Preparing financial resources for economic recovery program

The Ministry of Finance has provided solutions to prepare financial resources for the Socio-economic Development and Recovery Program. Photo: Hoang Vinh

Three resources of Economic Recovery Program

Amid the Covid-19 pandemic, seriously affecting all aspects of life, economy and society and the implementation of development goals, the Government has submitted to the Politburo for promulgation the Socio-economic Development and Recovery Program, and submitted to the National Assembly for promulgation Resolution 43/2022/QH15, aiming to support production and business development and not miss the global recovery momentum as well as stabilize the economy in the medium and long term.

The Government issued Resolution 11/NQ-CP on the Socio-economic Recovery and Development Program and implemented Resolution 43/2022/QH15.

Five key contents of the Government's Resolution 11/NQ-CP include opening up the economy, associated with improving the capacity of health facilities; ensuring social security through housing support package for workers, as well as effectively implementing social security lending policies through the Bank for Social Policies; support enterprises, cooperatives and economic organizations to recover and boost production; promoting public investment, especially for important projects and those able to be executed quickly; as well as implementing institutional and policy reforms. The program will be implemented from 2022 to 2023.

According to Deputy Director of the State Budget Department under Ministry of Finance Nguyen Minh Tan, this program requires a large scale and time for implementation. The fiscal policy packages in the Program are worth about VND291 trillion.

VND240 trillion is allocated from the State budget and about VND6.6 trillion from increased revenue and savings in the State budget in 2021 to support workers renting houses. The tax payment extension and refund to give incentives to businesses and economic organizations in 2022 continues to be implemented. The VND6 trillion of deferred payment worth VND135 trillion will be supported businesses. The guarantee of government bonds for the Bank for Social Policies to lend to policy beneficiaries will be increased to about VND38.4 trillion.

Regarding funds to implement the Program, Nguyen Minh Tan said “the overall support package will come from an increase in the state budget overspending and expenditure savings of the central budget in 2021, while the third source comes from the transition between credit policy and fiscal policy.”

The Ministry of Finance has closely coordinated with the Ministry of Planning and Investment, the State Bank, and ministries and government agencies to develop and complete the contents of the program and the Resolution of the National Assembly.

Urgently performing assigned tasks

The Ministry of Finance has also quickly performed its tasks. After the Government issued Resolution 11/NQ-CP, the Ministry urgently assigned duties and deadlines to its subordinate units.

The Ministry will lead to implement 18 tasks and coordinate with other agencies to perform 13 tasks, including tasks that must be completed in the first quarter of 2022 and in long-term, Tan said.

For urgent tasks that the ministry must perform in the first quarter of 2022, including guidance on tax exemption and reduction policies; guiding the deadline extension for tax exemption and payment; guiding the implementation of credit policies for students to buy computers; guiding the interest rate compensation for the Bank for Social Policies; and coordinating with the State Bank to issue a guideline framework on credit support for businesses.

The Ministry of Finance has submitted to the Government for promulgation Decree 15/2022/ND-CP stipulating tax exemption and reduction policies under Resolution 43/2022/QH15; and allowed businesses to deduct income taxable expenses for donations for Covid-19 prevention.

The Ministry has also urgently coordinated with the State Bank, the Bank for Social Policies and relevant agencies to instruct the implementation of credit policies for students and pupils to buy computers for online learning; or the interest rate compensation for the Bank for Social Policies.

Furthermore, the Ministry of Finance has reviewed needs and resources to report to the Prime Minister on issuing a decision on increasing government guarantees for the Bank for Social Policies issuing domestic bonds to lend to beneficiaries of social welfare.

There are the urgent tasks that have been implemented by the Ministry of Finance and need direct contributions of the relevant ministries, agencies and units to report to the Government in the first quarter of 2022.

In addition, the Ministry of Finance has also directed its units, especially the Department of State Budget and State Treasury to make plans to prepare funds for the Program as well as the State Treasury as well as other spending needs and not to affect the liquidity of the State Treasury in any situations.

Moreover, the ministry has taken advantage of the space in revenue growth, actively save spending and strictly control recurrent expenditures, especially expenditures for capital construction investment, and cut unnecessary expenditures for this Program.

The Ministry of Finance has also worked with other ministries, agencies and localities to accelerate the equitization of SOEs, as well as review financial funds outside the state budget to have the finance to implement the program and ensure progress.

"Given such solutions, the fiscal policy solutions in Resolution 43 and Resolution will be practical and efficient," said Tan.