The government has set a target to raise 16-17% of the country’s GDP to strengthen the state budget from 2026-2030, of which 85-87% comes from internal revenue sources.
According to Government Decree 368/QD-TTg approved by Deputy Prime Minister Le Minh Khai on March 21, key priorities for the state budget include comprehensive reform of budget management by central government agencies, increased autonomy of local governments and the development of a transparent and sustainable financial market system.
The reforms also include significant investments to improve the quality of human resources, the implementation of technology, digitization and information technology in the area of financial management. The government encourages all stakeholders to invest in the development of the country’s infrastructure to accelerate the post-pandemic economic recovery process.
The government said it prioritized long-term development projects, sustainable financing while strengthening national reserves, social security and investment in human capital. Meanwhile, public spending is to be reduced to 60%, from the current level of 62-63%, by the end of 2030.
The state budget deficit, public debt and financial security are at the heart of future reforms. The decree set out a roadmap to ensure that the country will be able to meet all of its financial obligations over the 2021-25 period, with the aim of reducing the share of public debt by 3.7% of GDP in over the period to 3% by the end of 2030. .
The government has said it is committed to limiting the debt ceiling to 60% of GDP, with public debt not exceeding 50% and external debt not exceeding 50% over the 2021-2025 period. . Market capitalization by 2025 must reach 100% of GDP with a target to increase to 120% of GDP by the end of 2030.
Meanwhile, the insurance market has been projected for an annual growth rate of 15% by 2025 to account for 3-3.3% of GDP and an annual growth rate of 10% from 2025 to 2030.
State-owned enterprises (SoEs) are to go through a restructuring process to improve their business and financial performance by 2025. State-owned enterprises with strong business performance can receive additional investments to build state capacity to support industries keys. On the other hand, government offices and agencies are to see their budget reduced by an average of 10% by the end of 2025 and 15% by the end of 2030.
Other key goals include measures to modernize the country’s customs and tax procedures and establish a digital treasure by 2030.