PM emphasizes need to curb inflation

Prime Minister Nguyen Tan Dung has emphasized the need for the country to curb inflation and stabilize the macro-economy.

PM Nguyen Tan Dung at the online conference (Source: VNA)

PM Dung stated this during an online conference in Hanoi to implement the Government’s major solutions to curb inflation, stabilize the macro economy and ensure social security on February 24.

This requires all departments at all levels and sectors to introduce adequate solutions with a strong political determination, said the PM .

Priority must be given to strictly and cautiously putting into action the monetary policy, controlling the growth of credit under 20 percent while granting preferential credit to agricultural production, supporting industries and investment in essential areas with transparent management, he noted.

He also asked the State Bank of Vietnam to mobilize and utilize all the sources it could to control the exchange rate and prevent the exchange rate from fluctuating.

After the conference, state-owned groups and corporations must sell all their foreign currencies to the banks to sell to businesses at the regulated price when they are in need, said the PM.

Regarding the implementation of the fiscal policy, PM Dung demanded an increase of 7-8 percent in income, savings in expenditures by 10 percent and a cut in over-expenditure to below 5 percent.

To promote production, encourage exports and control inflation, the PM said it is a convenient time to promote the development of agricultural production as the prices of agricultural products are increasing.

He also demanded a drop in imports of goods that can be produced locally and to reduce the trade deficit to ease the exchange rate.

The government leader confirmed that it is essential to increase electricity and petroleum prices and proposed that the ministries and local authorities assist poor families with their electricity bills.

He also asked the media to promote information on the advantages and difficulties to help the people understand the situation and create a consensus to successfully implement the tasks.

Earlier, Permanent Deputy PM Nguyen Sinh Hung had introduced the government’s Resolution on major solutions to rein in inflation, stabilize the macro-economy and ensure social security.

These solutions focus on implementing the strict and cautious monetary policy; executing the tightened fiscal policy, cutting public investment and reducing State overspending; stepping up production and business, encouraging exports, restraining trade deficit and effectively using energy; adjusting electricity and petroleum prices combined with subsidies for poor households; and ensuring social security.

Mr. Hung stressed that curbing inflation is the government’s number one, consistent priority, adding that if successful, the move would help improve people’s lives and ensure macro-economic stability and sustainable development.

The implementation of the tightened fiscal policy and the reduction of both public investment and State over-expenditure will not target salaries, social policy beneficiaries or loans for students, but aim to stop the purchases of new equipment; cut spending on electricity, water and petroleum, halt the allocation of funding for unnecessary projects; and reduce expenses for conferences and seminars, he noted.

At the conference, leaders of ministries, concerned agencies and localities all affirmed a strong resolve to perform the coordination mechanism, increase the dissemination of information and adopt specific action plans to effectively implement the resolution and achieve the government’s targets.

Source: VNA

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