Political Bureau releases resolution on public debt management

Balance of State budget collection and spending

The Political Bureau targeted to restructure the State budget and manage public debts with a view to protecting the national finance in a safe and sustainable fashion; promoting socio-economic development; developing culture, human resources; ensuring social security; strengthening social welfare; protecting the environment; responding to climate change; ensuring national defense, security, international integration; raising national status and prestige in the region and the world at large.

The Political Bureau determined that State budget collection would contribute around 20-21% of GDP in the 2016-2020 period and make up around 1.65 time of those in the 2011-2015 period. Of the State budget collection, domestic source would account for an approximately 84-85%; collection of crude oil and export and import would be around 14-16%.  

State budget spending would make up around 24-25% of GDP in the 2016-2020 period. The development investment spending would be around 25-26 percent. Regular spending rate would be kept under 64% in favor of debt payment and national reserve.

State budget overspending would be less than 4% of GDP by 2020 and about 3% by 2030. In the 2016-2020 period, yearly public debts would not account for over 65% of GDP. Government debts would not make up over 55% of GDP. Foreign debts would not account for a half of GDP. By 2030, public debts would not make up over 60% of GDP.  

The Political Bureau aimed to restructure State budget and manage public debts in combination with the transformation of the growth model in an effective, comprehensive, fair, sustainable manner and appropriate mobilization of all resources.

The resolution also highlighted the importance of exercising thrift practice; spend in accordance with the economy capability and borrow in line with debt payment competence.

It also looked to settle pressing issues; achieve sustainable development goals; ensure the  key role of the State budget; uphold self-motivation and creativity of ministries, agencies, and localities; attract social resources.  

Management of finance and State budget would be renovated in line with international practices and standards and support the international economic integration process; national independence, self-reliance, and sovereignty.

Six key measures

The Political Bureau also set six key orientations and measures to implement the aforesaid goals including

(1) The Ministry of Finance was entrusted to  implement the contents on State budget restructuring and public debt management;

(2) The Ministry of Planning and Investment was assigned to better planning work on socio-economic development, construction, adjust medium-term and annual public investment plans; restructure the economy; renovate growth modal and public debts;

(3) The State Bank of Viet Nam was asked to implement the monetary policies in line with socio-economic development plans; manage foreign debts, debt payment of enterprises; restructure credit institutions; handle  NPLs as well as weak credit institutions.

(4) The Ministry of Home Affairs was instructed to review, supervise, and recommend measures to streamline public personnel; rearrange the State apparatus;  

(5) The Ministry of Health, the Ministry of Education and Training, and relevant agencies were requested to renovate public service units in accordance with their assigned responsibilities./.

By Huong Giang