Fiscal policy is not effective is an important cause of inflation in our country. To support economic growth, the Government has made plans to spend to upgrade the infrastructure of the country and the ongoing budget deficit for years over 5% of GDP (in 2007, over 56,000 overspending billion), for increased investments are the driving force of economic growth (total social investment capital in the years 2000-2005 GDP per capita at 37.5% of GDP, about 40% of GDP in 2006.7). however status inefficient investment, spread, causing huge waste for a long time as one of the causes of inflation. The proportion invested in VN society in recent years the annual average of 40% of GDP and ICOR of 4.7 (mean VN is required 4.7 units of investment to create a single you grow), this factor is very high compared with other countries in the region. Total demand increased, but the total supply increases, prices have increased restrictions.
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