The National Assembly requested to concentrate resources to implement salary reform from July 1, 2022.

On the morning of July 28, with the majority of delegates in agreement,National Assemblypassed a resolution on the national financial plan and public debt borrowing and repayment for the 5-year period 2021-2025.

One of the tasks and solutions to implement the national financial plan and borrow and repay public debt for the 5-year period 2021-2025 is to continue restructuring budget expenditures towards sustainability, reducing the proportion of regular expenditures and increasing the proportion of development investment expenditures.

At the same time, ensure resources for national defense and security, reform salary policies, ensure social security; prioritize education - training, science, technology and innovation; focus more resources on environmental protection, adapting to climate change, developing information technology and telecommunications infrastructure, connecting national databases, creating a foundation for national digital transformation in the new situation.

The resolution states: “Focus resources on implementing salary reform from July 1, 2022. Do not use the remaining salary reform funds for capital construction investment and other purposes. The annual revenue increase and savings will be prioritized to create sources for salary reform according to Resolution 7 of the Central Committee (term XII)”.

Along with that, it is necessary to reduce the budget deficit, repay the principal debt and perform other tasks as prescribed by the State Budget Law. In case of using for investment, it must focus on large projects in the medium-term public investment plan for the period 2021 - 2025 to speed up the completion progress.

There will be a plan to reform wages in October.

Receiving and explaining before passing the Resolution, Chairman of the Finance and Budget Committee Nguyen Phu Cuong said that in the current regular expenditure structure, the proportion of salary and human resources expenditure accounts for about 61-62%.

In the central budget's regular expenditure estimates, priority expenditures include: defense and security expenditures, pension and preferential allowances for meritorious people, targeted supplementary expenditures for localities to implement social security policies...

Therefore, efforts to further reduce regular expenditures can only be focused on administrative management expenditures and public service units with high potential for socialization. Regular expenditure reductions need to have a roadmap corresponding to the implementation of streamlining the payroll, restructuring the apparatus, and adjusting prices and fees for public service services.

In response to the opinions of National Assembly deputies, the National Assembly Standing Committee proposed that the Government balance the State budget more actively, continue to strive to increase revenue, save regular expenditures to increase the proportion of development investment expenditures to 29%, and gradually reduce the proportion of regular expenditures to about 60% of total expenditures.

Some National Assembly deputies suggested further clarification on the direction of salary policy reform for cadres, civil servants, armed forces and pensions for those who retired before 1995.

Mr. Cuong said that the development of the 5-year financial plan (2021-2025) has planned a salary reform roadmap in the spirit of Resolution No. 27.

Accordingly, from July 1, 2022, the lowest wage in the public sector will be equal to the average lowest wage in the business sector, while expanding the wage relationship.

Regarding pensions, in the spirit of Resolution No. 28 of the 7th Central Committee (12th tenure), the adjustment will be made independently for the salaries of working people and attention will be paid to making appropriate adjustments for the group of people with low pensions who retired before 1995, in order to narrow the pension gap between retirees in different periods.

In response to the opinions of National Assembly deputies, the National Assembly Standing Committee proposed that the Government review and calculate the State budget balance to propose a salary reform plan for 2022; including pensions with a roadmap and steps in line with the spirit of Resolutions 27 and 28 of the Central Committee, and report to the National Assembly for consideration and decision at the meeting next October.

On the same morning, the National Assembly voted to approve resolutions on the medium-term public investment plan; investment policies for the National Target Programs on sustainable poverty reduction and new rural construction, period 2021-2025.

National financial plan and 5-year public debt borrowing and repayment:

Total state budget revenue is about 8.3 million billion VND.

Total state budget expenditure is about 10.26 million billion VND: The average proportion of development investment expenditure is about 28% (2.87 million billion VND); the proportion of regular expenditure is about 62-63% of total state budget expenditure. In which, strive to increase the proportion of development investment expenditure to about 29%, reduce the proportion of regular expenditure to about 60%.

The average state budget deficit for the whole period was 3.7% of GDP.

Total loan amount in the next 5 years is 3,068 trillion VND.

Annually, the public debt ceiling is not more than 60% of GDP, the warning threshold is 55% of GDP; the government debt ceiling is not more than 50% of GDP, the warning threshold is 45% of GDP; the country's foreign debt ceiling is not more than 50% of GDP, the warning threshold is 45% of GDP.