State budgetary deficit targeted to decrease to 4.8% of GDP: Vuong Dinh Hue

Minister of Finance Vuong Dinh Hue said that the finance sector continued targeting to increase revenues and save the spending in 2012 in order to bring down the budgetary deficit to below 4.8% of GDP.
Accordingly, the finance ministry was determined to halt price fevers, erase subsidization, unreasonable cross-subsidization, and prevent monopoly in price.

Petroleum prices will be monitored so as to be closer to the world level based on the price self-determination of enterprises while electricity prices will be adjusted suitably along with policies to support the poor.

The Minister confirmed that the above solutions should be transparent and clear to get people’s agreement and cooperation.

This year the ministry will continue implementing the financial policies to help enterprises (especially SMEs and labour-intensive companies), cut 50% of land tax (excluding the sectors of commerce and services) and a lot of measures to support exports.

Restructuring the banking market, stock market, and financial institutions, public investment require proper steps to reach targets from now to 2015, Mr Vuong Dinh Hue noted.

In 2011, the state budgetary revenue surpassed 13.4% compared with the National Assembly’s estimate, increasing 20.6% year on year. Vietnam’s budget deficit kept decreasing against the year earlier. Budget spending for debt repayment was up 15 trillion dong compared with the estimate whereby the public debt ratio declined by 1% of GDP to 54.6% of GDP by December 31, 2011.

Meanwhile the government debt was equal o 43.6% of GDP and the national debt was 41.5% of GDP, which remained in the safe limit of national finance security. – Vietbiz24

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial

Posted by VBN on Jan 16 2012. Filed under Banking-Finance, Economy News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry