Vietnam’s 2014 public debt reached US$102 billion: State audit

Friday, 2016-08-26 11:32:30
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The State Audit Office of Vietnam announces the official figure of the 2014 public debt on August 26.
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NDO/VNA – The State Audit Office of Vietnam (SAOV) has announced the official figure of the 2014 public debt as more than VND2.28 quadrillion (US$102.7 billion), while hinting that it might have reached higher than that.

Vietnam’s public debt as of December 31, 2014 was equal to 58.02% of the national gross domestic product (GDP) the same year, SAOV told the press on August 26.

The public debt quickly increased by 17.1% or VND333.3 trillion compared to 2013, according to the SAOV audit report.

The audit authorities also said that the Ministry of Finance which was in charge of tracking the public debt, failed to provide sufficient documents and evidence for it to confirm the colossal US$102.7billion debt as the final number or not.

The official public debt amount in 2014 turned out to be slightly lower than the previous report of the World Bank which believed that Vietnam’s public debt hiked up to VND2.35 quadrillion.

The government in 2014 overspent by nearly VND250 trillion to run the administrative system, reported the SAOV.

The figure was 11% higher than the budget amount allowed for administration spending that the National Assembly previously set at VND224 trillion.

Costs to run the administration even surpassed the budget for investment and development by at least VND910 billion, which failed to hold up the principle of balancing State budget spending, said the SAOV.

The audit office also called out the decision in which the central budget, financially manage the operations of the ministries and other State-level organisations, had borrowed VND45 trillion from the State Treasury to fill in the overspending gap. Such decision was not in accordance with the Law on the State Budget or any other relevant regulations.

Yet this was not the first time it happened. The SAOV reported that the central budget had that kind of budget borrowing year by year, and the total amount had already reached up to VND120.7 trillion as of December 31, 2014.