Vietnam will mobilize between 38 per cent and 40 per cent of the gross domestic product (GDP) for development investment in the next five years, according to the fiscal plan announced by the Ministry of Finance during the financial sector conference held in Hanoi on November 23.
Finance Minister Nguyen Sinh Hung said that investment capital from the State Budget, including Government bonds, would contribute 22-23 per cent to total mobilized capital, from citizens and businesses 31-32 per cent, from the stock market 22-23 per cent, and from financial intermediaries around 38-39 per cent of the GDP.
The State Budget revenue in the 2006-2010 is targeted to account for 21-22 per cent of national GDP while expenditure makes up 26-27 per cent of GDP.
It means that the collection for State coffers in the period will double the figure of the last five years and the overspending would be kept below 5 per cent of GDP, he said.
The revenue will be collected at between VND1,500-1,600 trillion ($95-100 billion), meanwhile, expenditures will be from VND1,800-1,900 trillion.
Hung said that the country would spend more on education and training, science and technology. Spending on education and training would be equal to 20 per cent of total State budget expenditure, on science and technology 2 per cent and environment protection 1 per cent.
In the period, the national reserves will be increased to 1.5-2 per cent of GDP, he said.
By 2010, Vietnam will also complete privatization of the State-owned enterprises, separate functions of State administration and ownership, apply the same financial management policies for all enterprises, he said.
In 2006 alone, the Finance Ministry targets to collect about VND237.9 trillion for the State budget, an increase of 13 per cent from this year's figure. The national expenditures will reach VND294.4 trillion next year, up 13.9 per cent on-year.
Vietnam collected VND167.96 trillion for the budget as of the end of October this year, equivalent to 23 per cent of GDP, of which collection from taxes and fees accounts for 21 per cent. The country looks to attain VND210.4 trillion for the entire year, a rise of 15 per cent compared with estimation and 16 per cent against last year.
Revenue from domestic tax this year is expected to surge by 9.2 per cent from the plan and 19.2 per cent from 2004, from import-export up 10 per cent from plan and 13 per cent from 2004. Meanwhile, expenditure will rise by 12.5 per cent from the estimates.
Addressing the conference, PM Phan Van Khai said that the Finance Ministry should continue promulgating financial policies that meet international standards, saying this would improve the nation's business and investment environment and attract investment capital to lift the economy over the next five years.
He urged the Ministry of Finance to monitor and forecast global and domestic prices, especially for commodities such as crude oil, steel, and foodstuffs.
Khai also asked relevant ministries and provinces to allocate capital for basic construction projects, and focus on key projects while handling overdue-debts from completed infrastructure projects.
"Our current mandate is to determine how best to use investment capital so as to narrow the gap between Vietnam and other countries in the region," Khai said.
"Projects showing poor quality and inefficient management will be cut off from the State Budget," he warned.
VNA, Youth
Vietnamese
