Vietnam budget deficit stood at around 5% of GDP from 2006 to 2015. The highest budget deficit was in 2013 at 6.6% GDP.
Phung Quoc Hien, National Assembly Vice Chairman said: To facilitate the development of the country, investment on construction has been huge in recent years while state budget income is predicted to decline. This is why budget overspending has increased in the past few years.
"It would be dangerous if state budget spending exceeded the plan by 3 to 5%. Curbed spending would mean cuts to education and blocks on salary increases.", said Nguyen Quang Thai, General Secretary, Economic Science Association of Vietnam
Vietnam as well as other developing countries face state budget overspending. However, overspending is hardly uncommon. Effective investment in the development of the country is always needed.
"Spending on education, medical facilities, and social welfare are necessary and should not be cut." Mr Thai added.
The National Assembly has to make budget estimates to ensure sustainable development. However high spending may lead to economic, political, social, and defence problems.
The National Assembly passed a resolution on budget estimates that must be complied with by law enforcement bodies.
Ha Sy Dong, NA Finance and State Budget Committee said: I hope that the government will adopt measures to better implement the law on the state budget than previous years. And spending on unnecessary areas should be cut.
Phung Quoc Hien, National Assembly Vice Chairman, The 14th National Assembly aims to curb budget overspending and public debt under control. In order to do that, we need to draft a 5-year financial plan.
At the end of the first session, the National Assembly discussed the government’s report on the implementation of socio-economic development and state budget plan for the first half of 2016, and the plan for the remainder of the year.
