The National Assembly (NA) at a meeting on Monday morning passed a resolution on 2018 budget estimates with 86.56 per cent of approval votes.

Accordingly, the NA agreed to set budget deficit at 3.7 per cent of the gross domestic production, of which 3.54 per cent would be for the central budget’s deficit and the balance would be for local budgets.

The Government said the deficit of 3.7 per cent was to ensure enough resources for spending on development investment.

Budget collection was estimated at more than VND1.3 quadrillion (US$57.86 billion) and spending at VND1.52 quadrillion in 2018.

The State budget would borrow a total estimated loan worth VND363.28 trillion to make up for the deficit and pay debts, according to the resolution.

Of note, the resolution passed the increase of basic wage of State employees from VD1.3 million to VND1.39 million from July 1, 2018 . In addition, the National Assembly asked the Government to continue streamlining administrative organisations and improving their operational efficiency.

Budget deficit in 2017 was projected at 3.5 per cent.

Tighten fiscal discipline

The NA asked the Government to be cautious in terms of its fiscal policies, which must be closely coordinated with monetary policies to support production and business, and continue to stabilise the macro-economy, control inflation and accelerate growth.

Fiscal discipline must be enhanced together with hastened inspection to ensure transparency in using the State budget.

The Government must study amendments to several tax regulations to ensure collection while contributing to tax reform, creating favourable conditions for businesses and preventing tax frauds.

During the 2018-20 period, all collection of value added taxes and special consumption taxes on petrol and oil products of Nghi Son Refinery would be paid to the central budget.

The Government’s bond issuance in 2018 would not exceed VND50 trillion. The NA asked the Government to strictly follow the 2016-20 public investment plan under NA’s Resolution No 26/2016/QH14.

In addition, the Government must promote the raising of capital from private and foreign sectors for development investment, complete legal framework for public-private partnership and create conditions for them to participate in developing infrastructure, especially in the agriculture and tourism sectors.

During the meeting, the NA also discussed the report on feasibility of land clearance, compensation and resettlement for the Long Thanh International Airport project. — VNS