Accordingly, the total State budget collection will reach over VND1.411 quadrillion (USD61.34 billion), while the total spending will hit more than VND1.633 quadrillion, resulting in a deficit of VND222 trillion, or 3.6 percent of the gross domestic product. The total State loans will top VND425.2 trillion.
The legislature agreed to earmark 10.38 trillion VND to offset lower State and local budget collection and assist localities lacking funds to pay salaries – the value of which had already been stipulated in the 2017 State budget spending plans.
The Government was asked to review the funding of over VND12.254 trillion for use during 2018.
At the meeting (Source: VNA)
As much as VND138.5 trillion funded by the World Bank will be used for banking management and the modernisation project during the 2016-2020 period, while more than VND79.8 billion in non-refundable official development assistance sourced from the Republic of Ireland’s Government will be allocated to a project on supporting especially disadvantaged communes.
Upwards of VND8.2 billion will be provided for the northern province of Cao Bang and over VND14.8 billion for Bac Kan province to support farming households.
Up to VND70 billion in non-refundable aid from the Belgian Government will be used for a project on water resource management and urban development amidst climate change impact in the central province of Binh Thuan.
The legislature urged the Government to closely direct fiscal policy and combine it with monetary policies to develop production, stabilise the macro-economy, curb inflation, and promote economic growth.
The Cabinet was also required to step up its autonomy mechanism in public administration units, as well as renew the operation mechanism of State funds and the special financial mechanisms in several agencies in line with the Law on State Budget.
The basic monthly salary will be revised up from VND1.39 million to VND1.49 million, while pensions, social insurance entitlements, and subsidies to veteran revolutionaries will increase from July 1st, 2019.
The Government will direct ministries, agencies, and localities to streamline personnel, restructure each sector’s budget, reduce overspending, and closely control the use of foreign and government-guaranteed loans to ensure they are within the limits of the legislature’s Resolution No.25/2016/QH14./.