The State Audit: Public debts remain within the acceptable level

	Mobilization of 6,500 billion vnd of government bonds
	Allowing securities companies to invest indirectly overseas
	Reduce tax in the short term to enhance long-term revenue

In 2014, tax arrears under the management of the Customs was 7,111 billion vnd, a decrease of 22.6% compared to the same period in 2013. Photo: Thu Trang.

Specifically, a high proportion which of revenue, mainly domestic revenues from production and business; export and import tax, special consumption tax on imports, and VAT on imports, etc. tended to increase.

This information was published in the report on the overall results of the State Audit Office of Vietnam in 2015 which was presented on August 26, 2016 at the Press conference on 2015 on audit results and results of conclusions and recommendations of audit in 2014 of the State Audit Office of Vietnam.

Regarding the management of tax debts, by the end of 2014, tax debts had reached 76,073 billion vnd, an increase of 9.7% compared to the same period in 2013. Tax arrears under the management of the Customs was 7,111 billion vnd, a decrease of 22.6% compared to the same period in 2013.

According to Mr. Dao Van Dung, the Director of General Department (the State Audit Office of Vietnam), tax debts under the Taxation’s management tended to increase over the years both in value and proportion in many local provinces.

Regarding the State budget expenditures in 2014, the report of the State Audit Office of Vietnam showed that the budget deficit was 249,362 billion vnd, an increase of 25,362 billion vnd compared to the required target of the National Assembly, equivalent to 6.33% of GDP, a decrease of 6.6% compared to that in 2013, but not in line with the direction of reducing budget deficit in the period 2011-2015.

By December 31, 2014, public debts was 2,284,882 billion vnd (the Government debts was 1,826,777 billion vnd, equivalent to 46.4% of GDP, accounting for 79.95% of public debts; Government-Guaranteed Debts was 422,640 billion vnd, accounting for 18.5% of public debts; local State authorities debts was 35,465 billion vnd, accounting for 1.55% of public debts), equivalent to 58.02% of GDP, an increase of 17.1% (333,377 billion vnd) compared to that in 2013 (1,951,505 billion vnd in 2013).

The management of public debts in 2014 was gradually strengthened. For example, the Government managed loans and repayments under the Resolution of the National Assembly, the ministries issued documents guiding the implementation of Law on public debts management fully, public debt indicators remained within the acceptable level, the Government took the initiative to extend the term of issuing domestic bonds to gradually reduce the pressure on short-term debts, etc.

However, the current management of public debts still is still limited. Specifically, 41 of 43 projects subject to mortgage of assets have not been carried out yet; businesses guaranteed by the Government have not taken measures to reduce risks in exchange rates and interest rates; many projects supported by loans of the Government operate inefficiently, which has led to difficulties in mortgage repayment and dissolution or bankruptcy of enterprises.

Specifically, by December 31, 2014, overdue loans had reached $US 1,290.6 million, accounting for 10.06% of total loans. Of which, there were 60 projects with the Vinashin project reaching $US 416.7 million.

10 projects which were guaranteed by the Government had to repay 4,703 billion vnd, of which, overdue debts of 8 projects reached 1,792 billion vnd.

From the above results, the State Audit Office of Vietnam recommended that the Government should instruct the Ministry of Finance and other relevant ministries and agencies to fully implement audit operations and recommendations of the State audit in 2015 in a timely fashion.

The Government should also reviewed and modified 103 documents which are inconsistent with the general provisions of the State. In particular, the Ministry of Finance will advise the Government to specify the bank loans and other sources to cover the State budget deficit, which was issued in a decree on the implementation of the Law on the State Budget in 2015.

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According to Mr. Dao Van Dung, the State Audit Office of Vietnam National proposed to the National Assembly to approve the State budget settlement for 2014: 1,130,609 billion vnd of budget balance; 1,339,489 billion vnd of the State budget balancing expenditures; 249,362 billion vnd of the State budget deficit, equivalent to 6.33% of real GDP.