VINACHEM

The public-debt-to-GDP ratio was forecast to dip down to 54.3% by 2020; 53.3% by 2021 and only 52.7% by 2020, the Ministry of Finance (MoF) reported.

This is part of the State budget estimate report by 2020 submitted to the National Assembly for approval.

The MoF assessed that in the 2020-2022 period, the global economy would pose potential risks with tougher protection trends and trade tensions, political, ethnic, and border disputes which would affect Viet Nam’s economic development.

The 2020-2022 period represents the transitional period from the socio-economic development plan and national financial plan in 2016-2020 to ones in the 2021-2025 period.

The MoF forecast that average GDP growth rate would be about 6.8% in the 2020-2022 period. Inflation rate would be about 3-3.5%. Import and export growth rates would reach 6.5-8%.

Specifically, budget collection would be VND 4.9 trillion in the next three years. Meanwhile, budget spending was projected at about VND 5.7 trillion and would focus on development investment and wage reform.

The MoF projected that budget overspending would account for about 3.44% of GDP by 2020; 3.5% by 2021 and 2022.

Noticeably, by 2020, public debts would account for 54.3% of GDP. The rate would be reduced to 53.3% by 2021 and 52.7% by 2022./.

- Source: VGP -