State budget collection is estimated to exceed 1% of the set target despite economic downturn, Dung said while noting next year’s objectives will be pivoted on stabilizing the macro-economy, maintaining inflation rates at around 7 percent, adjusting the VND exchange rate down by 1-2% and lending interest rates equivalent to 2013’s level.

A 10 percent increase in export turnover will ensure boosted production, balanced payment and higher foreign currency reserves which could in turn bring an economic growth rate of 5.8 percent for next year.

The financial sector needs to effectively combine the fiscal and monetary policies to promote macroeconomic stability and financial and monetary security thus alleviating some of the difficulties faced by businesses.

It is imperative to do well with tax collection, keep inflation and market prices in check, ensure sufficient goods supplies for the Lunar New Year Festival (Tet) and strictly control regular public spending for salaries, meetings, receptions, petrol and telephone charges in order to keep it at not exceeding 70 percent from 2013, Dung said.

PM Dung asked the financial sector to accelerate the equitisation of State-run enterprises (SoEs) and economic and banking restructuring with a view  to increasing the efficiency of public investment and stimulating the development of the capital and security markets.

The financial sector should endeavour to streamline administrative, tax and customs formalities to facilitate business operations and prevent trade fraud thus creating an attractive investment environment, Dung said.

Deputy Finance Minister Nguyen Cong Nghiep reported his ministry has submitted the National Assembly (NA) for its approval of amendments and supplements of some articles of the Law on Corporate Income Tax and the Law on Value Added Tax which offer more incentives for businesses, particularly small and medium-sized enterprises (SoEs).

As a result, corporate income tax in the first six months of 2013 saw a reduction from 25 percent to 20 percent.

Total budget revenue (including collection and spending beyond estimates) is predicted at 99 percent of budget estimates, up VND16,000 billion from the figure reported to the NA.

Regular spending worth nearly VND648,300 billion from the State budget have been controlled by State treasuries, reaching up to 96 percent of regular spending estimate.

Regarding the State budget balance, the Finance Ministry affirmed that this year’s budgetary overspending has been adjusted at 5.3 percent of GDP as set by the NA.