Minister of Finance works with Quang Binh on performance of financial - budget task

Minister Dinh Tien Dung said that the province must forecast plans on revenues and develop a revenue - expenditure scenario in the budget management.

According to a report of the People's Committee of Quang Binh province, the growth rate (GRDP) reached 3.38% over the same period in 2019. The value of agricultural, forestry and fishery production increased by 3.21%. Total social investment capital was VND9,440 billion, increasing by more than 8% over the same period last year. However, due to the Covid-19 pandemic, many economic sectors were negatively affected, especially tourism, retail, transportation, accommodation and catering services, etc.

Revenues exceed estimates in difficult context

Mr. Hoang Dang Quang, Secretary of the Provincial Party Committee, Chairman of the People's Council of Quang Binh province, said that in the difficult context, the Provincial Party Committee and the provincial People's Committee always strictly followed undertakings and directions of the Central Government, together with the participation of the whole political system; and unanimous and outstanding efforts of the political system, the province has maintained and restored socio-economic development and ensured people's lives. As a result, state budget revenues and public investment disbursement have achieved specific results.

The province’s budget revenue reached over VND2,765 billion, up 13% over the same period last year, reaching 50.3% of the local estimate. This is a high growth rate compared to the average growth rate of the whole country, of which, domestic revenue was more than VND2,685 billion, equal to 52.7% of the local estimate, up nearly 13% over the same period last year; revenue from import and export duties was VND80 billion, equivalent to 36.4% of the estimate, up 18% over the same period last year.

Among budget revenues, six of 15 revenues reached and exceeded the estimates (reaching 50% or more), of which, revenue from non-agricultural land use tax was more than 58%; personal income tax more than 54%; and foreign-invested enterprises 50%.

However, nine revenues (mainly those accounting for a large proportion) have not reached the estimated progress, which are revenues from central state-owned enterprises (40.7%); non-state economic sector (36%); and lottery (nearly 35%).

The provincial People's Committee also provided directions and guidance to sectors and levels on the management of State budget spending in accordance with regulations; integrated policies; developed plans to implement immediately from the budget allocation stage and during the implementation process; and review and arrange spending tasks and minimize expenditures for conferences and seminars.

Regarding the fight against smuggling and trade fraud in the province, in the first six months, the authorities handled 973 violations, sanctioned administrative violations in 909 cases. Total administrative fines, additional fines, tax arrears and sales from confiscated goods were more than VND15 billion. Infringing goods were mainly narcotics, firecrackers, explosives, cigarettes and used electronics and machinery, etc.

Enhancing expenditure saving

In the second half of 2020, Quang Binh province will focus on removing difficulties for businesses; effectively carrying out measures on tax exemption, reduction and payment extension under the Central direction; strengthening revenue management, preventing revenue loss and handling tax arrears; promoting equitization of state-owned enterprises and organizing and managing the state budget spending strictly and economically in accordance with regulations, combating wastefulness and improving the efficiency of budget use.

Regarding the disbursement of public investment capital, Quang Binh province will focus on directing and speeding up the process and promptly removing difficulties in site clearance and licensing procedures.

In the context of difficult budget collection, the province will direct recurrent expenditure saving, cutting a minimum of 70% of costs for conferences, business trips at home and abroad; and save more 10% of the remaining recurrent expenditure of the year.

Speaking at the working session, Minister Dinh Tien Dung affirmed that, despite many difficulties, Quang Binh had impressive growth. GRDP in six months increased by 3.38%, nearly doubling the average growth rate of the whole country (the country’s GDP in the six months increased by 1.81%). State budget revenue in the province is higher than the national average. This result shows the great efforts of the whole political system of Quang Binh province.

Determining that there are still many difficulties and challenges in the last six months of 2020, to successfully fulfill the financial-budget task and maintain the state budget balance in 2020, the Minister said that Quang Binh province needs to focus on carrying out assigned tasks and solutions on state budget spending set out from the beginning of the year.

In addition, when applying the Government's policies on removing difficulties for businesses affected by the Covid-19 pandemic, the budget collection in 2020 will be greatly affected, so the province must forecast plans on revenues and develop a revenue-expenditure scenario in budget management.