The government also plans to borrow 452,000 billion, equivalent to more than $ 20 billion this year.
Prime Minister Nguyen Xuan Phuc has approved a plan to borrow and repay government debt and the debt limit, 2016. Accordingly, the executive body is expected to spend 273 300 billion (equivalent to over $ 12 billion) to repay this year, including direct payments were allocated in the budget for the year (154,000 billion) and repayment of foreign loans of the Government on-lending (24.000 billion), debt island (95.000 billion).
Also this year, the government plans to borrow 452,000 billion, equivalent to more than $ 20 billion. In particular, loans to offset the budget deficit is 254,000 billion; Government bond issuance for investment of 60,000 billion; ODA loans, incentives to lend again is 43,000 billion …
Regarding funding sources, besides domestic borrowing through the issuance of bonds, loans from the social insurance fund and SCIC, foreign loans from ODA, preferential …, the Government assigned the Ministry of Finance as monitor and review market conditions in the domestic and international capital to flexible implementation 17.000 billion mobilized through other forms such as: issuing bonds in foreign currency, international bond issuance.
As reported by the Ministry of Planning and Investment, the State budget balance, spending needs economic development – social, especially recurrent expenditure continued to rise, from 50% of total expenditure ago to about 65%. Investment and development expenditures decreased from 30% of total expenditure, to 17%. With the ability to now, the total budget revenues will not be sufficient to recurrent and debt repayment. The entire investment expenditure should be based on the source of overspending, government loans.
Meanwhile, ODA will be reduced, instead of loans with preferential rates lower, shorter loan terms and higher interest rates. Domestic loans is also very difficult. The issuance of government bonds, Treasury securities based mainly on the financial institutions of the state, such as commercial banks, social security … and also achieve very low results.