Deputies made proposals while discussing the government’s report on socio-economic development and budget spending at the current National Assembly session in Hanoi on May 26.  

Budget deficit below 7 percent
Deputy Do Manh Hung from Thai Nguyen province and deputy Pham Thi Loan from Hanoi said that the budget deficit for 2009 should be kept at a rate of 7 percent rather than approximately 8 percent as proposed earlier by the government. To reduce the budget deficit, Ms Loan recommended that the government should cut spending on unnecessary meetings and conferences.

Meanwhile, deputy Huynh Ngoc Dang from Binh Duong province said that the budget deficit should stand at 6.5 percent.

“If the deficit increases, it will affect the safety of the State budget,” said Mr Dang. “To oversee the over-expenditure, it is necessary to scrutinise the allocation of the State budget, preferential loans, for example. Without that, inflation will return.”

Stimulus packages under scrutiny
Deputy Le Thanh Phong from Lam Dong province and deputy Bui Van Tinh from Hoa Binh province welcomed the immediate solutions the government has introduced to stimulate investment and public spending in the context of the economic slowdown.

However, deputy Phong pointed to the fact that small- and medium-sized enterprises (SMEs) still find it difficult to access subsidised bank loans offered by the government, as they do not have assets to mortgage.

He proposed that the government employ more transparent policies to make it easier for SMEs to take out subsidised loans.

Both deputies agreed with the government’s proposal to lower the country’s GDP growth rate this year from 6.5 percent to 5 percent, reasoning that the economy is showing signs of recovery. They shared the view that the rate will gradually increase in the following years if the government continues to go ahead with stimulus packages, uses an additional VND20,000 billion from bond sales effectively, boosts the production of locally-made products and controls the trade deficit.

Personal income tax
The government has proposed exempting the personnel income tax imposed on those subject to such tax in the first six months of this year. The move has been welcomed by the people to help them surmount immediate difficulties caused by the economic slowdown.

However, deputy Nguyen Minh Thuyet from Lang Son province said that tax collection should begin in July and the Ministry of Finance should quickly make up tax codes for payers to facilitate their payment.

Deputy Le Nhu Tien from Quang Tri province echoed Thuyet, saying tax collection should resume in July and this process needs firm management and tight oversight from the Ministry of Finance.

Employment for rural people
Deputy Vo Thi Thuy from Binh Dinh province pointed out that many Vietnamese guest workers have been made redundant and returned to their home villages although their contracts with foreign employers are still valid. However, in its report delivered at the opening ceremony of the National Assembly, the government did not specify the number of laid-off workers.

These workers have returned to the countryside to seek new jobs while rural workshops have encountered difficulties due to a lack of capital to maintain production.

Deputy Thuy said that the government should provide more preferences to these workshops, especially craft villages, which are home to many laid-off workers. In addition, poor and low-income earners should be assisted in accessing bank loans to purchase materials and equipment for agricultural production.

Deputy Ngo Van Hung from Lao Cai province suggested that the government pour more investment into agriculture and rural areas where 70 percent of the population live.

“To generate steady jobs for farmers, the government needs to allocate budget from its stimulus packages properly to boost vocational training and job generation for rural people,” said Mr Hung.

Bauxite exploitation project
The implementation of bauxite exploitation projects in the Central Highland region, including Lam Dong province, has raised public concern in recent times.

Deputy Le Thanh Phong from Lam Dong province said that bauxite exploitation is one of its key projects and that the exploitation is closely linked to the environmental protection. He expressed his hope that the National Assembly and people across the country will support Lam Dong in carrying out bauxite projects effectively.

Deputy Dieu K’Re from Dak Nong province said that the bauxite exploration and exploitation project in the 2007-2015 period and vision for 2025 has been approved by the Prime Minister, including the first phase to be implemented in Dak Nong. He said that the implementation of the project should be closely attached to the environmental protection and the preservation of the cultures of ethnic groups in the region.