Coordination of state budget revenue: Contributing to the implementation of e-Government

VCN- The coordination of state budget collection between the State Treasury and commercial banks not only causedthe amount of cash transacted at the State Treasury to fall,but also contributes to maximum conditions for customers. This is in line with the policy of the State to implement e-Government and towards the digital treasury in the future.
Seven administrative procedures at level 4 of State Treasury integrated on National Online Public Services Portal Seven administrative procedures at level 4 of State Treasury integrated on National Online Public Services Portal
Da Nang: Imported goods for aid implemented on Online Publice Service at level 4 Da Nang: Imported goods for aid implemented on Online Publice Service at level 4
Ministry of Finance timely solves petition on administrative regulation, avoiding the creation of sensational topic in society Ministry of Finance timely solves petition on administrative regulation, avoiding the creation of sensational topic in society
1940-3256-7-2308-img-0232
Professional activities at Lao Cai State Treasury. Photo: Thuy Linh

The proportion of cash collection through the State Treasury is lower

Recently, the most impressive thing is the quiet scene atthe State Treasury, the absence of customers ata state administrative agency. Most of the transaction counters are quiet, only the State Treasury officials are still diligently working with computers behind the dividers. The reason for this is that in recent years, the entire State Treasury system has accelerated the application of information technology with the aim of modernizing payments, striving to minimize direct cash transactions.

In order to do this, the State Treasury has implemented a centralized electronic payment system with commercial banks and the State Bank; expanded the channels of state budget revenue, thereby improving the efficiency, accuracy and timeliness of the management of state budget revenues and expenditures and reducing the proportion of cash transactions through the State Treasury system.

Up to now, the fact that people can pay taxes anytime, anywhere, is familiar, while payment information reduces time and costs for taxpayers. At the same time, the exchange of electronic data on state budget revenues and cash collection authorization also helps to reduce the workload of state budget collection at the State Treasury, facilitating the State Treasury to continue refining itsapparatus.

The bank also has the opportunity to provide more quality payment services to customers, improve the position and brand of the unit. Up to now, the state budget revenue in cash at the State Treasury has been only 0.47% of the total collection through the State Treasury.

Hai Duong province is a typical example of the effectiveness of collection coordination.

Specifically, since 2017, Hai Duong State Treasury has expanded collection coordination with all transaction offices located in the areas of five banking systems: Vietcombank, VietinBank, Agribank, BIDV and MB.

By October 2019, Hai Duong State Treasury opened 45 collection accounts and payment accounts to coordinate budget collection. This local coordination is in line with the State's policy of implementing e-Government and reducing the amount of cash in the market. In 2019, the rate of collection through Hai Duong State Treasury is only 0.25%. And in the first eight months of 2020, revenue through the State Treasury of Hai Duong decreased to 0.18%.

According to Ms. Truong Thi Thanh Hoa, Deputy Head of Customer Transaction Office, BIDV - Hai Duong Branch, all tax and fee-related revenues are collected electronically by BIDV in collaboration with the State Treasury of Hai Duong. Accordingly, wherever customers can conveniently pay and can use any means such as computers or smartphones to fulfill budget obligations to the State.

In particular, Ms. Hoa said, in order to further facilitate customers in payments, the State Treasury signed an agreement with five commercial banking systems on not collecting transaction fees that the state budget will pay this amount.

“If before, customers went to BIDV-Hai Duong Branch to pay tax, but the tax if it belongs to the State Treasury of Quang Ninh or the State Treasury of Hai Phong, will have to pay fees. But thanks to the coordination of collection between the two sides, the bank currently does not charge this fee anymore. Accordingly, customers who pay taxes and fees at any BIDV bank across the country can avoid charges, but the fee will be paid by the Treasury from the budget to the bank. This is really convenient for customers,” Ms. Hoasaid.

Expand coordination channels

In order to continue promoting administrative reform, creating more favorable conditions for people and businesses, the State Treasury has expanded the coordination of budget collection between the State Treasury and joint-stock commercial banks.

According to Deputy General Director of the State Treasury Tran Thi Hue, the State Treasury coordinates with a number of joint-stock commercial banks to open and use the State Treasury's collection account system at banks and coordinates to collect and authorize state budget collection; at the same time connecting and exchanging information and electronic data on budget collection between banks and the State Treasury.

All budget revenues via banks will be recorded directly into the system of treasury collection accounts at the bank, ensuring the focus on the state budget. After that, information about the revenues is sent to the General Department of Taxation and the General Department of Customs quickly, safely and conveniently.

Saigon - Hanoi Commercial Joint Stock Bank (SHB) is one of five banks to cooperate in coordinating state budget collection and electronic payments with the State Treasury since June 2020. Through this cooperation, the State Treasury coordinates with SHB in opening and using the State Treasury collection account system at SHB and coordinating collection, authorizing state budget collection, connecting and exchanging information and electronic data on state budget revenues between SHB and the State Treasury.

According to information from SHB, after only two months of signing the dealwith the State Treasury, in September 2020, SHB piloted the service of coordinating state budget collection and electronic payments with the State Treasury in Hanoi (State Treasury of Ba Dinh district) and State Treasury of Quang Ninh province. SHB expects that in October 2020, it will continue to coordinate with the State Treasury, tax agencies and Customs to expand the service of state budget collection and electronic payments throughout the system.

According to Mr. Nguyen Van Le, General Director of SHB, the implementation of cooperation agreements with agencies such as the State Treasury, the General Department of Taxation, and General Department of Customs to coordinate on state budget revenue is of great significance to create favorable conditions for taxpayers who are individuals and enterprises to fulfill their tax obligations to the state budget.

This is the premise for the parties to enhance modernization, improve service quality, and actively participate in the Fourth Industrial Revolution.

By By Thuy Linh/Bui Diep

Related News

State budget revenue estimate 2025 assessed as positive level despite potential challenges

State budget revenue estimate 2025 assessed as positive level despite potential challenges

VCN – Deputy Prime Minister and Minister of Finance Ho Duc Phoc said that the state budget revenue for 2025 is estimated at VND 1,966.8 trillion, an increase of 15.6% compared to the estimate for 2024.
Remove problems for enterprises in using e-invoices and documents

Remove problems for enterprises in using e-invoices and documents

VCN – The amendment and supplementation of Decree No.123/2020/ND-CP regulating invoices and documents aims to implement the Party’s policies and guidelines on building e-Government towards Digital Government and Smart Government, removing difficulties for enterprises in using e-invoices and documents, reforming administrative procedures, providing solutions to prevent origin-related frauds and in accordance with international practices, the Ministry of Finance said.
Dubai Customs" innovator develops revolutionary system for safeguarding intellectual property and knowledge assets

Dubai Customs" innovator develops revolutionary system for safeguarding intellectual property and knowledge assets

Secured a second intellectual property certificate from the MoE for their groundbreaking "Blockchain System for Managing Intellectual Property and Knowledge Assets"
Increase in Excise Tax: Shifting to Compound Tax system appropriate direction

Increase in Excise Tax: Shifting to Compound Tax system appropriate direction

VCN – The Government has reformed the Excise Tax calculation from the per cent rate to the Compound Tax system from now to 2030.

Latest News

Monetary policy forecast unlikely to loosen further

Monetary policy forecast unlikely to loosen further

It will be difficult for the State Bank of Vietnam (SBV) to further loosen monetary policy due to a rising USD/VNĐ exchange rate pressure, experts said.
World Bank outlines path for Vietnam to reach high income status

World Bank outlines path for Vietnam to reach high income status

The World Bank (WB) has released a report which explores how Vietnam can upgrade its participation in global value chains to become a high-income country by 2045.
Strictly control public debt and ensure national financial security  2025

Strictly control public debt and ensure national financial security 2025

VCN – In order to achieve goal of strictly managing public debt and maintaining security and safety of the national financial system in 2025, it is necessary to ensure the borrowings and repayments of public debts is within the approved estimate; closely monitor public debt indicators to ensure that they are within the ceiling and warning thresholds approved by the National Assembly.
Revising the title of a draft of 1 Law amending seven finance-related laws

Revising the title of a draft of 1 Law amending seven finance-related laws

VCN - On November 19, 2024, the Standing Committee of the National Assembly (SCNA) discussed amendments and refinements to the draft of a law revising seven existing finance-related laws. Concluding the session, Vice Chairman of the National Assembly Nguyen Duc Hai emphasized the need for the Government to direct the drafting body and relevant agencies to collaborate closely to finalize a persuasive and widely supported report, ensuring the quality of the draft law for the National Assembly's consideration and decision.

More News

Transparency evates the standing of listed companies

Transparency evates the standing of listed companies

VCN - According to the Hanoi Stock Exchange (HNX), the number of companies placed under warning, control, or restricted trading on the listed and registered markets has increased over the past two years compared to 2022.
State-owned securities company trails competitors

State-owned securities company trails competitors

Contrary to the outstanding performances in the banking sector, the securities subsidiaries of major banks have yet to fully leverage their potential, despite numerous inherent advantages.
Strengthening the financial “health” of state-owned enterprises

Strengthening the financial “health” of state-owned enterprises

VCN - The state economy plays a key role in the socio-economic development process, but it is necessary to strengthen the financial health and competitiveness of state-owned enterprises (SOEs).
U.S. Treasury continues to affirm Vietnam does not manipulate currency

U.S. Treasury continues to affirm Vietnam does not manipulate currency

VCN - In its latest report, the U.S. Department of the Treasury has positively assessed Vietnam's monetary policy, reaffirming that Vietnam does not engage in currency manipulation.
Exchange rate fluctuations bring huge profits to many banks

Exchange rate fluctuations bring huge profits to many banks

Net profits from the foreign exchange trading segment of many banks have gained positive results thanks to a strong USD/VNĐ exchange rate fluctuations this year.
A “picture” of bank profits in the first nine months of 2024

A “picture” of bank profits in the first nine months of 2024

VCN - Pre-tax profits for banks during the first nine months of 2024 remained positive, exceeding 200 trillion VND, solidifying the sector's position as a market leader.
Many challenges in restructuring public finance

Many challenges in restructuring public finance

VCN - Restructuring public finance is an important step to improve state financial management, ensure resources are allocated reasonably and effectively, contributing to the country's sustainable development. In addition to the achieved results, the process of accelerating public finance restructuring also faces many pressures.
Tax declaration and payment by e-commerce platforms reduces declaration points and compliance costs

Tax declaration and payment by e-commerce platforms reduces declaration points and compliance costs

VCN - E-commerce platforms that declare and pay taxes on behalf of traders not only help to reduce the number of tax declaration points but also reduce the cost of compliance with administrative procedures for the whole society because only one point as the e-commerce trading platform implements tax deduction, payment and declaration on behalf of tens, hundreds of thousands of individuals and business households on the platform.
Disbursement of public investment must be accelerated: Deputy PM

Disbursement of public investment must be accelerated: Deputy PM

Deputy Prime Minister Ho Duc Phoc has called on ministries, agencies, and localities to accelerate the disbursement of public investment from now until the year-end and further tighten investment management.
Read More

Your care

Latest Most read
Monetary policy forecast unlikely to loosen further

Monetary policy forecast unlikely to loosen further

It will be difficult for the State Bank of Vietnam (SBV) to further loosen monetary policy due to a rising USD/VNĐ exchange rate pressure, experts said.
World Bank outlines path for Vietnam to reach high income status

World Bank outlines path for Vietnam to reach high income status

The World Bank (WB) has released a report which explores how Vietnam can upgrade its participation in global value chains to become a high-income country by 2045.
Strictly control public debt and ensure national financial security  2025

Strictly control public debt and ensure national financial security 2025

VCN - According to the plan for borrowing and repaying public debt and foreign debt of the country in 2025, the total borrowing demand of the Government in the year is expected to be at VND 815,238 billion, an increase of 20.6% compared to the Government'
Revising the title of a draft of 1 Law amending seven finance-related laws

Revising the title of a draft of 1 Law amending seven finance-related laws

On November 19, 2024, the Standing Committee of the National Assembly (SCNA) discussed amendments and refinements to the draft of a law revising seven existing finance-related laws.
Transparency evates the standing of listed companies

Transparency evates the standing of listed companies

According to the Hanoi Stock Exchange (HNX), the number of companies placed under warning, control, or restricted trading on the listed and registered markets has increased over the past two years compared to 2022.
Mobile Version