PM Nguyễn Tấn Dũng emphasizes that inflation curbing is the first priority

The PM stressed this when presided over an online conference in Hà Nội on Feb. 24 with leaders of 63 localities to introduce the Government’s newly-issued resolution.

Top priority: inflation curbing

The resolution covers seven groups of solutions, including (1) tightened and cautioned monetary policy; (2) tightened fiscal policy; (3) public investment cut; (4) reduction of State budget overspending; (5) production acceleration and export encouragement, trade gap narrowing, energy saving; (6) adjustment of electricity, oil and petrol prices in combination with assistance to poor households; (7) and guarantee of social security.

Inflation curbing is the Government’s top priority, stressed Permanent Deputy PM Nguyễn Sinh Hùng, adding that the resolution targets to halt new equipment procurement, to minimize unnecessary spending, and to avoid capital allocation to unnecessary projects.

The Deputy PM also said that the adjustments of electricity, oil and petrol prices are of significance to avoid market distortion.

Together with rising prices of electricity, oil and petrol, the Government would assist poor households and policy beneficiaries, said Mr. Hùng.

Synchronous measures and high political endeavor

PM Dũng called upon his inferiors to synchronously conduct the solutions with high political endeavor. 

The Government chief touched upon the necessity to apply tightened and cautious monetary policy by reducing credit growth target to less than 20%, while prioritizing credits for agricultural production, auxiliary industry, and gradually lowering interest rates.

Foreign exchange rate will be regulated in flexible manner and in line with market developments, said Mr. Dũng.

The PM instructed State-owned enterprises to sell foreign currencies to banks and they can buy back at regulated price when they are in need.

Regarding the implementation of tightened fiscal policy, the Government chief requested to raise budget revalue to 7-8%; cutting the State budget spending by 10%; and reducing State budget deficit to below 5%.

Mr. Dũng suggested that it is convenient time to boost agricultural production as the prices of agricultural products are increasing.

He also asked the media to disseminate information on the advantages and disadvantages to help the people understand the situation and create a consensus to successfully implement the task. 

By Hương Giang