VINACHEM

The National Advisory Council for Financial and Monetary Policies has proposed the Government set gross domestic product (GDP) growth and inflation targets for next year at 6.7% and 4% respectively at a meeting in Hanoi on Wednesday.

The regular meeting of the fourth quarter chaired by Deputy Prime Minister Vuong Dinh Hue also saw the council suggesting the Government solutions for fiscal and monetary policies to successfully implement the socio-economic development tasks of 2017, boost competitiveness, change the growth model, and restructure the economy.

Members of the council stressed the need next year for restructuring credit institutions, businesses, public investments, budget collections and expenditures associated with ensuring the country’s financial safety, and public service units, according to information posted on the central bank’s website.

The restructuring of those five fields will help cope with the weaknesses of the economy and create momentum for further growth, said the council.

In order to effectively apply the fiscal and monetary policies in the coming time, the council said the Government should carry out the policies in line with the medium-term public investment plan and the annual financial plan, focusing on restructuring budget spending and improving the efficiencies of public investments and public expenditures.

As for monetary policy, the central bank is asked to continue being cautious but flexible.

It is suggested to give priority to realizing the macroeconomic stability target, bolstering public confidence in the domestic currency, closely combining fiscal and monetary policies, and keeping interest rates stable.

As for this year’s results, the council said GDP growth may be lower than the target of 6.7% due to the slowdown in agriculture and mining.

However, the motivation for economic growth is still maintained and the country can reach growth of 6.3-6.5%.

Regarding the financial target, the country can realize the budget revenue collection targets assigned by the National Assembly at both central and local levels. - VNN