Business
PM requires fiscal management tools to stabilise macro-economy
The Finance Ministry needs to well manage fiscal tools to stabilise the macro-economy while making breakthrough reforms in budget management to reduce overspending and ensure solvency, Prime Minister Nguyen Xuan Phuc stressed at the ministry’s teleconference in Hanoi on January 6.
Prime Minister (PM) Nguyen Xuan Phuc and Deputy PM Vuong Dinh Hue participated in teleconference held by the Finance Ministry in Hanoi on January 6 to review the sector’s operation in 2016 and tasks for 2017.
Speaking at the meeting, PM Phuc hailed the financial sector as one of the pioneers in implementing administrative reform and improving business and investment environment in line with the Government’s Resolution 19.
The reports unveiled at the conference pointed out that in 2016, total State budget revenues hit 1,094 trillion VND (47.56 billion USD), up 7.8 percent from the estimate.
Up to 58 out of 63 localities met budget collection targets despite difficulties caused by natural disasters across the country and fluctuations in the regional and world financial market.
The outstanding public debts were equivalent to 64.73 percent of the gross domestic product (GDP) and the government debts - 53.62 percent of the GDP, which were within the permissible levels.
However, the Government leader expressed his concern over the high level of public debts and increasing regular expenditures which have put a strain on the State budget.
Legal regulations on taxation, finance and customs remain overlapping and asynchronous, causing difficulties to manufacturing and trade as well as financial and budget management, the PM said.
He noted that it will be difficult tasks to achieve the goals of 6.7 percent economic growth, overspending below 3.5 percent of GDP and 4 percent inflation.
He instructed the Finance Ministry to closely monitor tax declarations, cases of trade fraud and transfer pricing to prevent tax evasion while continuing to exempt and cut agricultural taxes and review existing preferential taxes.
Besides, the sector must crack down on wastefulness and scale down expenditures for conferences and procurement of expensive assets, he said.
The PM highlighted that personal responsibility for causing budget losses must be clarified and violations must be strictly punished, thus boosting public trust in the Party and State.
The Cabinet leader praised the ministry’s pilot model of offering fixed expenditure for transport for government agencies, noting that the sector needs to strive to reduce the number of government-plate vehicles which should be auctioned to bring more revenues to the State budget.
At the same time, the PM pointed out that the biggest public asset is public offices and land which have not been managed well and used effectively, thus becoming a hotbed of corruption and vested interest, blocking economic growth. He urged research for appropriate methods to efficiently manage and use this extremely important resource.
He also asked the ministry to speed up equitisation and divest from non-core areas in accordance with approved plans.
Prime Minister Nguyen Xuan Phuc makes a speech at the conference.
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The reports unveiled at the conference pointed out that in 2016, total State budget revenues hit 1,094 trillion VND (47.56 billion USD), up 7.8 percent from the estimate.
Up to 58 out of 63 localities met budget collection targets despite difficulties caused by natural disasters across the country and fluctuations in the regional and world financial market.
The outstanding public debts were equivalent to 64.73 percent of the gross domestic product (GDP) and the government debts - 53.62 percent of the GDP, which were within the permissible levels.
However, the Government leader expressed his concern over the high level of public debts and increasing regular expenditures which have put a strain on the State budget.
The PM attends the meeting.
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He noted that it will be difficult tasks to achieve the goals of 6.7 percent economic growth, overspending below 3.5 percent of GDP and 4 percent inflation.
The Government leader asked the Finance Ministry to take prompt measures to collect revenues for the State budget right from the beginning of this year.
PM Phuc said that the Finance Ministry needs to well manage fiscal tools to stabilise the macro-economy while making breakthrough reforms in budget management to reduce overspending and ensure solvency.He instructed the Finance Ministry to closely monitor tax declarations, cases of trade fraud and transfer pricing to prevent tax evasion while continuing to exempt and cut agricultural taxes and review existing preferential taxes.
Besides, the sector must crack down on wastefulness and scale down expenditures for conferences and procurement of expensive assets, he said.
The PM highlighted that personal responsibility for causing budget losses must be clarified and violations must be strictly punished, thus boosting public trust in the Party and State.
The Cabinet leader praised the ministry’s pilot model of offering fixed expenditure for transport for government agencies, noting that the sector needs to strive to reduce the number of government-plate vehicles which should be auctioned to bring more revenues to the State budget.
At the same time, the PM pointed out that the biggest public asset is public offices and land which have not been managed well and used effectively, thus becoming a hotbed of corruption and vested interest, blocking economic growth. He urged research for appropriate methods to efficiently manage and use this extremely important resource.
He also asked the ministry to speed up equitisation and divest from non-core areas in accordance with approved plans.
