2009 State budget estimates show belt-tightening trend

Hanoi (VNA)- The National Assembly on November 8 overwhelmingly passed a
resolution on State budget estimates for 2009 that calls for reduction in
spending amid global financial crisis.

Under the resolution, budget collection is estimated at 389.9 trillion
VND, accounting for 21.5 percent of the gross domestic product (GDP), or
28.1 trillion VND less than the Government's proposal. Meanwhile, overall
spending is allowed at 491.3 trillion VND, limiting State budget deficit at
87.3 trillion VND, or 4.82 percent of GDP.

In details, the Central budget allocation for investments is 112.8
trillion VND against last year's 118.88 trillion VND and the salaries budget
is to go down from 43.6 trillion VND to 36.6 trillion VND.

Legislators insisted in the roadmap to improve base salaries but said the
next step would be delayed to May 2009.

They asked the Government to continue with tight financial policies,
calling for thrift in spending and reduction in State budget deficit. They
also urged the Government to take initiative in preventing economic
deflation and tackling problems such as in tax policies in order to meet
targets on State budgets.

The National Assembly's priorities were for social security and poverty
reduction with investments in 61 poorest districts taking the top place.

Legislators turned on green light to the issuance of 36 trillion VND worth
of Government bonds, proceeds of which they said would be allotted to
development projects such as education, healthcare, transport and irrigation
in disadvantaged communities.

Also on debate was an urban planning bill, which however drew different
viewpoints from the law-makers. Many complained that management on urban
architecture remained loose somewhere in the country, causing defacement and
lack of identities for cities.-Enditem