National assembly adopts 2016 budget with forecast deficit at 5% of GDP


Vietnams lawmakers approved a resolution on State budget estimates for 2016 with a majority of votes yesterday.

The budget revenue is projected at VND 1,019 trillion (USD 45.9 billion), while total spending will be VND 1,273 trillion (USD 57.3 billion), resulting in a deficit of VND 254 trillion (nearly USD 11.3 billion, equivalent to 4.95% of GDP.

The resolution calls on the Government to implement a tight fiscal policy together with monetary policy in order to support production and business, continue stabilising the macro economy, control inflation, and ensure higher economic growth than in 2015.Attention must be paid to intensifying supervision over and transparency of budget use, especially in the fields prone to corruption and wastefulness, cutting down unnecessary and ineffective expenses, and strengthening inspections to limit tax losses and prevent smuggling and trade fraud.

Next year, VND 60 trillion (USD 2.7 billion) worth of Government bonds will be issued to invest in projects using Government bond capital decided by the legislature.

Source: Vietnam News