State budgetary overspending estimated at 6.5pct of 2010 GDP

The government has estimated the 2010 state budgetary overspending at 6.5 percent of GDP so most members of National Assembly’s the National Commission for Finance and Monetary Policy forecasted the figure will be 6 percent only.

Also, the state budgetary deficit of 2009 could be 6.9 percent of GDP, up 28.6 trillion dong (absolute value) compared with the early year’s estimation.

The commission almost disagreed with the budgetary overspending of 125.5 trillion dong proposed for the next year because by that time, Vietnam will not release tariff reduction policies and the budgetary collection must be higher than 2009′s.

In addition, the government’s outstanding debts now are at high, about 44.6 percent of GDP excluding loans of provinces and cities, advanced money amount transferred annually. Therefore, many are worried that if continuing letting the budgetary overspending stand at high level, which can create a series of risks for national finance security.

The commission also proposed the government to have detailed plans to reduce the budgetary overspending to below 5 percent in following years.

In 2010, total state budgetary collection is predicted at 456.4 trillion dong, increasing by 16.8 percent or 65.750 trillion dong year-on-year.

As for crude oil alone, the government’s income from crude oil could rise by 1 percent or 500 billion dong in 2010 while total export turnover could grow by 8-10 percent against 2009.

However, total budgetary collection still is estimated to exceed 2.9 percent of 2010 plan despite the tariff reduction and exemption will be 20 trillion dong, the commission chief Phung Quoc Hien reported.

 

Category: Economy