As much as 2.75 quadrillion VND would be for development investment to aid the post-pandemic economic recovery in the next five-year period (Photo: VNA) Hanoi (VNS/VNA) - The COVID-19 pandemic will continue to weigh onsocio-economic development and State budget in 2021 and the years that follow,Minister of Finance Dinh Tien Dung said.
Dungsaid that what happened in 2012-2013 period showed that in an economicdownturn, the domestic budget collection growth rate was equivalent to justhalf of the GDP’s growth rate. Domestic budget collection was projected toincrease by 5.6 percent over 2020 – a positive growth in the context ofuncertainty.
IfGDP this year expanded at around 2-3 percent, GDP would average 5.8-5.9 percentin 2016-20 period, still lower than the target of 6.5-7 percent.
Budgetrevenue this year was anticipated to be 190 trillion VND (8.2 billion USD)lower than the plan and for the five-year period, the revenue would be around 150trillion VND lower.
Budgetdeficit would be at around 3.8 percent of GDP this year and public debt reducedto 56.8 percent from 63.7 percent in 2016.
Theglobal and regional economic recovery would be significantly dependent of thecapacity of containing the virus, Dung said.
In2021, budget revenue was projected at 1.34 quadrillion VND, 170 billion VND lowerthan the plan for 2020. Budget deficit was planned at four percent of GDP in2021.
Forthe 2021-2025 period, the economic growth was proposed at 6.5-7 percent and thebudget revenue to total 7.8 quadrillion VND, 1.1 – 1.2 times higher than2016-20 period.
Dungsaid domestic collection was expected to account for 85-86 percent of thebudget revenue, 12.7 percent from import and export and 1.4 percent from crudeoil.
Thepercentage of budget revenue from crude oil reduced from 12.7 percent in 2011-2015period to 3.6 percent in 2016-2020.
Domesticcollection was expected to expand at an average of 8 percent per year in2021-2025 period in the context of global economic uncertainty and the impactsof the COVID-19 pandemic.
Spendingfor the next five-year period would total 9.7 quadrillion VND, 1.3 times higherthan 2016-2020 period. Of the figure, 2.75 quadrillion VND would befor development investment to aid the post-pandemic economic recovery,
Budgetdeficit was projected to average 3.7 percent of GDP in 2021-2025 period andreduce from four percent in 2021 to 3.4 percent in 2025.
Publicdebt would be planned at 47.5 percent of GDP./.
VNA
