Using the remaining 1 trillion VND in the wrong place will create other waste.

VietNamNetVietNamNet01/06/2023


On the morning of June 1, the National Assembly continued to discuss the socio-economic situation in the hall. Delegate Ha Sy Dong, Permanent Vice Chairman of the People's Committee of Quang Tri province, debated with delegate Tran Anh Tuan (HCMC) on the use of the remaining state budget deposited in the banking system, which is now 1 quadrillion VND.

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Delegate Ha Sy Dong reiterated Delegate Tuan's proposal to flexibly use this capital source to immediately arrange and support workers and unemployed people, or build rental housing and boarding houses for workers in export processing zones and industrial parks, support job training and career conversion for workers to immediately stimulate the economy.

“I share the delegates’ impatience and agree that this source of capital should be flexible, but it should be flexible in coordinating monetary and fiscal policies, removing administrative procedures to put money into the right place. That is, into important projects, creating momentum for the economy,” the Vice Chairman of Quang Tri province emphasized.

According to delegate Ha Sy Dong, if projects that have been and are being prepared for investment and need this capital are not available, then "one waste will give rise to another waste."

Delegate Ha Sy Dong, Permanent Vice Chairman of Quang Tri Provincial People's Committee

“It is true that the current mechanism allows the State Treasury to optimize temporarily idle capital, but the question here is whether fiscal policy really coordinates well with monetary policy in implementing the current priority goal of reducing lending interest rates in the economy?” Mr. Dong raised the question.

More specifically, does the determination of the bid price as well as the expected bid volume take into account the operational objectives of banking system liquidity, as well as the capital price level in the money market that the State Bank is pursuing?

"I hope government members have satisfactory answers to help solve the economic difficulties," said the Vice Chairman of the Quang Tri Provincial People's Committee.

Minister of Finance Ho Duc Phoc

Also related to the opinion of delegate Tran Anh Tuan, Minister of Finance Ho Duc Phoc said that the current budget surplus is 1,043 trillion VND. Of which, 895 trillion VND is deposited at the State Bank with an interest rate of 0.8%/year and the remaining 130 trillion VND is deposited short-term at commercial banks.

“This amount has a detailed spending plan for the projects. The remaining amount is due to not being used or fully disbursed, not being reserved for spending or allocating to other purposes,” Minister Ho Duc Phoc emphasized.



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