2022 State budget forecast to rise

State budget revenue and spending are forecast to increase in 2022 in order to recover and develop Vietnam’s economy post-pandemic, according to a public report on State budget estimates in 2022 from the Ministry of Finance (MoF).

Revenue is estimated at VND1.41 quadrillion ($62.52 billion), an increase of 3.4 per cent compared to the 2021 estimate and about 15.1 per cent of GDP. Tax and fee revenue is to be about 12.7 per cent of GDP. Expenditure, meanwhile, is estimated at VND1.78 quadrillion ($78.94 billion), an increase of 4.5 per cent against the 2021 estimate.

Priority will be given to key tasks, ensuring social security, and improving the lives of beneficiaries of preferential allowances and those on low pensions. Unnecessary expenditures will be cut, with a focus placed on the prevention and control of natural disasters and the Covid-19 pandemic, while making good use of opportunities to promote socio-economic recovery and development.

The deficit is therefore estimated at some VND372.9 trillion ($16.55 billion), or 4 per cent of GDP. The government’s direct debt repayment obligations total 21-22 per cent of total State budget revenue. By the end of 2022, public debt will be about 43-44 per cent of GDP.

Vietnam will strengthen its financial and budgetary management and administration in line with economic priorities. It will also synchronously and effectively coordinate fiscal policy with monetary, investment, and other policies.