Government requests development of economic development plan and state budget estimate in 2023

VCN - Deputy Prime Minister Le Minh Khai signed Directive 12/CT-TTg of the Prime Minister on developing the socio-economic development plan and state budget estimate in 2023.
Finance Ministry announces State budget estimates for 2022 Finance Ministry announces State budget estimates for 2022
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Ministry of Finance publishes report on State budget estimate in 2022 Ministry of Finance publishes report on State budget estimate in 2022

The directive clearly states that 2023 is the mid-term year, which plays an important role in accelerating the implementation and striving to complete the goals of the five-year socio-economic development plan 2021-2025, contributing to realizing the goals of the 10-year socio-economic development strategy for 2021-2030.

Besides favorable conditions, Vietnam’s economy is forecast to continue to face many difficulties and challenges due to the influence of complicated developments in the world and regional political situation. The slow, potentially risky and uncertain recovery of the world economy such as supply shortages, supply chain disruptions, anti-free trade in some countries, high inflation which is become a big problem in many countries; the ongoing and potential risks of Covid-19 pandemic; productivity, quality, efficiency and weak competitiveness of our economy.

In order to inherit and promote the achieved results, overcoming difficulties and challenges, and create favorable conditions for socio-economic development in the following years, the Prime Minister instructed ministries, ministerial-level agencies and Government agencies, economic groups, state corporations, provinces and centrally-run cities to develop the socio-economic development plan and State budget estimate in 2023, Financial - State budget for 2023-2025.

Government requests development of economic development plan and state budget estimate in 2023

State budget estimate in 2023 must be developed in accordance with policies. Photo: ST

Closely following forecasts and assessment of the situation around the world

The directive requires that the Socio-Economic Development Plan in 2023 must be developed on the basis of a complete and accurate assessment of the situation and results of the implementation of the Socio-Economic Development Plan in 2022 and forecasts of the situation in the country, the region and the world.

The plan for 2023 must adhere to the guidelines and policies of the Party, resolutions of the National Assembly and the Government, and the Prime Minister; demonstrate the efforts to achieve the goals of the five-year Socio-Economic Development Plan 2021-2025, the 10-year Socio-Economic Development Strategy 2021-2030 and also successfully carry out the Socio-Economic Development and Recovery Program.

Plans of sectors, industries, and localities must be consistent with relevant planning, in accordance with the provisions of law on planning, for the goals set out in the socio-economic development strategy and plan of the whole country and local five-year socio-economic development plan (for localities).

It must also be suitable to the characteristics and development level of each sector and each locality; closely follow the forecasts and assessment of the situation in the country and in the world in the future; inherit achieved achievements, innovate and approach the general development trend of the region and the world as well as overcome shortcomings in the implementation of socio-economic development tasks.

The objectives and orientations of the plan must aim to achieving the goals of the five-year plan, ensure the feasibility and comply with the capabilities of sectors, levels and localities in association with the ability to balance for, mobilize and effectively use resources; and closely link between the socio-economic development plan and the public investment plan.

The Directive states that the Socio-Economic Development Plan in 2023 is built in the context where there are mixed advantages and disadvantages, the global economy and trade are forecast to continue to recover, but many potential risks, prices of raw materials for production and inflation are likely to increase. Furthermore, the impact of the Fourth Industrial Revolution on the world and the trend of promoting adaptation and opening up after the COVID-19 pandemic, digital transformation, green growth, sustainable development, and strengthening cooperation among countries are both an opportunity and a challenge and strategic competition, trade tensions between countries, pandemic in some countries are still complicated.

Domestically, the macroeconomic situation is stable and the Covid-19 pandemic is under control. Regulations on "safe adaptation, flexibility, effective control of the Covid-19 pandemic" have promoted efficiency; the program of socio-economic recovery and development has been implemented; and the trust of the business community and people is increasing. However, the economy will continue to face many difficulties and challenges coming from the internal weaknesses due to slow recovery as well as problems of population aging, rich-poor disparity, natural disasters, epidemics, climate change, and inflationary pressure.

Ministries, central and local agencies must study and propose major orientations and tasks in 2023 to ensure consistency with the main tasks and solutions of the five-year plan 2021-2025, general goals and main goals of 2023, in accordance with the practical conditions and development level of each industry and each locality.

Of this, the ministries, central and local agencies must inherit and promote the results of work and spirit over the past time; are not subjective, complacent with achievements; strictly comply the principles of organization and operation of the Party and the laws of the State; step up the effectively fight against corruption, wastefulness and negativity; resolutely prevent harassment and troubling for people and businesses in task performance.

Furthermore, the ministries, central and local agencies should continue to build and complete the development institutions of the socialist-oriented market economy institution; build the Government and administrative agencies at all levels in solidarity, high unity, integrity, democracy; strengthen discipline, practical action, effectiveness, efficiency, and stick to reality; take people and businesses as centers; uphold the responsibility of the leader in accountability, ensuring publicity and transparency; raise the sense of responsibility, self-reliance, self-reliance, innovation and creativity; dare-to-think, dare-to-do and dare-to-take responsibility, determination and efficiency in action; and continue to promote the aspiration for the country’s development.

Moreover, the ministries, central and local agencies must implement more drastically and more effectively the goals, tasks and solutions set out in all fields in accordance with the Resolutions and regulations of the Party, National Assembly and the Government on socio-economic development for the 10 years 2021-2030, and five years 2021-2025. They must continue to effectively implement the Covid-19 pandemic prevention and control program, the socio-economic recovery and development program; control inflation, ensure macroeconomic stability and major balances of the economy; strengthen the application of science and technology, promote innovation, creativity, digital transformation and develop the digital economy and digital society and reform the education and training; improve the quality of reviewing, supplementing and perfecting institutions, mechanisms and policies to effectively mobilize and use all resources for national development; actively remove difficulties and obstacles for production and business by appropriate institutions, mechanisms and policies; proactively and effectively solve long-standing problems.

Develop the state budget estimate in 2023, financial-State budget plan for three years 2023-2025

The directive requires that the development of the state budget estimate in 2023 and the financial - state budget plan for three years 2023-2025, focusing on key contents.

Specifically, the state budget revenue estimate in 2023 must be developed in accordance with current policies and regimes. The recovery process of the economy must ensure the accuracy of state budget revenues, along with raising revenues; and follow the analysis and forecasts of the economic and financial situation in the country and in the world.

The state budget revenue estimation must calculate the factors of increase, decrease and shift in revenues due to changes in legal policies on collection, exemption and reduction of taxes, fees and charges, extension of payment of taxes and land rent and implementation of the tax cut roadmap under commitments to international economic integration. This includes new-generation free trade agreements; the impacts of the budget collection associated with the performance of the Government's obligations for commitments made with foreign investors which have been submitted to the competent authorities.

The ministries, central and local agencies must continue to drastically implement administrative reform measures, modernize revenue management; strengthen the management and fight against loss of revenue, especially against loss of tax revenue in real estate transfer. Furthermore, they must strengthen inspection and combat transfer pricing, trade fraud, tax evasion, strictly manage taxable prices; effectively manage new revenues arising from e-commerce transactions and digital trade and handle tax arrears and strictly control tax refund.

It is estimated that the domestic revenue in 2023 excluding land use levy, lottery collection, proceeds from the sale of state capital in enterprises, dividends, profit after tax and the difference between revenues and expenditures of the State Bank will rose about 7-9% on average compared to the estimate in 2022 (after excluding the factors of increase and decrease in revenue due to policy changes). Specific increases in revenue depends on the conditions, characteristics and the economic growth rate in each locality. The revenue from import and export activities in 2023 is estimated to increase by 4-6% on average compared to the estimate in 2022.

All revenues from the rearrangement and disposal of public assets (including houses and land), revenues from leasing the mining rights, from the definite transfer of the right to exploit infrastructure assets and from exploiting land and water surface funds (after deducting relevant expenses) must be fully estimated and paid to the state budget. Budget collection from conversion of enterprise ownership and public service delivery units, transfer of state capital and the difference in equity capital greater than the charter capital at the enterprise shall comply with Decree 148/2021 dated December 31, 2021 of the Government.

For state budget spending estimates, the Directive requires that the state budget expenditure estimate in 2023 must ensure the provisions of law; principles, criteria and norms for allocation of development investment capital and state budget recurrent expenditures approved by competent authorities; meet the budget restructuring requirements according to Resolution 07-NQ/TW of the Politburo, associated with the implementation of the policy of reorganizing the apparatus, streamlining the staff and agencies in the public service delivery sector according to the Resolutions 18 and 19 of the 6th Plenum of the Central Committee (Term XII).

It is necessary to balance resources to complete the reform of salary and social insurance policies according to Resolutions 27 and Resolution 28 of the 7th Plenum of the Central Committee (Term XII); prioritize capacity building of the health system, especially in preventive medicine and grassroots health care in necessary and urgent places to enhance capacity for disease prevention and control; develop solutions to accelerate digital transformation and digital economy and digital society.

Moreover, it needs to review overlapping policies and tasks, prioritize expenditures according to their urgency, importance and implementation ability in 2023; propose competent authorities to issue new policies, schemes and tasks in necessary cases and with guaranteed sources; and project funding needs for implementation of new policies, regimes and tasks already decided by competent authorities; and not to allocate money for policies that has not yet been issued.

The principles of publicity and transparency and thrift practice and waste combat are defined right from task determination, the performance of tasks must be consistent from the estimation stage to the allocation, management and use of state budget. It is necessary to continue to promote the arrangement, restructuring, strengthening of management and effective use of revenues from equitization and divestment of state-owned enterprises.

Following to the provisions of Clause 2, Article 2 of Resolution 40/2021/QH15 dated November 13, 2021 of the National Assembly on the allocation of the central budget in 2022, localities shall develop local budget estimates in 2023 on the basis of the 2022 estimates decided by the National Assembly, assigned by the Prime Minister and the spending needs to implement relevant regimes, policies and laws.

On the basis of the 2023 state budget revenue estimate, the Ministry of Finance is assigned to develop and submit to the competent authorities a local budget spending plan in 2023 in line with the state budget's balancing ability to redefine the percentage of the allocation of revenues between the central budget and the local budget and additions from the central budget to the local budget in 2023 to apply for the whole period of budget stability, and submit it to the Government and National Assembly in accordance with Resolution 40/2021/QH15.

By Huong Diu/ Huyen Trang

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