Deputies discussed and adopted a resolution on the 2012 budget estimates aimed at improving people’s living standards, particularly for workers, poor people, and low income earners. Effective next May 1st, the minimum salary will increase about 25% with another 25% allowance for civil servants. The same raise will apply to pensioners and people who have rendered great service to the nation. The National Assembly will allocate about 2.8 billion USD to salary increases and aims to increase people’s real income by 100-150%.
To sustain higher living standards, the resolution aims to keep the CPI below 10% and the inflation rate between 5 and 7% next year. The National Assembly believes the projected inflation is feasible if a number of measures are taken. These include strengthening public investment, tightening state spending, maintaining credit growth at a reasonable level, and balancing supply-demand. A roadmap for price increases will prevent a possible market shock and a sudden increase of costs for enterprises.
Mr. Nguyen Van Giau, Chairman of the National Assembly’s Committee for Economics and Budget said that from now until the end of this year, it is particularly important to focus on solving the correlation between inflation, exchange rates and interest rates. A priority should be given to reining in inflation and stabilizing exchange rates while keeping credit growth low. He added other important tasks are to control credit quality, minimize bad debt, and strengthen credit inspections and system security. This year’s revenues will be used mainly to reduce the state deficit, ensure social welfare and security, and cope with unexpected consequences of natural disasters. He also emphasized that it is necessary to put an end to unfocused and ineffective investment.
Economic restructuring is another major content of the resolution. Prime Minister Nguyen Tan Dung stated that the government has thoroughly analyzed the situation and consulted economists before issuing resolution 11. The political bureau has reached a conclusion and the National Assembly has issued a resolution to adjust the targets, tasks and measures for this year’s socio-economic development. The Prime Minister said these are considered appropriate tactical policies, which are strongly supported by people both inside and outside the country.
The National Assembly has instructed the government to complete economic restructuring and renovating the growth model and report to the National Assembly during its 3rd session next May. The major goals of the economic restructuring are to control inflation, stabilize the macro economy, and maintain the growth at an appropriate level. The growth model will be renewed and the economy restructured to improve the quality, efficiency and competitiveness of the economy, ensure social welfare and security, and improve people’s living conditions.
By Thu Hoa