Public debt and Income inequality: From theory to pratice in Vietnam

Abstract

 Over the past few years, there has been a dramatic increase in public debt of countries. However, uncontrolled increase in public debt may cause poverty and income inequality. In Vietnam, income inequality has increased over the past two decades when the burden of public debt has been increasing on the shoulders of each people. The paper shows the relationship between public debt and income inequality, then analyzing the impact of public debt on income inequality in Vietnam. Therefore, management of public debt need to associate with socio-economic growth, public debt must be used to invest to stimulate economic growth, loans must to be used efficiently and coordinating in policy to distribute public resources towards the millennium goal of eradicating poverty and social equality.