However, the National Assembly on Thursday passed a resolution approving the 2011 State budget settlement.
As per the resolution, the total State budget revenue in 2011 was nearly VND963 trillion, including the sum transferred from 2010, recovery of State budget loans, the balances of local budgets in 2010, and mobilization from local budgets under the State Budget Law.
Meanwhile, State budget spending totaled over VND1,034 trillion, inclusive of the sum transferred from 2011 to 2012. State budget deficit was put at some VND112 trillion, or 4.4% of gross domestic product (GDP), excluding the balances of local budgets.
At the public discussions about the 2011 State budget settlement previously, a lot of NA deputies expressed deep concern over great losses and waste in capital construction. The problem of scattered investment had yet to be resolved.
In 2011, the Government issued Resolution 11 in a bid to guarantee the macro-economy, ensure social security and impose stringent regulations for public procurement. Still, many violations were detected, said NA deputies.
Phung Quoc Hien, chairman of the NA Finance and Budget Committee, said inspection of the 2011 State budget revealed fund allocation remained haphazard and many projects were set up without a firm financial foundation. In some cases, funds were allocated inadequately, disbursement was slow and arrears were huge.
Notably, the expenses transferred from 2011 to 2012 was VND246.6 trillion, accounting for 23.9% of the total State budget spending, up sharply from the preceding years.
Deputy Prime Minister Vu Van Ninh at a discussion on May 25 admitted some expenses in 2011 had failed to meet the estimates, including the important expenses for healthcare, education and science.
The transfer of State budget sums from one year to another is still common. In addition to unexpected causes, this situation is ascribed to shortcomings in implementing the State budget plan.