Decision 460/QD-TTg 2022 approving the Public Debt Strategy toward 2030
By 2030, public debts will not exceed 60% of GDP
On April 14, 2022, the Prime Minister issues the Decision No. 460/QD-TTg on approving the Public Debt Strategy toward 2030.
Accordingly, specific targets by 2030 include: Public debts will not exceed 60% of GDP, government debts will not exceed 50% of GDP; The Government’s obligation of direct debt payment will not exceed 25% of total state budget revenues; National foreign debts will not exceed 45% of GDP. In the 2021-2025 period, to control the state budget deficit target approved by the National Assembly in the state budget estimate and the 5-year national financial plan for the 2021-2025 period, ensure debt safety targets including ceiling, threshold within the approved limits.
Besides, tasks and solutions include: Completing the debt management policies and equipment; Actively and flexibly combining debt instruments, and domestic and foreign mobilization channels under market conditions to ensure the Government debt portfolio in compliance with the set risk management objectives; Increasing the publicity, transparency in public debt mobilization, management and use, and enhancing the national credit rating, etc.
This Decision takes effect on the date of its signing.
For further details of the Decision 460/QD-TTg, Click here
translation of the Official Gazette of the Vietnam News Agency
THE PRIME MINISTER
THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
Hanoi, April 14, 2022
On approving the Public Debt Strategy toward 2030
THE PRIME MINISTER
Pursuant to the Law on Organization of the Government dated June 19, 2015; Law on Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;
Pursuant to the Law on Public Debt Management dated November 23, 2017;
Pursuant to the Government’s Decree No. 87/2017/ND-CP dated July 26, 2017, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;
After considering proposals of the Minister of Finance at the Report No. 36/TTr-BTC dated February 28, 2021,
Article 1. To approve the Public Debt Strategy toward 2030 with the following principal contents:
The development and implementation of the Public Debt Strategy in the 2021-2030 period shall be attached to six primary viewpoints as follows:
a) To follow and concretize viewpoints, objectives, and main tasks outlined in the Political Bureau's Resolution No. 07-NQ/TW dated November 18, 2016, on policies and solutions for restructuring the state budget and managing public debts to ensure a secure and sustainable national financial system; documents and Resolutions of the 13th National Party Congress. Public debt management must always ensure the highest interests of the nation and people, controlling expenditures within the economy's capacity and borrowing within capacity of repayment, and borrowing must ensure national financial security. While the new situation has many difficulties and challenges, the public debt shall continue to be a lever for socio-economic development, creating a driving force for sustainable growth. Capital mobilization shall continue to follow the principle that domestic loan plays a fundamental, decisive, and important role, that is in close and effective combination with foreign loan.
b) To enhance the management of finance, state budget, public debt under the medium-term plan, ensure the synchronization and consistency between the financial plan and the public investment plan, the plan on borrowing and repayment of public debts. Public debt resources must focus on offsetting the state budget deficit to serve socio-economic development, borrow according to capital needs.
c) To consider the strict public debt management as general task of all branches, levels, and capital borrowers; improve the efficiency of loan capital mobilization, allocation, and use, and ensure the leading role of the central budget and the proactive role of the local budget.
d) Capital mobilization must be carefully calculated in the debt repayment capacity of each budget level and each borrower. To repay debts completely and punctually without overdue debts affecting international commitments of Government and national credit ratings.