Resolution on State budget estimate adopted

Accordingly, the total State budget collection is estimated at more than VND1,200 trillion (US$54.5 billion) while the total spending will be over VND1,390 trillion (US$63.1 billion), making the budget deficit account for 3.5% of the gross domestic product (GDP).

The resolution requires the Government to carry out a tight fiscal policy which combines with monetary policy to stabilise the macro-economy, curb inflation and fuel economic growth.

From 2017, toll and maritime fees will be used to maintain roads and ensure maritime safety. Special consumption tax on petroleum from Nghi Son oil refinery and 72% of its profit will be channeled into the State budget, with the remaining being invested into the Vietnam National Oil and Gas Group in line with the law.

The government will instruct localities to use revenues from lottery business for the priority fields of education, vocational training, health care, new rural construction and climate change response.

The fund for food safety in localities will be equivalent to the amount of fines for relevant violations.

The government bonds of at least five-year maturity will account for 70% of the total. Regular spending in ministries, agencies and localities will be cut down, including those for conferences, seminars, foreign trips and vehicle purchase.

Ministries, agencies and localities must abide by the law on thrift practice and wastefulness prevention, and the law on anti-corruption.

From July 1, 2017, the base salary will be increased from VND1.21 million to VND1.3 million per month.

Next year, VND50 trillion (US$2.25 billion) worth of government bonds will be used for key works and projects in the medium-term public investment plan.

The government will take positive measures to reduce overspending while enhancing inspection over the use of loans to ensure that the public, government and sovereign debts are within limits.

During the session, the NA also passed a resolution on amendments and supplements to several articles of Resolution No.55/2010/QH12 on waiving and reducing agricultural land use taxes.

(Source: Nhandan Online)