. About VND197,300 billion was spent on tax, fee, and land rent exemptions, reductions, and extensions. Half of this amount is for exemptions and reductions. Mr. Thang said that expenditure management was proactive, saving regular expenditures and reducing unnecessary expenditures. Over VND64,000 billion was saved by ministries, branches, and localities last year.

During the review, Mr. Le Quang Manh, Permanent Deputy Chairman of the Economic and Financial Committee, commented that the forecast of 2024 budget revenue results to prepare the 2025 budget estimate was not close to reality, so there was a large difference between the report to the National Assembly at the 8th Session (end of 2024) and the estimate.

In addition, according to Mr. Manh, the tax arrears situation is high and tends to increase compared to 2023. "The slow disbursement situation has not been completely resolved; the transfer of funds is still large, causing waste and reducing the efficiency of capital use," said Mr. Manh, at the same time suggesting that the Government continue to tighten financial discipline and discipline, and strictly control overspending.

This year, the Government targets economic growth of over 8%, creating momentum for double-digit growth in the coming years. Public debt is forecast to be 36-37% of GDP in 2025, government debt at 34-35%, foreign debt at 33-34%, and the Government's direct debt repayment obligations compared to budget revenue at about 24%.

To achieve this goal, Minister Nguyen Van Thang said the Government will strictly manage the mobilization, management and use of loans to offset budget deficits and repay principal debts. Along with that, the issuance of government bonds associated with the need for development investment spending and principal debt repayment of the budget will continue to be closely reviewed and monitored to ensure savings.

It is expected that the report on implementing thrift and combating waste will be considered by the National Assembly at its session in May.

VN (according to VnExpress)

Source: https://baohaiduong.vn/no-cong-2024-hon-4-26-trieu-ty-dong-cach-xa-muc-tran-410161.html