The Impact of Government Spending on Macroeconomic Stability in Vietnam

Abstract

This paper examines the impact of state budget expenditure on macroeconomic stability in Vietnam during the 2021–2024 period. The study employs secondary data combined with descriptive statistics, trend analysis, comparative analysis, and synthesis. The findings indicate that Vietnam’s state budget expenditure increased in absolute terms over the years and remained relatively high compared to GDP. State budget expenditure plays an important role in supporting economic growth and contributing to macroeconomic stability, especially when the economy faces external shocks. However, its impact on the expenditure structure, the efficiency of disbursement, the quality of public resource allocation, and the degree of coordination between fiscal policy and monetary policy. Based on these findings, the paper proposes several policy implications to improve the effectiveness of state budget expenditure in association with the goal of maintaining macroeconomic stability in Vietnam in the coming period.