Best support for economic development

(Baonghean) - Faced with unstable developments in the global economy and politics, such as unpredictable fluctuations in the financial market and oil prices, and large-scale migration, Europe continues to face more difficulties and divisions. In addition, the decline of China, the world's second largest economy; the impact of the US Federal Reserve's interest rate hike trend will have a multi-dimensional impact on the financial market, trade and investment on a global scale, the Ministry of Finance has made decisions to support economic development.

Transaction at the Industrial and Commercial Bank, Nghe An Branch. PhotoCL

According to information from the Ministry of Finance, a number of prestigious international organizations have lowered their forecasts for world economic growth in 2016 compared to previous forecasts. For example, the International Monetary Fund forecasts global economic growth to reach 3.4% in 2016, down 0.2% from its forecast in October 2015. The Organization for Economic Cooperation and Development forecasts global economic growth in 2016 to be 3.0% instead of 3.3% as forecast in November 2015; the World Bank forecasts global growth to reach only 2.9% in 2016, down 0.4% from its forecast in June 2015.

Therefore, the domestic economy also faces some major difficulties. In order to achieve the general goal of the 2016 socio-economic development plan, which is to maintain macroeconomic stability and strive for higher economic growth than in 2015, the 2016 State budget estimate has the following general goals: Mobilizing, distributing, managing and using financial resources effectively and fairly, promoting socio-economic development; gradually restructuring the State budget, prioritizing reasonable investment for people and solving social security issues, ensuring national defense and security; accelerating reform of the public service sector, reforming administrative procedures and strengthening financial management and supervision, ensuring public debt safety.

Based on the actual state budget revenue in 2015, the estimated total state budget revenue in 2016 is 1,014,500 billion VND, an increase of 1.8% compared to the actual revenue in 2015. Of which, the estimated domestic revenue is 785,000 billion VND (including 30,000 billion VND from the sale of State capital in some enterprises); excluding land use fee revenue (50,000 billion VND), an increase of 9.3% compared to the actual revenue in 2015, of which revenue from some key areas such as revenue from state-owned enterprises is expected to increase by 12.9%, revenue from foreign-invested enterprises is expected to increase by 12.8%, revenue from non-state industrial and commercial sectors is expected to increase by 10.7%...

The revenue estimate is like that, but the 2016 state budget expenditure estimate is 1,273,200 billion VND, an increase of 11% compared to the 2015 estimate. Of which, the development investment expenditure estimate is 254,950 billion VND, accounting for 20% of the total state budget expenditure (17% in 2015), an increase of 30.7% compared to the 2015 estimate (including 30,000 billion VND from the sale of State capital in some enterprises to balance the 2016 state budget, focusing on some important infrastructure projects with high spillover effects under the responsibility of the central government). Including investment expenditure from government bonds (VND60,000 billion) and lottery (VND26,000 billion), total development investment expenditure is VND340,950 billion, accounting for 25% of total state budget expenditure (2015 estimate is 24%) and accounting for 6.7% of GDP (equal to 2015 estimate). The estimated state budget deficit in 2016 is VND254,000 billion, equivalent to 4.95% of GDP, down 0.05% of GDP compared to the 2015 estimate.

Construction at the headworks cluster of the Ban Mong Reservoir Project. Illustrative photo

To achieve the above budget targets, the Ministry of Finance has proposed key groups of solutions to implement the 2016 State budget estimates for the final months of the year. Accordingly, the synchronous and close combination of monetary policy and fiscal policy is given top priority. With the proactive, flexible and effective management of monetary policy in synchronous combination with fiscal policy to control inflation according to the set target, ensuring liquidity of credit institutions and the economy; managing interest rates and exchange rates in accordance with market signals to stabilize the macroeconomy, promote exports and economic growth; the increase in outstanding credit in accordance with growth requirements while ensuring credit quality; improving the international balance of payments, increasing the State foreign exchange reserves are the most important tasks.

In addition, it is necessary to proactively implement solutions to effectively manage the foreign exchange market and the gold market, overcome the dollarization and goldization of the economy, promote non-cash payments, and limit the use of administrative measures in the currency market. These are top-notch solutions.

Minister of Finance Dinh Tien Dung said that in order to firmly consolidate the foundation for economic growth, continuing to effectively implement the “Overall economic restructuring project associated with growth model transformation and sector and field restructuring projects” is an extremely fundamental solution. We must find every way to improve the quality, efficiency and competitiveness of the economy; diversify the market, take advantage of and promote the advantages brought about by the integration process, while minimizing negative impacts; and strongly improve the investment and business environment to maintain the momentum of development.

Therefore, it is necessary to create all favorable conditions for the development of enterprises in all economic sectors, ensuring equal competition; promoting high and sustainable growth, creating stable and solid budget revenue sources... In addition, it is necessary to restructure the agricultural sector in conjunction with building new rural areas, encouraging research and application of science and technology in agricultural production; attracting enterprises to invest in agriculture and rural areas. Restructuring industry, focusing on developing industrial products with competitive advantages. Effectively implementing national trade, investment and tourism promotion programs. Synchronously implementing solutions to boost exports, strictly controlling imports of non-essential goods.

Red River