Balance between central budget and local budgets is guaranteed

	Eliminate ineffective project, speed up the disbursement of public investment capital
	Budget deficit will continue to fall in 2019
	The specific expenditure norm for environmental protection activities

State revenue from import and export activities is approaching 90 percent. Photo: N. Linh.

According to the Ministry of Finance, the total state budget revenue in September was estimated at VND87.54 trillion. The accumulated revenue at the end of the third quarter was estimated at VND1,093.8 trillion, equaling 77.5 percent of the estimate, up 10.1 percent over the same period in 2018.

Of which, domestic revenue in 9 months was VND882.4 trillion, equaling 75.2 percent of the estimate, up 11.2 percent over the same period. It is estimated that 53 of 63 localities had domestic revenue reaching the estimated progress at over 74 percent, of which revenue of 44 localities reached over 77 percent of the estimate. Compared to the same period in 2018, there are 57 localities with higher revenues and six localities with lower revenues, namely Lai Chau, Son La, Nam Dinh, Quang Ngai, Binh Phuoc and Quang Nam.

The tax agency has focused on implementing the collection, reviewing and grasping of revenue sources in the area, inspecting tax declarations, tax finalizations of enterprises, to collect properly and fully the arising amounts in the state budget.

Crude oil revenue in September is estimated at VND4.3 trillion while the oil price is about US$62.5/ barrel. The accumulated revenue at the end of the third quarter of 2019 reached VND43.86 trillion, equal to 98.3 percent of the estimate, down 4.7 percent over the same period in 2018.

The budget revenue from import-export activities till the end of the third quarter reached VND163.9 trillion, equal to 86 percent of the estimate, up 9.4 percent over the same period in 2018, on the basis of the estimated total tax revenue of VND261.9 trillion, equal to 87.2 percent of the estimate, up 15.8 percent over the same period in 2018; VAT refund under the regime is about VND98 trillion, equal to 88.1 percent of the estimate.

The General Department of Customs has directed Customs agencies to strive to complete the task of State budget collection in 2019; closely monitor the local Customs Departments to ensure the proper and full revenue and fully implement collection measures.

Regarding state budget spending, total expenditure in September was estimated at VND128.6 trillion; accumulated expenditure till the end of the third quarter reached VND1,029.95 trillion, equal to 63.1 percent of the estimate, up 3.8 percent over the same period in 2018. Specifically, development investment expenditure reached VND192.1 trillion, equal to 44.8 percent of the estimate, down 5.6 percent; interest payment expenditure was VND85.45 trillion, equal to 68.4 percent of the estimate, up 6.1 percent; regular expenditure reached VND733.75 trillion, equal to 73.4 percent of the estimate, up 5.9 percent compared to the same period in 2018.

For recurrent expenditures, by the end of September 30, 2019, the State Treasury system has controlled an estimated expenditure of VND654,684 billion, accounting for 62.7 percent of the estimate via the State Treasury (excluding debt repayment, aids, and additional expenditure for reserve financial fund). Through the control of state budget expenditure, the State Treasury units discovered 10,547 non-compliant expenditures and requested additional procedures and the actual amount refused to be paid was VND37.5 billion.

For investment expenditure, in the past nine months, accumulated disbursed investment capital under the 2019 plan through the State Treasury system was VND188,567.8 billion, reaching 49.87 percent of the plan (capital plan 2019 allocated via the Treasury as of September 30, 2019 was VND378,151.9 billion). Through controlling the investment capital payment, the State Treasury system refused VND49.5 billion.

Regarding the expenditure for development investment capital, the total capital plan in 2019 assigned by the Prime Minister is VND391.1 trillion, equal to 91.8% of the detailed estimate of the National Assembly (the remaining capital plan not yet allocated is VND34.92 trillion). The disbursed capital has so far reached only 49.1 percent of the plan assigned by the Prime Minister, lower than the same period in 2018 both in absolute numbers (down 5.6 percent) and in the implementation progress of the estimates (in the same period it reached 52.46 percent), of which: disbursed domestic capital reached 52.6 percent (only disbursed government bond capital reached 26.2 percent), and disbursed foreign capital reached 23.1 percent of the Prime Minister's plan.

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With the above revenues and expenditures, the balance of central and local budgets is guaranteed. The Ministry of Finance has taken the initiative in managing the issuance of Government bonds to both efficiently use the state budget and ensure the payment source, promptly paying principal debts and contributing to orienting market development and restructuring public debts. Total issued Government bonds were VND 161 trillion (including VND 7000 debt recognition with Vietnam Social Insurance under the National Assembly’s Resolution) with average term of 13.51 years and average interest of 4.85 percent per year