Agree on solutions to ensure 2012 budget balance

Continuing the 18th session, on the afternoon of May 14, the National Assembly Standing Committee gave its opinions on the Government's Proposal on solutions to ensure budget balance at all levels in 2012 and the National Assembly's draft Resolution on exemption from execution of judgments for some state budget payments that are not enforceable.

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

Chairman of the Finance and Budget Committee Phung Quoc Hien said that the state budget in 2012 faced many difficulties. Revenue and expenditure of the state budget at all levels were unbalanced. It was necessary and reasonable for the Government to submit to the National Assembly Standing Committee a number of unspent and unused expenditures to maintain the balance of the state budget at all levels.

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

Regarding the VND 200 billion support for revenue reduction for Quang Ninh province as proposed by the Government, the Standing Committee of the Finance and Budget Committee believes that Quang Ninh province is not eligible for support, the local resources of this locality are enough to offset the revenue reduction, so support will not be provided to this province but that source of money will be allocated to supplement the interest rate difference and management fees for the Vietnam Bank for Social Policies.

Agreeing with the viewpoint of the Finance and Budget Committee, National Assembly Chairman Nguyen Sinh Hung affirmed that according to the principle, Quang Ninh is not subject to revenue reduction compensation, so it cannot be resolved. If the explanation is that revenue reduction compensation support is to have resources to implement urgent tasks, then every province needs it, it cannot be urgent to support, and solving for one province but not solving for another is not acceptable.

According to Deputy Minister of Finance Nguyen Cong Nghiep, localities with revenue shortfalls must rearrange expenditures and use all sources to compensate. Only when there are no more sources can compensation be made. Currently, there are 9 localities lacking about 2,190 billion VND, of which 7 localities receiving additional balance (Hai Duong, Quang Binh, Quang Nam, Phu Yen, Long An, Tien Giang, An Giang) are short about 680 billion VND; two localities regulating the central budget (Hai Phong, Vinh Phuc) are short about 1,510 billion VND.

Quang Ninh is not included in the support because it has compensation sources and can compensate fully, but because this province is facing many difficulties in infrastructure investment, is a border locality with high mountains, islands and many ethnic minority areas, it is in great need of more resources to develop the economy, ensure social security, protect the sovereignty of the mainland border and islands. Therefore, the Government proposed to support the province with 200 billion VND to handle part of the revenue shortfall that reduces the balance of the local budget.

From the above analysis, the National Assembly Standing Committee agreed to settle 1,874 billion VND in the 2011 state budget settlement. The remaining amount of the central budget will compensate for the reduction of central budget revenue by 1,500 billion VND, compensate for the reduction of balanced revenue for 9 localities (Hai Duong, Quang Binh, Quang Nam, Phu Yen, Long An, Tien Giang, An Giang, Hai Phong and Vinh Phuc) by 1,737 billion VND, reward excess revenue of 283 billion VND for 4 localities exceeding the central revenue estimate, reward localities exceeding the revenue estimate according to regulations, support reinvestment for 7 localities with international road border gates with revenue sources, the remaining amount will be used to support interest rate differential compensation and management fees for the Vietnam Development Bank and the Vietnam Bank for Social Policies. Thus, the total capital support for the Vietnam Bank for Social Policies 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 exemption from enforcement of judgments for some state budget payments that are not enforceable, the Standing Committee of the National Assembly did not agree to issue the Resolution, explaining that the number of cases proposed for exemption mostly belong to criminal judgments and decisions, so the exemption must ensure consistency in the application of criminal policies and civil enforcement. If the National Assembly exempts a large number of cases that do not satisfy the conditions as prescribed in the current Law on Civil Judgment Enforcement, it may create an unfavorable precedent in the application and enforcement of the law, affecting the strictness of the law, the backlog will still be backlog and it is very possible that in the next 5-10 years, the National Assembly will have to issue a similar Resolution.

In addition, the contents of the draft Resolution are related to the provisions of the Law on Civil Judgment Enforcement and related laws. Therefore, if it is necessary to resolve problems in the practical application of the law, the Government needs to study and propose to the National Assembly to amend and supplement related laws.

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

Currently, the Government has proposed to include the draft Law amending and supplementing a number of articles of the Law on Civil Judgment Enforcement in the official program for 2014 (expected to be commented on at the 7th session and approved at the 8th session)./.

According to (TTXVN) - LT