2014 budget deficit higher than approved

Date posted: 21.06.2016

HANOI – The Ministry of Finance estimated  the budget deficit in the fiscal year 2014 at VND260.145 trillion, over VND36 trillion higher than approved by the National Assembly (NA).


Minister of Finance Dinh Tien Dung told a session of the NA Standing Committee in Hanoi on Wednesday that the budget deficit approved by the legislature was VND224 trillion (5.3% of GDP).


With the additional amount, the 2014 budget deficit swelled to 6.61% of the country’s GDP in that year.


According to the minister, the actual excessive amount was VND36.952 trillion, mostly spent on transport and irrigation projects.


Dung said the excessive overspending had caused public debt to rise.


However, NA Vice Chairman Phung Quoc Hien cited the 2013 Constitution and the law on State budget as saying that the Government must have strictly sticked with the budget deficit goal adopted by the NA.


Hien’s view was also shared by NA Chairwoman Nguyen Thi Kim Ngan.


According to a report of the NA Financial and Budgetary Committee, if there are cost overruns in projects funded by official development assistance (ODA), the Government should submit reports to the NA Standing Committee and the NA in line with the law on State budget. 


When assessing the implementation of the 2014 budget plan and the 2015 estimate, the committee requested the Government to do what is approved by the legislative body. However, the Government has yet to report to the NA on the matter.


As a result, the assessment committee requested excluding VND36.952 trillion from the approved budget spending in 2014.