According to a new expenditure report, the Vietnamese government not only spent more than it had in 2014 but also blew an overspending cap set up by legislators.
During a meeting with the Standing Committee of the National Assembly last Wednesday, Finance Minister Dinh Tien Dung revealed a state deficit of more than VND260.14 trillion (US$11.6 billion) in 2014, accounting for 6.61% of Vietnam’s GDP, according to Thanh Nien.
Dung attributed this overspending to current infrastructure projects that need to be expedited. Among these megaprojects are the Long Thanh International Airport and the new nuclear power plant in Ninh Thuan, which require US$16.03 billion and US$148.3 million, respectively, reports Tuoi Tre.
At present, Vietnam's public debt stands at 62.2% of its GDP, according to Thanh Nien, however World Bank estimates predict that figure will rise to 63.8% by the end of the year, edging dangerously close to the government's 65% limit.
Government overspending is not new, as officials have already exceeded a government spending cap a few times before. However, many top legislators are demanding this time that unless the government comes up with a transparent report detailing its spending, official fiscal figures will not be approved.
"Our finances are not transparent with many unaccounted expenses," Phan Trung Ly, chairman of the National Assembly's legal committee, was quoted as saying.
"We need to abide by laws," he continued. "There must be no leniency."
The previous year, in 2013, the state deficit was reported to have exceeded VND236.76 trillion (US$10.6 nillion), amounting to 6.6% of GDP.
[Photo via NBC]
