National Assembly passes 2027 state budget plan

The National Assembly (NA) on November 9 approved a resolution on the 2027 state budget estimates, setting total revenue at over 3.334 quadrillion VND (over 130.6 billion USD) and total expenditure at almost 4.074 quadrillion VND, with a projected budget deficit equivalent to 4.5% of GDP.

The resolution was passed with 471 votes in favour, or 94.2% of the total number of NA deputies.

Under the resolution, central budget revenue is targeted at nearly 1.776 quadrillion VND, while local budget revenue at nearly 1.559 quadrillion VND.

Central budget spending is set at more than 2.364 quadrillion VND and local budget expenditure at about 1.709 quadrillion VND.

The state budget deficit is set at 739.597 trillion VND, equivalent to 4.5% of GDP. Meanwhile, total state budget borrowing is estimated at nearly 1.28 quadrillion VND.

Expanding use of salary reform reserves for social welfare

Regarding the implementation of wage and social policies, the NA decided to allocate funds for the 2027 wage reform budget as proposed by the Government, allowing accumulated salary reform funds to cover salary and allowance adjustments, pensions, social insurance benefits, preferential policies for people with meritorious service, and staff streamlining.

Notably, central budget salary reform reserves may now be used for these purposes, while remaining local funds can also support centrally issued social welfare policies and personnel streamlining.

The resolution requires central and local agencies to continue mobilising resources for salary reform and assigns the Government to flexibly coordinate fiscal, monetary and other policies to maintain macroeconomic stability, ensure major balances and support growth.

State budget revenue is targeted to rise around 9.1% in 2027 from the estimated 2026 outturn. Measures will be strengthened to prevent revenue losses, combat transfer pricing and tax evasion, recover tax debts and expand revenue sources, particularly from e-commerce, digital platforms and mineral extraction.

Capital redirected to projects ready for disbursement

The resolution also tightens budget discipline, requiring spending to match implementation capacity and available resources, while prohibiting new spending policies without identified funding sources.

For public investment, priority will be given to key projects and those with spillpover effects, with capital transferred from delayed projects to those capable of implementation and disbursement but facing funding shortages. New projects must undergo careful assessment to avoid scattered and inefficient investment.

The 2027 budget plan require a 5% cut in public investment spending to fund key and urgent projects, alongside a 10% reduction in recurrent expenditure, excluding salaries and personnel-related costs, to increase resources for social welfare.

The Government reported that public investment disbursement reached 72.1% of the 2026 plan in the first 10 months, equivalent to about 720.5 trillion VND, up 21 percentage points and 229.4 trillion VND year on year.

The Government will continue improving project preparation and appraisal, reviewing investment efficiency and accelerating disbursement to prevent idle capital and ensure projects are completed and put into operation promptly./.