Impressive results in budget collection in the first half of 2021

VCN - Budget revenue in the first half of 2021 showed impressive results thanks to the positive impact of economic growth and efforts in revenue management of the finance sector.
Economic recovery trend boosts budget collection at beginning of year Economic recovery trend boosts budget collection at beginning of year
State budget collection estimated at 134 trillion VND in January State budget collection estimated at 134 trillion VND in January
Lang Son Customs: reaching target of budget collection Lang Son Customs: reaching target of budget collection
People pay tax at Vietcombank's collection point. (Photo: Vu Sinh/VNA)
People pay tax at Vietcombank's collection point. (Photo: Vu Sinh/VNA)

Regarding budget spending, state budget expenditure was estimated at VND694.4 trillion, equal to 41.2% of the estimate, including expenditure for development investment estimated at VND133,900 billion, equal to 28.1% of the estimate and recurrent expenditures estimated at VND501,000 billion, equal to 48.3% of the estimate.

Because the spending rate is lower than the budget revenue rate, the overall state budget balance in the first six months of the year has a surplus. Specifically, the central budget balance saw a deficit of about VND63 trillion and the local budget saw a surplus of about VND150 trillion.

More than 16% growth

In the first months of 2021, the economy has seen ongoing recovery from the end of 2020. However, from the end of April 2021, the return of the Covid-19 pandemic and its quick spread to many localities has made difficulties for state budget collection and spending.

Thanks to the positive recovery momentum of the economy, efficient implementation of fiscal and monetary policies to prevent the pandemic and support businesses and people; and the strong growth of industries such as: beer, automobile manufacturing and assembly, banking, securities trading, real estate, the state budget revenue increased.

The Ministry of Finance said in the first half of the year, state budget revenue reached VND781 trillion, equaling 58.2% of the estimate, up 16.3% year-on-year. Of which, domestic revenue reached VND637.8 trillion, equaling 56.3% of the estimate, up 13.9% year-on-year. Notably, 10 of 12 revenues and groups of domestic revenues recorded a good collection rate (over 50% of the estimate). Revenue from crude oil reached VND18.7 trillion, equaling 80.7% of the estimate.

Almost 58 of 63 localities nationwide ensured the domestic revenue progress (reaching over 50% of the estimate), of which 48 localities achieved over 55% of the estimate such as Ha Nam, Vinh Phuc, Hung Yen, Hai Phong, Quang Ninh , Nghe An, Ha Tinh, Quang Ngai, Dong Nai, Binh Duong, Ba Ria - Vung Tau and Hau Giang.

In terms of revenue growth, 54 of 63 localities witnessed revenue growth. Some provinces achieved revenue growth of over 15% year-on-year, such as Ha Nam, Vinh Phuc, Hai Duong Thai Binh, Nghe An, Quang Nam, Phu Yen, Tay Ninh, Hau Giang and Ho Chi Minh City.

A bright spot in budget collection in the first half of the year came from the impressive growth of import and export taxes. By the end of June 2021, import-export tax revenue reached VND124.1 trillion, equaling 69.5% of the estimate, up 37.5% year-on-year.

The growth of import-export tax revenue was supported by the total import-export turnover in the first six months estimated at US$314.73 billion, up 31.3% over the same period in 2020, of which the taxable import-export turnover rose by 33.24%. Some main imports with large budget revenues increased sharply, such as: CBU cars, petroleum; machinery, equipment, tools and spare parts of all kinds.

Take initiative in fiscal policy management

Evaluating the above results, Assoc. Dr. Le Xuan Truong, Dean of the Faculty of Taxation and Customs, Academy of Finance, said that in the first six months of the year, we have successfully performed the "dual task" of fighting the pandemic and developing socio-economy. This is the objective basis to raise state budget revenue. Along with that are the great efforts of the whole financial system in performing State budget collection task.

“On the one hand, the Finance sector has implemented policies on tax exemption, reduction and extension of tax payment deadline of the National Assembly and the Government to support businesses to overcome difficulties and develop production and business. On the other hand, the tax authorities and customs authorities at all levels have accelerated reform of administrative procedures, application of e-tax service and e-customs service to facilitate taxpayers to fulfill their tax obligations to the State; synchronously implemented many solutions to prevent State budget revenue loss such as modernizing and improving the efficiency of tax inspection toward increasing inspection at tax offices; improved post-customs clearance inspection; anti-smuggling and anti-trade fraud; boosted tax debt collection and tax debt coercion,” Assoc. Dr. Le Xuan Truong said.

Economist Le Dang Doanh appreciated the Government's efforts in economic management as well as the efforts of the Finance sector in managing budget revenue and expenditure with revenue growth and surplus, thereby meeting the needs of the economy. He also noted that in the second half of the year, it is necessary to step up development investment spending, create conditions for public investment projects to be implemented in an open and transparent way.

From now until the end of the year, to ensure budget revenue, the Ministry of Finance said it is necessary to continue to consistently successfully implement the "dual goal" of effective pandemic prevention and business and production development; at the same time, take the initiative in fiscal and monetary policy management; strictly control the state budget deficit and keep the public debt rate not exceeding the allowable limit according to the National Assembly’s Resolution; balance and ensure adequate state budget resources; and manage revenues; continue to exempt, reduce and extending payment deadline for some revenues for those facing difficulties due to the pandemic; strengthen tax inspection and examination; combat transfer pricing and tax evasion; urge tax arrears collection and strive to reduce the rate of tax arrears to less than 5% of total state budget revenue in 2021.

Assoc. Dr. Le Xuan Truong said Tax and Customs authorities need to continue to stick to reality in order to promptly remove or propose competent authorities to remove difficulties in tax policies and state management in the import-export sector to facilitate production and business development. This is the premise to ensure the state budget revenue.

In the near future, the Ministry of Finance should continue to request tax agencies and customs agencies at all levels to continue drastically implementing solutions to combat budget revenue loss. In addition, it is necessary to direct tax agencies at all levels to focus on exploiting potential areas such as e-commerce, cross-border digital services and sharing economy.

By Hoai Anh/ Huyen Trang

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