HANOI: The government has introduced a range of fiscal and price management measures to keep inflation in check.
This followed the latest public sector wage increase, while maintaining macroeconomic stability and supporting economic growth, said Finance Deputy Minister Nguyen Duc Chi.
Speaking at the government’s regular press conference for July, the deputy minister said fears that prices would rise ahead of wages have eased in recent years following successive wage adjustments.
“Following the wage increase on July 1, market developments have remained stable,” he said.
“Compared with previous adjustments, society has responded more rationally, so the inflationary pressure from higher wages is no longer as significant as it once was.”
Despite this, the government continued to implement coordinated fiscal and monetary measures to contain inflation and support sustainable growth.
The government had extended a range of tax relief measures, including the two-percentage-point reduction in value added tax, agricultural land use tax exemptions and deferred tax payments.
Reductions and exemptions for dozens of administrative fees and charges had also been maintained to ease costs for businesses and households.
To stabilise fuel prices, the Finance Ministry had proposed a series of tax measures, including lower import tariffs and tax reductions aimed at cushioning the impact of global oil price fluctuations.
Nguyen noted that during the recent period of volatility in world oil prices caused by tensions in the Middle East, the state budget advanced about eight trillion dong to the petroleum price stabilisation fund to enable timely market intervention.
The Finance Ministry is to continue working with the Industry and Trade Ministry, and other agencies to develop scenarios for managing prices, taxes and fees in response to domestic and global market developments.
The government was also carefully managing prices of state-regulated goods and services, including healthcare and education, as part of its broader inflation control strategy.
“These measures are intended not only to stabilise prices but also to ensure that public employees fully benefit from salary increases, while businesses and households continue to receive support through tax and fee reductions,” said Nguyen.
Regarding the government’s economic growth target, Nguyen said the economy expanded by 8.18% in the first half of this year, providing a solid foundation for the rest of the year.
However, achieving double-digit growth remained challenging amid continued uncertainties in both the global and domestic economies.
The Finance Ministry had worked with other ministries and agencies to prepare a wide range of growth scenarios that would enable the government to respond with flexibly in changing the economic conditions during the second half of the year, he said.
On fiscal policy, the government would continue pursuing a targeted expansionary approach by extending tax payment deadlines and land rental payments to improve cash flow for businesses and individuals, he added.
Fuel-related tax policies would also be adjusted flexibly in line with global price movements.
The ministry had completed the allocation of additional central budget revenue collected last year and the medium-term public investment plan for 2026 to 2030, allowing ministries, localities and projects to accelerate public investment disbursement.
It was also preparing resources for the planned increase in the statutory base salary from 2026. — Viet Nam News/ANN
