Deputy Prime Minister Vuong Dinh Hue: Expenditures will be cut based on insufficient revenues

	Discover over 4,000 amounts of expenses done incorrect procedures
	Five-year financial plan made and examined
	Amend Law on Public Debt: Tie responsibility of borrowing and repaying to budget expenditures.

Deputy Prime Minister speaking at the conference.

Many bright points

In the first half of 2017, Despite the great pressures, the macroeconomic situation was basically stable, and growth in the second quarter was better than the first quarter, which was a big jump. State budget revenues were quite good, although it has not reached 50% of the estimates, it increased by nearly 14% year-on-year, so the prospect of ensuring the balance of revenue and expenditure in 2017 can be realized.

Looking at socio-economic situation in the last 6 months, one gloomy point to mention is that growth was at the expected rate and public investment disbursement was too slow, only about 25% of estimated budget, negatively affecting production, employment, and income of employees as well as efficiency in using capital, state budget revenues and economic growth.

Another gloomy point is that the production and business of enterprises were very difficult. In the 6 months, the number of newly established enterprises was over 60,000 units. If adding number of re-operated enterprises, the total enterprises were 76,000 units. However, the number of enterprises dissolved and prepared to dissolve was 38,000 units. Thus, two enterprises were newly established, a enterprise dissolved at the same time. This rate increased abnormally in the first half of the year. Solutions to primary problems of the economy have been oriented positively but not effective much especially economic restructuring, dealing with bad debts, public debts, failing projects and weak credit organizations.

The financial sector has made great efforts and achieved many important and positive results, basically fulfilled assigned tasks, significantly contributed to the implementation of general socio-economic objectives. Of the country in the first 6 months of the year.

Some bright points are mentioned as below: actively conducting the fiscal policies, closely and well cooperating with monetary policy and other macro policies. Enhancing financial rules and disciplines, especially in the workplace, ensuring the progress of the State budget collection and payment.

The development of institutions has made important progress by submitting the Law on use and management of state assets to the Government to be submitted to the National Assembly for approval and submitting to the National Assembly for comments on the Law on Public Debt Management (revised). The guiding documents of the State Budget Law have been issued together with the promulgation of many specialized financial policies and institutions for the dynamic cities including Hanoi, Ho Chi Minh City, Da Nang and Haiphong, Can Tho in the coming time.

In particular, in early 2017, the Ministry of Finance advised the Prime Minister to promulgate the action plan to implement Resolution No. 07-NQ / TW of the Politburo on policies and measures to restructure the State budget, public debt management to ensure the national finance sustainable with meticulous and specific contents. The Steering committees with active participation of the Ministry of Finance have well performed their responsibilities and basically met the progress. The price management and control were closely and harmoniously followed and the inflation was well controlled. The administrative reform continued to be accelerated, contributing to improving the investment business environment.

Tightening public expenditures

In the coming time, the Finance sector will continue to pay their high attention and direct to reach and exceed the target of state budget revenues and expenditures in 2017. In terms of revenues, trying to exceed 5-8% of the estimates. Preventing losses of revenues but not abusing collection, collecting proper and full charges for business units; Striving to reduce the tax rate but expand the tax establishments, transferring business households into businesses and enhancing invoice and voucher management.

In term of expenditures, the Finance sector must ensure that expenditures are in line with the estimates. If units or localities fail to meet the estimated revenues, they must have compensatory reserve solutions, if they don’t have compensatory amount, they must cut their equivalent expenditures. With the spirit of "saving state budget expenditures is national policy", the systems must tighten rules and disciplines in spending; Tighten public expenditure management and public investment; and strictly manage public debts and public assets in parallel with encouraging the development of the private economic sector.

In addition, other tasks such as SOE restructuring, capital and stock market development; development of institutions to promote the exploitation of sources used for growth; good control of inflation; administrative reform and coordination with internal units must still be accelerated.

Expenditures can not reduced without cutting career employees VCN- Restructuring the State budget, reducing expenditures and saving budget are very important policies, but it will ...

The Government and the Prime Minister always expect the Finance sector to further modernize and professionalize; strengthen to organize and restructure; promote IT application in the sector; build honest and experienced civil servants; promoting solidarity tradition and advise and propose to the Party, the State and the Government the most fundamental solutions for socio-economic development of the country.