State budgetary overspending estimated at 6.2pct of 2010 GDP

12-Nov-2009 Intellasia | Thoi Bao Kinh Te Vietnam | 4:50 PM

Although most National Assembly delegates approved the 2010 state budgetary overspending at 6 percent of GDP, NA Standing Committee proposed the overspending ratio of no more than 6.2 percent.

NA passed the total state budgetary collection of 461.5 trillion dong equalling to 23.9 percent of GDP along with the remaining one trillion dong of 2009. Meanwhile, total spending of state budget is estimated at 582.2 trillion dong in 2010, leading to the budgetary overspending of 119.700 trillion dong accounting for 6.2 percent of GDP.

The adjustment in 2010 budgetary overspending, according to NA Standing Committee, bases on the increased collection of 6.1 trillion dong, including 2.6 trillion dong from crude oil (meaning $65-68 a barrel), 2.5 trillion dong from import export activities, and one trillion dong of 2009 spending estimation.
Also, the state plans to spend more on East Ocean Programme (38 billion dong) and the poverty reduction programme (300 billion dong), and cut down the spending of Vietnam Coal and Mineral Group (Vinacomin) 28 billion dong, 10 billion dong of Vinatex.

NA proposed the government to stop the tax reduction and exemption according to Resolution NNo 32/2009/QH12, extend the tax payment of one quarter as for CIT of small to medium sized enterprises (SMEs), leather shoemakers.

In addition, the government was proposed to reform the minimum salary from 650,000 dong to 730,000 dong per person a month starting from May 1, 2010.

NA agreed the plan of issuing 56 trillion dong of G-bonds to invest in projects and works next year.