Finance Minister Dinh Tien Dung stated that public debt is currently within the limit approved by the National Assembly.
The statement was made at a plenary session of the 13th National
Assembly’s ongoing eighth session on October 30, during which Dung gave
an overview of the current status of public debt and debt safety.
According to the Minister, prior to 2010, Government
debt and international debt did not exceed 50 percent of the country’s
GDP.
Dung said the debt-GDP ratio was 35 percent in 2001, 35.2 percent in 2006, and 41.9 percent in 2009.
The enforcement of the Law on Public Debt Management since 2010
represents a crucial legal basis for localities to become more
transparent and responsible in managing and using loans, he noted.
Key projects on transport, electricity, and aviation that require
loans substantially contributed to increasing production, boosting
economic restructuring, reducing poverty and safeguarding social
welfare.
However, public debt increased rapidly
after 2010 due to State budget overspending and mandatory Government
contributions to ODA-funded projects.
In 2011, public debt accounted for 50 percent of GDP, and rose to 50.2 percent in 2012 and 54.12 percent in 2013.
In 2014, public debt is expected to exceed 60 percent of the year’s
GDP, and reach 64 percent in 2015, according to the Minister. By 2020,
the public debt-GDP rate is forecast to decline to 60.2 percent.
He
considered the forthcoming submission of the Law on State Budget and
the revised Law on Public Debt Management to the National Assembly for
approval an immediate solution to keep public debt under 65 percent, and
both international and Government debt under 50 percent of GDP.
Government debt is forecast to remain at 48 percent of GDP in 2015 and
46.6 percent by 2020, while international debt will account for 42
percent of GDP in 2015 and 46 percent by 2020.-VNA