The Government, for the first time, has instructed relevant ministriesto create a legal mechanism to allow for part of foreign currencyreserves to be used to fund development projects.
At theGovernment's regular meeting in April, the State Bank of Vietnam, inconjunction with the ministries of Finance, and Planning and Investment,were directed to research and propose the mechanism, in which the loanswill be made available for development projects to help secure thenation's financial security.
Statistics from the central bankshowed that Vietnam's foreign currency reserves have steadily increasedin recent years, reaching roughly 35 billion USD, as of the end of lastyear.
According to the Ministry of Finance, State budget revenuesin the first four months of the year grew 9.4 percent against the sameperiod last year, totaling 314.1 trillion VND (14.54 billion USD), andfulfilled 34.5 percent of the full-year plan.
However, thecountry's total budget spending in the period also rose 9.5 percentyear-on-year to 362.7 trillion VND (16.79 billion USD), of whichspending for debt payment was 52.7 trillion VND (2.43 billion USD),while spending for development projects was 250.7 trillion VND (11.6billion USD).
Also, experts were concerned about collectingbudget revenues this year due to the fall in crude oil prices. Revenuesfrom crude oil during the first four months of the year dropped nearly33 percent against the same period last year, to 23 trillion VND (1.06billion USD).
The issue of selling G-bonds to create capital forState budgets has also faced difficulties, as demand by banks for thebonds has declined. The Government plans to raise 250 trillion VND(11.57 billion USD) from selling G-bonds in 2015, though only 56trillion VND (2.59 billion USD) in bonds were bought in the firstquarter.
During the regular press meeting in early April, theMinistry of Finance also warned that the State budget could be short 32trillion VND (1.48 billion USD) this year to spend on developmentinvestment and debt payments.
The ministry recommended that theGovernment take measures to save 10 percent of planned recurrentexpenditures from now through the end of the year, besides issuinglong-term international bonds to restructure domestic short-termloans.-VNA
At theGovernment's regular meeting in April, the State Bank of Vietnam, inconjunction with the ministries of Finance, and Planning and Investment,were directed to research and propose the mechanism, in which the loanswill be made available for development projects to help secure thenation's financial security.
Statistics from the central bankshowed that Vietnam's foreign currency reserves have steadily increasedin recent years, reaching roughly 35 billion USD, as of the end of lastyear.
According to the Ministry of Finance, State budget revenuesin the first four months of the year grew 9.4 percent against the sameperiod last year, totaling 314.1 trillion VND (14.54 billion USD), andfulfilled 34.5 percent of the full-year plan.
However, thecountry's total budget spending in the period also rose 9.5 percentyear-on-year to 362.7 trillion VND (16.79 billion USD), of whichspending for debt payment was 52.7 trillion VND (2.43 billion USD),while spending for development projects was 250.7 trillion VND (11.6billion USD).
Also, experts were concerned about collectingbudget revenues this year due to the fall in crude oil prices. Revenuesfrom crude oil during the first four months of the year dropped nearly33 percent against the same period last year, to 23 trillion VND (1.06billion USD).
The issue of selling G-bonds to create capital forState budgets has also faced difficulties, as demand by banks for thebonds has declined. The Government plans to raise 250 trillion VND(11.57 billion USD) from selling G-bonds in 2015, though only 56trillion VND (2.59 billion USD) in bonds were bought in the firstquarter.
During the regular press meeting in early April, theMinistry of Finance also warned that the State budget could be short 32trillion VND (1.48 billion USD) this year to spend on developmentinvestment and debt payments.
The ministry recommended that theGovernment take measures to save 10 percent of planned recurrentexpenditures from now through the end of the year, besides issuinglong-term international bonds to restructure domestic short-termloans.-VNA
