Illustrative image (Photo: VNA) The government has set an objective to collect 16-17 percent of the country'sGDP to strengthen the State's budget from 2026-30, with 85-87 percent fromdomestic revenue sources.
According to Government Decree 368/QD-TTg approved by Deputy Prime Minister Le MinhKhai on March 21, top priorities for the State's budget include a comprehensivereform of budget management by central governmental agencies, increased localgovernment autonomy and the development of a transparent and sustainablefinancial market.
Reforms also include large investments to improve the quality of human resources,the implementation of technology, digitalisation and information technology inthe field of financial management. The government encourages all stakeholdersto invest in the development of the country's infrastructure to speed up theprocess of economic recovery post-pandemic.
The insurance market has been earmarked for an annual 15 percent growth rate from now until 2025 to account for 3-3.3 percent of GDP (Photo: VNA) The government said it prioritises long-term development projects, sustainablefinancing while strengthening national reserves, social security and investingin human capital. Meanwhile, government spending is to be reduced to 60 percent,from the current level of 62-63 percent, by the end of 2030.
State budget deficit, public debt and financial security lie at the core offuture reforms. The decree laid out a road map to ensure the country will beable to meet all financial obligations in the 2021-25 period with a goal toreduce the portion of public debt from 3.7 percent GDP in the period to 3 percentby the end of 2030.
The government said it is committed to limiting the debt ceiling to 60 percentof GDP, with government debt not higher than 50 percent, foreign debt nothigher than 50 percent in the 2021-2025 period. The stock market'scapitalisation by 2025 is to reach 100 percent of GDP with a goal to increaseto 120 percent of GDP by the end of 2030.
Meanwhile, the insurance market has been earmarked for an annual 15 percentgrowth rate from now until 2025 to account for 3-3.3 percent of GDP and a 10 percentannual growth rate from 2025-30.
State-owned enterprises (SoEs) are to go through a restructuring process toimprove business and financial performance by 2025. SoEs with strong businessperformance may receive additional investment to bolster the State's ability tosupport key industries. On the other hand, governmental offices and agenciesare to have their budget slashed by 10 percent on average by the end of 2025,and 15 percent by the end of 2030.
Other key objectives include measures to modernise the country's customs andtax procedures and to establish a digital treasury by 2030./.
VNA
