Finalization of the 2016 State budget: Basic revenues meet the target
Minister Dinh Tien Dung reported in the National Assembly on the afternoon of 21 May 2018. |
Exceed by 9.2%
Under the mandate of the Government, the Minister of Finance Dinh Tien Dung presented the 2016 State Budget Balance Report. The report stated that the balance of State budget revenue in 2016 was VND 1,107,381 billion; an increase of 9.2% compared to the estimate. In particular, domestic revenues from production and business (excluding revenues from crude oil and land of 762,998 billion), increased 5.6% compared to the estimate. This increase comes from the State capital investment in enterprises and high growth in automobile market and real estate market
Meanwhile, the revenues from crude oil reached VND 40,186 billion, equal to 73.7% of the estimate, a decrease of 14,314 billion compared to the estimate, due to a decline in world oil prices. The balance of budget from export-import activities was VND 172,026 billion, exceeding by VND 26 billion compared to the estimate.
Expenditure on State budget and final account reached VND 1,295,061 billion, an increase of 1.7% compared to the estimate, mainly from development investment expenditure (VND 41,501 billion) and the increase of land use fees and previous years source according to the provisions of the State Budget Law.
Expenditure for development investment was VND 296,451 billion, an increase of 16.3% compared to the estimate, accounting for 22.9% of total state budget expenditure. The debt and aid payment reached VND 175,784 billion, an increase of VND 20,684 billion compared to the estimate. The expenses for development of education, culture and social affairs; ensuring national defense and security, and administrative fees were VND 822,343 billion, accounting for 98.2% of the plan, accounting for 63.5% of total state budget expenditure. A number of important expenditure missions have been increased to supplement the expenditures for natural disaster prevention and mitigation; raising funding for security and defense tasks and implementing social welfare regimes and policies according to regulations.
Regarding the State budget expenditure tasks in 2016, the Minister said that the State budget management and control were closely in accordance with the State Budget Law and the resolution of the National Assembly. Ministries, central agencies and localities have implemented many solutions to manage state budget estimates step by step effectively and combat waste according to the resolution of the National Assembly. However, the status of spending in the wrong mode is still in some units, and the State Audit has had to process the withdrawal of wrong amounts of hundreds of billion VND. In fact, the State Treasury discovered many expenses in excess of the norm and regulations. The implementation of budget spending tasks in some ministries, central agencies and localities is still slower than the regulations, especially procurement of goods and services in accordance with the law on bidding.
The total deficit was VND 248,728 billion, a decrease of VND 5,505 billion compared to the National Assembly's plan (domestic capital decreased by VND 835 billion and foreign capital decreased by VND 4,670 billion) in line with the Government Decision No. 89 / NQ-CP in September 2016, equal to 5.52% of GDP.
On the basis of receiving and handling the recommendations of the State Budget Finance Committee and the State Audit Committee, the Government shall submit to the National Assembly for approval the balance of the State budget revenue and expenditure for 2016 as follows: The state budget revenues reached VND 1,407,572 billion; the total State budget expenditure was VND 1,574,448 billion; and the State budget deficit was VND 248,728 billion, equal to 5.52% of GDP.
Many errors
The State Auditor General Ho Duc Phoc outlined the results of the audit of the State budget in 2016. In State budget revenues, despite an excess in budget, the increase mainly comes from land use fees, profits and dividends of state capital invested in enterprises. A number of ministries, branches and localities made and assigned revenue estimates in contravention of regulations.
In addition, taxpayers declared lack of turnover, wrongly determined costs, thus calculating the lack of VAT and CIT. State-run auditing agencies such as Sabeco with VND 2,668 billion; Habeco with VND 1,852 billion; Vietnam Airlines Corporation with VND 1,753 billion have tax debt increase over the same period in 2015.
As for an examination of the contents of the state budget settlement in 2016 by the Government, Chairman of the Finance and Budget Committee of the National Assembly Nguyen Duc Hai pointed out some limited issues, including the implementation of some Content related to fiscal policy in 2016 which is not really effective; or the structure of revenue collection is not sustainable. The proportion of State budget revenues and expenditures remains quite far from the target of 2016-2020. The allocation of estimates exceeds the feasibility of implementation, resulting in 12 local balance deficits of about VND 5,300 billion in 2016; a balance loss of VND 1,398 billion.
The Finance-Budget Committee stated that the Government made many efforts in managing the implementation of state budget revenue in 2016. The tax office has improved its capacity, accelerated the application of information technology, contributing to the limitation of tax evasion to actively carry out many measures to inspect, check and combat price transfer, and urge the recovery of tax arrears.
The auditing agencies and the verifying agencies shall propose the National Assembly to consider and approve the State budget settlement in 2016 as follows: The total State budget revenue amount is VND 1,407,572 billion (including the transfer from the State budget by 2015, the local budget balance will be collected in 2015, mobilized from local budgets and collected from the financial reserve fund in accordance with the State Budget Law); total state budget expenditure is VND 1,574,448 billion; the State budget deficit is VND 248,728 billion, equivalent to 5.52% of GDP (excluding VND 81,852 billion of local budget balance).
Revenues and expenditures of State budget are under pressure from the industrial revolution 4.0 VCN- Along with the Industrial Revolution 4.0, the fiscal revenues and expenditures must have specific policies to ... |
The contents of the 2016 State budget balance will be discussed by the National Assembly in groups on 22 May 2018 and in the hall on 26 May 2018.
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