NA gives big push to spending

The resolution stated that “VND81.6 trillion ($5.4 billion) will be allocated for development investment in 2006, an increase of about $100 million over this year”.
The resolution also stated that VND40.8 trillion ($2.7 billion) will be allocated for debt repayment and aid in 2006, out of an estimated spending budget of VND294.4 trillion ($19.8 billion). Delegates said despite the small increase in development investment, spending for investment projects will likely still be strong as capital could be mobilised from domestic private and foreign investors due to a favourable business environment.
Truong Quang Duoc, deputy chairman of the National Assembly, said: “To ensure the deficit of the state budget spending remains at five per cent, the mobilisation of investment capital from other sources is important because of the currently small scale of the state budget.”
Total earnings for the state budget in 2006 are estimated at VND237.9 trillion ($15.6 billion). Of that more than 50 per cent is collected from the domestic market, some 20 per cent from crude oil, 15 per cent from import and export taxes, and the rest comes from non-refundable aid and other sources.
Duoc said: “With the estimate for debt repayment in 2006, the debt balance of the government will be equivalent to 36.4 per cent of GDP, a safe level ensuring the national financial security level.”
Out of the estimated budget expenditure of VND294.4 trillion ($19.8 billion) in 2006, 60 per cent is allocated for regular issues such as administrative governance, national defence, health care and education; VND1 trillion ($6.5 million) is for the financial reserve fund; and VND11.3 trillion ($7.4 billion) will head toward the state budget reserves.
The resolution stated: “In case the rising price of oil and gas on the world market are even higher than the government estimates, the government will take urgent measures to stabilise the market, such as not subsidising for petrol prices and the gradual reduction of subsidies for oil and kerosene.”
“Step by step, the subsidies for the oil and gas industry will end, with the aim of stimulating the economy’s competitiveness,” it stated. Duoc said from 2006 until 2010, corporate income and natural resource tax exemptions will given to enterprises related to fishing and unprocessed salt production.