Basic salary will increase to 1.3 million VND from July 1, 2017

(Baonghean.vn) - The National Assembly has officially approved the plan to increase the basic salary from 1.21 million VND/month to 1.3 million VND/month from July 1, 2017. This policy is expected to cost about 6,600 billion VND of the central budget, not to mention 1,900 billion VND to support 50% of the salary increase needs of the armed forces.

The National Assembly passed a Resolution on the 2017 state budget estimate. Photo by Anh Tuan.

On the afternoon of November 11, with a majority of votes in favor (accounting for 79.31%), the National Assembly passed the Resolution on the state budget estimate for 2017.

Thus, with the Resolution passed, next year the basic salary will be adjusted from 1.21 million VND/month to 1.3 million VND/month, pensions, social insurance benefits and preferential allowances for meritorious people will be adjusted to increase by the basic salary increase, effective from July 1, 2017.

Previously, according to the report on the reception and explanation of the National Assembly Standing Committee, as stated by the National Assembly delegates, the lives of a large number of cadres, civil servants, and salary earners are still facing difficulties, so the Government proposed to increase the basic salary to reduce difficulties for these subjects.

Voting results to pass the Resolution on the 2017 state budget estimate.

Although this increase has not met all the needs, in the current difficult budget conditions, with such an increase, in addition to requiring ministries, central and local agencies to arrange and balance resources, the central budget must spend about 6,600 billion VND. If including 1,900 billion VND to support 50% of the salary increase needs of the armed forces, the central budget must spend about 8,500 billion VND.

"This is a great effort by the Government at the present time," the National Assembly Standing Committee commented and asked the National Assembly to keep the Government's proposed plan in the draft Resolution.

Also according to the content stated in the Resolution, it is expected that in 2017, the total state budget revenue will be 1.21 million billion VND and the total state budget expenditure will be 1.39 million billion VND.

The state budget deficit is VND178,300 billion, equivalent to 3.5% of gross domestic product (GDP), including the central budget deficit of VND172,300 billion, equivalent to 3.38% of GDP and the local budget deficit of VND6,000 billion, equivalent to 0.12% of GDP.

Total borrowing of the State budget next year, including borrowing to cover budget deficit and borrowing to repay principal of the State budget, is 340,157 billion VND.

The National Assembly assigned the Government to thoroughly save regular expenditures of each ministry, central and local agency; and to minimize expenses for organizing conferences, seminars and celebrations.

At the same time, it is required to limit the allocation of funds for overseas research and surveys; limit the purchase of expensive cars and equipment; and encourage the expansion of the implementation of public vehicle contracting to ensure rationality, efficiency and savings.

Duong Gim