Vietnamese government wants higher budget overspending rate The government will seek permission from the National Assembly to set the budget overspending ceiling in 2014 at a higher rate, chief of the Government Office confirmed at a press briefing on Sunday. Minister Vu Duc Dam, chairman of the GO, said the government expects the rate to be increased from 4.8 percent of GDP to 5.3 percent next year. “The reason is there are huge demands for public investment,” he told reporters. Dam said localities across the countries, from big cities like Hanoi and Ho Chi Minh City to the distant areas, are in need of new investment in terms of electricity, traffic infrastructure, schools and hospitals, and water treatment. Other reasons include the fact that the government will still have to increase the basic wages and maintain social welfare. Asked if the higher budget overspending cap will add more burdens on the national public debts, Dam said the government has “considered carefully before speaking out the proposal.” “Before submitting the proposal to the NA, the government has assessed all concerns, and consulted relevant agencies and experts,” Dam said. “The public debt ceiling will be still ensured with the 5.3 percent overspending.” Dam also asserted that money from the higher overspending rate will be earmarked for public investment, as the government is facing difficulty attracting the private sector to partake in public construction. “For instance, the only way to attract private investors in the road building projects is to collect traffic tolls at high rates, but will transporting companies and local residents accept that?” he said. Tuoitrenews