Government reduces regular expenses to raise wages

(VOVworld)- Prime Minister Nguyen Xuan Phuc has urged for greater efforts to implement the resolution on socio-economic development tasks for 2017 which include reducing public spending and increasing wages. At the government’s monthly meeting for November, the Prime Minister said this was an important task that contributes to ensuring social security.
Government reduces regular expenses to raise wages - ảnh 1
Prime Minister Nguyen Xuan Phuc

The Resolution on State Budget Estimates for next year, approved by the National Assembly in November, increases the minimum government salary from 1,210,000 VND to 1.3 million VND per month as of July 1, 2017. The National Assembly asked Ministries, and central and local agencies to calculate new wages based on their budget allocation.

Prime Minister Nguyen Xuan Phuc asked for completing a draft resolution on implementing next year’s tasks and submit it at the government’s expanded meeting with localities in December. Phuc said the resolution must include ways to minimize public spending: “In the estimates of the Ministry of Finance, we can save 10% of our regular expenditures to increase wages. I have looked at the estimates and found that many expenses like overseas trips and receptions are unchanged compared to previous years. Reducing public spending will greatly benefit the nation and every locality.”

Minister and Head of the Government Office Mai Tien Dung said: “The Prime Minister stressed the importance of reducing public spending in the early months of next year. We should be prepared to implement the plans.”

The government has several times increased wages, allowances for public functions, and pensions. This has put pressure on the State budget. The government has implemented several solutions to more effectively manage the state budget including maintaining a cash reserve equal to 50% of estimates to deal with possible a sharp decline of state revenues, strictly controlling expenditures, ensuring efficient budget allocation, prioritizing tasks, and minimizing public spending.