Prime Minister: The finance sector needs to ensure budget estimate as proposed

The Prime Minister Nguyen Xuan Phuc

Having timely policies to fulfill dual goals

The Prime Minister affirmed that the finance sector is still the lifeblood of the economy, without financial resources, it is difficult to operate. When the economy is in difficulty, the important role of the finance sector is even more evident.

The Prime Minister also compared investment, export and consumption as the "three-horse carriage" and expressed that the Government, all levels, sectors and the whole country all expected and wanted the finance sector to renovate strongly and breakthrough in development thinking so fiscal policy in particular and financial policies in general could create great incentives for the economy to recover, develop and make good use of the opportunity from successfully controlling the pandemic.

Happy to hear many comments expressing high determination from local leaders, Prime Minister Nguyen Xuan Phuc said this determination was respectable in the context of the global and domestic situation facing many difficulties, especially all major trade partners of Vietnam being seriously affected and have not defeated the disease yet; most countries in the world have implemented unprecedented measures to ease fiscal and monetary policies to stimulate demand, create jobs and support people.

On behalf of the Government, the Prime Minister acknowledged, praised and said he highly appreciated the responsibility as well as efforts of the finance sector in the first half of a difficult year.

The Prime Minister said that the finance sector had promptly handled all expenditures, ensuring the task of preventing and fighting the pandemic, social distancing, supporting people and humanitarian aid, especially "right in the time the pandemic is not over, the comrades introduced policies to support fees and taxes, create favourable conditions for enterprises, proposed policies not to raise salaries for officials and employees.”

Facing great difficulties and challenges, the Prime Minister said that the finance sector should continue to remove obstacles for production and business, promote growth and support people and businesses. It is necessary to continue to closely monitor the international and domestic situation to take appropriate and timely measures, continue to fulfill the dual goals of drastically preventing, controlling the pandemic and recovering socio-economic development.

The Prime Minister requested the Ministry of Finance, all levels and sectors to strive to perform three key tasks: Ensuring the proposed estimate budget; ensuring essential financial resources to support the recovery of socio-economic development; ensuring macroeconomic stability, control inflation, ensuring balance with the economy.

Supporting new business model

To really promote the lifeblood role of the finance sector, creating a driving force to promote socio-economic recovery and development in the new normal status, the Prime Minister Nguyen Xuan Phuc suggested the Ministry of Finance renovate in development thinking and policymaking and have proactive and positive views about the role of fiscal policy in solving difficulties for production and business, stimulating aggregate demand and promoting growth.

“Finance is not only about guaranteeing revenue and expenditure of the State budget, finance needs to be understood in the broad definition as nourishing revenues, creating a driving force for recovering socio-economic development, especially in current difficult circumstances. I propose that comrades need to support the new business models, new materials, new energy and new growth dynamics of our country,” the Prime Minister said.

The motto of the head of Government was that finance should not be passive to avoid narrowing down the economy, it must actively contribute to creating a "bigger cake" to have more resources for socio-economic development, ensuring social security and defence-security. This was also the best way to contribute to ensure the safety for building a strong national finance sector in the medium and long term.

Regarding fiscal policy, the Ministry of Finance should actively study and formulate and report to competent authorities about mechanisms, policies and flexible and effective fiscal solutions to support economic recovery and development.

The Prime Minister asked the Ministry of Finance to continue making proposals on fiscal stimulus packages, solutions to continue performing tax exemption and reduction, mobilise more resources for development investment to stimulate aggregate demand, promoting growth and reporting to authorities in accordance with regulations.

In terms of revenue collection, avoiding big imbalances and ineffective use of the current appropriation. Regarding budget expenditure, effectively implement the policy of saving normal expenditures, not really necessary and urgent in the spirit of Government directives.

Another issue emphasised by the Prime Minister was the acceleration of the disbursement of public investment, of that noting some solutions such as half-monthly briefings on disbursement, promoting review to find solutions to overcome, establishing central inspection delegations which is managed by a number of ministers, promptly propose capital transfer right in August for localities and sectors which cannot.

The Prime Minister also requested the use of KIPs of disbursement for public investment to assess whether ministries, sectors and localities have fulfilled their tasks or not. At the same time, the Ministry of Finance needs to strengthen the inspection and supervision of official performance, so as avoid harassment, negative phenomena, ensure openness, transparency and accountability, uphold the responsibility of the head.