The Vietnamese government has proposed significant budgetary changes to support the restructuring of its administrative apparatus and to ensure the effective implementation of various public service initiatives. During the opening session of the 9th meeting of the 15th National Assembly on May 5, 2025, the government outlined its plans to allocate an additional 44,000 billion VND from the central budget to facilitate these changes.
This funding is aimed at addressing the financial needs of localities, which require approximately 59,000 billion VND to pay allowances for officials, civil servants, public employees, and workers affected by the organizational restructuring. Of this amount, 15,000 billion VND will come from local budgets, while the remaining 44,000 billion VND will be sourced from the central budget, including 14,200 billion VND earmarked for additional support to localities.
In order to secure the necessary funds, the government has requested the National Assembly's approval to utilize 15,710 billion VND that remains unspent from the 2024 base salary adjustments, which would be transferred to the 2025 budget. Additionally, a proposal has been made to include an extra 28,290 billion VND in the central budget revenue estimates for 2025, derived from accumulated funds designated for salary reform.
Should the allocated 44,000 billion VND prove insufficient, the government seeks permission to tap into the remaining accumulated funds for salary reform from 2024 to support localities further. The government has committed to reporting back to the National Assembly on the implementation of these financial measures in the nearest upcoming session.
Mr. Phan Van Mai, Chairman of the Economic and Financial Committee, noted that the majority of opinions within the committee agreed to submit the government’s plan for the allocation of 44,000 billion VND for consideration. However, he emphasized that the use of surplus salary reform funds must comply with the Constitution and the State Budget Law. He urged the government to present a clear proposal for the National Assembly to review and approve.
In addition, the government has proposed transferring approximately 6,623 billion VND from the unallocated regular expenditure budget of the central government in 2024 to the 2025 budget. This funding is intended to cover tuition fee exemptions and other tasks arising from the administrative restructuring.
The Ministry of Education and Training has estimated that around 10,000 billion VND will be necessary to exempt tuition fees for students from preschool through high school, with 4,500 billion VND required specifically for the year 2025.
To ensure that 3% of this year's budget is allocated for science, technology, innovation, and digital transformation, the government plans to propose that the National Assembly Standing Committee allocate funds from the increase in central budget revenue in 2024. Should this additional revenue not suffice, the government aims to utilize unallocated funds from the central budget to fulfill these obligations.
Phan Van Mai also stated that the committee agrees with the proposal to transfer budget estimates to secure funding for tuition exemptions and other arising tasks due to the administrative restructuring. The committee also supports the use of increased central budget revenue for advancing science, technology, innovation, and digital transformation.
However, the committee raised concerns about the slow disbursement of budget funds for science and technology over the years, which has negatively impacted the efficiency of capital usage. They urged the government and relevant ministries to implement timely solutions and take full responsibility for managing and disbursing funds to prevent wastefulness.
In the National Assembly's previous session at the end of 2024, a budget estimate of nearly 1.967 million billion VND was approved for 2025, with revenue from salary reform transfers set at 110,600 billion VND. The total budget expenditure for 2025 is projected to be nearly 2.55 million billion VND, resulting in a budget deficit of 471,500 billion VND, which equates to approximately 3.8% of GDP.
To achieve a GDP growth target of 8% or higher, the National Assembly has allowed for the possibility of adjusting the deficit to around 4-4.5% of GDP if necessary. According to the government’s report, budget revenue for the first four months of this year is estimated at 944,100 billion VND, marking an increase of over 26% compared to the same period last year. Meanwhile, budget expenditures have reached 595,400 billion VND, a rise of 15.2% year-on-year.
By the end of April, nearly 152,900 billion VND in government bonds were issued, with an average maturity of 9.91 years and an average interest rate of 2.89% per annum.
In a related development, the report highlighted the public's positive reception towards the government's efforts to streamline administrative processes and enhance service delivery at the grassroots level. The citizens expressed their appreciation for the Party and State's decisive leadership in this revolutionary effort.
Voters have noted that recent sessions of the Party Central Committee and National Assembly have marked significant historical milestones, addressing critical issues that will guide the nation into a new era of development.
However, there are concerns among voters about the challenges posed by relocating to new administrative units and the economic impact of U.S. tax policies, which have led to fluctuations in gold prices, USD exchange rates, and the stock market, thus affecting business operations.
Additionally, there is growing public outrage against the proliferation of counterfeit goods and fraudulent activities online, including impersonation scams targeting citizens. The Vietnam Fatherland Front Central Committee has called for decisive action against these issues, emphasizing the need for effective measures to protect the public and uphold social integrity.
In the context of ongoing reforms, the government has also proposed amendments to the 2013 Constitution to better align it with contemporary governance needs. This includes establishing a two-level local government model and refining the roles of political organizations and social groups.
Deputy Chairman of the National Assembly, Nguyen Khac Dinh, emphasized the importance of these amendments as a means to institutionalize the Party's policies and enhance the operational efficiency of local governance. The proposed changes aim to ensure that local governments are more responsive to the needs of the populace while maintaining the Communist Party's leadership.
The National Assembly is expected to deliberate on these proposals in the coming sessions, aiming to create a more efficient and effective governance structure that meets the evolving needs of Vietnamese society.
