Despite many difficulties, state budget management still achieves many positive results

VCN - According to the Minister of Finance, facing slow world economic growth and many difficulties in the domestic economy, state budget revenue achieved positive results.
Revising regulations on State budget management Revising regulations on State budget management
Amending Decree stipulating financial autonomy structure of public non-business units Amending Decree stipulating financial autonomy structure of public non-business units
State Treasury focuses on budget management State Treasury focuses on budget management
Minister of Finance Ho Duc Phoc, authorized by the Prime Minister, presents the report. Photo: Quochoi.vn
Minister of Finance Ho Duc Phoc, authorized by the Prime Minister, presents the report. Photo: Quochoi. vn

State spending in 2024 estimated to rise by about 1.2% from 2023

At the 6th Session of the National Assembly XV, on the afternoon of October 23, authorized by the Prime Minister, Minister of Finance Ho Duc Phoc presented a report on the implementation of the State budget in 2023, estimates State budget, central budget allocation plan for 2024, and State budget-finance plan from 2024-2026.

According to the report, State revenue in the first nine months of 2023 reached 75.5% of the estimate. To respond to slow world economic growth and many difficulties in the domestic economy, the Government and the National Assembly have offered many policies on exemption, reduction, payment deadline extension of taxes, fees, and land rent. The revenue contributed to the State budget reached about 15.7% of GDP.

Minister Ho Duc Phoc said that if including the reduced amount of VND75 trillion due to the implementation of preferential policies, tax exemptions, and reductions, the whole year's state revenue rose by about 4.6% compared to the estimate. This is a very positive rate.

Regarding state budget spending in 2023, the country spent 59.7% of the estimate in 9 months. Regarding the state budget balance in 2023, the budget deficit is estimated to be about 4% of GDP. By the end of 2023, the targets of public debt, Government debt, national foreign debt, and direct debt repayment obligations of the Government will be within the scope allowed by the National Assembly.

Regarding the state budget estimate and central budget allocation plan for 2024, Minister of Finance Ho Duc Phoc stated that the revenue estimate for 2024 will increase by about 5% from 2023, and the mobilization rate into the state budget will reach 15.3% of GDP.

Regarding budget deficit, closely following the target of the 5-year plan according to the Resolution of the National Assembly, the estimated deficit in 2024 is about 3.6% of GDP. By the end of 2024, the targets of public debt, Government debt, national foreign debt, and direct debt repayment obligations of the Government are within the scope described by the National Assembly.

The Minister of Finance also reported to the National Assembly on the financial capacity to implement wage reform according to Resolution 27-NQ/TW from July 1, 2024.

Regarding budget spending, the Government proposes principles for budget spending estimation in 2024 on the principle of ensuring the spending for development investment is greater than the spending for tasks in the medium-term public investment plan according to the Law Public investment and other development investment spending tasks according to the State Budget Law.

The session. Photo: Quochoi.vn
The session. Photo: Quochoi.vn

The head of the finance sector also said that the Government has arranged full and on-time interest payments, reserve expenditures, and national reserves at a reasonable level to ensure timely handling of urgent tasks; arranged resources to implement salary reform according to the Central conclusion; arrange resources to revise up pensions, social insurance benefits, and monthly benefits for subjects covered by the state budget; increase preferential regimes for people with meritorious services and implement a number of social welfare regimes to ensure partial compensation for price fluctuations; implementing national target programs, political tasks, national defense, security, and socio-economic development.

According to the Minister of Finance, such the above state budget revenue and deficit levels, the estimated spending in 2024 will increase by about 1.2% compared to 2023.

There are still many potential risks when domestic revenue decreases

Reporting on the three-year State budget and financial Plan for 2024-2026, the Minister of Finance stated that the plan is built with the expectation that the socio-economic situation will improve, inflation will be controlled and major balances will be ensured.

State budget revenue is estimated at a positive level, consistent with economic growth forecasts, which prioritize to investment spending, save regular expenditure, and ensure payments for loan interest, aids, and national reserves.

According to the Minister, at this session, the Government also submitted to the National Assembly to consider and decide on the contents, specific data, and proposals stated in the report, including some contents such as: continuing to implement green on gasoline, oil, and lubricants; and continue to reduce VAT rate by 2%; and decide on some reported contents including: increasing the capital allocation to the local budget in 2024; dealing with expenditures to balance local budgets; shifting the revenue from salary reform in the previous year to the spending estimates in 2024 to implement the base salary of VND1.8 million per month…

Presenting the verification report, the Chairman of the National Assembly's Finance and Budget Committee Le Quang Manh stated clearly that although our economy has faced many difficulties and challenges, with the efforts and determination of the Government, the management of the state budget has achieved many positive results.

However, he also noted some issues. The state revenue achieves the estimate, but in fact there are still many potential risks when domestic revenue decreases. State budget revenue is heavily influenced by policies on reducing and exempting taxes and fees.

The Finance and Budget Committee also believes that the central role of the central budget is affected. Local budget revenues are uneven among localities. Many localities do not meet their estimates.

Regarding spending, the Finance and Budget Committee said that the disbursement progress of development investment in the first eight months of the year has had positive improvements year-on-year but still does not meet the requirements. We need to have specific and drastic solutions, attached to the responsibilities of the head.

Regarding the national target program, according to the Finance and Budget Committee, capital disbursement in many localities is still slow, requiring a comprehensive solution to speed up the disbursement.

Regarding the state budget estimate for 2024, the Finance and Budget Committee believes that the revenue estimate plan in 2024 is 5% higher than the estimate in 2023 is quite positive. However, state budget revenue still contains risky and unsustainable elements when land revenue sees a high increase.

Regarding expenditure estimates, the Finance and Budget Committee noted that it is necessary to make an overall assessment of the implementation of the salary reform policy, balance resources for 2024-2026, and forecast spending until 2030 to ensure feasibility and long-term; develop synchronous solutions to increase sustainable budget revenue and activeness in budget allocation. It is recommended to have flexible fiscal and monetary policies, and policies to supplement revenues the next period.

By Huong Diu/ Huyen Trang

Related News

Goods cleared through Ho Chi Minh City Customs rise nearly 25%

Goods cleared through Ho Chi Minh City Customs rise nearly 25%

VCN - In the first month of 2024, the value of import and export goods went through customs procedures through the Ho Chi Minh City Customs Department rose nearly 25% year-on-year.
Cao Bang customs collects more than VND61 billion in the first month of the year

Cao Bang customs collects more than VND61 billion in the first month of the year

VCN - In the first month of 2024, Cao Bang Customs Department collect VND61.04 billion, exceeding 5% of the its developed monthly plan.
Customs industry performs 8 tasks after Lunar New Year 2024

Customs industry performs 8 tasks after Lunar New Year 2024

VCN – In order to accomplish tasks in 2024, the Customs industry performs 8 tasks after the Lunar New Year.
Ha Tinh expects for prosperity from the first shipments of the year

Ha Tinh expects for prosperity from the first shipments of the year

VCN - Many shipments going through customs clearance at border gates and seaports in Ha Tinh area in early spring are a prosperity signal for a year of operations of enterprises and of Ha Tinh Customs Department.

Latest News

Vietnam acts to combat money laundering, terrorist financing

Vietnam acts to combat money laundering, terrorist financing

Deputy Prime Minister Le Minh Khai on February 23 signed a decision promulgating the national action plan to implement the Government's commitment to prevent and combat money laundering, terrorist financing, and financing of the proliferation of weapons of mass destruction.
Banks ask central bank to extend June 30 payment deadline

Banks ask central bank to extend June 30 payment deadline

Industry experts said the current challenging economic situation and difficulties faced by businesses severely affect their ability to meet debt obligations. As there are no shortcuts to resolving old bad debts, a significant number of newly classified bad debts, which should be expected on June 30 this year, will put tremendous pressure on the country’s financial sector, as well as businesses.
Efforts to remove obstacles to upgrade the stock market

Efforts to remove obstacles to upgrade the stock market

VCN - According to the sharing of Ms. Vu Thi Chan Phuong, Chairwoman of the State Securities Commission (SSC), in addition to completing the main criteria of international rating organizations in upgrading the stock market (TTCK), the State Securities Commission (SSC) continues to improve domestic regulations on the basis of researching international regulations and practices to promote Vietnam's stock market to develop in a sustainable direction, creating a favorable environment to attract international investors and foreign indirect investment capital flows.
The State Treasury implements nine key tasks in 2024

The State Treasury implements nine key tasks in 2024

VCN - The deployment of key tasks plan in 2024 (refer to the Plan) of State Treasury was issued to focus resources on completing tasks during the year and following the proposed strategies.

More News

SBV injects large amount of money to support capital for banks

SBV injects large amount of money to support capital for banks

The State Bank of Vietnam (SBV) on February 20 net injected more than 5 trillion VND (nearly 204 million USD) into the banking system through the open market operation (OMO) channel to support capital for commercial banks.
Vietnam Stock Exchange’s revenue down nearly 44% in 2023

Vietnam Stock Exchange’s revenue down nearly 44% in 2023

The Vietnam Stock Exchange (VNX) reported revenue of over 1.92 trillion VND (78.26 million USD) in 2023, down nearly 44% compared to the previous year.
Focusing on five tasks so that the securities industry continues to develop in the face of intertwined opportunities, challenges

Focusing on five tasks so that the securities industry continues to develop in the face of intertwined opportunities, challenges

VCN - Deputy Minister of Finance Nguyen Duc Chi raised five tasks that need to be focused in 2024 so that the securities industry continues to develop in the face of intertwined opportunities and challenges.
Prioritizing the allocation of public investment capital

Prioritizing the allocation of public investment capital

VCN - Public investment in 2024 continues to set a disbursement target of at least 95% of the total of more than VND657,000 billion of assigned public investment capital. Thus the task is to focus on allocating capital quickly and reasonably right from the beginning of the year.
6,144 retail petroleum stores issue invoices after each sale

6,144 retail petroleum stores issue invoices after each sale

VCN - According to the latest statistics of the General Department of Taxation, as of February 1, 2024, the country has 6,144 retail petroleum stores issuing electronic invoices after each sale.
PM Chính instructs action for stock market upgrade

PM Chính instructs action for stock market upgrade

Efforts have been made to attract investment and promote the image of the Vietnamese stock market, with the goal of upgrading it from frontier to emerging status.
Cai Mep – Thi Vai port gets very busy right from the beginning of Tet

Cai Mep – Thi Vai port gets very busy right from the beginning of Tet

VCN - Many mother vessels made landfall at Cai Mep – Thi Vai port (Ba Ria – Vung Tau province) in the early days of Dragon Year 2024 showing positive signs about the recovery of seaport activities.
Public offerings key to promoting corporate bond market: experts

Public offerings key to promoting corporate bond market: experts

To promote the professional corporate bond market, one solution is to focus on widespread public offerings of corporate bonds rather than private placements, said experts.
New policy may have adverse impacts on bancassurance

New policy may have adverse impacts on bancassurance

A new regulation on banning commercial banks from selling insurance together with banking services will negatively affect banks’ bancassurance revenue in the future, some analysts have claimed.
Read More

Your care

Latest Most read
Vietnam acts to combat money laundering, terrorist financing

Vietnam acts to combat money laundering, terrorist financing

Deputy Prime Minister Le Minh Khai on February 23 signed a decision promulgating the national action plan to implement the Government's commitment to prevent and combat money laundering, terrorist financing, and financing of the proliferation of weapons of mass destruction.
Banks ask central bank to extend June 30 payment deadline

Banks ask central bank to extend June 30 payment deadline

Industry experts said the current challenging economic situation and difficulties faced by businesses severely affect their ability to meet debt obligations. As there are no shortcuts to resolving old bad debts, a significant number of newly classified bad debts, which should be expected on June 30 this year, will put tremendous pressure on the country’s financial sector, as well as businesses.
Efforts to remove obstacles to upgrade the stock market

Efforts to remove obstacles to upgrade the stock market

VCN - According to the sharing of Ms. Vu Thi Chan Phuong, Chairwoman of the State Securities Commission (SSC), in addition to completing the main criteria of international rating organizations in upgrading the stock market (TTCK), the State Securities Com
The State Treasury implements nine key tasks in 2024

The State Treasury implements nine key tasks in 2024

The deployment of key tasks plan in 2024 (refer to the Plan) of State Treasury was issued to focus resources on completing tasks during the year and following the proposed strategies.
SBV injects large amount of money to support capital for banks

SBV injects large amount of money to support capital for banks

The State Bank of Vietnam (SBV) on February 20 net injected more than 5 trillion VND (nearly 204 million USD) into the banking system through the open market operation (OMO) channel to support capital for commercial banks.
Mobile Version