Flexible policies needed to curb public debt: minister

Hanoi (VNA) – More flexible policies are needed to gradually restructure public debt and ensure debt safety, Minister of Finance Dinh Tien Dung was speaking at the Q&A session of the 10th meeting of the 13th National Assembly in Hanoi on November 17.

The minister suggested diversifying terms of Government bonds and issuing additional international bonds to restructure the Government’s domestic and foreign debts.

The public debt is still kept under control but at a high speed of 20 percent per year, he admitted, adding that the finance ministry proposed the Government and Prime Minister promulgate a directive to enhance the public debt management, focusing on evaluating the public debt strategy through 2020 with a vision towards 2030 and revising the Law on Public Debt.

According to the strategy, the public debt would not exceed 65 percent of gross domestic product (GDP). The rates in 2011 and 2014 were 50 percent and 59.6 percent of the GDP, respectively, while that for 2015 is expected to reach 61.3 percent.

The Ministry of Finance has built a mid-term financial plan for 2016-2020 and a loan repayment plan through 2020 based on socio-economic growth forecasts for the period, Dung said.

The economic growth during 2015-2020 is estimated at 6.5-7 percent, while the inflation rate would not exceed 5 percent and the State budget overspending would be curbed below 4.9 percent.

During the Q&A session, the minister also answered a number of questions pertaining to the equitisation of State-owned enterprises, State budget balance, and administrative reform in tax and customs sectors.

The unprecedented session, which is broadcast live from the National Hall on national television and radio, will last two days and a half. On November 18 - the final day of the meeting, the Prime Minister will clarify several issues and answer deputies’ questions from 10am-11:15am.-VNA