The Vietnamese government has proposed that the National Assembly approve a supplemental allocation of approximately VND 54,000 billion (USD 2.1 billion) from the central budget in 2025 - VND 44,000 billion (USD 1.7 billion) to support organizational streamlining and VND 10,000 billion (USD 393 million) to implement the policy of free tuition from preschool to the end of high school.

According to a government report evaluating the 2024 state budget and the 2025 budget plan, a number of newly arising expenditure needs require National Assembly approval.

The government emphasized that the Party and State are advancing major reform agendas, including restructuring the political system, boosting scientific and technological development, and introducing free tuition policies across general education.

The government estimates that ministries, sectors, and localities will face significant funding demands in 2025, mostly for recurrent expenditures - costs which, under current regulations, cannot be covered through borrowing or deficit spending.

To address these pressures, the government proposes to allocate VND 59,000 billion (USD 2.3 billion) for expenses related to restructuring, including compensations and entitlements for public servants and employees. Of this, VND 15,000 billion (USD 590 million) will come from local budgets, and VND 44,000 billion (USD 1.7 billion) from the central budget. Around VND 14,200 billion (USD 558 million) will be distributed to localities as targeted support.

The proposal also calls for using VND 15,710 billion (USD 618 million) in unused 2024 wage reform funds for 2025 disbursements, to comply with Government Decrees No. 178/2024 and 67/2025 on compensation for affected employees.

In addition, the government proposes allowing the use of VND 28,290 billion (USD 1.1 billion) from the central government's wage reform reserves to finance budgeted payments in 2025 for ministries, central agencies, and local governments.

The government seeks National Assembly approval to implement the VND 44,000 billion plan under the Law on State Budget and the amended Budget Law No. 56.

As administrative boundaries are adjusted and a two-tier local government model is implemented, provinces and cities are expected to encounter rising costs related to personnel restructuring.

If the VND 44,000 billion budget proves insufficient, the government proposes using leftover 2024 wage reform reserves to continue supporting localities, with results to be reported at the nearest National Assembly session.

Approximately USD 393 million proposed for free tuition

In parallel, the government also suggests transferring unallocated 2024 recurrent central budget expenditures to 2025 to support tuition-free education and related expenses stemming from structural reforms.

Of this, around VND 10,000 billion (USD 393 million) will be needed to support tuition-free education nationwide. For the 2025-2026 academic year alone (covering four months in 2025), funding needs are estimated at VND 4,500 billion (USD 177 million).

Additional expenditures are also anticipated for office relocations, repairs, and information infrastructure for ministries and agencies undergoing consolidation.

To fund these needs, the government proposes reallocating VND 6,623 billion (USD 260 million) in unspent 2024 central recurrent budget provisions to 2025.

Nguyen Thao