The Government’s proposal to lift the budget overspending cap to 5.3percent of GDP from the previously set 4.8 percent is aimed atensuring sufficient investment in the context of sharp reduction inbudget revenues.
Minister and Chairman of the GovernmentOffice Vu Duc Dam explained the government’s intention to the mediafollowing the October Cabinet’s meeting in Hanoi on October 26.
The minister said this year’s State budget collection is lower thanexpected, 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 translateinto 18.5 trillion VND (880 million USD), partly easing the capitalshortage.
He added that the Government will requireState-owned enterprises to focus on their core activities and divestfrom unnecessary fields. However, the divestment must be done inaccordance with market economy regulations so as to avoid causingdisorder in the market and losses to State assets.
Turning tothe Government’s guideline on thrift practice and anti-wastefulness, Damsaid the Government has demanded that each ministry and departmentsubmit their 2014 plans of cutting expenses to the Finance Ministry.
As regards to public response to the massive hike in 3G service feesby three telecom providers, Dam said the Government has ordered theMinistry of Industry and Trade to conduct an inspection. If they arefound to violate the Competition Law, they will face serious penalties,he said.-VNA
Minister and Chairman of the GovernmentOffice Vu Duc Dam explained the government’s intention to the mediafollowing the October Cabinet’s meeting in Hanoi on October 26.
The minister said this year’s State budget collection is lower thanexpected, 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 translateinto 18.5 trillion VND (880 million USD), partly easing the capitalshortage.
He added that the Government will requireState-owned enterprises to focus on their core activities and divestfrom unnecessary fields. However, the divestment must be done inaccordance with market economy regulations so as to avoid causingdisorder in the market and losses to State assets.
Turning tothe Government’s guideline on thrift practice and anti-wastefulness, Damsaid the Government has demanded that each ministry and departmentsubmit their 2014 plans of cutting expenses to the Finance Ministry.
As regards to public response to the massive hike in 3G service feesby three telecom providers, Dam said the Government has ordered theMinistry of Industry and Trade to conduct an inspection. If they arefound to violate the Competition Law, they will face serious penalties,he said.-VNA
