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Gov't needs to spend less, stabilise budget

Update: July, 02/2015 - 09:26
Experts call the Government to tighten spending and manage public investment more effectively to stabilise the State Budget and maintain an attractive investment climate.— Photo economy.vn
HA NOI (VNS)  — The Government needs to tighten spending and manage public investment more effectively to stabilise the State Budget and maintain an attractive investment climate, Deputy Finance Minister Vu Thi Mai said at a conference yesterday.

She said that global events, especially the recent economic downturn, required countries to persist with reforms.

The Government has done a lot in this regard, but numerous shortcomings and challenges persisted in public investment management, she said.

Viet Nam should aim at a system of standardized, consistent economic policies that are in accordance with market economy principles that serve to facilitate the regional and global integration process, she added.

The conference discussed various topics, including the current situation, and looked at the experiences of other developing countries, especially in Asia, in managing public investment.

The finance ministry is collaborating with other agencies in reviewing and formulating policies as well as establishing mechanisms and a legal foundation in order to clearly assign responsibilities for investors and contractors of public investment projects.

The Ministry plans to prioritise projects that will have significant impacts on the country's economic restructuring effort, thus increasing the capacity to attract additional investment sources, Mai said.

She said the use of funds, be it from State Budget, Official Development Assistance (ODA) or Government bonds, must be carefully supervised and inspected to improve public investment projects' efficiency.

Viet Nam spends roughly 17 to 20 per cent of its GDP every year on public investment projects, most of them in infrastructure development, according to the National Centre for Socio-Economic Information and Forecast (NCEIF). — VNS

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