Vietnam Govt To Cap Inflation at 6 per cent-7 per cent, Cut Spending By 30 per cent This Year

The Vietnamese government has just said in a statement that it will try to curb inflation to 6 per cent-7 per cent and slash state budget spending by 30 per cent compared with 2008.

 

The government will likely tame inflation to 6 per cent-7 per cent this year as it had surged only 2.12 per cent since early 2009, Planning and Investment Minister Vo Hong Phuc has told state media, adding the government will cap credit growth at maximal 30 per cent this year.

 

The government plans to spend VND341.544 trillion (US$20 billion) this year, compared with VND494.6 trillion last year, the state-run Labor newspaper said, citing Pham Dinh Cuong, head of the Ministry of Finance’s State Assets Management Department as saying. 

 

Of that fund, it will allocate VND160.231 trillion (US$9.425 billion) for socioeconomic policies, national defence and security activities, accounting for 51 per cent, Cuong elaborated.

 

The government will spend 20 per cent of the funds to buy state assets, Cuong said.

 

This year, Vietnam has revised down GDP growth of 5 per cent and state budget deficit will be widened to 8 per cent of the country’s GDP for demand stimulus packages, state media said. (The People, Labor)