The paper focuses on structural gap in public finance of Vietnam in long term from 1990 to 2010 and consequences of structural gaps in public finance - public debt crisis- in some developed countries. Public debt crisis has harmfully influenced to Eurozone including developed countries and to the most developed countries of the world such as United States of America, and Japan. Each country has its own reasons for public debt crisis; however, the principle of those crises is too high public expenditure leading to increase in budget deficit over long term - this called structural gaps of public finance. Available data shows that the ratio Public Debt/GDP in these countries increased over long time then rose sharply for several years right before the public debt crisis. Vietnam public debt has been increasing for the last five years as well. Analysis the secondary data of public finance of Vietnam from the credible sources in range from 1990 to 2011 combined with a survey about symptom of structural gaps of public finance in Vietnam manifests the evidence of structural gaps in public finance of Vietnam. This unbalance has become worse since 2005 when the public debt increases considerably, especially external debt. Growth rate of Vietnam is higher than average level of entire the world; however, the gains are fragile. That unsustainable circumstance is even exacerbated by high inflation and high public debt. The thesis recommends some solutions which the Government of Vietnam might apply to balance the government budget and improve its performance in the future.
Keywords: Structural gaps, public finance, public investment, budget deficit,public debt, debt crisis, inflation, corruption, inefficiency, bloated bureaucracy, transparency, sustainable developmen
