The Politburo has recommended tighter price control and a stronger role for the State bank in overseeing investments, as part of a series of measures to overcome the challenges the national economy has been facing.
At a recent meeting discussing socio-economic issues of the year’s first quarter, it urged that relevant parties had to make concerted efforts to overcome challenges in developing the economy.
The Politburo stressed the importance of regulating financial and monetary policies, managing the emerging stock and real estate markets, strengthening market price controls, encouraging export and limit deficit.
It also asked relevant offices to ensure every measures was taken to ensure businesses could boost their production while strengthening social welfare policies.
As for the State’s financial policy, the Politburo said measures should be taken to increase the State budget’s revenues while implementing a tight financial policy, cutting down on regular expenses, and increasing the efficiency of investment that fell under the State budget.
It said it was essential to raise export taxes at an appropriate rate on some mineral resources, and increase import taxes and inland taxes on some non-essential and luxurious consumables. The Politburo continued that measures should ensure there was no loss of tax revenue.
Projects considered to be less efficient and not urgent will not be provided State funds this year, while efforts will be concentrated on key national projects.
The Politburo urged that the State bank have a stronger role in closely controlling payment instruments, outstanding loans, lending for trade on the real estate and stock markets which are implemented by commercial banks and monetary trading organizations. It also stressed that a flexible regulatory monetary policy was needed to ensure a sustainable growth rate and limit outstanding debts.
The importance of controlling foreign investment and exchange rates while implementing measures to anti-dollarise the local economy was also stated.
Concerning the control of securities and real estate markets, the Politburo agreed that it was necessary to closely control bank loans by companies investing in securities and real estate markets.
It continued that tax policy should discourage speculation of the real estate market and open policies were needed to ensure both markets grew at a healthy rate.
As part of an effort to strengthen the management of market prices and balance supply and demand for commodities, the Politburo agreed to strengthen the role of the State in controlling prices and that they would ask businesses not to increase the price of some strategic products such as electricity, oil and gas, cement, steel, coal and water.
It said a policy was needed to streamline measures for businesses to export while implementing strict measures to deal with contraband items and trade fraud.
The Politburo also put emphasis on implementing policies and ensuring rapid support for people stricken by natural calamities and epidemic diseases, to help them quickly re-stabilise their lives.
It said programmes to support the poor should be strengthened and it was necessary to increase salary rates for public servants, members of the armed forces and workers earlier than was originally planned.
Because this, efforts should focus on speeding up administrative reform and temporarily reducing business income tax for companies facing difficulties.
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