Hanoi (VNA) – The Governmenthas proposed a package of fiscal solutions worth 291 trillion VND (nearly 12.8billion USD) in total to support socio-economic recovery and development.

The proposal was submitted tothe 15th National Assembly (NA) at the first extraordinary sessionopened on January 4.

In this package, theGovernment plans to increase overspending by 240 trillion VND in 2022 and 2023 toprovide direct aid from the State budget, including 64 trillion VND in tax,fee, and charge reduction; and spending directly from the budget by 176 trillion VND.

It will allocate about 6.6trillion VND from the central budget as house rent assistance for workers, cut 6trillion VND in expenses for businesses, and raise the limit of Government-guaranteedbond issuance by a maximum of 38.4 trillion VND for the Vietnam Bank for SocialPolicies to offer concessional loans helping with job provision.

In the package of monetarysolutions, the Government suggested lending interest rates be cut by at least0.5 - 1 percent in two years, aside from other policies supporting enterprises.

Talking at group discussions,most of legislators noted these aresupplementary policies which have not been included in the fiscal and monetarymeasures approved in the socio-economic development, financial, publicborrowing and debt repayment, and public investment plans for 2021 - 2025,and that they met demand in reality amid severe impacts of the COVID-19pandemic.

They addedthe fiscal and monetary packages will act as a stimulus helping the economysurmount difficulties soon, avoid the undermining of growth drivers in the longterm, and catch up with the world’s economic recovery process.

President NguyenXuan Phuc, who is an NA deputy of Ho Chi Minh City, said the fiscal package ofVietnam is small compared to those of other countries, but it is at the minimumnecessary level.

He heldthat resources should be prioritised for health care since the grassrootshealth care system is still weak. Besides, it is necessary to enhance enterprises' and investors’ trust through frequent dialogue and settlement of obstaclesfacing them.

NA ChairmanVuong Dinh Hue, a deputy of Hai Phong city, said the proposed fiscal andmonetary policies were designed to stimulate both supply and demand, with alarge enough scale and a long enough duration, which can be effective for theeconomy.

However,as they are supplementary policies, the parliament needs to discuss thoroughlyand the Government should seriously consider the issues pointed out by theverification agencies and NA deputies so as to ensure maximum effectiveness. Inaddition, swift and efficient implementation is needed as there are only twoyears for the urgent aid packages to be carried out, according to him./.