National Assembly shapes budget plans for 2011

November 11, 2010 | 14:39
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The National Assembly on November 10 approved a proposed revenue target of VND605 trillion ($30.25 billion) for the state budget next year.
National Assembly deputies urged more careful control of fiscal policy implementation

The figure was included in the government’s state budget estimation resolution for 2011. It also sets a spending target of VND725.6 trillion ($36.28 billion).

The figures would leave a deficit of VND120 trillion ($6.03 billion), equal to 5.3 per cent of the GDP.

National Assembly deputies agreed upon measures to carry out the resolution, also urging more careful control of fiscal policy implementation to reduce the budget deficit below VND120.6 trillion next year and even lower in following years.

Many deputies suggested that the government and concerned ministries and agencies build a public debt management strategy with a vision until 2030 to ensure national financial security.

Drastic measures were encouraged to enhance and ensure state budget collection and mitigating tax evasion and fraud. In the case that budget revenues surpass estimates, at least 30 per cent of the exceeded figures in the central budget would be used for reducing the budget deficit in 2011. The government must seek approval from the National Assembly Standing Committee for specific allocation of the central budget.

Deputies agreed on raising minimum salary from VND730,000 ($36.5) per month to VND830,000 ($41.5) beginning from May 1, 2011. The increase in retirement pension and preferential subsidies for veterans is similar to that of minimum wage. The public subsidy of 10% and senior subsidy is to be applied to the education sector.

They also approved the issue of government bonds valued at VND45 trillion ($2.25 billion) next year to raise funds for investment projects in the list decided by the National Assembly Standing Committee. Localities will have to actively use their budget and other capital sources to implement government bond-backed projects.

Government bonds will not be given to projects which fail to complete administrative procedures and are not urgent and effective. The priority will be offered for projects which can be completed between 2011 and 2012.

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