Nghe An National Assembly delegation discusses economic recovery and stimulus package worth nearly 350,000 billion VND

On the afternoon of January 4, continuing the program of the first extraordinary session, the 15th National Assembly discussed in groups the draft Resolution on fiscal and monetary policies to support the Socio-Economic Recovery and Development Program.

Comrade Thai Thanh Quy - Member of the Party Central Committee, Secretary of the Provincial Party Committee, Head of the Provincial National Assembly Delegation, Chairman of the Provincial People's Council chaired the discussion at the Nghe An delegation. Attending were invited delegates who were leaders of a number of relevant departments and branches.

Overview of the group discussion session at the National Assembly Delegation of Nghe An province. Photo: Thanh Duy

ECONOMIC RECOVERY PACKAGE OF NEARLY 350,000 BILLION VND

The program has a large enough scale, affecting both the supply and demand sides; has key and central objectives, correctly identifies the subjects in need of support to solve urgent problems, avoids wasting resources associated with the responsibilities of organizations, individuals and Party committees and authorities at all levels;

The Government's submission to the National Assembly clearly stated: The objective of the Socio-Economic Recovery and Development Program is to quickly restore production, supply, and labor chains, promote growth drivers, strive to achieve an average growth target of 6.5 - 7%/year in the 2021-2025 period, maintain macroeconomic stability, and ensure major balances in the medium and long term. The implementation period is mainly within 2 years (2022-2023) with an appropriate roadmap to recover and stimulate the economy.

The program identifies a framework of key issues that need to be focused on, including 5 main groups of tasks and solutions with the expected implementation scale in 2022-2023 as follows: Opening the economy associated with investment in improving healthcare capacity, disease prevention and control (60 trillion VND); Ensuring social security and supporting employment (53.15 trillion VND); Supporting the recovery of enterprises, cooperatives, and business households (110 trillion VND); Developing infrastructure, unlocking social resources for development investment (113.85 trillion VND); Institutional reform, administrative reform, improving the investment and business environment. In addition, mobilizing about 10 trillion VND from non-state budget financial funds.

Mr. Trinh Thanh Hai - Director of Nghe An Tax Department spoke at the discussion session. Photo: Thanh Duy

At the discussion session, the National Assembly deputies and new guest delegates focused on discussing the content of the policies. The Director of the Nghe An Tax Department said that through the assessment of the policies on tax exemption and reduction, land rent, fees and charges payable to enterprises, cooperatives and business households, the revenue in Nghe An will be reduced by about1,100 billion VND.

In the difficult context, the above policies are basically supported. However, regarding the policy of reducing the value added tax rate by 2%, applied to groups of goods and services currently subject to a rate of 10% (to 8%) in 2022, except for some groups of goods and services with development advantages such as telecommunications, financial activities, banking, insurance, real estate business, metal production and production of prefabricated metal products, mining industry (excluding coal mining), coke production, refined petroleum, production of chemicals and chemical products, the Director of Nghe An Tax Department suggested that it is necessary to study and consider because the impact on the budget is large but the effect of the policy is not much because such a tax rate reduction almost does not change consumer behavior.

Mr. Nguyen Xuan Duc - Director of the Department of Planning and Investment spoke at the discussion session. Photo: Thanh Duy

Mr. Nguyen Xuan Duc - Director of the Department of Planning and Investment said that according to the Socio-Economic Recovery and Development Program, Nghe An is invested in a list of projects with a total capital of 1,094 billion VND.

Based on the research, the Director of the Department of Planning and Investment proposed that the Provincial Delegation of National Assembly Deputies recommend to the National Assembly to allocate additional capital to invest in 35 degraded commune-level health stations; Employment Service Center No. 2 in Thai Hoa town, and support the construction of Vinh City into a smart city.

Director of Nghe An Department of Finance Nguyen Xuan Hai commented that the fiscal and monetary policies submitted by the Government to the National Assembly are large enough in scale and have an impact on supply and demand, which is considered a very important key.

Faced with the impact of these policies when approved, the Director of Nghe An Department of Finance said that he will focus on reviewing spending tasks, especially regular spending, ensuring strictness, savings and increasing spending for development investment, stimulus and growth.

Mr. Nguyen Xuan Hai - Director of Nghe An Department of Finance spoke at the discussion session. Photo: Thanh Duy

Ms. Nguyen Thi Thu Thu - Director of the State Bank of Vietnam, Nghe An province branch, requested to clarify the conditions and criteria for interest rate support so that banks can implement it promptly and without errors; at the same time, it is necessary to analyze and forecast the inflation factor when the money supply to implement support policies is very large.

Also at the meeting, leaders of the Department of Transport and the Department of Labor, Invalids and Social Affairs exchanged opinions related to mechanisms and policies in their respective fields.

NEED TO ENSURE SUITABLE PRINCIPLES AND CRITERIA

Speaking at the discussion, National Assembly Deputy Thai Van Thanh - Director of Nghe An Department of Education and Training suggested adding the viewpoint of avoiding policy exploitation; at the same time, it is necessary to analyze and clearly demonstrate the impact of policies on beneficiaries, as well as on the country.

National Assembly Delegate Thai Van Thanh - Director of Nghe An Department of Education and Training spoke at the discussion session. Photo: Thanh Duy

In particular, Prof. Dr. Thai Van Thanh also said that there should be adequate support policies for trade, market; science - technology and human resource development; on the other hand, regarding social security policies, some subjects should be added to ensure humanity, fairness, encouragement and motivation for workers.

Ms. Thai Thi An Chung - Deputy Head of the Delegation of National Assembly Deputies of Nghe An province agreed with the need to issue related policies to recover the economy. However, according to the delegate, the policy of reducing the value added tax rate by 2%, applied to groups of goods and services currently subject to the rate of 10% (to 8%) in 2022, has a wide range of beneficiaries, but the exemption level is very low, so the meaning is insignificant, while it affects the budget revenue, so it needs to be considered.

Delegate Thai Thi An Chung proposed considering increasing fees and charges for securities activities to encourage cash flow to shift to production and business.

Deputy Head of the National Assembly Delegation of Nghe An Province Thai Thi An Chung speaks at the discussion session. Photo: Thanh Duy

Concluding the discussion session, Secretary of the Provincial Party Committee, Head of the National Assembly Delegation of Nghe An Province Thai Thanh Quy assessed that all opinions agreed with the implementation of fiscal and monetary policies to create momentum for the economy to recover and make a breakthrough in the coming time.

The Head of the National Assembly Delegation of Nghe An province also agreed with the concerns expressed by the delegates through discussions in building criteria and principles for each support package, for each subject that needs to be appropriate so that the policies can be effectively implemented, absorb resources, contribute to stimulating, recovering and developing the economy; as well as policies in the social security package reaching beneficiaries in a timely manner.

On the other hand, new policies need to be reviewed, inherited, and continued with policies that have been implemented and are being implemented to maximize effectiveness.

Comrade Thai Thanh Quy - Member of the Central Committee, Secretary of the Provincial Party Committee, Head of the Provincial National Assembly Delegation, Chairman of the People's Council of Nghe An province concluded the group discussion session. Photo: Thanh Duy

The objectives of the fiscal and monetary policies are very large and focused on disbursement within about 2 years, so it is necessary to strengthen control and close supervision to avoid mistakes, violations, and policy exploitation. The above opinions of the delegates will be compiled by the Provincial National Assembly Delegation and sent to the National Assembly.

Analyzing the impacts of fiscal and monetary policies on Nghe An, the Provincial Party Secretary and Head of the Provincial National Assembly Delegation requested relevant agencies and units to proactively study carefully and prepare for the implementation so that after approval, the Central Government will have instructions to implement them methodically and effectively in Nghe An province.

National Assembly Chairman: This extraordinary session is of utmost importance

(Baonghean.vn) - In his opening speech, National Assembly Chairman Vuong Dinh Hue emphasized that the session is of utmost importance and is of special interest and follow-up to voters, people nationwide, our compatriots abroad, the business community and public opinion.