Accordingly, the total State budget collection will reach over VND 1.411 quadrillion (USD 61.34 billion), while the total spending will hit more than VND 1.633 quadrillion, resulting in a deficit of VND 222 trillion, or 3.6 percent of the gross domestic product. The total State loans will top VND 425.2 trillion.

The legislature agreed to earmark VND 10.38 trillion 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 VND 12.254 trillion for use during 2018.

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At the meeting

As much as VND 138.5 trillion funded by the World Bank will be used for banking management and the modernization project during the 2016-2020 period, while more than VND 79.8 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 VND 8.2 billion will be provided for the northern province of Cao Bang and over VND 14.8 billion for Bac Kan province to support farming households.

Up to VND 70 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, stabilize 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 VND 1.39 million to VND 1.49 million, while pensions, social insurance entitlements, and subsidies to veteran revolutionaries will increase from July 1, 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.

Source: VNA