GOV'T APPROVES FINANCIAL STRATEGY THROUGH 2030

Deputy Prime Minister Le Minh Khai signed Decision No. 368/QD-TTg dated March 21, 2022 approving the financial strategy until 2030.

The overall objective of the strategy is to ensure financial resources for realization of socio-economic, defense and security tasks.

Total revenue from taxes and charges is expected to account for about 13-14 percent in the 2021-2025 period and around 14-15 percent in the subsequent five-year period.

Domestic revenue, excluding revenue from crude oil, is estimated to make up 85-86 percent of total State budget revenues by 2025 and 86-87 percent by 2030.

The Government will strive to lower recurrent expenses to below 60 percent of the State budget expenditures while increasing development expenditures to 29 percent in the 2021-2025 and continue this course in the following years.

The Government will work to gradually reduce budget overspending to 3.7 percent of GDP on average in the 2021-2025 period and down to 3 percent by 2030.

Public debt, Government debt, and foreign debt will not exceed 60 percent, 50 percent, and 50 percent respectively in the 2021-2025 period. By 2030, foreign debt will be brought down to below 45 percent.

The value of stock market capitalization is estimated to reach 100% of GDP by 2025 and 120 percent of GDP by 2030.

The Government targets to develop the insurance market comprehensively to meet diverse demands of individuals and organizations and the sector is expected to account for around 3-3.3 percent of GDP by 2025 and 3.3-3.5 percent by 2030.

Direct expenditures from the State budget to public non-business units will be reduced by 10 percent on average in the 2021-2025 period and 15 percent in the 2026-2030.

To achieve the above goals, the Government will expedite completion of financial institutions, and innovate financial mechanisms and policies in favor of the development of human resource, science and technology, and innovation.

The Government will step up modernization and development of digital financial platforms associated with the process of digital transformation.

It will also mobilize and steer financial resources to infrastructure development and post-COVID pandemic recovery.

Source: VCCI