Resolution No. 32/2009/NQ-QH12 dated June 19, 2009 of the National Assembly on adjustment of the overall objective and some economic and state budget targets, additional issue of government bonds in 2009, and personal income tax exemption and reduction

THE NATIONAL ASSEMBLY

Resolution No. 32/2009/QH12 on adjustment of the overall objective and some economic and state budget targets, additional issue of government bonds in 2009, and personal income tax exemption and reduction

The National Assembly of the Socialist Republic of Vietnam

Pursuant to the 1992 Constitution of the Socialist Republic of Vietnam, which was amended and supplemented under Resolution No. 51/2001/QH10;

Pursuant to the Law on the State Budget;

After considering the Government’s submission report No. 87/TTr-CP of May 19, 2009, on adjustment of the overall objective and some economic and state budget targets, additional issue of government bonds in 2009, and personal income tax exemption and reduction; the Financial and Budgetary Committee’s verification report No. 819/BC-UBTCNS12 of May 19, 2009, the Economic Committee’s verification report No. 780/BC-UBKT12 of May 19, 2009, and opinions of National Assembly deputies; and the National Standing Committee’s report No. 240/BC-UBTVQH12 of June 15, 2009, on absorption of and explanations in response to opinions of National Assembly deputies;

RESOLVES:

Article 1. The National Assembly has basically agreed with the Government on its evaluation of the socio-economic situation of 2008 and the first four months of 2009 and held that in the first months of 2009, due to the impacts of the global financial crisis and economic downturn, domestic production, business, export, investment, employment generation and budget collection activities have met with numerous difficulties and decreased; most targets were underachieved against plan and compared to the same periods of many previous years. However, under the concentrated leadership and direction of the Party and State, with the great efforts and high determination of all levels and branches, the entire people and business community, the national economy has recorded initial positive results, which are markedly expressed in a number of branches and sectors, difficulties in production, employment and people’s life have been incrementally removed, the socio-political situation has been stabilized and defense and security has been firmly maintained. Yet, there remain big difficulties and challenges. Stemming from judgments on the socio-economic situation of the first four months of 2009 and subsequent months, the National Assembly has unanimously consented to the adjusted overall objective of the 2009 socio-economic development plan as follows: To concentrate to a high degree all efforts to prevent economic downturn, striving to maintain a reasonable and sustainable economic growth rate and keep the macro economy stable; to take the initiative in preventing the reoccurrence of high inflation, ensure social welfare, defense and security, and firmly maintain political stability, social order and safety, with curbing economic downturn as the primary objective.

Article 2. To adjust the 2009 targets of GDP growth rate to about 5%, consumer price index to below 10%; export turnover increase to 3%; and the state budget deficit to maximum 7% of GDP. Based on the practical situation, the Government shall administer the state budget deficit at the lowest level and incrementally reduce it in subsequent years.

Article 3. To additionally issue VND 20,000 billion in government bonds in order to accelerate investment in transport, irrigation, health and education projects and works according to the targets already set by the National Assembly; and concurrently add the investment objective of building student dormitories and urgent projects, especially in poor and economically underdeveloped provinces. The Government shall draw up plans for allocating additional capital raised from government bonds and report them to the National Assembly Standing Committee for consideration and comment, before making decision according to law.

Article 4. To exempt all personal income tax amounts arising from January through June 2009, which have been delayed for all taxpayers.

To further exempt personal income tax from July 1, 2009 to the end of 2009, for incomes from capital investment and transfer, copyright and franchising.

Article 5. To keep the total expenditure level in the state budget estimate under the National Assembly’s Resolution No. 21/2008/QH12 of November 8, 2008, on the 2009 state budget estimate. Ministries, central branches and localities shall strive to increase revenues, combat loss and resolutely collect outstanding debts to offset revenue decrease, rearrange their spending tasks and take the initiative in balancing budget revenues and expenditures. To permit the use of lawful financial funds to offset revenue decrease; in case the implementation of tax relief policies results in lower local budget revenues compared to assigned estimates, supports shall be provided from the central budget to local budgets.

The Government shall use the increased state budget surplus to offset revenue decrease, ensuring the 2009 state budget spending tasks already decided by the National Assembly; attach importance to restructuring the economy; and proactively and actively implement the National Assembly’s resolutions, striving for the highest results in realizing the overall objective defined in Article 1 of this Resolution.

Any necessary, imperative issues arising in the interval between two National Assembly sessions beyond the Government’s competence shall be reported to the National Assembly Standing Committee for consideration, decision and reporting to the National Assembly at the nearest session.

The National Assembly Standing Committee, the Financial and Budgetary Committee, the Economic Committee, the Ethnic Minorities Council, other agencies of the National Assembly, National Assembly deputies’ delegations, National Assembly deputies and concerned agencies shall, according to their respective functions and tasks, oversee and examine the observance of laws on the management and administration of socio-economic and state budget issues of 2009.

This Resolution was passed on June 19, 2009, by the XIIth National Assembly of the Socialist Republic of Vietnam at its fifth session.

Chairman of the National Assembly
NGUYEN PHU TRONG