Summary of Chính sách tài khoá | Trần Ngọc Báu

Main Financial Strategies and Market Analyses

Government Goals
- Economic growth
- Price control
- Exchange rate stability
Tools for Achieving Goals
- Monetary Policy: Adjustments in interest rates and money supply to influence economic conditions.
- Fiscal Policy: Managed by the Ministry of Finance and the Ministry of Planning and Investment, focusing on taxes and public spending.
Budget Balance
- The balance between government revenue and expenditure determines fiscal health.
- Regular revenue includes taxes and fees; capital revenue comes from land use and real estate transfers; non-refundable aid supports development.
Impact of Budget Deficits
- A budget deficit may be necessary for stimulating Economic growth during downturns, but it can lead to increased Public debt.
- The government may accept deficits to fund public investments and support economic recovery.
Responses to Budget Surplus or Deficit
- Surplus can be used for debt repayment, increasing social investment, or direct financial support to citizens.
- Deficits may require borrowing, which can be domestic or international, each with its own risks and implications.
Long-term Considerations
- Continuous deficits can lead to increased Public debt, impacting future generations.
- The importance of balancing fiscal policies to ensure sustainable Economic growth without excessive inflation or exchange rate risks.

Understanding Budget Balance
- Revenue - Expenditure = Budget Balance
- A positive balance indicates surplus; a negative balance indicates a deficit.
Components of Revenue
- Regular Revenue: Taxes and non-tax fees.
- Capital Revenue: Income from real estate and land use.
- Non-refundable Aid: International support.
Expenditure Types
- Regular Expenditure: Salaries, interest payments, and social activities.
- Development Investment Expenditure: Infrastructure and social development projects.
Addressing Budget Deficits
- Increase Public debt to cover deficits.
- Adjust fiscal policies by increasing revenue (e.g., taxes) or reducing expenditure (e.g., public investment).
Tightening Fiscal Policy
- Increase taxes and reduce spending to control inflation and stabilize the economy.

Trần Ngọc Báu, the presenter of the video, provides insights into Vietnam's fiscal policies and economic strategies.

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