Public debt in 2024 exceeded 4.26 trillion VND, far below the ceiling.

According to the government report, public debt is estimated to reach 34.7% of GDP by the end of 2024, equivalent to over 4.26 trillion VND, significantly lower than the 60% GDP ceiling set by the National Assembly.

Minister of Finance Nguyen Van Thang speaks at the session on the morning of April 24. Photo: National Assembly

At the National Assembly Standing Committee's meeting on the Government's report on saving and combating waste, held on the morning of April 24th, Minister of Finance Nguyen Van Thang, acting on behalf of the Prime Minister, stated that public debt is estimated to reach 34.7% of GDP by the end of 2024. This figure is 1.3-2.3% lower than the forecast made by the Government in October 2024.

With the economy size last year at approximately $476.3 billion, public debt was equivalent to nearly $165.3 billion, or over 4.26 trillion VND. This represents an increase of about 490,000 billion VND compared to 2023.

Furthermore, government debt is estimated at 32.2% of GDP, and national foreign debt at 31.8%. The government's direct debt service obligations as a percentage of total budget revenue are 20.8%. These figures are all within the limits permitted by the National Assembly for the 2021-2025 period.

According to the 2024 public debt borrowing and repayment plan approved by the Prime Minister, the Government will mobilize a maximum of VND 676,057 billion, of which nearly 98% will be borrowed from the central budget. The borrowing structure is mainly domestic (VND 538,889 billion) through the mobilization of government bonds. The amount borrowed from ODA and preferential foreign funding is approximately VND 25,310 billion.

Regarding budget revenue and expenditure, Minister Nguyen Van Thang stated that last year, budget revenue reached over 2 trillion VND. This represents an increase of 342.7 trillion VND (or 20%) compared to the projected figure.

Budget expenditures are estimated at 1.83 million billion VND, equivalent to 86.4% of the projected budget. Approximately 197.3 billion VND was spent on tax and fee exemptions, reductions, and extensions, as well as land lease payments. Half of this amount was for exemptions and reductions. Mr. Thang stated that expenditure management was proactive, focusing on saving on recurring expenses and reducing unnecessary spending. Over 64 billion VND was saved by ministries, sectors, and localities last year.

During the review, Mr. Le Quang Manh, Permanent Vice Chairman of the Economic and Financial Committee, noted that the forecast for 2024 budget revenue used to prepare the 2025 budget was not realistic, resulting in a large discrepancy between the report to the National Assembly at the 8th Session (late 2024) and the budget estimate.

In addition, according to Mr. Manh, the situation of outstanding tax debts is high and tends to increase compared to 2023. "The slow disbursement situation has not been thoroughly resolved; the amount of transferred funds is still large, causing waste and reducing the efficiency of capital utilization," Mr. Manh said, while also suggesting that the Government continue to tighten financial discipline and control budget deficits.

This year, the government aims for economic growth exceeding 8%, paving the way for double-digit growth in the coming years. Public debt is projected to reach 36-37% of GDP in 2025, with government debt at 34-35%, foreign debt at 33-34%, and the government's direct debt service obligations relative to budget revenue at approximately 24%.

To achieve this goal, Minister Nguyen Van Thang stated that the Government will strictly manage the mobilization, management, and use of borrowed funds to cover budget deficits and repay principal debt. In addition, the issuance of government bonds linked to development investment expenditures and principal debt repayment will continue to be carefully reviewed and monitored to ensure cost savings.

The report on the implementation of austerity measures and the fight against waste is expected to be considered by the National Assembly at its May session.

VN (according to VnExpress)

Source: https://baohaiduong.vn/no-cong-2024-hon-4-26-trieu-ty-dong-cach-xa-muc-tran-410161.html