Finance sector achieves VND941.3 trillion in revenue collection

Overview of the online conference to review tasks of finance-state budget in the first six months of 2022 and setting out tasks for the last six months of 2022

State revenue increases by nearly 20%

Attending the conference were representatives of leaders of ministries and sectors including the Office of the Government, the Ministry of Planning and Investment and the State Bank. On the side of the Ministry of Finance, the conference was attended by Minister of Finance Ho Duc Phoc and other representatives of the Ministry of Finance, as well as leaders of the Ministry, leaders of departments, departments, general departments and units under the Ministry.

Leaders of People's Committees of provinces and centrally-run cities and of local departments, agencies and branches, as well as leaders of financial agencies and units under the Ministry of Finance in 62 provinces and cities. also attended the conference.

According to the report of the Ministry of Finance, the financial-state budget tasks in the first six months of 2022 were implemented in the context that the Covid-19 pandemic was under control and the economy continued to recover positively and achieved positive results in all fields.

However, there are still many difficulties and challenges, such as the negative impacts of armed conflicts between Russia and Ukraine, high prices of petrol and input materials, complicated and unpredictable developments in climate change, and the risk of serious consequences from natural disasters, epidemics, landslides, all of which have affected the implementation of socio-economic development tasks in 2022.

In the first six months of 2022, the whole Finance sector has drastically implemented and completed the financial-state budget tasks.

The Finance sector focused on implementing the work of building and perfecting institutions, policies and projects, tightening financial discipline, and improving the effectiveness and efficiency of state management in the finance- State budget sector

The work of building and perfecting institutions and policies should be concentrated, on meeting the requirements of progress and quality, contributing to perfecting the legal framework in the field of finance - state budget. It is also vital to remove difficulties for businesses and the people. In the first six months of the year, the Ministry of Finance completed 15/18 projects and assigned tasks.

Regarding the results of state revenue, state revenue reached VND941.3 trillion, equaling 66.7% of current appropriation (central budget revenue reached 66.4% of current appropriation; local revenue was estimated at approximately 67% of current appropriation), an increase of 19.9% ​​over the same period in 2021.

Accordingly, domestic revenue reached VND747.9 trillion, equaling 63.6% of current appropriation, increasing by 16.4% over the same period. 10 out of 12 revenues and domestic revenue groups achieved quite good results compared to the estimate (over 55%), and the other two revenues that have not met the schedule are the collection of environmental protection tax (48% of current appropriation) and capital recovery, dividend collection, profit, profit after tax, revenue and expenditure difference of the State Bank (40.5% of current appropriation).

Revenue from crude oil reached VND35.4 trillion, equaling 125.6% of current appropriation, an increase of 87.2% over the same period last year, and the budget balance revenue from import and export activities reached VND157.9 trillion, equaling 79.4% of current appropriation, increasing by 28.3% over the same period on the basis that the total tax revenue from import-export activities was estimated at VND225.6 trillion, equaling 64.1% of current appropriation; VAT refund under the regime of VND67.7 trillion, equaling 44.2% of current appropriation.

According to the Ministry of Finance, the import and export activities in the first six months had positive growth; the export and import turnover of goods as of June 30, 2022 reached US$371.2 billion, increasing by 16.4% over the same period. In particular, the turnover of goods contributing a large amount of revenue to the state budget increased sharply (such as petroleum, plastics, chemicals, telephones and components, iron and steel of all kinds, computers, and imported electronic products), contributing to increasing revenue collection in this field.

According to the Ministry of Finance, the Ministry of Finance proactively proposed to the competent authorities to promptly issue policies on the exemption, reduction, and extension of taxes, land rents, fees and charges in order to remove difficulties, support for businesses, and people. The results of the implementation of policies on the exemption, reduction and relaxation of taxes, fees, charges and land rent in the first six months of the year under the Economic Recovery and Development Program were about VND39.8 trillion.

If including VND6.1 trillion in the amount of exemption and reduction under Resolution No. 406/NQ-UBTVQH15 dated October 19, 2021 of the National Assembly Standing Committee, the total amount of exemption, reduction and extension is about VND45.9 trillion.

Timely response to expenditure

Thanks to the initiative in management, the budget expenditure tasks in the last six months were carried out following the estimate, meeting the requirements of socio-economic development, national defense, security, state management and payment of due debts, ensuring funding for pandemic prevention and control, and social security spending tasks for the people.

Regarding state budget expenditure, in the first six months of the year, the state budget is estimated at VND713 trillion, equaling 40% of current appropriation. In particular, expenditure on development investment reached 28.6% of current appropriation, debt payment and interest reached 50.1% of current appropriation and recurrent expenditures reached 45.8% of current appropriation.

Deputy Prime Minister Le Minh Khai, leaders of the Ministry of Finance and ministries and sectors attended the Conference.

To ensure resources for the implementation of the Economic Recovery and Development Program, the Ministry of Finance has reported to the Government to submit to the National Assembly Standing Committee for making the decision on a plan to use the sources of revenue, savings, reduction and remaining resources of the central budget in 2021. In particular, supplementing VND6.840 billion to the implementation of the program.

At the same time, it is proposed to the Government in Resolution No. 77/NQ-CP dated June 8, 2022 the regular Government meeting in May 2022, that ministries, central agencies and localities thoroughly save from regular expenditure; review and arrange tasks of expenditures that are not really urgent; resolutely cut down the central budget expenditures that have been allocated in the estimate from the beginning of the year but it has not been allocated by June 30, 2022 (except for special cases decided by the Prime Minister) to supplement resources to implement the Program.

According to the Ministry of Finance, in the first half of the year, the balance between the central budget and local budgets has been secured. Public debt safety indicators are strictly controlled by the Ministry of Finance, ensuring safe and sustainable national finance and macroeconomic stability.

However, the Ministry of Finance also pointed out limitations and difficulties. In state revenue and expenditure, the Ministry of Finance said that, in general, the progress of state revenue collection in the first six months of the year was quite good. However, some revenues and localities were low, and tax arrears tended to an upward trend. The situation of tax fraud and tax evasion, especially the management of tax collection for business activities on digital platforms, e-commerce, cross-border business, is complicated.

The equitization and rearrangement of SOEs, the progress of equitization and divestment of state-owned enterprises (SOEs) is slow compared to the set plan; in the stock market and derivatives market, there are phenomena of price manipulation, making prices more and more sophisticated. The disclosure of information of some public enterprises, listed companies and investors has not met the requirements yet; the corporate bond market is overheated growth, with many potential risks.

Eights key solutions in the second half of the year

In the last six months of the year, it is forecasted that as well as advantages, there are many risks, difficulties, and challenges. The internal capacity of the economy is low, the pressure of inflation control increases, and risks of climate change, natural disasters and epidemics are complicated and unpredictable.

The effective implementation of fiscal and monetary policy solutions under the Socio-economic Recovery and Development Program is an important and decisive factor in stabilizing the macro-economy and maintaining the recovery momentum and boosting economic growth in the final months of 2022.

Delegates watched the video summarizing the state budget financial work in the first 6 months of 2022.

In the last six months of the year, the Ministry of Finance has proposed eight key solutions to implement state budget-financial tasks.

Firstly, focusing on key implementation of solutions of fiscal and monetary policy to support the program of socio-economic recovery and development, striving to accomplish and exceed the economic growth target of 2022.

Secondly, focusing on building and perfecting institutions and financial - state budget projects following the Government's work program and practical requirements, ensuring the requirements in time, quality, feasibility, and removing difficulties for production and business.

Thirdly, organizing the implementation of laws on tax and tasks of state budget collection in 2022; striving to collect in excess of the estimate decided by the National Assembly; strengthening revenue management, and firmly grasping revenue sources in the area to have appropriate solutions for each field and subject of collection, and striving to exceed the estimate assigned by the National Assembly.

Fourthly, effectively managing the state budget expenditure in 2022 following the estimate, ensuring resources for Covid-19 pandemic prevention and control and supporting economic recovery, as well as accelerating disbursement of public investment capital.

Fifth, promote restructuring and equitization of SOEs, renewing public non-business units; improve the operational efficiency of state-owned corporations, ensure revenue estimates and reduce pressure on state budget expenditures.

Sixth, sustainable development, safe and smooth operation of financial markets and financial services. Furthermore, implementing price management based on market principles, controlling inflation, stabilizing major balances, and supporting economic growth.

Seventh, tightening financial discipline; strengthening inspection, examination, supervision, publicity and transparency; accelerating inspection activities of the National Steering Committee 389 to combat smuggling and trade fraud and strictly implement conclusions on inspection and audit.

Eighth, well-preparing conditions and organizing the formulation of the socio-economic development plan and the state budget estimate in 2023, the financial - state budget plan for the year 2023-2025.