Gov’t continues to prioritise inflation fight

Prime Minister Nguyen Tan Dung has asked the Cabinet to pursue priorities in curbing inflation and stabilising the macro-economy.

During the Government’s regular May meeting, the PM urged ministries, departments and localities to maintain inflation control measures, with a focus on reducing the trade deficit to below 16 percent, and ensuring an appropriate growth rate.

Measures in Government Resolution 11 should be taken synchronously and in a drastic manner in order to keep the inflation rate under 15 percent, the growth rate at 6 percent and reduce State budget overspending to below 5 percent, he said.

The State Bank should continue to implement its flexible monetary policy, maintain credit growth below 20 percent, and to prioritise credit capital for the development of production, agriculture, exports, supporting industries and small and medium enterprises, while controlling bad debts and liquidity of the banking system, he said.

PM Dung emphasised the need to continue taking measures to control price hikes and avoid speculation while ensuring the supply and demand of essential commodities. Adjustment of fuel, electricity and coal prices was conducted in line with the market, he said, adding that the timing of adjustments must ensure inflation control and social welfare.

The June 1-2 Cabinet meeting discussed the country’s socio-economic performance in May and the first five months of this year, with a focus on public investment reduction and social welfare policies.

The Government members highlighted the progress recorded during the first five months in stabilising monetary markets, credit, management of foreign currency and gold, increasing industrial and agricultural production and exports, and improving living conditions for people, especially the poor, elderly and disabled.

During the meeting, the Government worked on a draft resolution on the administrative reform programme for 2011-2020, a draft resolution on acceleration of international economic integration for 2011-2015 and vision to 2020, as well as reviewing the five million hectare forest project, the forest protection and development programme for 2011-2020, and planning on human resource development for 2011-2020./.

VNA

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