Section II
SOCIO-ECONOMIC DEVELOPMENT TARGETS AND FISCAL PLAN FOR 2007
I. 2007 socio-economic development targets
II. Targets and missions of State budget for 2007
1. General targets of state budget in 2007
2. Main tasks of state budget in 2007
4. Major groups of solutions to implement the state budget in 2007
I. 2007 socio-economic development targets
- Economic growth rate from 8.2 -8.5%;
- Added value of agriculture, forestry and fishery sectors will increase by 3.5-3.8%; of industry and construction by 10.5-10.7% and of services by 8.0-8.5% compared to 2006.
- Aggregate export turn-over will increase by 17.4%, import turn-over will increase by 15.5% compared to 2006;
- Aggregate development investments will account for 40% of GDP;
- Consumer price inflation is to lower than economic growth rate;
- Approximately 1.6 million of new jobs;
- Reduction of poverty according to new poor standards to less than 16%.
II. Targets and missions of State budget for 2007
2007 is the second year implementing the Resolution of the 10th National Party Congress and the Socio-economic Development Plan for 2006-2010 approved by the National Assembly, and also the first year of the new budget stabilization period of local authorities.
The year 2007 is expected to have following advantages: political security is stable, world and domestic economies continue to grow at high rates; economic structure continues its positively transition process; socialist-oriented market economy continues to be renovated, improved and effectively operated; and the fact that Vietnam is a formal member of the World Trade Organization (WTO) will impulse growth and process of economic integration, creating more belief and confidence for domestic and foreign investors willing to invest in Vietnam.
However, besides the advantages, it is also expected to have many difficulties and challenges: effectiveness and competitiveness of the economy are still at low levels; socio-economic infrastructure is weak meanwhile the competitive pressure due to integration process is growing; state budget allocation is dispersing, management and use of national resources are still wasteful; the poverty-reduction though has made important progressives, but the rate of poor households and risks to re-poverty is still high…that will affect the total revenues and revenues composition of state budget in 2007.
1. General targets of state budget in 2007: to contribute in the goal of achieving the GDP growth rate by more than 8.2%; to develop the national financial resources: increasing in amount, rationalized structure and effective use; to continue to invest in socio-economic infrastructure development, to increase the investment in human development, focusing on development of training and education, culture, healthcare…; to speed up the process of salary reform; to repay all the due debts, to ensure the expenditures for national social policies, contributing in hunger elimination and poverty alleviation; to ensure the national defense and security; to improve the budget self-control together with implementing the economicality and anti-waste and anti-corruption practices.
2. Main tasks of state budget in 2007
- The important tasks of state budget revenues in 2007 are: to ensure the rational contributions to state budget, to increase the percentage of domestic revenues in the total budget revenues; to implement the tax collection correctly, sufficiently and timely in order to have reasonable revenues and encourage the production and business, ensure the capital resources for socio-economic development in the international integration context, actively cope with impact of domestic and foreign price market; to step up the reform of administrative procedure and customs procedure, to expand the self declaring and self paying mechanism, increase the responsibility of taxpayers and tax collectors; to strengthen the supervision in order to prevent loss of revenues and create favorable, equal environment for enterprises of all economic sectors.
- Fiscal planning for state budget expenditures in 2007 is established based on criteria and state budget allocation norms approved by the Prime Minister.
+ Expenditures are focused on Socio – Economic Development and poverty reduction plans of the 2006-2010 period, of which the priorities are given to mountainous and Central highlands provinces, western provinces of the South, the difficult areas of ethnic minorities; national main projects, irrigational works, rural traffic development, infrastructure of flood divergence, tourism, trade village, commerce, aquaculture areas; one top priority is continued to be given to training and education, science and technology, healthcare; to ensure the government contribution for ODA projects, capital for planning and investment preparation activities, for payment for completed works …
+ Making fiscal plan for expenditures on training and education, culture, health care, environment, science-technology, society, national defense, state administrative management, operations of Party and social organizations according to the state budget spending norms; insuring the expenditures on training and education in 2007 (including expenditures on investment development, current expenditures and salary reform) accounting for 20% of total state budget expenditures, of which the expenditures on culture and information making up more than 1.5%; science and technology: 2%; environment protection more than 1%.
+ Continue to have budget and to mobilize other financial resources in compliance with the law to speed up the process of salary reform.
+ Ensure the expenditures for implementation of national target programs, Program 135 (2nd phase), Five million hectare reforestation project as approved by the Prime Minister for the period of 2006-2010.
+ Ensure the payment for due domestic and foreign debts; ensure the balance of government debts and national debts at secure levels.
+ Ensure the expenditures on financial reserved fund, budget contingency pursuant to the Law on State Budget.
3. Fiscal planning for state budget in 2007
3.1 Budgeted balance revenues
3.1.1 Domestic revenues (excluding crude oil) are budgeted at VND 151,800 billion, increasing by 15.5% compared to the implemented revenues estimatedly reached in 2006[1], of which the revenues from tax and fees (excluding land user fees) will increase by 20.1%.
Revenues from public sector are planned to be at VND 53,954 billion, increasing by 17% compared to the implemented revenues estimatedly reached in 2006; revenues from foreign-invested sector of VND 31,041 billion, increasing by 28.2%; revenues from private sector of VND 27,667 billion, increasing by 26.4%; revenues from land using and housing of VND 18,143 billion, making up 92.1% compared to implemented revenues estimatedly reached in 2006;...
3.1.2 Revenue from crude oil is budgeted at VND 71,700 billion, equivalent to 89.5% of implemented revenues in 2006. The calculation was based on the estimated exploitation output and payment for 17.5 million tons at an average price of 475.7 USD/ton – equivalent to 62 USD/barrel.
3.1.3 Net revenue from export-import activities is budgeted at VND 55,400 billion, increasing by 14.9% compared to implemented revenues estimatedly reached in 2006[2]. The revenue calculation was based on the tax rate cut-down to implement the AFTA commitments and other bilateral and multilateral commitments, especially commitments with WTO members …; together with the strengthening of reforms on administrative procedure, custom procedures and post –clearance customs examination, enhancing the examination to trafficking, trade frauds and tax evasion.
3.1.4 Revenue from grants is budgeted at VND 3,000 billion, equivalent to 82.9% of implemented revenues estimatedly reached in 2006.
Totally, budgeted revenues in the year 2007 is at VND 281,900 billion, increasing by 7% compared to implemented revenues estimatedly reached in 2006. If the increase of crude oil revenues resulted from price increase is excluded, budget revenues of 2007 shall account for 22.3% of GDP.
As for revenues composition, domestic revenues, balance revenues from exports and imports, revenues from crude oil are budgeted to make up 53.8%, 19.7% and 25.4% of total state budget revenues respectively. The revenues structure is transiting towards a positive status of increasing the proportion of domestic revenues and increasing the stability of state budget.
As for the amount of revenues, there are 7 of 64 provinces and cities that have budgeted revenues reaching more than VND 5,000 billion (adding Quang Ninh province compared to the year 2006); 4 provinces and cities having budgeted revenues from VND 3,000 to 5,000 billion; 22 provinces and cities having budgeted revenues from VND 1,000 to 3,000 billion (increasing by 10 provinces and cities compared to the year 2006, including: Lang Son, Bac Ninh, Quang Ngai, Dac Lac, Binh Phuoc, Tay Ninh, Long An, Tien Giang, Dong Thap, Kien Giang); 15 provinces and cities having budgeted revenues from VND 500 to 1,000 billion (decreasing by 4 provinces compared to 2006); there are only 16 provinces having budgeted revenues lower than VND 500 billion (decreasing by 6 provinces compared to 2006), of which 2 provinces lower than VND 100 billion (Bac Kan and Lai Chau). The amount of revenues shows the efforts and determination of executive committees and local authorities in improving investment environment, attracting investment capital for production and business development, increasing the state budget revenues.
3.2 Budgeted Balance Expenditure
Budgeted balance expenditure for the year 2007 is VND 357,400 billion, increasing by 21.7% compared to the budgeted number of 2006, details are as follows:
3.2.1 Expenditures on investment development: in 2007, these expenditures are budgeted at VND 99,450 billion, increasing by 27.5% compared to budgeted number of 2006[3], making up 27.8% of total state budget expenditures. In order to increase resources for investment development, in 2007 about VND 22,000 billion of government bonds is intended to be issued to invest in important irrigation and traffic projects, resettlement for irrigation projects, patrolling boundaries, mountainous irrigation and communication routes to centers of communes, aiming at improving the socio – economic development and poverty reduction in mountainous and ethnic minorities areas. With the above arrangements, the total investment development expenditure will be at VND 121,450 billion, making up 32% of the total state budget expenditures and accounting for 10.7% of GDP, making up 26.8% of the total expenditures of the entire nation.
The calculation of budgeted expenditures on investment development was based on the principles, criteria and development investment spending norms stipulated in the Decision No.210/2006/QĐ-TTg dated 12th September 2006 of the Prime Minister.
3.2.2 Repayment for debts and provision of aids: these expenditures are budgeted at VND 49,160 billion, increasing by 20.5% compared to budgeted number of 2006, making up 13.8% of the total state budget expenditures in order to ensure the timely payment of all domestic and foreign debts.
3.2.3 Expenditures on development of education, healthcare, culture, social subsidies, defense, security, public administration, public organizations: these expenditures in 2007 are budgeted at VND 174,550 billion, increasing by 9.5% compared to budgeted number of 2006[4], making up 48.8% of the total state budget expenditures; if the expenditures for salary reform (VND 24,600 billion) are included, total these expenditures shall be VND 199,150 billion, making up 55.7% of the total expenditures (while the budgeted number in 2006 was 54.6%).
The calculation of budgeted expenditures was based on spending norms for state budget current expenditures stipulated in the Decision No.151/2006/QĐ-TTg dated 29th June 2006 of the Prime Minister, also increasing the expenditures for development of education, healthcare, culture, social subsidies, increasing the expenditures for important zones, of which the priority is given to difficult mountainous northern areas, western mountainous areas of central provinces, Central highlands and western provinces of the South; for ensuring the national defense and security as well as implementing newly promulgated social policies…Details are as follows:
- Expenditures on education-training-vocational training:these expenditures are budgeted at VND 66,770 billion, increasing by 21.8% compared to that of 2006, making up 20% of the total state budget. Of which the expenditure on investment development is budgeted at VND 11,530 billion, current expenditures on education, training and vocational training activities: VND 47,280 billion. Priorities are given to implement important tasks, such as: increasing the investment for ethnic boarding school and policies applied to pupils of ethnic minorities; strengthening the achievements of illiteracy elimination and compulsory primary education; implementing the compulsory education of secondary schools in order to have 50 provinces reaching the national standards in 2007; increasing the expenditures on vocational training; renovating the education curriculums (textbooks, materials and equipments) of 11th grade; renovating curriculums, contents and lecturing methods for education level of university, college and technical secondary school; ensuring expenditures for the abroad studies of science and technical experts; ensuring the government contributions to ODA projects; expenditures to implement policies for teachers and managerial officers in specialized schools, in extremely difficult socio-economic areas; expenditures on adjusting the number of personnel in public educational establishments; expenditures on grouping of high school subjects and “Development of nursery school education in the period of 2006-2010” Project; supporting the expenditures to establish universities of international standards; supporting the scholarships and social subsidies for pupils and students of the national education system, supporting the non-state establishments pursuant to the Law on Education.
- Expenditures on health care: these expenditures are budgeted at VND 22,210 billion, increased by 30.8% compared to budgeted number of 2006, of which the expenditures on investment development are budgeted at VND 6,050 billion, current expenditures on healthcare at VND 14,660 billion, increasing by 22.6% compared to budgeted number of 2006 in order to ensure the expenditures on disease prevention and medical treatment of medical establishments; to increase the expenditures on disease prevention and medical treatment for children under 6 years old from VND 90,000 to 108,000/child/year so that all the children under 6 can enjoy the free of charge disease prevention and medical treatment, to assist the quasi-poor people to buy medical insurance; to ensure the government contributions for ODA projects; expenditures to implement national plans for prevention of some dangerous social disease and epidemic; to continue the plan to strengthen the capacity of main hospitals in local levels to reduce the burden of hospitals in central levels; to support the expenditures on pushing up the policies of moving physicians and doctors to mountainous and difficult areas.
- Expenditures on science and technology: these expenditures are budgeted at VND 7,150 billion, increasing by 20.8% compared to budgeted number of 2006, making up 2% of the total state budget expenditures, of which the expenditures on investment development of VND 2,730 billion, current expenditures on science-technology of VND 3,580 billion. These expenditures will be invested in 5 of 6 national laboratories (up to the end of 2006, it is estimated to complete 11 of 17 laboratories), high-tech zones, soft-ware industrial zones; to implement the main national science and technology programs, plans, projects at national level; the national science and technology tasks; the major science and technology projects; fundamental researches; to increase the expenditures on research of some key sciences and main universities, to attach science with training activities; programs on establishment of application model and transfer of technology to develop socio-economic condition of rural and mountainous areas; to implement the cooperation specified in relevant Protocols; to encourage the enterprises to do research and apply scientific and technological progresses; to cooperate in science researches with foreign partners; to implement researches on new methods of technology and equipment transaction in order to develop the technological market.
- Expenditures on culture - information: these expenditures are budgeted at VND 5,436 billion, increasing by 20.9% compared to budgeted number of 2006, making up 1.5% of the total state budget expenditures, of which the expenditures on investment development of VND 2,665 billion, current expenditures on culture – information of VND 2,250 billion, in order to increase the expenditures on national culture and information target programs for repair and embellishment of vestiges, strengthen the culture and information institutions in local level, assist the modernization of film production and distribution equipments of cinema industry, expenditures on buying copyright according the Bern Convention; expenditures on development of culture and information activities; expenditures to implement some missions according the Law on Cinema.
- Expenditures on radio – television – news agencies: these expenditures are budgeted at VND 1,310 billion, increasing by 24.9% compared to budgeted number of 2006. Priorities are given to expenditures on increase of the time limit and quality of radio and television programs of central and local radios and televisions. The expenditures on program production and broadcasting in K’Tu language are ensured. Time for Program production and broadcasting to Truong Sa, Hoang Sa islands is increased; expenditures on the radio on foreign affairs and operation of overseas news agencies are both increased; information and news by Vietnam News Agency are uploaded on the Internet to serve 3 regions: western provinces of the North, Central highlands and western provinces of the South. The propaganda activities in mountainous, ethnic minority and remote areas are strengthened.
- Expenditures on sports: these expenditures are budgeted at VND 820 billion, increasing by 15.7% compared to budgeted number of 2006 in order to ensure the expenditures on sports activities, nutrition regime for athletes and trainers, development of professional sports, and non-professional sports in localities; participation of sport delegations in Seagames, Paragames in Thailand, IndoorGames in Macao, expenditures on wages, bonuses, and expert hiring; to increase the expenditures on domestic and abroad training; to assist the expenditures to implement the Program of bringing sports to localities; expenditures on maintenance of sporty works and other regular activities.
- Expenditures on pension and social subsidies: these expenditures are budgeted at VND 26,800 billion to ensure the expenditures on pension and social subsidies for persons retired before 1st January 1995; social subsidies for persons regulated in the Ordinance on preferential treatment to deserved persons; expenditures on implementation of national target programs on prevention of crime and drugs, woman and children trafficking across the border; expenditures on graves and martyrs’ cemeteries; expenditures on once subsidy for relatives of persons who had participated in the 1945 August Revolution died before 1st January 1995; expenditures on children care, regular and irregular social relief; expenditures to assist people in extremely difficult ethnic minorities.
- Expenditures on economic services: these expenditures are budgeted at VND 12,830 billion, increasing by 39.4% compared to budgeted number of 2006 in order to ensure the expenditures on important missions and implementations of projects, such as: Project on Computerization of Communist Party administration for the period of 2006-2010, Project on Stabilization of population, Project on Settlement of agriculture and living of ethnic minorities who shifting cultivation of wandering hill tribes; Project on Production assistance under Program 135; National target program on economization and effectiveness of energy using; National Program on labor safety; to ensure the expenditures on prevention of bird flu and onychoschizia of livestock; to increase the expenditures on encouragement of agriculture, forestry, fishery, industry; forest protection and management, expenditures to implement breeding program; to increase budget for trading and investment promotion, maintenance of important infrastructure works: irrigation and traffic works; to implement important projects on land management and fundamental investigation for sector planning and management, etc.
- Expenditures on environment protection: these expenditures are budgeted at VND 3,500 billion, increasing by 20.7% compared to budgeted number of 2006 and making up more than 1% of total budget expenditures, in order to ensure the expenditures to implement the main tasks as stipulated by the Law on Environment protection and the Resolution No.41/NQ-TW of Political Bureau; to implement Decision No. 34/2005/QĐ-TTg dated 22nd February 2005 on Action Plan of the Government on environment protection; the Decision No.64/2003/QĐ-TTg dated 22nd April 2003 on approval of Plan for radical treatment over establishments that making serious environmental pollution, the Decision No. 256/2003/QĐ-TTg dated 02nd December 2003 on approval of the national environment protection strategy to the year 2010 and orientation to 2020, the Decision No. 328/2005/QĐ-TTg dated 12th December 2005 on approval of the national plan to control environment protection to the year 2010 … and to support the environment protection activities.
- Expenditures on administrative management, the Party, social unions: these expenditures are budgeted at VND 24,800 billion, increasing by 14.8% compared to budgeted number of 2006 in order to ensure the regular expenditures of administrative organs according to the state budget distribution norms stipulated in the Decision No. 151/2006/QĐ-TTg of the Prime Minister.
3.2.4 Expenditures on realizing policies for the redundant: VND 500 billion.
3.2.5 Expenditures on salary reform: total demand for expenditures on new salary in 2007 is VND 27,784 billion to increase the minimum salary to VND 450,000/person/month, to adjust the subsidiaries levels and allowance for the merits in the Revolutions pursuant to average living standard from VND 355,000 to 460,000 from the 1st January 2007, of which:
- From the state budget: VND 24,600 billion
- VND 3,184 billion from the economization resource of 10% of current expenditures (excluding salary and salary-liked expenditures), the retained amount of 40% of administrative agencies and non-businesses revenues (as for the rate of health sector is 35%).
3.2.6 Transfers to financial reserve fund: VND 100 billion.
3.2.7 Contingencies: VND 9,040 billion, equivalent to 2.5% total budget expenditures (of which the contingencies for local budget are VND 4,050 billion, accounting for 3.2% total expenditures of local budget; contingencies for central budget is VND 4,990 billion, accounting for 2.2% total expenditures of central budget), in order to repair the consequences of natural calamity and epidemic diseases, implement the important and urgent tasks of the year, and also to make up the losses from imported oil for major importing enterprises.
3.2.8 Local budget balance in 2007 (the first year of local budget stabilization period)
Total local expenditures increases by 18.4% compared to budgeted number in 2006, of which the priorities are reasonably given to mountainous provinces of the North, Central highlands, Mekong river delta provinces and northern provinces of central part, central coastal provinces: expenditures for mountainous provinces of the North increase by 24.1%; Central highlands 19.9%; Mekong river delta provinces 20.2%; northern provinces of central part and central coastal provinces 19.5%;... If the expenditures on investment in educational and healthcare infrastructures from lottery revenues are included, the expenditures for mountainous provinces of the North increases by 24.1%; Central highlands 20.6%; Mekong river delta provinces 26.8%; northern provinces of central part and central coastal provinces 19.8%;...
There are 11 provinces, cities having the shared revenues distribution (%) between central budget and local budget revenues, Ha Noi 31%; Hai Phong 90%; Quang Ninh 76%; Vinh Phuc 67%; Da Nang 90%; Khanh Hoa 53%; Hochiminh City 26%; Dong Nai 45%; Binh Duong 40%; Ba Ria – Vung Tau 46%; Can Tho 96%; reducing 4 provinces compared to the period of 2004-2006 (Tay Ninh, Long An, Tien Giang, Vinh Long due to the imbalance between revenues from lottery and additional policies). 53 of 64 provinces and cities receive balance transfers of VND 39,849 billion from the central budget, increasing an amount of VND 17,486 billion compared to that of the period of 2004-2006.
Plans for investment development expenditures and current expenditures in 2007 of localities, which have the shared revenues transferred to the central budget, are higher than budgeted numbers of 2006 and in general meet the demand for socio-economic development in their areas. For theses provinces, of which revenues can be collected in big amount and in short run, therefore they can have more resources to meet the expenditures for development demand of the province.
Most the localities receiving balance transfer from the central budget are the provinces having the growth rate of revenues lower than that of expenditures, therefore in the new budget stabilization period, the central budget continually assist these provinces to fulfill their socio-economic development targets.
3.3 Deficit and financing
Deficit in 2007 is estimated at VND 56,500 billion, accounting for 5% of GDP. Total financing will be financed by domestic borrowings of VND 43,000 billion and foreign borrowings of VND 13,500 billion. With the above estimation of financing, repayment and issuance of Government bonds in 2007, by 31st December 2007, the government debts shall make up 37.3% of GDP; and the national debts 31.2% of GDP at the national financial secure levels.
Forthcoming difficulties and solutions:
- Due to the changes of the world economic climate, the crude oil price of the world has been strongly fluctuated that can affect the state budget revenues structure in 2007, therefore the prices and tax rates should be adjusted flexibly following the performance of oil price in a principle that when the crude oil price decreases, revenues from oil exports and imports shall be increased by raising the petroleum import tax rates in order to ensure the state budget balance for 2007 as anticipated.
- The budgeted expenditures are increased, even highly increased in some sectors, compared to the budget number of 2006 in order to implement the important but difficult missions. Therefore, in terms of management, it is necessary to make efforts to increase the budget revenues by pushing up the economic growth rate, economic structure transition, and prevention of losses, strictly manage, effectively and economically use the state budget.
- The share of contingencies in total expenditures for 2007 is 2.5%, lower than the actual requirement to ensure the natural calamity and epidemic disease prevention and other urgent missions arising during the year. Therefore, if the revenues can be increased, the contingencies shall be increased to be more active in the management respectively.
4. Major groups of solutions to implement the state budget in 2007
4.1 Prompt implementation of the budget revenues in 2007 in compliance with applicable laws: The Law on Tax Management shall be enforced right after the approval by the National Assembly in order to effectively manage the tax collection activities, preventing losses of state budget revenues. The settlement of bad tax delays should be enhanced. Tax refundments shall be re-organized by enhancing examinations to detect violations and ensure stringent enforcement of rules and regulations on state budget collection. The international commitments on taxes shall be actively implemented to meet the requirements of the international integration process.
4.2 Amendment and supplement of relevant policies: The policies on fiscal and budget shall be continuously reviewed, amended and supplemented to ensure compliance with commitments to the World Trade Organization.
4.3 Enhancement of the process of SOE renovation and restructuring along with the approved plan: tax policies applied to equitized SOEs shall be adjusted in a reasonable manner, pursuant to the relevant laws and competence, so as not to reduce the budget revenues.
4.4 Establishment of market based price formulation: Price performance of important commodities in the world markets shall be strictly observed as reference for policy measures of domestic market and price stabilization, and for active state budget and fiscal planning. In case of the world oil price fluctuates so strongly that it can affect state budget revenues negatively, the import tax rates and domestic oil selling price shall be timely adjusted. Losses from oil imports businesses shall be controlled towards reducing gradually and coming to stop the loss offsets. In case of losses, contingencies of central budget shall be used for making up.
4.5 Strict implementation of the Law on State Budget: Centralized distribution of state budget shall be applied to prevent fragmentation, which causes wastes and losses. The state budget also needs to be used economically for right purposes, ensuring the quality and effectiveness of supervision, inspection and audit activities. Responsibilities of relevant organizations and heads of the organizations involving in budget management shall be determined clearly in order to improve the fiscal and budget disciplinary. High importance shall be attached to review, amendment and supplement, or newly promulgation of new standards, regimes and norms for state budget expenditures.
4.6 Enhancement of legal framework: The relevant legal framework shall be completed to enhance mobilization and effective use of the external financing resources, especially official development assistance (ODA) by clearly determining the responsibilities of the heads of organizations, which are involved in management and using of borrowing capital and ODA to ensure the efficiency of fund using. Supervision, inspection and auditing activities of projects, which are invested with these funds, shall be strengthened for the same purpose.
4.7 Strengthening of enforcement: Regular checking and timely correction shall be made in order to implement adequately the regulations on management and use of land, public offices, public houses and other state properties to efficiently exploit these revenues and to strictly punish violations.
4.8 Implementation of synchronous solutions: A set of synchronous policy measures is implemented to finance salary reform and to facilitate social subsidies.
4.9 Reallocation of lottery revenues: From 2007, lottery revenues shall be excluded from state budget balance, as well as from state budget revenues collection and expenditures. The People Councils of provinces and cities under central management shall allocate and use these revenues for investment in important social welfare establishments of the localities, especially healthcare and educational establishments rather than other purposes.
4.10 Issuance of government bonds: In 2007, government bonds are continuously issued to mobilize funds for investment in the projects and works, which are approved by relevant authorities. Education bonds shall be issued to fulfill soon the plan of solid construction of schools and classrooms. Fund mobilization through government bond issuance should be efficiently based on the fund user’s capacity of disbursement, avoiding unused capital. The supervision, inspection and auditing activities need to be ensured for the efficiency of fund using.
4.11 Promulgation of relevant fiscal and budgetary policies: Relevant fiscal and budgetary policies shall be issued to ensure adequate resources for socio-economic development, national defense and social security for period 2006-2010 of the midland and mountainous provinces of the North, Central highlands, western provinces of the South, Northern provinces of central region, and central coastal provinces.
4.12 Enhancement of self-autonomy and responsibility of localities: A regime of self-autonomy and self-responsibility shall be set up for management of human resources and expenditures by government agencies and public establishments. Socialization of education – training, healthcare, culture, sports and selected sectors should be encouraged. A pilot program of outsourcing and privatizing shall be carried out to transform SOEs providing public services into joint-stock companies.
4.13 Pushing up the action plan for implementation of Law on Economicality and Anti-Waste Practices and Anti-corruption Law: the action plan shall be enhanced with precise instructions and effective implementation.
4.14 Enhancement of revenues: During the implementation of fiscal and budgetary targets for the year 2007, ministries, agencies and localities shall have to do their best efforts to raise more revenues than planned numbers in order to provide additional resources for prevention of natural calamity and epidemic diseases, and to save contingency for unforeseen events, which may arise during the year, as well as to implement the salary reform and social subsidiaries.
[1] In the comparison, revenues from lottery in 2006 are excluded.
[2] In the comparison, expenditures on collection management of tax and customs offices in 2006 are included
[3] In the comparison, expenditures on investment development from lottery revenues in 2006 are excluded.
[4] Expenditures on salary reform for minimum salary of VND 450,000/month and expenditures on tax and customs fee collection management in 2006 are included in the comparison.
Loading...
