Finance Minister committed to effective budget spending

Dung, who was elected by the National Assembly on May 24 to succeed Vuong Dinh Hue, told the media that he will pursue a tight financial policy to help the country stabilise its macroeconomy, lower inflation and achieve higher economic growth than last year.

The primary issue is ensuring fiscal balance, strengthening financial discipline, and promoting transparency to enhance State and public control and supervision, he said.

He affirmed that Vietnam has introduced a correct fiscal policy, but it has not been implemented as effectively as expected.

Dung said his immediate priority is to work out ways to increase State budget revenue, reduce spending, and practise thrift, in addition to settling debts.

He stressed that comprehensive long term fiscal policies will be introduced to ease business difficulties, support markets and tackle bad debts in line with the government’s resolution.

“I will try to control public debt, to ensure debt safety and national financial security according to National Assembly laws and international norms.

“I am keen to reform the tax, fee and budget revenue collection policies to stimulate domestic production and consumption, improve people's lives, encourage business development and create new sources of revenue.

“Another important task is improving the management of prices in the market mechanism, especially for essential commodities such as petroleum, electricity, and public services.”

In response to questions about the Finance Ministry’s role in managing the petrol market, Dung said he will re-examine the government decree on petrol trading and the price stabilisation fund.

“I want petrol and oil prices to follow market trends to raise public awareness of saving fuel every day,” he said.

Minister Dung also reiterated the government’s policy of regularly adjusting electricity prices based on the current market prices to avoid shocks to business management that can adversely affect business operations and people’s daily lives, as they have done previously.

The most difficult problem is balancing inflation and growth, therefore the financial sector will continue to follow the National Assembly resolutions to realise budget estimates, he said.

There is growing concern about the difficulties the national economy will face until the end of 2013, which will affect the 4.8% budget deficit and other public debt targets set earlier this year.

The Finance Minister admitted that “the economy remains in a fix, and we need more time to see whether the current solutions will alleviate the situation.” He suggested looking at more “worst case” scenarios to devise appropriate solutions as necessary.

Whatever the circumstances, the financial sector will try its best to fulfil its tasks assigned by the National Assembly, concluded Minister Dung.