The government recommends not increasing pensions in the public sector in 2025.

DNVN - Reporting to the National Assembly on the implementation of the State Budget, Deputy Prime Minister and Minister of Finance Ho Duc Phoc said that the estimated budget deficit in 2025 is 471,500 billion VND. The Government proposed that the National Assembly not consider increasing public sector salaries, pensions, and preferential allowances for people with meritorious services in 2025.

On October 22, at the 8th Session of the 15th National Assembly , Deputy Prime Minister and Minister of Finance Ho Duc Phoc reported to the National Assembly on the implementation of the State budget in 2024, the State budget estimate, the central budget allocation plan in 2025; and the 3-year State financial and budget plan for 2025-2027.

Accordingly, in 2024, budget revenue is estimated to reach 1.87 trillion VND, exceeding 172,300 billion VND (equivalent to 10.1%) compared to the estimate. Regarding budget expenditure, the whole year's expenditure is expected to reach 2.280 trillion VND, up 7.7% compared to the estimate. Thus, the whole year's deficit is estimated at about 389,400 billion VND (down 10,000 billion VND compared to the estimate).

In 2025, the Government estimates budget revenue at VND1,960 trillion (an increase of 15.6% compared to 2024). Meanwhile, the budget deficit is estimated at VND471,500 billion (equivalent to 3.8% of GDP); the public debt ratio is 36-37% of GDP, the government debt is 34-35% of GDP, within the scope allowed by the National Assembly (60% of GDP).

Deputy Prime Minister and Minister of Finance Ho Duc Phoc reported to the National Assembly on the implementation of the State budget.

This estimate is considered positive in the context of domestic and international socio-economic risks and challenges. In particular, the real estate market has not shown signs of stability, the progress of equitization and divestment of state capital in recent times has been slow. Meanwhile, the pressure to balance expenditures is great, especially expenditures on important infrastructure projects, urgent tasks, politics, foreign affairs, national defense, security, and social security.

To ensure the effectiveness of budget revenue and expenditure, the Deputy Prime Minister and Minister of Finance said that in 2025, in addition to saving 10% of expenditure to ensure the source of salary reform as prescribed, the Government requested ministries, branches and central agencies to save an additional 10% of regular expenditure. This is to reduce budget deficit and increase expenditure on necessary tasks that arise and supplement increased public expenditure.

The Government recommends that the National Assembly not consider increasing public sector salaries, pensions, and preferential allowances for meritorious people in 2025. At the same time, expand the scope of using accumulated funds for salary reform of the central and local budgets to adjust a number of policies on pensions, allowances, social security, and streamlining of staff.

In operation, the Government will continue to review and report to competent authorities to handle shortcomings of a number of subjects and sectors such as health and education.

The Government also proposed allowing localities with large salary reform resources to be used to invest in regional and national connectivity projects and key national projects in cases where the locality commits to ensuring salary reform resources until 2030 and does not request support from the central budget.

Recommend that the National Assembly consider and allow the use of a portion of the remaining central and local money accumulation fund, and incorporate it into the 2025 budget report, to allocate enough basic salary of VND 2.34 million/month for ministries, branches, central and local agencies.

Ha Anh

Source: https://doanhnghiepvn.vn/kinh-te/chinh-sach/chinh-phu-kien-nghi-khong-tang-luong-huu-khu-vuc-cong-nam-2025/20241022060551763