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Finance sector: Striving to increase revenue by 5% compared to the 2019 estimate

17:04 | 15/01/2019

VCN - In 2018, the whole finance sector actively managed the state budget collection and spending in a strict and regulated way, in harmony with monetary policy and other economic policies, to achieve the general objective and significantly contribute to restructuring the state budget and managing public debt for a safe and sustainable national finance.

finance sector striving to increase revenue by 5 compared to the 2019 estimate Looking back on the effort of reforming administrative procedures of Finance sector in 2018
finance sector striving to increase revenue by 5 compared to the 2019 estimate Prime Minister: effective coordination is the cause for the success of the Finance sector
finance sector striving to increase revenue by 5 compared to the 2019 estimate Deputy Prime Minister Vuong Dinh Hue: State Budget has “surplus” thanks to revenue collection exceeding over a hundred thousand billion VND
finance sector striving to increase revenue by 5 compared to the 2019 estimate
Anti- revenue losses is one of the key tasks which will be realized by the Finance sector in 2019. Photo: Thuy Linh

Overspending under the estimate

Following the Resolution No. 07-NQ / TU of the Politburo and Resolution No. 25/2016 / QH14 of the National Assembly, from the beginning of the year, the Ministry of Finance proactively developed and submitted to the Prime Minister the plan on state budget management in 2018 under the economic growth scenarios to ensure the budget balance at all levels, and keep the overspending and total state budget loans within the norm approved by the National Assembly in all cases. The Ministry of Finance has also proposed to the Prime Minister to issue Directive No. 31 / CT-TTg on improving and enhancing rules and disciplines in the observance of the State Budget Law, to overcome the limitations and weaknesses over the past time and put the observance of financial and budgetary disciplines into life. At the same time, issuing guiding documents to localities to strengthen the management, the financial and budgetary tasks in 2018, and introducing solutions to manage the local budget in an active manner.

In the state budget collection, from the beginning of the year, the Ministry of Finance focused on directing the strict compliance with tax laws and performing the state budget collection task in 2018; took the initiative in closely coordinating with ministries, sectors and local authorities to effective implement the revenue management and focused on exploiting revenues and expanding tax bases (both entities and localities); promoted the combat against revenue losses, smuggling, trade fraud; drastically handled tax debts; strengthened tax inspection and audit. At the same time, attaching importance to administrative reform, facilitation, reduction of time and costs for taxpayers.

Along with the higher economic growth than the plan together with the implemented solutions, by the end of December 31, 2018, the state budget revenue balance was estimated at 1,422.7 trillion dong, 7.8% higher than the estimate, up VND 64.3 trillion compared to the report to the National Assembly. In which, the central revenue exceeded 4.3%, the local budget revenue exceeded 12.5% of the estimate. The mobilization rate reached 25.7% of GDP, particularly taxes and fees reached 21.1% of GDP (the target for the 2016-2020 period is 23.5% of GDP and 21% of GDP, respectively).

The management of state budget spending has been proactively supervised in a strict and economic way throughout the budget allocation to the implementation. Ministries, sectors and localities actively reviewed, arranged and implemented expenditures, associated with apparatus restructuring and staff streamlining; purchased public assets in accordance with standards, norms and regimes to ensure savings and efficiency; and strengthened publicity and transparency in the use of state budget.

Thanks to remarkable budget revenue, budget spending tasks were also in accordance with the estimate, meeting the requirements of economic and political tasks of budget-using units and creating more resources to promptly handle important and urgent tasks arising from investment in socio-economic infrastructure, for overcoming the consequences of natural disasters, ensuring social security, and national defense and security. The structure of budget spending changed positively, with the proportion of spending on development investment reaching over 27%. Budget provisions at all levels were used for the right purpose and in accordance with regulations.

State budget overspending in 2018 was estimated at 3.6% of GDP (estimated 3.7% of GDP), and Public debt was below 61% of GDP. Public debt management has progressed, the loan term has been extended and interest rates have tended to fall.

Continue to expand tax bases

In 2019, the state budget revenue estimate was decided by the National Assembly to be VND 1,411.3 trillion; State budget spending is VND 1,633.3 trillion dong. The overspending was estimated at 3.6% of GDP, with an absolute number of VND 222 trillion; in which, the central budget overspending shall be VND 209.5 trillion and local budget overspending is VND 12.5 trillion.

In order to fulfil the 2019 financial and budgetary tasks well, the Ministry of Finance will coordinate with ministries, sectors and localities to strictly manage the fiscal policy in synchronous and flexible coordination with monetary policy and other macro policies to remove difficulties and boost production - business development; carry out objectives, tasks and solutions to restructure the state budget as set out; drastically implement the budget collection; managing budget expenditures under the estimate and in an effective and economical way.

In addition, further studying, amending and supplementing the tax law policy towards expanding tax bases, preventing erosion of revenues, preventing transfer pricing, restructuring revenues and strengthening the leading role of the Central budget. The Ministry of Finance also set a target to increase revenue by about 5% compared to the estimate and achieve the mobilization rate of 23.5% of GDP; enhance the combat against revenue losses, transfer pricing, trade fraud and tax evasion; strengthen tax inspection and audit; handle outstanding tax debts and reduce outstanding tax debts rate to less than 5% of the total state budget revenue.

finance sector striving to increase revenue by 5 compared to the 2019 estimate Ministry of Finance actively coordinates with other ministries to support more enterprises

VCN - Over the past time, the finance sector has made positive changes in administrative reform, which is ...

Controlling the state budget spending in line with the estimate, enhancing thrift practice; tightening rules and disciplines; promoting disbursement of public investment capital (including government bonds and foreign capital); strengthening management, inspection, supervision, improving investment efficiency, preventing loss, waste, corruption and preventing new debts arising. Taking the initiative in using local reserves and resources to pay for prevention and overcoming the consequences of natural disasters, epidemics and urgent spending tasks arising under the regime.

Especially, striving to the end of 2019, the public debt balance in the estimate approved by the National Assembly of about 61.3% of GDP. Capital mobilization for the state budget, investment and development, must be in line with the state budget balance in each period. It needs to strengthen the issuance of long-term Government bonds in combination with restructuring the public debt portfolio.

By Hong Van/ Huyen Trang