5:27:13 PM | 4/11/2008
Vietnam’s National Assembly deputies Oct 30 discussed state budget spending and collection in 2008 and estimates for the next year with a predicted decrease of VND36 trillion (US$2.1 billion) due to world oil price fluctuations, Thoi Bao Kinh Te reported.
Minister of Finance Vu Van Ninh noted that the government had based next year's budget revenue forecast on an average crude oil price of US$90 per barrel.
As the price is now down to US$60 per barrel, Ninh said that the ministry will ask the legislators to approve a new forecast with an average crude oil price of US$70 per barrel. Using this oil price, state budget revenue in 2009 will thus be cut by US$2.1 billion, Ninh added.
To balance next year's budget, the minister recommended the government increase import tariffs on fuels and cut back on other planned spending.
Government agencies and ministries were cooperating to build specific compensation strategies to submit to the Government and the national assembly before the NA adopted the resolution on the State budget for 2009.
Ninh, however, still suggested lawmakers maintain the expected budget overspending of 4.8 per cent of the Gross Domestic Products (GDP).
Sharing the same ideas with the Minister of Finance, Nguyen Van Sy from central Quang Nam province said the Government should continue annual bond issuance worth VND30 trillion (US$1.8 billion) to ensure State collection in case of economic difficulties.
Sy also proposed that the Government should stop subsidizing state-owned corporations so it can concentrate on balancing its budget. "The companies will have to find the money by themselves," Sy said.
The NA representatives almost agreed that the government was still not managing state spending well, exacerbating inflation.
Nguyen Minh Thuyet from Lang Son province said this year Vietnam had earned VND35 trillion (US$2.07 billion) from oil exports while subsidizing VND32 trillion (US$1.9 billion) fuels and giving VND9 trillion (US$534 million) to Vietnam National Oil and Gas Group.
Tax evasion, fraud and delays in state-funded projects were also hurting the national budget, lawmakers said, adding that these issues had been raised in several previous NA sessions but nothing much had been done.
Many lawmakers also disagree to the revised forecast for 2008 revenue, 23.5 per cent higher than last year's forecast for 2008 government revenue while others called for more transparency in budget management. (Vietnam Economic Times)
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