Spending about 170,000 billion VND for cadres quitting their jobs, streamlining the apparatus
According to Deputy Prime Minister Ho Duc Phoc, this year budget expenditures will increase, with the payment for cadres who quit their jobs and retire early about 170,000 billion VND.
On April 23, the National Assembly Standing Committee gave its opinion on the draft Resolution of the National Assembly on reducing value-added tax (VAT) for the last 6 months of 2025 and the whole year of 2026.
At the meeting, Party Central Committee member and Deputy Prime Minister Ho Duc Phoc said that in the last 6 months of the year, the economy will be affected by US tax policies, it is necessary to continue to reduce taxes for businesses with stable production and business conditions and increase competitiveness.
Regarding the concern about the collection reduction of tens of thousands of billions of VND not included in the budget as stated by the inspection agency, Deputy Prime Minister Ho Duc Phoc said that there will be a collection method to still complete the budget collection target for this year.
Giving further opinions at the meeting, Chairman of the Economic and Financial Committee Phan Van Mai said that at the previous meeting of the National Assembly Standing Committee, the National Assembly Chairman proposed that the Economic and Financial Committee coordinate with Government agencies to grasp the savings figure from the restructuring and streamlining of the apparatus. Second, the number of implementation of expenditure tasks arising for investment and implementation of the apparatus arrangement policy.
Therefore, Mr. Phan Van Mai suggested that Deputy Prime Minister Ho Duc Phoc direct the coordination agencies to assess the arising revenue and expenditure to balance the budget.
"If we add up the reductions in revenue of hundreds of thousands of billions of VND and then generate hundreds of thousands of billions of VND, the number is very large. While the national budget revenue is about 2 million billion. This rate is quite large compared to total revenue, so this figure is needed soon - Chairman of the Economic and Financial Committee suggested.
Regarding this issue, Deputy Prime Minister Ho Duc Phoc said he would assign the Ministry of Finance to synthesize and report to the National Assembly Standing Committee and the National Assembly Chairman.
According to the Deputy Prime Minister, this year's budget expenditure will increase when streamlining the apparatus. "In particular, the payment of salaries for cadres who quit their jobs and retire early is about 170,000 billion VND, according to incomplete statistics" - Deputy Prime Minister Ho Duc Phoc said.
According to the Deputy Prime Minister, in addition to tuition fees, there will be a reduction of about 30,000 billion VND. In the coming time, when some policies on health insurance and other policies are implemented, the number of expenses may increase.
Regarding VAT alone, the Deputy Prime Minister said that in the past 4 years, it has decreased by 2%, from 10% to 8%. This is a priority for businesses, ensuring that businesses can recover after the pandemic.
The Deputy Prime Minister added that this year, salary for severance pay will be paid, streamlining the apparatus that has been used in the Salary Fund for a long time, accumulated at the same time from the budget. But next year the Government will report to balance the collection policy, taxes, and balance in 2026 and in the next 5 years.
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