The Government’s proposal to lift the budget overspending cap to 5.3 percent of GDP from the previously set 4.8 percent is aimed at ensuring sufficient investment in the context of sharp reduction in budget revenues.
Minister and Chairman of the Government Office Vu Duc Dam explained the government’s intention to the media following the October Cabinet’s meeting in Hanoi on October 26.
The minister said this year’s State budget collection is lower than expected, hitting an estimated 63 trillion VND (3 billion USD). Meanwhile, the total State investment was estimated at 185 trillion VND (8.8 billion USD). The raising of budget overspending cap will translate into 18.5 trillion VND (880 million USD), partly easing the capital shortage.
He added that the Government will require State-owned enterprises to focus on their core activities and divest from unnecessary fields. However, the divestment must be done in accordance with market economy regulations so as to avoid causing disorder in the market and losses to State assets.
Turning to the Government’s guideline on thrift practice and anti-wastefulness, Dam said the Government has demanded that each ministry and department submit their 2014 plans of cutting expenses to the Finance Ministry.
As regards to public response to the massive hike in 3G service fees by three telecom providers, Dam said the Government has ordered the Ministry of Industry and Trade to conduct an inspection. If they are found to violate the Competition Law, they will face serious penalties, he said.-VNA
Minister and Chairman of the Government Office Vu Duc Dam explained the government’s intention to the media following the October Cabinet’s meeting in Hanoi on October 26.
The minister said this year’s State budget collection is lower than expected, hitting an estimated 63 trillion VND (3 billion USD). Meanwhile, the total State investment was estimated at 185 trillion VND (8.8 billion USD). The raising of budget overspending cap will translate into 18.5 trillion VND (880 million USD), partly easing the capital shortage.
He added that the Government will require State-owned enterprises to focus on their core activities and divest from unnecessary fields. However, the divestment must be done in accordance with market economy regulations so as to avoid causing disorder in the market and losses to State assets.
Turning to the Government’s guideline on thrift practice and anti-wastefulness, Dam said the Government has demanded that each ministry and department submit their 2014 plans of cutting expenses to the Finance Ministry.
As regards to public response to the massive hike in 3G service fees by three telecom providers, Dam said the Government has ordered the Ministry of Industry and Trade to conduct an inspection. If they are found to violate the Competition Law, they will face serious penalties, he said.-VNA
