Deputies endorse budget spending
More than 80 percent
of National Assembly deputies accepted forecast Government overspending equal
to 5.3 percent of Gross Domestic Product when they endorsed next year's budget
estimates on Nov. 10.
Their resolution
accepts total State budget revenue at 595 trillion VND (29.8 billion USD), or
26.2 percent of GDP.
But it would total
605 trillion VND (30.3 billion USD) if 10 trillion VND (500 million USD) from
late 2010 revenue is included.
State expenditure is
forecast to total 725 trillion VND (36.3 billion USD).
National Assembly
Finance and Budget Committee chairman Phung Quoc Hien said the deputies had
also accepted the Govern-ment's assurance that fiscal policy would be
cautiously implemented with budget revenue and expenditures strictly
controlled.
But the deputies had
called for the Government to first lessen next year's forecast overspending and
then continue to reduce it, he said.
The deputies
suggested that anticipated increased budget revenue of at least 30 percent
should be used to reduce the overspending.
"The deputies
asked the Government to build a public debt management strategy to 2020 and
2030 to secure the nation's finances," the chairman said.
They also strongly
recommended that the Government reinforce its management of revenue collection
to reduce overdue tax payments and fraud.
An estimated 143
trillion VND (7.2 billion USD) of next year's State budget would be used to
fund social welfare projects, the Finance and Budget Committee chairman
reported.
This would include
adjustment of the poverty standard and health insurance for the
underprivileged, the almost-poor and children under six; increased agricultural
and rural investment and wage reform.
In addition, the
minimum wage would increase from 730,000 VND to 830,000 VND together with rises
in retirement pensions and preferential subsidies as of May 1.
The majority of
deputies had also agreed with the issuance of Government bonds worth 45
trillion VND (2.3 billion USD) for public works to be approved by the National
Assembly Standing Committee.
The sale of the
bonds were believed essential for socio-economic investment and irrigation
infrastructure.
The budget resolution also endorsed 15 Government-recommended national target programmes of political and social significance.
But the deputies had
required the Government to establish criteria, amounts and methods of capital
allocation for these programmes and to report to the Standing Committee for
assessment before January 31, 2011.
Most of the deputies
also agreed with the necessity and scope of the proposed changes to the
Securities Law which took effect in 2007 at the day's session.
Deputies Cao Sy
Kiem, northern Thai
Binh Province;
Nguyen Van Thoi, northern Thai Nguyen province; Nguyen Minh Thuyet, northern
Lang Son province; and Vu Viet Ngoan, central Khanh Hoa province, argued for
stricter management of the stock market because of its importance to the
economy.
They complained that lax regulations governing licences had enabled the mass establishment of securities and fund management companies so small and inefficient they had adversely impacted on the capital market.
The revised
Securities Law should strengthen the State's ability to limit monopolies and
make securities investment and trade more transparent, the deputies said.
"The Securities
Law is highly specialised and the issuance of directions must be timely and
comprehensive, said deputy Kiem.
"Otherwise, the
market will be in disorder and the impact will be great because securities
market is a market of faith," the deputy said.
Deputy Tran Du Lich,
HCM City, said the securities market was one
of the three components of the financial market.
"The impact of
the securities fever in mid-2006 and early 2007 which took the VN Index to
above 1,000 points remains," he warned.
"If it happens
again, we will lose investor belief."
Finance Minister Vu
Van Ninh said the existing law gave the Securities Committee the power to
exercise great independence in managing share market.
However, it should
also give the committee power to examine activities which might concern the
market and fraud.
"The Finance
Ministry recommended inclusion of this power in the new law but we have
received different opinions about it," he said.
"It will be
really good if our recommendation is included in the legislation."
Assembly deputy
chairman Nguyen Duc Kien warned that such empowerment of the Securities
Committee to quote evidence of fraud and market manipulation should be
carefully considered.
They could relate to
the public's right to private mail and bank-deposit security.
Lawmakers on Nov.10
discussed the bill on complaints and denunciations and are working to make sure
the law is enforcebale by the time it's implemented next year.
The draft
specifically deals with pressing issues such as legitimate procedures that must
be taken to denounce someone, how competent authorities should handle such
cases, different forms of denouncement and effective ways to protect
whistle-blowers.
The draft law on
complaints and denunciations was submitted to the National Assembly, along with
the bills concerning independent auditing and archives.
The Law on Complaints and Denunciations aimed to institutionalise Party and Government's policies that concern denouncement, said Government's General Inspector Tran Van Truyen at the eighth plenary session on Nov. 10 in Hanoi. The legislation would help boost the effectiveness of the Government's management as the country continued to industrialise and integrate into the international community, said Truyen.
Effective management
plays an important role in social development, said Truyen. The General
Inspector said effective management would be able to cope with accusations,
which would enhance social development.
"The law,
hence, would help effectively deal with the abuse of power and corruption,"
said Truyen.
The other draft law
submitted on the day concerned
independent auditing. The legislation hoped to improve the State's management
and independent auditing activities.
"The law seeks
to promote auditing, which would improve financal and economic
transparency," said Minister of Finance Vu Van Ninh.
The law was
congruent with the country's market-oriented economy and international
integration roadmap, said Ninh.
The draft law would
allow people with foreign professional certificates to work as auditors in Vietnam.
The Law on Archives,
which was also submitted to the NA on Nov. 10, aims to build on the Ordinance
on National Archives that was previously passed.
The Ordinance, which
was passed eight years ago, had shortcomings, said Minister of Home Affairs
Tran Van Tuan.
"A number of
regulations in the Ordinance are not feasible and unclear," said Tuan.
"Many new circumstances have arisen and they cannot be practically
addressed by the law."
According to the
draft, classified State documents will be open to public in 40-60 years.
"This is a step
forward to reforming procedures and opening up the archives to the
public," said Tuan.
The three draft laws
will be further discussed at the on-going plenary session and are expected to
be approved at a session next year./.