Deputy PM chairs financial-monetary advisory council

Wednesday, 2017-12-27 03:49:31
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Deputy PM Vuong Dinh Hue speaks at the meeting. (Photo: VGP)
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NDO - The National Council for Financial and Monetary Policy Consultation convened its fourth-quarter meeting in Hanoi on December 26 under the chair of Politburo member and Deputy Prime Minister Vuong Dinh Hue.

At the meeting, the Council made a number of proposals to the Government and the Prime Minister related to the implementation of macroeconomic, monetary and fiscal policies.

The State Bank of Vietnam should manage interest rates in line with the macro balance, inflation and monetary market, and address the relationship between deposit and lending rates in addition to striving to reduce lending rates. Credit should be provided in accordance with the absorption capacity of the economy, while the structure and quality of credit should be strictly managed.

The Government should also clarify the difficulties related to the balance of the central and local budgets, the disbursement of public investment capital, and the efficiency of fiscal policies.

Accordingly, the Government should prioritise the fight against tax loss while expanding the tax base rather than raising tax rates; actively make budget collection estimates based on socio-economic data. In addition, expenditures shall be made according to estimates and levels of budget collection.

It is also necessary to develop the capital market in general and the stock market in particular, as well as devise more effective measures which will prevent insider trading and price making on the stock exchanges.

Under the PM’s Decision 59/2011/QD-TTg, the council is designed to advise the Government and the PM on major policies, projects and proposals as well as other important issues in the fields of finance and monetary management at the macroscopic level.

The council serves as a mechanism to bring together managers and researchers in the area to provide consultations in macro-economy management.