VINACHEM

The State budget revenue as a proportion of gross domestic product (GDP) in the 2016-2020 period will still hover around 20-21%, according to an action program just issued by the Government to implement Resolution 07-NQ/TW of the Politburo.

In its action program, the Government said the total budget revenue in the 2016-2020 period is some 65% higher than in the 2011-2015 period. Domestic revenue should account for 84-85% of the total, while crude oil and foreign trade taxes will make up the balance.

As such, the State budget revenue as a percentage of GDP in the next five years is unchanged from the preceding five-year period. The 13th National Assembly’s Financial and Budgetary Committee said in a report that revenues from taxes and fees in the 2011-2015 period were 20-21%.

The Government’s action program also puts budget spending in the 2016-2020 period at 24-25% of GDP. That means a budget deficit of 4-5% of GDP.

The budget spending layout for the next years sets investment at 25-26% of GDP, while regular spending will be harnessed at below 64%.

The Government in its action program also gives the target of gradually cutting overspending to no more than 3.5% of GDP by 2020. Public debt is to be controlled at no more than 65% of GDP in the period, while the Government debt is targeted at less than 55% of GDP, and the country’s external debt at less than 50% of GDP.

Meanwhile, the report of the Financial and Budgetary Committee said budget deficit was 4.4% of GDP in 2011, but it rose to 5.4% in 2012 and 6.6% in 2013, before ebbing slightly to 5.64% in 2014. In 2015, it rose again to 6.11%.

The report showed that public debt is on the rise and has approached the permissible upper limit, while the Government debt has exceeded the ceiling, at 50.3% of GDP in 2015. At the same time, the Government still owned many sums payable from the State budget, especially for social security programs. - VNN -