Agreeing on solutions to ensure a balanced budget for 2012.

Continuing its 18th session, on the afternoon of May 14th, the Standing Committee of the National Assembly gave its opinion on the Government's submission regarding solutions to ensure budget balance at all levels in 2012 and the draft Resolution of the National Assembly on exempting certain unenforceable payments to the state budget.

National Assembly Chairman Nguyen Sinh Hung delivers the opening remarks at the 18th session of the National Assembly Standing Committee. (Photo: Nhan Sang/VNA)

Chairman of the Finance and Budget Committee, Phung Quoc Hien, stated that the 2012 state budget faced numerous difficulties. Revenue and expenditure at all levels of the state budget were unbalanced. The Government's submission to the National Assembly Standing Committee regarding some unspent and unused expenditures to maintain the balance of the state budget at all levels is necessary and reasonable.

Mr. Phung Quoc Hien agreed with the Government's proposal: to finalize the settlement of the 2011 state budget with the amount of 1,874.4 billion VND; to use 1,500 billion VND to compensate for the reduction in central government revenue, and 1,937 billion VND to compensate for the reduction in local government budget revenue.

Regarding the proposed 200 billion VND in revenue compensation for Quang Ninh province, the Standing Committee of the Finance and Budget Committee believes that Quang Ninh province is not eligible for support. The province's local resources are sufficient to compensate for the revenue shortfall, therefore, the funds will not be allocated to the province. Instead, the money will be used to supplement the interest rate differential and management fees for the Vietnam Social Policy Bank.

Agreeing with the Finance and Budget Committee's viewpoint, National Assembly Chairman Nguyen Sinh Hung affirmed that, according to principle, Quang Ninh does not fall under the category of provinces eligible for revenue reduction compensation and therefore cannot be granted. He argued that if the justification for revenue reduction support is to provide resources for urgent tasks, then every province needs it; it's unacceptable to prioritize urgent needs and provide support to one province while neglecting others.

According to Deputy Minister of Finance Nguyen Cong Nghiep, localities experiencing revenue shortfalls must rearrange their spending and utilize all available resources to offset the deficit. Only when all other resources are exhausted should they be allowed to compensate. Currently, nine localities are short of approximately 2,190 billion VND, including seven localities receiving supplementary budget allocations (Hai Duong, Quang Binh, Quang Nam, Phu Yen, Long An, Tien Giang, and An Giang) with a shortfall of about 680 billion VND; and two localities contributing to the central budget (Hai Phong and Vinh Phuc) with a shortfall of about 1,510 billion VND.

Quang Ninh is not eligible for support because it has its own and sufficient resources to compensate for shortfalls. However, due to the province's difficulties in infrastructure investment, its status as a border locality with mountainous terrain, islands, and numerous ethnic minority communities, it urgently needs additional resources to develop its economy, ensure social welfare, and protect its land and maritime sovereignty. Therefore, the Government proposes providing the province with 200 billion VND to address part of the revenue shortfall that is reducing the balance of the local budget.

Based on the above analysis, the Standing Committee of the National Assembly unanimously agreed to include 1,874 billion VND in the 2011 state budget settlement. The remaining amount from the central budget will be used to compensate for a reduction in central government revenue of 1,500 billion VND, compensate for a reduction in balanced revenue for 9 localities (Hai Duong, Quang Binh, Quang Nam, Phu Yen, Long An, Tien Giang, An Giang, Hai Phong and Vinh Phuc) of 1,737 billion VND, reward 283 billion VND for exceeding revenue targets assigned by the central government to 4 localities, reward localities exceeding revenue targets as stipulated, support reinvestment in 7 localities with international land border gates that generate revenue, and the remainder will be used to support the subsidy for interest rate differences and management fees for the Vietnam Development Bank and the Social Policy Bank. Thus, the total amount of capital support for the Vietnam Social Policy Bank will be 479.2 billion VND, and for the Vietnam Development Bank will be 713.3 billion VND.

Regarding the draft Resolution of the National Assembly on exempting certain unenforceable payments to the state budget, the Standing Committee of the National Assembly disagreed with its issuance, arguing that the majority of cases proposed for exemption were criminal judgments and decisions. Therefore, the exemption must ensure consistency in the application of criminal policy and civil enforcement. If the National Assembly exempts a large number of cases that do not meet the conditions stipulated in the current Law on Civil Enforcement, it could create an unfavorable precedent in the application and enforcement of the law, affect the strictness of the law, and lead to continued backlogs. It is highly likely that in the next 5-10 years, the National Assembly will have to issue a similar Resolution.

Furthermore, the contents of the draft Resolution relate to the provisions of the Law on Enforcement of Civil Judgments and other relevant laws. Therefore, if necessary to address practical issues in the application of the law, the Government should study and propose to the National Assembly amendments and additions to the relevant laws.

The Standing Committee of the National Assembly proposed not to issue a separate Resolution to regulate this matter, to avoid creating overlaps and conflicts in the law. The conditions for exemption from enforcement obligations will continue to be implemented according to Article 61 of the Law on Civil Judgment Enforcement until the Law is reviewed and amended.

Currently, the draft Law amending and supplementing a number of articles of the Law on Civil Judgment Enforcement has been proposed by the Government to be included in the official program for 2014 (expected to be discussed at the 7th session and passed at the 8th session).

According to (VNA) - LT