Minister Dinh Tien Dung: good apparatus and personnel organization will promote restructuring of budget spending

VCN - Minister of Finance Dinh Tien Dung, Member of the National Assembly of Ninh Binh Province, confirmed that good apparatus and personnel organization will promote the restructuring of budget spending at a group discussion session of the National Assembly on October 22.  
minister dinh tien dung good apparatus and personnel organization will promote restructuring of budget spending Economic restructuring: Slow and uncertain
minister dinh tien dung good apparatus and personnel organization will promote restructuring of budget spending Proposals on restructuring State-owned enterprises
minister dinh tien dung good apparatus and personnel organization will promote restructuring of budget spending Financial reforms, towards restructuring Vietnam's economy
minister dinh tien dung good apparatus and personnel organization will promote restructuring of budget spending
Minister Dinh Tien Dung spoke at the group discussion session on October 22nd

Revenue from production and business still key

According to the Minister, along with economic growth and macro stability, total state budget revenue in recent years has reached and exceeded estimates. Revenue estimates are based on economic growth of about 6.8 percent and inflation of 4 percent, but budget revenue is always higher than economic growth. The mobilization rate to the budget is about 24.4 percent of GDP and tax is 21 percent of GDP, reaching the set target. In 2019-2020, this rate will be lower, but the average will still reach the set goal.

Along with that, budget spending is actively managed. Development investment spending is higher than the previous year, and about 26.9 percent of total state budget spending will be implemented by 2020 and the 27-28 percent of total budget spending will be implemented for the whole period, higher than the set target (the whole period goal is 25-26 percent).

Recurrent spending is targeted at less than 64 percent, but in 2020, it is estimated at only 60.5 percent of the total state budget spending. Recurrent spending has plummeted, while ensuring the source of an average salary increase of more than 7 percent.

Expenditure deficit and public debt dropped sharply, while the growth rate of public debt has dropped by more than half. If in 2011-2015 it was more than 18 percent, in this period, it is just over 8 percent. More importantly, public debt has been restructured compared to before, with the average repayment term of bonds and domestic loans at nearly seven years, while in 2011-2012, it was 2.9 years. The average interest rate for the period of 2011-2013 was 12-13 percent per year, but in the recent two years, it was about 4.6 percent, for 13-year terms.

Regarding the opinion that the budget revenue is not really sustainable and revenue from three economic sectors (SOEs, FDI enterprises and non-state sector) have not reached estimates and the increase in revenue is mainly from natural resources, Dinh Tien Dung said that this is because of objective and subjective reasons.

Subjectively, to have more resources, the revenue was estimated at a high level. Overcoming this problem, in 2018-2019, the Ministry of Finance has gradually changed and revised down estimates to meet the reality of the localities. In this context, revenues from crude oil, imports and exports, and land use hardly grow. In 2020, the revenue from crude oil is estimated at only 2.3 percent of the total budget revenue; revenue from import and export activities is estimated at only 13.8 percent; and revenue from land is only 6 percent of the total budget revenue. Thus, revenues mainly focus on the three economic sectors, accounting for the largest proportion of total budget revenue – about 44.8 percent.

Objectively, the macro-economy has maintained stability and inflation has been controlled, but many enterprises still face difficulties and production capacity was not stable, especially for SOEs, so it was difficult to gain high growth.

Affirming the increasingly sustainable budget, Minister Dinh Tien Dung said that in 2019, revenue from the three economic sectors increased by 10.9 percent, higher than estimated economic growth and inflation and higher than those in previous years (2016, it increased by only 9.9 percent, in 2017 by 5.6 percent, and 2019 by 9.7 percent). The proportion of revenues in the three sectors has also increased over the years. If in 2017, it accounted for 39 percent, in 2019 it was 42 percent. The mobilization rate from taxes and fees of these three sectors also accounted for 10.2 percent of GDP areas compared to GDP of the period 2016-2019; 9.9 percent higher than the period of 2011-2015. Thus, the three economic sectors are developing very fast, showing the sustainability of the state budget.

In contrast, revenues from assets, resources, land, mining have increased compared to the estimate but accounted for a small proportion and gradually decreased. For example, revenue from mining rights accounted for only 0.3 percent of the total state budget revenue, while revenue from real estate accounted for 8%.

“Therefore, revenue from production and business is still an important and key revenue, revenue structure has shifted more positively, the proportion of domestic revenue has gradually increased. It is estimated that this year, next year, domestic revenue will be about 83.6 percent of total revenue, the revenue from imports, exports and crude oil will gradually decrease from 36 percent in the previous period to 23 percent in this period and to 10 percent in the future period,” the Minister affirmed.

Mobilisation rate decreased

Regarding the opinion that the mobilization rate from taxes, fees and charges failed to meet the target of 21 percent of GDP, the Minister said the mobilization rate is tending to decrease. In 2019 it is expected to be 20.2 percent and 19.4 percent in 2020, while it was over 21 percent. Despite the decrease, it is expected that the average rate of 5 years still reaches the set target.

The decrease in the mobilization rate is firstly due to the rapid reduction in revenues from crude oil and import-export activities, while the implementation of measures to adjust the revenue policy under the National Assembly's Resolution No. 25/2016 / QH14, particularly adjusting the corporate income tax, value added tax, personal income tax, natural resource tax and property tax, faced a lot of difficulties.

In fact, from the beginning of the year, the Finance sector has implemented synchronous solutions for revenue management, assigned tasks to each cadre and civil servant at all levels to manage tax, urge tax and tax debt collection as well as conduct tax inspection. Therefore, the revenue from tax debts is always higher than the previous year and the average revenue from outstanding debts reaches 80 percent.

Regarding the opinion that the restructuring of state budget spending is slow, the Minister said that the restructuring of state budget spending under Resolution 07-NQ / TW of the Politburo and Resolution 25/2016 / QH14 of the National Assembly is being implemented effectively and practically.

It is worth noting that the Minister pointed out that during the implementation process, it is evident that the reciprocal support between the personnel reduction and the restructuring of state budget spending.

minister dinh tien dung good apparatus and personnel organization will promote restructuring of budget spending Streamlining the apparatus - the “spearhead” in reform of the Finance sector

VCN - Along with reforming administrative procedures and modernizing operations, reforming the state administrative apparatus is an important ...

"For example, if personnel was reduced by two percent, we will have two percent for wage reform. Therefore, if the restructuring and reform of public non-business units is accelerated, it will greatly contribute to the restructuring of state budget spending. Therefore, the participation of all agencies and sectors is needed to create more favorable conditions for the administration of the state budget,” the Minister emphasized.

By Hong Van/ Huyen Trang

Related News

Appointing new Director of Bac Ninh Customs Department

Appointing new Director of Bac Ninh Customs Department

VCN - On October 1, 2024, at the headquarters of Bac Ninh Customs Department, Deputy Director General of Vietnam Customs Tran Duc Hung chaired the Ceremony to announce the decision to appoint Pham Chi Thanh, Deputy Director of Bac Ninh Customs Department to hold the position of Director of Bac Ninh Customs Department.
Many financial policies aim to attract investment resources for green growth

Many financial policies aim to attract investment resources for green growth

VCN - This is what the Minister of Finance emphasized in his speech at the "Net Zero - Green Shift: Opportunities for Leaders" seminar on June 27.
Ministry of Finance requests expediting equitization, divestment and restructuring of SOEs

Ministry of Finance requests expediting equitization, divestment and restructuring of SOEs

VCN – To expedite the equitization, divestment and restructuring of SOEs, the Ministry of Finance proposes the head of the owner's representative agency implement equitization, divestment and restructuring of the State’s capital in enterprises under the plan approved by the Prime Minister, ensuring compliance with regulations, transparency and efficiency.
The SOE block will basically complete the restructuring and transformation of ownership by 2025

The SOE block will basically complete the restructuring and transformation of ownership by 2025

VCN - Deputy Prime Minister Le Minh Khai has just signed Decision No. 360/QD-TTg dated March 17, 2022 approving the scheme "Restructuring state-owned enterprises (SOEs), focusing on economic groups, state-owned corporations in the 2021-2025 period".

Latest News

Removing legal hurdles in regular spending for capital assets

Removing legal hurdles in regular spending for capital assets

VCN - Mr. Bui Anh Binh, Deputy Director of the Department of Public Administration (Ministry of Finance) emphasized that the issuance of Decree No. 138/2024/ND-CP has created an important legal corridor, promptly removed obstacles, and created conditions for ministries, branches, and localities to proactively use regular expenditures to carry out tasks and projects outside the approved medium-term public investment plan, and to be proactive in performing assigned tasks.
M&A activities show signs of recovery

M&A activities show signs of recovery

Mergers and acquisitions (M&A) activities in Vietnam have been showing signs of recovery in recent months as several large companies announced finished deals, which may create a ripple effect in the M&A market.
Fiscal policy needs to return to normal state in new period

Fiscal policy needs to return to normal state in new period

VCN - To recover the economy during and after the Covid-19 pandemic, fiscal policy has been flexibly and promptly managed, becoming a solid foundation to help businesses and the economy gradually overcome difficulties. After nearly 5 years, although there are still difficulties, the economy is gradually returning to a high growth trajectory. In that context, it is necessary to let fiscal policy return to normal state.
Ensuring national public debt safety in 2024

Ensuring national public debt safety in 2024

VCN - Since the beginning of the year, public debt management has been conducted proactively and effectively, meeting the need of raising capital for development investment. At the same time, debt indicators by the end of 2024 are guaranteed within the ceiling and safety threshold approved by the National Assembly, ensuring national financial security, increasing proactive response to risks arising from external and internal causes of the economy.

More News

Removing many bottlenecks in regular spending to purchase assets and equipment

Removing many bottlenecks in regular spending to purchase assets and equipment

VCN - Decree No. 138/2024/ND-CP, which has just been issued, is expected to contribute to resolving bottlenecks in allocating funds for purchasing assets and equipment; renovating, upgrading, expanding, and constructing new construction items in projects that have been invested in and constructed in the past.
Continue to handle cross-ownership in banks

Continue to handle cross-ownership in banks

VCN - The situation of excess share ownership, cross-ownership between credit institutions (CIs), CIs and enterprises, although has decreased significantly compared to previous periods, is still complicated and requires continued inspection and control.
Striving for average CPI not to exceed 4%

Striving for average CPI not to exceed 4%

VCN - According to the report of the Ministry of Finance, there are still some factors that put pressure on price levels in the remaining months of 2024, so the Ministry has updated 2 scenarios of average inflation in 2024 increasing in the range of 3.7-3.92%.
Delegating the power to the government to waive, lower, or manage late tax penalties is suitable

Delegating the power to the government to waive, lower, or manage late tax penalties is suitable

VCN - Discussing in groups about the project "1 law amending 7 laws" in the financial sector according to the program of the 8th Session on October 29, 2024, National Assembly delegates proposed that the Government should be assigned to make specific regulations on decentralization, granting the right to exempt and reduce taxes, and handling penalties for late payment of taxes...
Removing difficulties in public investment disbursement

Removing difficulties in public investment disbursement

VCN - According to the report of the Investment Department (Ministry of Finance), the estimated disbursement from the beginning of the year to October 31, 2024 is VND 355,616.1 billion, reaching 47.43% of the 2024 plan, reaching 52.29% of the plan assigned by the Prime Minister.
State-owned commercial banking sector performs optimistic growth, but more capital in need

State-owned commercial banking sector performs optimistic growth, but more capital in need

VCN - According to the report sent to the National Assembly before the 8th Session of the Government on investment, management and use of state capital in enterprises nationwide in 2023, the business performance of the state-owned commercial banking sector achieved positive growth.
Stipulate implementation of centralized bilateral payments of the State Treasury at banks

Stipulate implementation of centralized bilateral payments of the State Treasury at banks

VCN - The Ministry of Finance (MOF) gathers feedback on the draft Circular regulating the management and use of accounts of the State Treasury opened at the State Bank of Vietnam (SBV) and commercial banks.
Rush to finalize draft decree on public asset restructuring

Rush to finalize draft decree on public asset restructuring

VCN - According to the Ministry of Finance, the draft Decree regulating the rearrangement and handling of public assets is being urgently completed by the Ministry of Finance to submit to the Government for promulgation.
Inspection report on gold trading activities being complied: SBV

Inspection report on gold trading activities being complied: SBV

The State Bank of Vietnam (SBV) has announced that inspections on compliance with legal policies in gold trading activities of credit institutions and gold trading businesses have been completed and an inspection report is being compiled.
Read More

Your care

Latest Most read
Removing legal hurdles in regular spending for capital assets

Removing legal hurdles in regular spending for capital assets

Mr. Bui Anh Binh, Deputy Director of the Department of Public Administration (Ministry of Finance) emphasized that the issuance of Decree No. 138/2024/ND-CP has created an important legal corridor
M&A activities show signs of recovery

M&A activities show signs of recovery

Mergers and acquisitions (M&A) activities in Vietnam have been showing signs of recovery in recent months as several large companies announced finished deals, which may create a ripple effect in the M&A market.
Fiscal policy needs to return to normal state in new period

Fiscal policy needs to return to normal state in new period

VCN - To recover the economy during and after the Covid-19 pandemic, fiscal policy has been flexibly and promptly managed, becoming a solid foundation to help businesses and the economy gradually overcome difficulties. After nearly 5 years, although there
Ensuring national public debt safety in 2024

Ensuring national public debt safety in 2024

VCN - Since the beginning of the year, public debt management has been conducted proactively and effectively, meeting the need of raising capital for development investment. At the same time, debt indicators by the end of 2024 are guaranteed within the ce
Removing many bottlenecks in regular spending to purchase assets and equipment

Removing many bottlenecks in regular spending to purchase assets and equipment

Decree No. 138/2024/ND-CP, which has just been issued, is expected to contribute to resolving bottlenecks in allocating funds for purchasing assets and equipment
Mobile Version