Call for deficit reduction is likely to be agreed in the final declaration the G-20 summit in Toronto, Canada.

Leaders of industrialized and developing countries agreed to support the appeal to the most wealthy countries to reduce the budget deficit until half of each within three years, and simultaneously reduce the amount of debt to GDP ratio.

This was announced by Canadian Prime Minister Stephen Harper at the end of the G-20 summit on Sunday in Toronto. He said, there was a chance to continue providing economic stimulus and simultaneously reduce the amount owed.

U.S. President Barack Obama and several other leaders warned of the existence of serious challenges to restore the world economy. They said that world economic growth is positive, but uneven and still fragile, while the level of unemployment in many countries is still too high.

A number of countries members of the G-20 group have borrowed money to finance various programs to stimulate the economy each year after the global financial crisis in 2008.

Vietnam’s Parliament rejected the project fast train (bullet train) at a cost of U.S. $ 56 billion; this was the first resistance assembly to the main proposals submitted by the communist government in power.

Nearly 500 members of the panel that normally approve a proposal the government, over the weekend vote to reject the project plan high-speed trains are.

Investment of U.S. $ 56 billion that will be built along the route 975 miles (1570 kilometers), attach Hanoi capital and commercial center in the region south of Ho Chi Minh City in 2035.

Train journey that currently takes 30 hours, can be cut up to 6 hours.

Nguyen Minh Thuyet a member of parliament from the northern province of Lang Son said that the government can not afford to pay these costs, and construction will take approximately 50% of funds from the country’s gross domestic product.

“I am very pleased that these representatives have stated their position,” said Thuyet. “This step helps countries in avoiding a huge debt for projects that are not efficient.”

He also said that this is the first time the main proposal the panel rejected by the powerful communist leaders.

Senior economist Pham Chi Lan said the plan unsound in terms of economics.

“This project is too risky and too luxurious to Vietnam where we have many other things that need to be considered, associated with agriculture, education, electricity and other transportation projects,” he said.

While some board members, who agree with this plan, argued that the fast train will help promote Vietnam’s tourism.

Lan said that this project will not serve the majority population of this country which is about 70% still live in rural areas.

Prime Minister (PM) of Japan Naoto Kan yesterday has requested additional stimulus spending new years 2010-2011 (April 2010-March 2011) amounted to $ 60 new billion. Stimulus is intended to boost the Japanese economy continues to decline.

“It will require an additional stimulus in the cabinet meeting,” according to Kyodo News reported in a report published yesterday.

Meanwhile, the business newspaper The Nikkei estimate the additional spending by 4-5 trillion yen (USD47-59 billion). Kan step illustrates the increasing concern on the Japanese government officials on current economic conditions. Read the rest of this entry »