Closely and effectively managing State fund

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The State Treasury has deployed many solutions to expand coordination in budget collection. Photo: State Treasury

State fund management on the basis of state budget balance

2024 revenue estimate is higher than it in 2023. Therefore, to achieve the budget balance task, it is necessary to focus on implementing finance - budget management policies. Accordingly, the State Treasury has also made efforts to manage the State fund to enhance the efficiency, safety and sustainability of the financial system.

The State Treasury said that from the beginning of the year, the State Treasury units have actively worked with collecting agencies in their areas to account revenues to State budget at all levels quickly and accurately; provide revenue data to serve the State budget management at all levels. The State Treasury has implemented solutions expand coordination in online collection and payment with commercial banks; and coordinated with the banks to perfect and revise frame agreements on the coordination in online collection and payment.

Regarding the budget spending, the State Treasury system has coordinated with ministries, central and local agencies to implement many solutions to speed up the disbursement of public investment capital, strengthen close control of recurrent expenditures, improve service quality. Especially, capital mobilization for Government bonds has been closely linked with State fund management by the State Treasury.

Thus, the State Treasury has managed State fund closely, consistently, safely, transparently and effectively, meeting spending needs; mobilized funds at the end of day to the unique account opened at the State Bank of Vietnam, facilitating the management, ensuring liquidation of State fund and supporting the State Bank in implementing currency policies. Moreover, based on State budget spending and collection situation, the State Treasury will forecast cash flow, implement operations to use temporarily idle state funds in accordance with regulations (advance, central budget loans, term deposits of temporarily idle state funds at commercial banks, redeem of government bonds); strengthen the linkage between state fund management and state budget management and public debt management, saving borrowing costs for the State budget.

Along with that, based on the annual approved foreign currency budget revenue and expenditure plan and the Government's direction to review the quarterly foreign currency revenue and expenditure needs, the ability to use temporarily idle foreign currency sources of State financial organizations and funds deposited at the State Treasury, the State Treasury has proactively planned to buy foreign currency from the banking system to meet the foreign currency expenditure tasks of the State budget.

Strengthening remote monitoring and cash flow forecasting

With the above tasks, the State Fund has always maintained a high level in recent years. Temporarily idle State Fund is prioritized for use in advance and loans to the central budget, thereby promptly meeting the balancing needs of the central budget, reducing the borrowing costs of the central budget because the lending interest rate of State Fund is lower than the interest rate of government bonds issued on the market; as well as supporting the issuance of government bonds when the market faces unfavorable factors. Since 2017, the State Treasury has paid more than VND19,000 billion to the State budget from revenue from fund management activities.

In particular, the State Treasury has strengthened regular inspections, surprise inspections and remote monitoring of the implementation of administrative procedures in the field of state budget expenditure control, contributing to improving the sense of responsibility of civil servants in performing their duties, not causing inconvenience or harassment to customers in transactions... Along with that, focusing on inspecting areas with high potential risks, harmoniously combining regular inspections, cross-inspections and surprise inspections; deploying remote monitoring activities on online public services, remote monitoring of cash balances at State Treasury units; increasing the application of information technology in professional activities to prevent risks.

General Director of the State Treasury Tran Quan recently requested State Treasury units to continue remote monitoring of cash balances across the system; thereby, researching and deploying automatic warning applications to improve monitoring efficiency; carry out State budget collection and State fund management according to the plan approved by the Ministry's leaders; continue to expand the coordination of online collection and payment with commercial banks according to the roadmap approved by the Ministry of Finance's leaders.

Along with the above tasks, the State fund management must ensure cash flow forecasting. The results of the cash flow forecasting are the basis for developing and submitting to the Ministry of Finance a State fund management plan, contributing to the management of the State fund in a safe and effective manner. Therefore, this process needs to be carried out with higher accuracy, requiring the coordination of relevant tax and banking agencies to promptly provide information and data of units that have transactions with the State Treasury.