Foundation for economic growth comes from fiscal policy: Economists

The Government's drastic directions in financial and monetary management, and growth support in the first quarter of 2024 are a foundation helping Vietnam's economy overcome difficulties and achieve impressive growth amidst a variety of challenges of the world economy, according to economists.

Minister of Finance Ho Duc Phoc said that the financial sector has continued to solve a "difficult problem" of implementing a reasonable expansionary fiscal policy to both promote the economy and ensure macro-economic stability, control inflation, and ensure national financial safety. Accordingly, the Ministry of Finance (MoF) has operated the fiscal policy flexibly and effectively.

Economists assessed that in an unprecedented context, the MoF has researched and submitted to competent authorities to maintain solutions to implement policies on exemption, extension, and reduction of taxes and fees, such as reducing the value-added tax rate by 2 percentage points from the 10% rate.

Economist Dinh Trong Thinh said that these policies have received applauses and appreciation from businesses and people.

Sharing the same view, To Hoai Nam, Standing Vice President and General Secretary of the Vietnam Association of Small and Medium Enterprises, said that these policies have helped enterprises promote production and business activities, reduce production costs and product prices, and stimulate domestic consumption, which benefits people.

The MoF always determines to accompany and stand side by side with firms through solutions to support the business community to overcome difficulties, quickly recover and develop production and business activities, thereby contributing back to the economy and the budget, and nurturing a stable and long-term revenue source, affirmed Phoc.

In the coming time, the ministry will focus on operating the fiscal policy proactively, reasonably, flexibly and effectively; and combine the fiscal policy and other economic policies to maintain the macro-economic foundation, control inflation, ensure major balances, and promote growth and sustainable development of socio-economic fields.

In addition, the MoF will continue to improve institutions, laws and policies on state budget revenue, keep a close watch on socio-economic developments, and research appropriate tax policies to help enterprises deal with difficulties, he added.