The information is contained in the Resolution on the State Budget 2016, which was adopted by the National Assembly on November 11, with nearly 80% voting yes of the total of 435 delegates participating in the vote.

Specifically, the National Assembly permitted the use of VND40 trillion from the sale of shares owned by the State in a number of SMEs to invest in development. 

In case of the State budget deficit in 2015, the National Assembly allowed the use of up to VND10 trillion in proceeds from the sale of State shares at SOEs. VND30 trillion will be added to the state budget in 2016 to increase investment spending.

The National Assembly also ratified the issuance of government bonds worth $3 billion in the international capital market to restructure the domestic debt of the government in 2015 and 2016.
The law-making body also agreed to implement the diversification of the term of government bonds issued in 2015 and 2016. Accordingly, Vietnam will only issue government bonds with a term of 3 to less than 5 years at a rate not exceeding 30% of the total volume of government bonds issued, and 70% with a term of 5 years or more.

5% pay rise next year

National Assembly deputies also agreed that the base salary for State officials and employees will increase as of May next year by 5% or VND60,000 compared to the previous level.

Accordingly, the base salary will be adjusted from VND1.15 million to VND1.21 million.

Pensions and preferential subsidies for people credited with serving the revolution still stand at 8% equal to 2015’s level.

Vice Chairman of the NA Committee on Social Affairs Bui Sy Loi attributed the wage increase of 5% amid current budgetary difficulties to the salary reform efforts by the government.

“The government should come up with a feasible solution for keeping inflation in check to prevent negative impact from the wage increase. It is also imperative to revamp the administrative apparatus and downsize the number of incapable staff so as to boost salary reform more effectively in line with the principle of labor distribution towards increasing labor productivity,” Loi said.

PV