Expected to spend 170 trillion VND for officials who quit their jobs or retire early due to streamlining the apparatus

Deputy Prime Minister Ho Duc Phoc said that in 2025, budget expenditures will increase. The amount of money paid to officials and civil servants who quit their jobs or retire early when streamlining the apparatus will be about 170 trillion VND.

On the morning of April 23, the National Assembly Standing Committee gave its opinion on the National Assembly's draft Resolution on reducing value-added tax. The draft stipulates a 2% reduction in value-added tax rates, applicable to groups of goods and services currently subject to a tax rate of 10% (to 8%), except for some groups of goods and services including: telecommunications, financial activities, banking, securities, insurance, real estate business... The application period is from July 1, 2025 to December 31, 2026.

Reporting at the meeting, Deputy Minister of Finance Cao Anh Tuan said that the above proposal aims to institutionalize the socio-economic development target for 2025 with a growth target of 8% or more, contributing to creating a solid foundation to achieve double-digit growth in the period 2026 - 2030. This policy has also been applied in the period from 2022 to the first 6 months of 2025.

“Thereby, the solution to reduce value-added tax along with other support solutions on taxes, fees, and charges is creating great conditions to help businesses reduce production costs, increase profits, and increase the ability to stimulate demand,” said Mr. Tuan.

Deputy Prime Minister Ho Duc Phoc said that in 2025, budget expenditures will increase.

According to expected calculations, the reduction in state budget revenue in the last 6 months of 2025 and the whole year of 2026 is about 121.74 trillion VND.

During the review, Chairman of the Finance and Economic Committee Phan Van Mai said that the majority of opinions in the Standing Committee agreed with the necessity of issuing the policy.

However, some opinions believe that continuing to propose the issuance of the policy is not really appropriate and difficult to achieve the set goal of stimulating consumption, because the policy's ability to stimulate demand has been saturated after a long period of implementation. Therefore, it is recommended to consider, if necessary, only extending the policy implementation period until the end of 2025.

Speaking at the meeting, Deputy Prime Minister Ho Duc Phoc assessed that this policy reduces taxes for businesses to create stability, development, and competitiveness, especially in the context of the US imposing high taxes on many countries, including Vietnam.

The Deputy Prime Minister added that in 2025, budget expenditures will increase. Paying officials and civil servants who quit their jobs or retire early when streamlining the apparatus will cost about VND170 trillion. In addition, about VND30 trillion will be spent on tuition exemption. In addition, new policies coming into effect such as health insurance will increase state budget expenditures.

“The government will balance and prepare the budget for 2026 and the following term. Thereby, it will fully report forecasts on spending capacity. This year, the budget is still bearable because the part of paying severance pay and streamlining the apparatus is being accumulated in the salary fund,” said the Deputy Prime Minister.

According to News and People Newspaper

Source: https://baohungyen.vn/du-kien-chi-170-nghin-ty-dong-cho-can-bo-thoi-viec-nghi-huu-truoc-tuoi-do-tinh-gon-bo-may-3180761.html