Budget deficit for 2022-2024 is about 3.8% of GDP

	Budget deficit expected to be about 3.8% of GDP in the 2022-2024 period
	Budget revenue in 2022 estimated to increase by 3.4% compared to 2021
	Submission to National Assembly for approving State budget deficit settlement by over VND161 trillion

In 2022, the State budget revenue is estimated at VND1, 411.7 trillion. Photo: Thuy Linh.

The estimated budget expenditure increased by VND76.9 trillion year-on-year

According to the assessment, the international and domestic situation in 2022 is forecast to have advantages and disadvantages, but more difficulties. The Covid-19 pandemic can be prolonged, with the risk of a new and more dangerous variant appearing, and the lack of vaccines and medicines.

The global economic recovery and growth rate in 2022 is predicted to be lower than 2021. The tightening of fiscal and monetary policies by some major economies to control inflation; climate change, extreme weather and other diseases are also risks affecting economic recovery.

In the country, experience, capacity and ability to control the pandemic continue to be improved, but the resilience and resources of the State, businesses and people have decreased significantly. The completion of vaccine coverage and effective control of the pandemic are important conditions for socio-economic recovery and development.

On the basis of assessing the implementation of tasks in 2021, the Ministry of Finance submitted to the Government to report to the National Assembly for approval the State Budget Estimate in 2022 and the three-year finance-budget plan for 2022-2024.

Accordingly, the state budget revenue in 2022 is estimated at VND1,411.7 trillion, reaching the state budget mobilization rate of about 15.1% of GDP; from taxes and fees is about 12.7% of GDP.

The proportion of domestic revenue accounts for 83.4% of total state budget revenue with the increase in domestic revenue from taxes and fees of about 6% compared with the estimate in 2021. The revenue from crude oil accounts for 2% of the total revenue; from imports and exports makes up 14.1% of the total budget revenue with a year-on-year increase in revenue of about 5%.

In 2022, the state budget expenditure is estimated at VND1,784.6 trillion, a year-on-year growth of VND76.9 trillion. In which, the expenditure on development investment is VND526.1 trillion, accounting for 29.5% of total state budget expenditure. The expenditure for interest payment, aid, and national reserves is VND107.2 trillion, accounting for 6% of the total state budget expenditure.

The recurrent expenditure is estimated VND 1,112.1 trillion, accounting for 62.3% of total state budget expenditure. State budget reserve is VND39 trillion.

In 2022, the state budget deficit will be about 4% of GDP. The public debt by the end of 2022 is estimated at 43-44% of GDP.

Public debt in 2024 is about 43-44% of GDP

The estimated state budget revenue for 2022-2024 is about VND4,650 trillion, meeting the average state budget mobilization rate of about 15.1% of GDP. The proportion of domestic revenue by 2024 reaches 85% of total state budget revenue.

The average state budget deficit in the period is about 3.8% of GDP. The public debt by 2024 will be about 43-44% of GDP.

The estimated budget expenditure is about VDN5,800 trillion.

To fulfill the financial-state budget target in 2022, the Finance sector needs to promote achievements and overcome difficulties and shortcomings.

The Ministry has also provided key solutions. Accordingly, the first solution is to study and perfect the policy on the state budget revenue, and strive to hit the highest target, and mobilize resources to serve socio-economic development goals.

Improve the efficiency of management, allocation and use of the State budget; rigorously practice thrift, combat waste, and raise savings, strengthen financial discipline, and ensure national financial security.

Renovate and rearrange the organizational apparatus of the political system in an effective manner; reform the financial mechanism of public service delivery units and the prices of public services.

Besides, promote restructuring, equitization and divestment of state capital in enterprises; improve the operational efficiency of state-owned groups and corporations; ensure the state budget revenue estimate.

Implement sustainable development, safe and smooth operation of financial markets and services, and conduct price management according to market principles, promote competition among economic sectors, improve efficiency of using resource, stabilize major balances, and support growth.

Focus on administrative reform, building a favorable, competitive and transparent business environment, especially in the fields of tax, customs and state treasury.

The successful implementation of the State Budget Estimate in 2022 and the three-year finance-budget plan for 2022-2024 plays an important role, contributing to the accomplishment of socio-economic development goals, especially after the Covid-19 pandemic.