The Government proposes not to increase pensions and public sector salaries in 2025

On the morning of October 22, the National Assembly listened to a report 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 budget-finance plan for 2025-2027.

Proposal to use salary reform resources to invest in key projects

Presenting the Government's report on this content, Deputy Prime Minister and Minister of Finance Ho Duc Phoc said that the Government proposed to the National Assembly that in 2025, it will not consider increasing public sector salaries, pensions, and preferential allowances for people with meritorious services.

Along with that, the Government will continue to review and report to competent authorities to handle shortcomings of some subjects and sectors such as health and education.

In addition, the Government also proposed that the National Assembly expand the scope of using accumulated resources for salary reform of the central and local budgets to adjust a number of policies on pensions, subsidies, social security, and streamlining of payroll.

The Government proposes that the National Assembly allow localities with large salary reform resources to use them 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.

At the same time, allow the use of a part of the remaining central and local money accumulation fund, synthesized in the 2025 budget report to arrange enough basic salary of 2.34 million VND/month for ministries, branches, central and local agencies.

Examining this content, Chairman of the Finance and Budget Committee Le Quang Manh said that the Committee agreed not to consider continuing to adjust public sector salaries, pensions, social insurance benefits, monthly allowances, and allowances for people with meritorious services.

The audit agency also agreed to allow the use of the remaining salary reform funds from the central budget and local budgets to support the elimination of temporary and dilapidated houses for poor and near-poor households as proposed by the Government.

Mr. Manh also expressed his approval of using salary reform resources to reduce the pressure on the central budget when raising the basic salary to 2.34 million VND/month.

Save an additional 10% on regular expenses

According to the Government's submission, in 2025, the estimated budget revenue is 1.96 million billion VND, an increase of 15.6% compared to 2024. The budget mobilization rate is equal to 16% of GDP, of which the estimated domestic revenue is 1.6 million billion VND, equal to 85% of total revenue, an increase of 6.1%.

The above estimate is considered positive in the context of domestic and foreign socio-economic risks and challenges.

The estimated budget deficit in 2025 is 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.

To ensure the efficiency of budget revenue and expenditure, Deputy Prime Minister Ho Duc Phoc said that in 2025, in addition to saving 10% of expenditure to ensure the source of salary reform according to regulations, the Government proposed that ministries, branches and central agencies save an additional 10% of regular expenditure.

This is to reduce budget deficit and increase spending on necessary arising tasks and supplement increased public spending, according to the Deputy Prime Minister.

The review agency basically agreed with the plan submitted by the Government to the National Assembly. The Finance and Budget Committee suggested that ministries, branches and localities continue to thoroughly save on regular expenditures, review, arrange and cut down on expenditures that are not really necessary or urgent.

The Chairman of the Finance and Budget Committee noted that budget expenditure management needs to be strict within the budget estimate and budget collection capacity to ensure effective capital use and avoid loss and waste.