The Government has proposed a package of fiscal solutions worth 291 trillion VND (nearly 12.8 billion USD) in total to support socio-economic recovery and development.
Nhat Tan Bridge spanning the Red River in Hanoi (Photo: VNA)
– The Government
has proposed a package of fiscal solutions worth 291 trillion VND (nearly 12.8
billion USD) in total to support socio-economic recovery and development.
The proposal was submitted to
the 15th National Assembly (NA) at the first extraordinary session
opened on January 4.
In this package, the
Government plans to increase overspending by 240 trillion VND in 2022 and 2023 to
provide direct aid from the State budget, including 64 trillion VND in tax,
fee, and charge reduction; and spending directly from the budget by 176 trillion VND.
It will allocate about 6.6
trillion VND from the central budget as house rent assistance for workers, cut 6
trillion VND in expenses for businesses, and raise the limit of Government-guaranteed
bond issuance by a maximum of 38.4 trillion VND for the Vietnam Bank for Social
Policies to offer concessional loans helping with job provision.
In the package of monetary
solutions, the Government suggested lending interest rates be cut by at least
0.5 - 1 percent in two years, aside from other policies supporting enterprises.
A plenum of the 15th NA's extraordinary session (Photo: VNA)
Talking at group discussions,
most of legislators noted these are
supplementary policies which have not been included in the fiscal and monetary
measures approved in the socio-economic development, financial, public
borrowing and debt repayment, and public investment plans for 2021 - 2025,
and that they met demand in reality amid severe impacts of the COVID-19
the fiscal and monetary packages will act as a stimulus helping the economy
surmount difficulties soon, avoid the undermining of growth drivers in the long
term, and catch up with the world’s economic recovery process.
Xuan Phuc, who is an NA deputy of Ho Chi Minh City, said the fiscal package of
Vietnam is small compared to those of other countries, but it is at the minimum
that resources should be prioritised for health care since the grassroots
health care system is still weak. Besides, it is necessary to enhance enterprises' and investors’ trust through frequent dialogue and settlement of obstacles
Vuong Dinh Hue, a deputy of Hai Phong city, said the proposed fiscal and
monetary policies were designed to stimulate both supply and demand, with a
large enough scale and a long enough duration, which can be effective for the
as they are supplementary policies, the parliament needs to discuss thoroughly
and the Government should seriously consider the issues pointed out by the
verification agencies and NA deputies so as to ensure maximum effectiveness. In
addition, swift and efficient implementation is needed as there are only two
years for the urgent aid packages to be carried out, according to him./.