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43 localities have collected more than 50% of the estimate and 20 localities have collected less than 50% of the estimate. Photo: H.Van.

State budget revenues increased by 14.3%

From the early days of 2018, the Ministry of Finance has focused on directing the implementation of the tax law and tasks of the state budget, strict management of revenues, exploitation of revenues, expansion of tax base (including subjects and geographical areas) to step up the fight against revenue loss, smuggling and trade frauds and strengthen inspections and examination of tax. In addition, it has reviewed and submitted to the competent authorities the amendments, supplements and promulgation of financial, tax and fee policies in line with the practical situation and commitments on international integration, creating an equal business environment for businesses.

By the end of June 2018, the total State budget revenues were estimated at VND 651.7 trillion, equivalent to 49.4% of the estimate, an increase of 14.3% over the same period last year. Of which, revenues from crude oil were 82.4% of the estimate, an increase of 25.3%. The import and export balance reached 54.9% of the estimate, an increase of 6.9%. The domestic revenues reached 47.6% of the estimate, an increase of 15.5%. Excluding special revenues (collection of land use fees, lottery receipts, dividend collection and after-tax profits of State enterprises, and recovery of state capital invested in enterprises) the remaining revenues reached 46.4% of the estimate, an increase of about 13%, higher than economic growth rate and CPI in the first 6 months of 2018 (7.08% and 3.29%).

It can be seen that the results of the above 6 months is positive. However, the progress achieved from the 3 key economic sectors was lower than the required estimate (revenues from the SOEs were 43.7% of the estimate, revenues from foreign invested enterprises were 38.7% of the estimate, the progress of non-State sector is better, but only 47.8% of the estimate).

In particular, of the total state budget revenues, the central budget revenues reached 46.2% of the estimate, higher than the same period in 2017, and the local budget revenues reached 54% of the estimate.

In terms of domestic revenue, 43 localities have collected more than 50% of the estimates, 20 localities have collected less than 50% of estimates, especially in some localities collecting domestic revenue without collecting land use fees and lottery tickets, less than 40% of estimation.

Spend VND 4.6 trillion to overcome disaster

The total State budget expenditures till now are estimated at VND 649.2 trillion, equal to 42.6% of the estimate, an increase of 11.3% over the same period of 2017. The State budget expenditure management is tight, according to the budget and schedule. The ministries, branches and localities have taken the initiatives in reviewing, arranging, implementing, and procuring public assets in accordance with the prescribed standards, norms and regimes, ensuring thrift and efficiency. In addition, the State authorities shall intensify the inspections, examination and control of State budget expenditures, thus contributing to raising the financial discipline and the efficiency of the use of State budget.

In the first 6 months of 2018, the central budget spent VND 4.6 trillion mainly to support localities in overcoming the consequences of floods and typhoons, droughts and saline intrusion, river bank erosion, and dyke safety.

Particularly, the expenditures on capital construction (including government bonds) will be higher than the same period of 2017 (reaching 31.7% of the plan compared to 25.6% of the same period) , but still lower than the requirements (35 ministries, central sectors and 6 localities disbursed less than 25% estimate). The Ministry of Finance is continuing to coordinate with ministries, sectors and localities to promote the implementation and disbursement of investment capital.

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Thus, the central budget balance and the budget at local level in the first 6 months of 2018 are guaranteed; issuing VND 89.5 trillion of Government bonds to offset the overspending and repayment of central budget loans according to the estimate.