Vietnam Approves US$2.6Bln Budget Deficit for 2005

The National Assembly, Vietnam's legislature, has approved budget estimates for next year, with a planned deficit reaching VND40.75 trillion (US$2.6 billion), up from VND34.75 trillion (US$2.2 billion) this year.

The planned budget deficit will be equivalent to 5 per cent of the country's gross domestic product (GDP) for 2005, mainly to facilitate an increase of almost 12 per cent in development investment.

State budget revenues for 2005 are targeted at VND183 trillion (US$11.7 billion), equivalent to 22.45 per cent of GDP while spending is planned at VND229.75 trillion (US$14.6 billion).

• P.V