Overspending ‘breaks’ the plan

The Prime Minister read the report on socio-economic performance in 2013. Photo: VGP.

In the 2013 socio-economic situation report presented at the opening session of the National Assembly on the morning of October 21, Prime Minister Nguyen Tan Dung said: `Total state budget expenditure in 2013 is estimated at 986,300 billion VND, an increase of 0.

Right before this meeting, the Government proposed to increase the deficit ceiling from 4.8% of GDP to 5.3% of GDP to create more room to increase development investment in a difficult budget context.

According to the Government’s calculations, for every 1% increase in overspending, there will be an additional 40,000 billion VND spent from the budget and the Government wants to use this entire increase for development investment.

Total state budget expenditure in the first 9 months of the year, according to the Government’s report, is estimated at nearly 685,000 billion VND, equal to 70% of the estimate.

Regarding the revenue situation, the Government’s report said that total revenue in the first 9 months of the year is estimated at 543,800 billion VND (reaching 66.6% of the estimate).

Regarding the macroeconomic situation, Prime Minister Nguyen Tan Dung said that inflation tends to decrease gradually over the years, from 18.13% in 2011 to 6.81% in 2012 and is expected to be controlled at 2013.

Weak joint stock commercial banks have been restructured;

First session of the 6th session.

However, the Government recognizes that the economy still faces many difficulties and challenges, and balancing budget revenues and expenditures is difficult;

Risks in the banking system’s operations are still hidden, liquidity has improved, lending interest rates have decreased but are still high and businesses still have difficulty accessing loan capital;

Institutional reform is not synchronous, and there is no breakthrough policy mechanism to promote socio-economic development.

The quality of education and training has not been improved clearly.

The work of preventing corruption and waste has not met the requirements set out to prevent and gradually repel.

Political security still has potential factors that can cause instability.

Regarding socio-economic development solutions until 2015, the Government proposed to strengthen macroeconomic stability and control inflation;

Previously, in his opening speech, National Assembly Chairman Nguyen Sinh Hung commented that this mid-term session has a particularly important position to look back on the past nearly three years.

The National Assembly will supervise the topic `Implementation of policies and laws on health insurance in the period 2009-2012`;