The Government has submitted a proposal to the National Assembly to allocate an additional VND44 trillion to cover benefits and policies for public officials, civil servants, and employees affected by the restructuring of the administrative apparatus, while also committing to bold reforms aimed at streamlining operations and enhancing institutional efficiency.
Mr. Phan Van Mai, Chairman of the NA’s Finance and Budget Committee, presented the appraisal report on the implementation of the 2024 socio-economic development and State budget plan, as well as the initial results of the 2025 plan in the first months of the year during the opening session of the NA on the morning of May 5.
According to the report, economic growth in Q1 2025 fell short of expectations, placing considerable pressure on macroeconomic management for the remainder of the year to meet the GDP growth target of 8 percent or higher. The NA’s Finance and Budget Committee underscored the need for the Government to remain steadfast in its established goals while flexibly adjusting socio-economic policies in response to increasingly volatile global developments.
One of the most noteworthy proposals was the request to allocate VND44 trillion from the 2025 central budget to cover benefits and policies for public officials, civil servants, and employees affected by the ongoing administrative restructuring. The majority of the appraisal body expressed support for this proposal. Should total expenditures exceed this amount, it is recommended that the Government report to the NA or, if necessary, seek a decision from the NA Standing Committee between sessions.
The NA’s Finance and Budget Committee also supported the proposal to carry forward unused regular expenditure funds from 2024 into 2025 to finance tuition-free education policies and tasks arising from the administrative reorganization.
Under the proposed reform plan, once streamlined, the Government’s structure will be reduced to 14 ministries and three ministerial-level agencies—a cut of five. The plan includes the dissolution of 13 general departments, 519 departments, 219 divisions, 3,303 sub-departments, and 203 public non-business units. Staffing levels across ministries and agencies are expected to be reduced by approximately 22,000 positions, or around 20 percent.
On the revenue side, domestic tax collections are progressing well, with 34 out of 63 provinces having reached over 40 percent of their annual targets. However, as of April 30, 2025, total outstanding domestic tax debt remains high at roughly VND222.7 trillion, marking a 12.3 percent increase compared to the end of 2024. The Government has been urged to adopt more aggressive measures to recover tax arrears and ensure sustainable revenue for the State budget.
The NA’s Finance and Budget Committee also endorsed allocating 3 percent of the total 2025 budget to science, technology, innovation, and national digital transformation—areas considered key drivers of growth in the coming period.
