Fiscal deficit to stay at 4 pct. of GDP next year: MoF

Hanoi (VNA) - The Ministry of Finance has announced the State budget estimates for 2021, which target over 1.34 quadrillion VND (58.2 billion USD) in State budget revenue.

Of the amount, more than 1.13 quadrillion VND is expected to be sourced from domestic collections, 23.2 trillion VND from sales of crude oil, 178.5 trillion VND from imports and exports, and 8.13 trillion VND from foreign financial assistance, according to the ministry’s newly-released decision.

State budget spending next year is projected to near 1.69 quadrillion VND, including more than 1.03 quadrillion VND in recurrent expenditures, 477.3 trillion VND for development investment, 110.06 trillion VND in interest payments, 1.6 trillion VND in aid disbursement, 25.5 trillion VND on wage reform and payroll reductions, and 34.5 trillion VND for State budget reserves.

The fiscal deficit is expected to be 343.67 trillion VND, or 4 percent of GDP. The figure comprises 318.87 trillion VND for the central government and 24.8 trillion VND 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./.