Minister: Vietnam to Accept State Deficit to Boost Growth Next Year
Minister of Finance Vu Van Ninh has said in a statement that Vietnam plans to continue loosening monetary and fiscal policies including rates cuts and tax breaks to accept state coffer deficit to boost growth and consumption to avert recession.
Minister Ninh noted that the Vietnamese government will synchronize monetary and fiscal policies to remove any hurdles to support production, exports, mobilize all sources to boost investments to stave off recession next year.
The government plans to break 39 per cent of corporate income tax and extend 6 to 9 months of tax payments for local businesses, particularly small and medium companies and delay 20 per cent of capital gain tax right in the fourth quarter this year and the whole 2009, Ninh noted.
The government will focus on boosting selling shares in state-owned companies and finalizing legal frameworks for markets particularly the financial market, Ninh said.
The government targets state budget income of VND389.3 trillion (US$23.59 billion) and coffer expenditure of VND491.3 trillion (US$29.77 billion) next year, up 23.1 per cent from this year.
Prime Minister Nguyen Tan Dung has recently turned green light to using US$1 billion to stimulate the production and consumption, state media said.
This year, Vietnam’s state budget income is estimated at VND399 trillion (US$24.18 billion), surpassing 23.5 per cent of the year’s target, state coffer expenditure projected to total VND474.28 trillion (US$28.74 billion) to account for 31.9 per cent of the country’s GDP value, Ninh said. (www.mof.gov.vn, Youth, Labor)
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