At its ongoing second session, the 16th National Assembly on November 13 voted in favor for the Resolution on the 2025 State Budget Settlement, with a budget deficit of only 3.1% of GDP, significantly lower than the projected 3.8%.
However, behind this positive outcome, issues such as increasing budget carry-overs and persistent shortcomings in allocation and disbursement remain unresolved.
According to the Resolution, the National Assembly approved a total state budget revenue of VND 4,267,354 billion (around $166 billion) for 2025. This figure includes carry-over funds from 2024 to 2025, local budget surpluses from 2024, and revenue from the financial reserve fund.
The total state budget expenditure was VND 4,560,931 billion, which includes funds carried over from 2025 to 2026. The state budget deficit was settled at VND400,163 billion, equivalent to 3.1% of GDP, excluding local budget surpluses.
Additionally, the total state budget borrowing to cover the deficit and principal debt repayment amounted to VND 763,909 billion.
The National Assembly also resolved on the allocation method for mineral exploitation rights fees collected between July 2, 2025, and December 31, 2025. For revenues from licensing activities by central authorities, the central budget will receive 70%, and local budgets will receive 30%. For revenues from licensing activities by local authorities, local budgets will receive 100%.
Budget deficit lower than national assembly's approved level
Ealier, presenting a Government report explaining, receiving, and revising the draft Resolution, Minister of Finance Ngo Van Tuan, authorized by the Prime Minister, stated that in 2025, state budget management and administration took place amidst global economic fluctuations and severe domestic impacts from natural disasters. Concurrently, the reorganization of administrative units, streamlining of apparatus, and two-tier local government structure posed new demands on budget management.
Minister Ngo Van Tuan reported that GDP in 2025 increased by 8.02%, and state budget revenue exceeded the forecast by 36.8%. Budget expenditures were tightly managed, ensuring savings and efficiency. Notably, the budget deficit decreased by 15.1% compared to the forecast, equivalent to 3.1% of GDP, which is lower than the 3.8% of GDP approved by the National Assembly.
In response to these challenges, the Government directed flexible, decisive, and timely management. As a result, the economy recovered positively, macroeconomic stability was maintained, and major balances were ensured, with all 15 out of 15 socio-economic development targets for 2025 met or exceeded.
According to Minister Ngo Van Tuan, the Government also made efforts to ensure the timely preparation and submission of budget settlement reports, especially as 2025 marked the first year of shortened settlement periods under the 2025 State Budget Law.
Despite the achievements, the Minister of Finance acknowledged that there are still shortcomings and limitations in the preparation, execution, and settlement of the state budget that need to be addressed.
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