As of October, around VND31.55 trillion (US$1.4 billion) from the state budget has been allocated for the country’s overall Covid-19 response, according to the Ministry of Finance (MoF).

Covid-19 testing at the National Institute Of Hematology and Blood Transfusion (NIHBT). Source: NIHBT

These included VND18.13 trillion ($801.3 million) for Covid-19 vaccines purchase and financing restriction measures carried out by the Ministry of Health, Ministry of Defense, Ministry of Public Security, and other localities.

The Government also spent another VND19.22 trillion ($850 million) to support people affected by the pandemic, including the allocation of 137,000 tons of rice from the national reserves for poor households in 31 provinces/cities during the pandemic.

Meanwhile, local Governments have used an estimated VND26 trillion ($1.14 billion) to aid the Covid-19 fight and people in their respective provinces/cities.

During the ten-month period, budget expenditure totaled VND1,149.4 trillion ($50.8 billion), or 68.1% of the estimate. Upon breaking down, capital expenditure amounted to VND257.4 trillion ($11.37 billion), or 53.9% of the year’s estimate; VND85.37 trillion ($3.77 billion) was spent on debt payments or 77.6%; and VND798.1 trillion ($35.27 billion) on regular expenses, or 77%.

The disbursement of public funds as of present stood at 55.8% of the plan, significantly lower than the 67.25% recorded in the same period last year. Of which, the rate for projects financed by domestic funds stood at 60.89%, and 15.29% from foreign sources.

According to the MoF, seven out of 20 provinces/cities recorded a disbursement rate of over 65%; 32 out of 50 Government agencies and 21/63 localities posted rates below 50%.

On the contrary, Vietnam’s budget revenue stood at VND1,224.3 trillion ($54.1 billion), or 91.1% of the estimate, resulting in a fiscal surplus of VND75 trillion ($3.3 billion) during the ten-month period.

The ministry said it has been working on ensuring effective management of state budget for timely debt payment and restructuring public debt for healthy national financial security.

A report from Fitch Solutions forecast Vietnam’s budget deficit at 3.8% in 2021, while the ratio of public debt to GDP would slightly increase to 55.5% from 55% previously.

Fitch Solutions expected that public debt will stay below the statutory limit of 60.0% (revised down from 65.0% in July 2021), the level which will be effective in the period 2021-2025.