Finance Minister Vu Van Ninh made the statement at the 29th meeting of the National Assembly Standing Committee in Hanoi on March 19.

He said the consumer price index (CPI) increase of 3.35 percent in the past two months was reasonable and in line with expectation.

He affirmed that the adjusted 6.8 percent rise in electricity prices this year would push the CPI up by 0.16 percent and increase production costs for some sectors by between 0.09 percent and 2.28 percent.

Minister Ninh noted that the adjustment in the price of coal for electricity generation will impact only the price of electricity, not that of other commodities, as in the remaining months of this year, electricity and coal prices will not be adjusted further.

He cited reports from localities saying in the meantime, commodity prices are inching down with that of foodstuffs decreasing more than that of grains.

Regarding the issue of budget deficit, he said last year due to an economic decline, the Government launched stimulus packages to promote production, which, however, resulted in a slight increase in budget overspending.

This year, the Government has set out to reduce overspending by keeping expenditures in check, he said.

“At present, the national debt balance remains at a safe level with no bad debts, ensuring financial security,” Minister Ninh emphasised.