The duty of raising loans from the government in the period of 2022 - 2024 is at most more than 2 million billion vnd

DNHN - With a maximum rise of 240,000 billion VND in the state budget deficit in the years 2022 and 2023, the Government's loan mobilization assignment for the period 2020-2024 is slightly more than 2 million billion VND.

The Ministry of Finance has presented a report to the Prime Minister outlining a three-year strategy for managing public debt from 2022 to 2024, as well as a plan to borrow and repay public debt in 2022.With a maximum rise in the state budget deficit of 240,000 billion VND in 2022 and 2023, the Government's loan mobilization assignment for the period 2020-2024 is about 2 million billion VND.

The challenge of securing and obtaining loans from the government between 2020 and 2024 is estimated to be no more than 2 million billion VND. In which borrowing to cover the central budget deficit amounts to approximately 1.3 million billion VND; borrowing to repay the Government's principal amounts to approximately 612,000 billion VND; and loans to provincial People's Committees, public service providers, and enterprises amount to approximately 117,000 billion VND from ODA loans and foreign preferential loans.

Regarding the Government's debt repayment obligation, the Ministry of Finance stated that the total debt repayment obligation for the period 2022-2024 is approximately 1.19 million billion VND, of which approximately 1.04 million billion VND is for direct debt repayment and approximately 146,000 billion VND is for loans on on-lending.

In the event of adverse capital market fluctuations, the Government will need to increase the interest rate on borrowing or mobilizing debt instruments with a term of less than five years in order to meet the borrowing requirements of the National Financial Plan and to borrow and repay the five-year public debt over the next five years.

The Government's debt repayment obligation will be enhanced proportionately for the period 2021-2025 and for the duration of the program.

When combined with tax exemption and reduction policies used to execute the program, the Ministry of Finance realizes that the Government's aim for direct debt repayment obligations in relation to budget income in this time may be closer to 25 years.

In the event of significant fluctuations or dangers, the Ministry of Finance shall inform the Government, which will swiftly notify the National Assembly for deliberation and action.

With the intention of increasing the state budget deficit to a maximum of VND 240,000 billion over the two years 2022-2023 in order to implement the socioeconomic recovery and development program, public debt is expected to reach approximately 46-47 percent of GDP by 2024.

Currently, government debt is approximately 44-45 percent of GDP; the government's direct debt repayment obligation is approximately 24-25 percent of state budget revenue.

Hoang Ha