What is the size of the economic recovery package?
According to many experts, the stimulus package could reach 800,000 billion, while the head of the advisory group to Prime Minister Nguyen Duc Kien insisted that it was no less than half a million billion, equivalent to the total annual public investment.
The Ministry of Planning and Investment is submitting to the authorities an economic recovery program, including a proposal for an economic recovery package. Share with VnExpressAccording to many economists, the scale of this package could reach 800,000 billion VND.
Nguyen Duc Kien, Head of the Prime Minister’s Advisory Group, which participates in the economic recovery program, said in the afternoon of November 2: “The size of the package has not been finalized, but it will definitely be larger than the total public investment. It will not be fully disbursed by 2022, but will be there is a roadmap. It is hoped that next week the National Assembly will discuss this economic recovery program.”
According to data from the Ministry of Planning and Investment, the disbursement of public investment in 2020 was more than VND 466,000 billion. The total estimated capital budget for the medium-term public investment plan for the period 2021-2025 is VND 2.87 million, or an average of about VND 574,000 billion per year. Thus, the support package that the Government is discussing is at least half a million VND.
The head of the Ministry of Planning and Investment who was involved in the drafting declined to provide details on the size of this stimulus package.
Ho Chi Minh City, the economic powerhouse, is deserted during the social distancing period due to Covid-19. Photo: Quynh Tran
As a direct contributor to this economic recovery plan, Mr. Nguyen Duc Kien said that if the total size of the economic recovery package reaches 800,000 billion VND (over 35 billion USD), he will serve as the initial capital. investment, stimulate growth, create jobs… One dollar spent can mobilize 4-5 times the other capital in a participating economy. If mobilized four times, the economy will have about 4 million billion to support in the next 4-5 years.
“So every year we will have a huge capital of around 1 million VND, equivalent to 1.3 million VND in budget revenue, to invest,” said Mr. Kien.
Discussing the scale of this economic recovery package, Dr. Can Van Luc, a member of the National Monetary Policy Advisory Council, said that it is necessary to review the realization of support package expenditures to obtain more accurate data on the overall economic stimulus package.
For example, support packages for extending, deferring taxes and fees of around 100,000-200,000 billion VND from 2020 to now have been provided by the authorities, but the reality is that businesses are not reaching the full size of the announced packages. The reason is the postponement and relaxation policy, so that at the end of the financial period, business actors still have to return it to the budget. “Resource mobilization must be based on real data to be more realistic,” he said.
According to the draft of the Ministry of Planning and Investment at the end of October 2021, the Government has made every effort to mobilize all resources to support communities and businesses to overcome the difficulties of the epidemic, but the scale of supporting policies of assistance is still relatively low (estimated at USD 10.5 billion in 2015. 2021, equivalent to 2.85% of GDP).
These packages, according to the assessment, mainly affect the supply side, has not been very supportive of people and businesses; There is no one-stop solution with the resources to drive a synchronized recovery on the supply and demand sides of the economy.
The overall economic recovery program will include four component programs: opening up the economy related to the prevention and control of the Covid-19 epidemic; social security and employment programs; restoration of business entities, cooperatives and household businesses. Lastly, programs to develop infrastructure, open up social resources for development investment.
Anh Minh – Duc Minh
at Blogtuan.info – Source: vnexpress.net – Read the original article here
