Vietnam is spending more on debt servicing. (Photo: www.huffingtonpost.ca)
Vietnam recorded a fiscal deficit
of 82.9 trillion dong ($3.7 billion) in the year to June 15, rising 24.8% from a month earlier, according to data of the General Statistics Office (GSO).
During the period, the country’s budget spending amounted to 508.5 trillion dong ($22.6 billion), or 39.9% of the year’s plan, rising 23.24% month-on-month.
Of the amount, debt servicing was 68 trillion dong ($3.02 billion), or 43.8% of this year’s target, spending on development project was $3.31 billion and regular expenditures, aimed to keep the administrative apparatus running, reached $16.15 billion.
Meanwhile, budget revenue was calculated at 425.6 trillion dong ($18.92 billion), fulfilling 42% of the year’s target. Of the amount, the government collected $786.7 million from crude oil, or 32.5% of the plan, and 3.05 billion from foreign-invested companies for state coffers.
The Vietnamese government plans to borrow 452 trillion dong ($20.1 billion) this year to make up for its budget deficit and roll over existing debts. It plans to spend 273.3 trillion dong ($12.15 billion) on debt servicing this year.
Government debt has exceeded the 50%-of-GDP limit last year while public debt stood at 62.2% of GDP, approaching the safety limit of 65% of GDP, according to data from the Ministry of Finance.