Macro-economic stability should be made a top priority because it was not only a foundation for reasonable growth this year, but also a prerequisite for long-term sustainable development, policy makers said at a National Assembly Standing Committee meeting yesterday.

Chairman of the National Assembly’s Economics Committee Ha Van Hien pointed out new challenges that the country was facing while striving to reach the target of socio-economic development this year.

Consumer price indices in the first months of the year were high, making it hard for the Government to keep inflation under the target of 7 per cent, Hien said. The price of building materials in February and April rose by 1.75 and 2.51 per cent, respectively, while those of food and drink services in February surged by 3.09 per cent.

Enterprises were finding it difficult to access credit with interest rates as high as 17-18 per cent which would affect growth for the rest of the year, he added.

The circle “Trade deficit-dong devaluation-inflation-pressure to adjust foreign exchange” would continue challenging macro-economic stabilisation, he worried.

To deal with the challenges, Minister of Planning and Investment Vo Hong Phuc highlighted measures to be taken from now until the end of the year. The measures included reining in inflation and ensuring the safety of banking and financial systems.

The Government would also encourage people and enterprises to practise thrift in production and consumption to curb inflation, Phuc added.

Dinh Trinh Hai, deputy head of the NA’s Finance-Budget Committee, said that in 2009, the Government had budgeted for State spending of VND389.9 trillion (US$20.5 billion), but in fact, the actual figure was 8.5 per cent higher.

In April, the total expenditure of the State was VND175 trillion ($9.2 billion), 30 per cent higher than budgeted for.

Hai said that most of the actual figures were higher than those reported to the National Assembly, which would negatively reflect on the assembly’s decisions and policies.

Sharing the same point, chairman of the NA Ombudsmen Committee Tran The Vuong said that the differences between budgets and actual figures were too large. He asked the Government to tackle forecasting errors.

“There are some Government policies that lead to increased expenditure because when the Government makes its estimates, it does not take into account problems that could arise related to them.”

“For example, the Government’s decision to increase compensation for farmers who lose their land makes province leaders confused because if they follow the decision, they cannot attract investors due to higher costs they have to pay,” Vuong said.

Chairman of the NA’s Council of Ethnic Minorities Ksor Phuoc stressed his concerns over estimates and statistical reports.

Phuoc said that this year, the country would hold many festivals which would cost a lot of money.

He suggested that the Government compile detailed reports on the expense of festivals from provincial to central levels. “Whether it is waste or not, it depends on us.”

Hien said that weakness in issuing forecasts would influence decisions to deal with State overspending, on plans for following years and other areas.

Also on the same day, Deputy Prime Minister Pham Gia Khiem and Party Central Committee Secretary Ha Thi Khiet held separate meetings with voters of Da Nang City and Tuyen Quang Province in preparation for the 7th plenum of the 12th National Assembly.