SAV announced the plan yesterday as it released the national financial audit for the 2012 fiscal year.

It examined records from 16 ministries and central agencies, 34 major cities and provinces, 32 State-owned enterprises and credit institutions.

SAV reported that State budget collection in 2012 was more than VND1,058 trillion (US$50 billion), 1.9 per cent higher than planned.

State budget spending was more than VND1,170 trillion ($55 billion ), 8.3 per cent higher than planned.

The overspending accounted for 4.75 per cent of gross domestic production, 0.05 per cent lower than the rate approved by the National Assembly.

Public debt in 2012 was more than VND1,642 trillion ($77.4 billion), accounting for 55.7 per cent of GDP, while the public debt in 2011 accounted for 54.9 per cent of GDP.

Head of SAV's General Affairs Department Dao Van Dung said State-owned enterprises incorrectly reported revenues and taxable costs, thus paid less value-added tax and corporate tax.

They were required to pay an extra VND3 trillion ($141.4 million ) to the State budget.

By the end of 2012, 15 ministries, central and local agencies had debts of more than VND1 trillion ($47.1 million) each. Many localities reported the start of a large number of projects in 2012, but many projects proceeded slowly.

After audits conducted in 2011, the SAV said violators should pay fines worth more than VND14.5 trillion ($683.5 million), but during 2012, just 65 per cent of this was collected.

Last year, SAV audited State Bank of Viet Nam, Viet Nam Development bank and three commercial banks.

Vietinbank, Vietcombank and Agribank claimed profits with 2012 pre-tax revenues of more than VND8 trillion, VND5.7 trillion and VND2.8 trillion respectively.

Dung noted that the bad-debt rate of banks was high. By the end of 2012, bad debts accounted for 4.08 per cent of total loans, according to reports from 125 local credit institutions. The ratio increased to 4.46 per cent until June, 2013. — VNS