Vietnam fiscal deficit lower than projected

  • The fiscal deficit in 2020 was 4% of GDP as against the government’s expectation of 5.59% amid falling revenues due to the Covid-19 pandemic.
  • Revenues fell 2% short of the target to VND1,500tr (USD64.9bn), while the expenditure was VND1,780tr, Minister of Finance Dinh Tien Dung said at a meeting on 9 Jan 21.
  • Nguyen Duc Kien, head of the prime minister’s advisory team, noted that the deficit of most countries would rise in 2020 due to the pandemic, and Vietnam, although falling short of this target, was “a bright spot” in the global context.
  • The Ministry of Finance issued government bonds and did not borrow from multilateral organizations such as the World Bank and Asian Development Bank in 2020.
  • In 2016-20 the average government overspending was 3.6% of GDP, well below the target of 3.9%.

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