According to the approved resolution, predicted total state budget collection in 2016 will reach an estimated at 46.32 billion USD. Total state expenditure is targeted to reach 57.86 billion USD, leading to a state budget deficit of 11.54 billion USD. The budget deficit is calculated to account for about 4.95% of GDP.
Only about 2.7 billion USD worth of government bonds will be issued next year for investment into infrastructure projects which have already been approved by the National Assembly. National Assembly deputies have agreed with spending cuts through lowering public investment.
"Each province, each sector should limit spending on unnecessary activities and centralise funds for other national development goals and tasks", Huynh Thanh Lap, National Assembly Deputy, Ho Chi Minh city, said.
Spending will be cut from 67-69% last year to 65% and will continue to be lowered. Investment for development, on the other hand will be increased.
"Investment for development projects in infrastructure, transportation, ports, education and health will be prioritised. These sectors are important and should be focused on", Tran Hoang Ngan, National Assembly Deputy, Ho Chi Minh City
, said.
The resolution also stated that funds raised through state divestment in state-owned enterprises would be invested in development. ODA disbursement is also predicted to increase for development projects.
