Notes in developing a 2024 budget estimate

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Localities that develop estimates of domestic revenue in 2024 must fully synthesize state budget revenues arising in their localities. Photo: Internet

Strive to increase domestic revenue by 5-7%, import-export revenue by 4-6%

According to Circular No. 51/2023/TT-BTC guiding the formulation of state budget estimates for 2024, three-year financial and state budget plans from 2024-2026 that have just been issued by the Ministry of Finance, the construction of the project Budget revenue calculation in 2024 closely follows the socio-economic and financial situation at home and abroad, specifically calculating the factors of increase, decrease and shift in revenue sources due to changes in legal policies on revenue, on management collection management, especially policies on tax, fee and fee exemption and reduction, the extension of time for paying tax and land rent expire in 2023; the implementation of the roadmap for tax reduction and incentives to fulfill the Government's commitment in the process of international economic integration with foreign investors. In addition, the development of revenue estimates must be associated with drastic implementation of administrative reform measures and modernization of revenue management; strengthen the management, fight against loss of revenue, especially against loss of tax revenue in business, real estate transfer; effectively manage new revenue sources arising in the context of digital economy development and cross-border e-transactions; step up tax inspection and examination, fight against transfer pricing, tax evasion, tax fraud, drastically handle tax arrears and strictly control tax refund.

In terms of revenue, in 2024, strive to increase estimate domestic revenue in 2024 excluding land use levy, lottery collection, proceeds from the sale of state capital in enterprises, dividends, profit after tax, the average revenue and expenses difference of the State Bank of the country by 5-7% compared to the estimated implementation in 2023 (excluding the factors of increase and decrease in revenue due to policy changes). The growth rate of revenue in each locality is consistent with economic growth and the revenue generated in each locality, taking into account the factors of strengthening revenue management, combating revenue loss and recovering tax debts. For revenue from import and export, the estimated revenue from import and export activities in 2024 will increase by 4-6% on average compared to the estimate in 2023.

For the formulation of domestic revenue estimates, localities that develop domestic revenue estimates in 2024 must fully summarize state budget revenues arising in their localities and exclude items not included in the state budget balance revenue according to the regulation mode on the basis of a full assessment of the actual implementation in 2023, the characteristics of 2024 and the check number of the 2024 revenue estimate announced by the competent authority.

Proposing a plan to allocate development investment capital in the correct order of priority

For the construction of budget expenditure estimates, specifically the development of investment and development expenditure estimates, the Circular of the Ministry of Finance clearly states the estimate of development investment and development expenditures from the State budget including ODA (separate the loans from aid capital), foreign concessional loans, aid capital that is not part of official development assistance from the state budget revenue, lottery revenue, revenue from the sale of state capital in a number of enterprises, the revenue from land use levy which are built in accordance with the provisions of law and the state budget's ability to balance during the year. The Ministry of Finance requested to propose a plan to allocate capital according to the prescribed priority order. The level of capital allocation for each task must be consistent with the medium-term public investment plan for the 2021-2025 period, the implementation and disbursement capacity of each project, and ensure the allocation and detailed delivery of the project before December 31, 2023, overcome the situation of fragmented, spread and inefficient capital allocation, ensure the allocation schedule, and assign detailed plans to tasks and projects in accordance with regulations. Along with that, strictly comply with the provisions of the State Budget Law on the total annual development investment capital support of the central budget (central budget) for local budgets (local budget) to implement a number of programs and big projects, especially important projects with great impacts on local socio-economic development, not exceeding 30% of the total construction investment expenditure of the central budget.

Regarding the formulation of recurrent expenditure estimates, the Ministry of Finance requested on the basis of the Law on State Budget; Law on Management and Use of Public Property and relevant guiding documents and legal documents; resolutions and directives; projects and tasks as approved by competent authorities, check estimates of budget revenues and expenditures in 2024, ministries, central agencies and localities develop detailed recurrent expenditure estimates according to each field, ensure to meet important political tasks, fully implement the policies and regimes issued by the State, especially policies on spending on people and spending on social security.

For the construction of local budget estimates, the Ministry of Finance requires that the preparation and construction of estimates should pay attention to a number of key contents. Accordingly, for the formulation of local budget revenue estimates, localities shall make estimates on the basis of summarizing all revenues from taxes, fees, charges and other revenues in their localities according to regulations prescribed in Article 7 of the Law on State Budget and relevant legal regulations. Provincial-level People's Committees direct the Finance, Tax and Customs agencies, coordinate with relevant local agencies to strictly observe the making of state budget revenue estimates and take responsibility before the Prime Minister for the formulation of state budget revenue. It is required to make a positive and realistic state budget revenue estimate, to fully synthesize new revenues arising in the locality to accurately and fully calculate the budget revenue, without leaving room for localities to assign targets to collect revenue. At the same time, analyzing and evaluating specific impacts affecting the state budget revenue estimate in 2024 by each area, field of revenue, revenue and tax, focusing on assessing the impact of revenue due to the influence of epidemics, natural disasters, budget impacts because of the implementation of policies on tax extension, exemption and reduction.