On November 1, the National Assembly’s 2nd plenary meeting discussed financial issues, public debts, and mid-term public investment for the 2016-2020 period.
Most NA deputies said the Government’s report on public investment in 2011-15provides clear-cut and comprehensive assessments of the mobilisation and use of loans as well as public debt management.
The report points out that public debt grew rapidly, while the payment pressure was grave and the use of loans was ineffective and the enforcement of regulations on public investment was not strict in some agencies.
|Finance Minister Dinh Tien Dung.
Finance Minister Dinh Tien Dung explained why public debts increased sharply from 2011 to 2015.
First, economic growth was less than expected. Second, the tax rate fell below 22.2% for the year. Third, the restructuring of public investment, commercial banks, state-owned enterprises, and agriculture did not reach the set targets.
During the reviewed period, Vietnam planned to reduce tax collection to boost production and oil prices decreased. Meanwhile, the government maintained expenditures, including for social security, poverty reduction, and salary increases. Government bonds were issued during this period.
Minister Dung made recommendations, “We need to continue to fine tune the law on public debt and budget management. The Ministry of Finance will send a bill on public debt management to the government before submitting it to the National Assembly for revision. We’ll review our public debt strategy and tax policies in line with the state budget restructuring project to ensure public debt safety. We’ll adjust domestic and international public debts and the terms and interest of public debts.VOV