National Assembly passes 2026 state budget estimate plan
VGP - The 15th National Assembly on November 14 approved the State budget estimate plan for 2026.
Under the plan, total state budget revenue for 2026 is projected at nearly VND2.53 quadrillion (about US$96 billion), including VND1.22 quadrillion of the central budget and VND 1.3 quadrillion of local budgets.
Total state budget expenditure is estimated at almost VND3.16 quadrillion, while local budget expenditure will amount to VND1.35 quadrillion.
The state budget deficit is estimated at VND605.8 trillion, equivalent to 4.2 percent of GDP, comprising a central budget deficit of VND583.7 trillion (4 percent of GDP) and a local budget deficit of VND22.1 trillion (0.2 percent of GDP). The Government's total borrowing demand for 2026 is estimated at VND985.8 trillion.
The National Assembly requested ministries, central agencies and local administrations to continue taking measures to secure funding sources for wage policy reform. In 2026, certain revenue streams will continue to be excluded from local budget surplus calculations for wage reform purposes. These include land rental prepayments, proceeds from the sale of public assets, environmental protection fees on wastewater, and revenues from leasing or selling State-owned housing.
The legislators also approved broader use of central wage reform reserves to adjust pensions, social insurance benefits, monthly allowances and preferential policies for people with meritorious services, as well as to support personnel streamlining. Local wage reform reserves may be used to implement national social security policies and streamline local staffing.
The Government was tasked with reviewing and reallocating savings from regular expenditures—especially from payroll and administrative cost reductions resulting from the two-tier local governance model—to supplement local wage reform funds.
From 2026 onward, the Government will also be authorized to optimize accumulated wage reform funds to ensure the implementation of salary, allowance and income policies in accordance with current regulations.
In 2025, the State budget revenue estimate is over VND 1.966 quadrillion, while the total state budget expenditure estimate is over VND 2.54 quadrillion. The budget deficit is VND 471.5 trillion, equivalent to 3.8 percent of the country's GDP./.
