Fiscal policies work to keep inflation under control
Fiscal policies have worked to promote economic growth and control inflation in the first months of this year, Deputy Minister of Finance Vo Thanh Hung said, adding that close watch would be placed on the market to ensure inflation was within the National Assembly’s target.
To control inflation below 4 percent as set by the National Assembly, it was necessary to reduce cost-push impacts, increase the supply of goods and prevent inflationary psychology. (Photo: VNA)
Hanoi (VNS/VNA) - Fiscal policies have worked to promote economicgrowth and control inflation in the first months of this year, Deputy Ministerof Finance Vo Thanh Hung said, adding that close watch would be placed on themarket to ensure inflation was within the National Assembly’s target.
Hungpointed out that the rapid increases in global commodities prices from thebeginning of this year significantly affected the domestic market withskyrocketing food and raw material prices.
TheUS’s inflation surged to a new four-decade high of 8.5 percent in March fromthe same time a year ago, driven by skyrocketing energy and food prices.
InVietnam, inflation averaged 1.92 percent in the first quarter, a moderateincrease, Hung said, adding that fiscal policies focused on reducing taxes andfees to support the economy worked to control inflation.
Hungpointed out that the taxes and fees reduced in 2022 would total around 88-90trillion VND.
Headded that the ministry was going to propose a Governmentextension of three, six and nine months to pay land fees and taxesestimated at around 135 trillion VND to support enterprises.
Tocontrol inflation below four percent as set by the National Assembly, it wasnecessary to reduce cost-push impacts, increase the supply of goods and preventinflationary psychology, Hung said.
Aclose watch would be placed on the market developments, especially on necessarygoods and services, to timely raise appropriate policies.
Itis also important to promote products to increase the supply of goods inthe domestic market and ensure market circulation.
Accordingto Nguyen Minh Cuong from the Asian Development Bank (ADB), Vietnam’s inflationwill remain under 4 percent, adding that the Vietnamese Government’sability to control prices remained flexible, such as reducing environmentalprotection tax on fuel.
Throughout2022, the biggest risk to inflation is external factors. From 2023, whenthe economy recovers, the increase in domestic demand would weigh on inflation.
ADBforecast Vietnam’s inflation at 3.8 percent this year and 4 percent in2023.
Meanwhile,Standard Chartered recently forecast Vietnam’s inflation this year to exceedthe expected rate of 4 percent and even climb higher in the following years./.
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To control inflation below 4 percent as set by the National Assembly, it was necessary to reduce cost-push impacts, increase the supply of goods and prevent inflationary psychology. (Photo: VNA) 
