Inflation to be tamed below 10pct in 2012: NA

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Báo Tuổi Trẻ English - 36 month(s) ago 7 readings

Inflation to be tamed below 10pct in 2012: NA

Vietnam’s consumer price index next year is expected increase below 10 percent, according to the 2012’s socioeconomic development scheme recently approved by the Vietnamese National Assembly (NA).

NA

The top priorities for 2012 will still be given for curbing inflation and stabilizing macro-economy, said the NA.

The NA also passed some key economic targets, such as the country's gross domestic product (GDP) growth at 6-6.5 percent, total export turnover up13 percent, and trade deficit at 11-12 percent of the total export turnover.

The trade deficit will preferably be reduced to below 10 percent of the total export turnover given favorable conditions. In 2012, the total budget revenue would be VND762.9 trillion and the total budget spending would be VND903.1 trillion.

Therefore, the state budget deficit would stand at VND140.2 trillion, or about 4.8 percent of GDP, down 0.1 percent over last year, and the total capital sources for socioeconomic development investment will stand at 33.5 percent of GDP.

With this estimate, NA has assigned the government to continue maintaining the tightening fiscal policy to restructure the state budget collection sources and give priorities to promote the transformation of the country’s growth model.

If budget revenues exceed estimates like in 2011, only 30 percent of the exceeded amount of budget proceeds will be allowed to use for investments, said the NA.

For the resolution on the state budget for 2012, the minimum salary will be raised to VND1.05 million per month from May 1, 2012. Officials and public employees will enjoy 25 percent duty allowances, pensions and preferential treatments.

The specific amount of money set aside for the salary reform scheme will be VND59.3 trillion funded by the state budget, two-fold increase against 2011's estimate.

The NA's Standing Committee also said that with the arrangement of VND9.1 trillion from the state budget for budget deficit reduction, the use of VND15 trillion to increase debt repayments will also contribute indirectly to reducing the budget deficit.

The Vietnamese government will spare VND100 trillion to repay for debts and aids, increasing nearly VND14 trillion against 2011's figure.

However, this figure would account for 11 percent of the total state budget, 1 percent lower than that in 2011.

The government has also planned to issue VND45 trillion worth of government bonds to invest in the transport sector, irrigation, health, education.

The government has also submitted the NA the plan to raise VND225 trillion ($10.82 billion) in 2011-2015 to ensure the national financial security, according to the government website chinhphu.vn.

The government has also presented 16 national projects which could cost VND276 trillion in 2011-2015, up 4-fold against that needed for 12 such projects in 2006-2010.

But some law makers concerned that raising such a big amount of money would be challenging when top priorities are curbing inflation and stabilizing the macro economy.

So, the law makers have requested the government to boost inspection and investigation into the G-bond funded projects to reach highest efficiency.

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