Overspending in 2022 drops but still ensures payment for economic recovery program

	In Q1, State revenue estimated to rise by 1.3%
	The more delayed the investment disbursement is, the more accumulated the capital expenditure will be
	Budget overspending looks likely

Fiscal policies is actively and flexibly operated, helping remove many difficulties for businesses and people. Photo: H.Anh

The economy maintains its recovery momentum at the end of 2022, helping increase domestic revenue

The additional report on state budget implementation results in 2022 and implementation of state budget estimates in 2023 has just been signed by Minister of Finance Ho Duc Phoc authorized by the Prime Minister to submit to the Standing Committee of the National Assembly.

In this report, the Government said that the estimate of state budget revenue in 2022 is VND 1,411.7 trillion (excluding VND 1,707.58 billion adding to the revenue estimate from the Oil and Gas Exploration Fund that is being monitored at PVN). According to the report, the State revenue in 2022 reached VND1,614.1 trillion.

So far, State collected VND 1,815.5 trillion, an increase of VND 403.8 trillion (28.6%) compared to the estimate, an increase of VND 201.4 trillion compared to the report to the National Assembly. The revenue to the state budget reached 19.1% of GDP, and revenue from taxes and fees alone reached 15.4% of GDP.

Of which, domestic revenue rose by nearly VND80.5 trillion compared to the report to the National Assembly, mainly from three economic sectors. In addition, a number of revenues had a large growth such as: personal income tax (rising by VND17.3 trillion); fees and charges (up by VND 15.1 trillion); others (up by VND10.5 trillion); land and water surface rents (up by VND7.4 trillion).

The main reason is that in the last months of the year, the economy still maintained its recovery momentum, payment of enterprises rose, including corporate income tax in the fourth quarter and advanced payment for the whole year (not less than 80% of tax payable according to the final settlement); oil prices remained high, groups and corporations boosted oil and gas exploitation, processing and trading, contributing to increasing budget revenue in this field. In addition, automobile manufacturing and assembling enterprises boosted consumption, and the amount of special consumption tax paid to the state budget increased.

Regarding state budget expenditure, the estimated expenditure is VND1,816 trillion, reported expenditure is VND2,035.4 trillion. Based on the tasks of state budget expenditure in 2022 to the end of the settlement adjustment period and the tasks of transferring sources to 2023, the state budget expenditure in 2022 is estimated at VND2,158.1 trillion, up VND342.1 trillion (+18.8%) compared to the estimate, an increase of VND122.7 trillion compared to the report to the National Assembly.

Regarding overspending, according to the estimate, the state budget deficit in 2022 is VND404.3 trillion (4.3% of GDP), the reported deficit is VND421.3 trillion (including the additional expenditure for the economic recovery and development program). According to the report, the budget overspending reached about VND342.6 trillion, down VND61.7 trillion compared to the estimate. Of which, the central budget overspending fell by VND45.9 trillion; and local budget overspending dropped by VND15.8 trillion.

The Government's report also shows that, by the end of December 31, 2022, the public debt balance is about 38% of GDP, the Government debt balance is about 34.7% of GDP, the country's foreign debt balance is about 36.8 % of GDP, lower than the specified ceiling rate (60% GDP, 50% GDP and 50% GDP respectively).

State budget spending is strictly managed, unnecessary spending tasks are cut

Overall assessment of the results achieved, the Government believes that fiscal policies have been operated proactively and flexibly, helping remove many difficulties for businesses and people, and promptly responding to actual developments and actively contributing to stabilizing the macro-economy, controlling inflation, promoting the recovery of socio-economic development.

State budget revenue results not only offset the decrease in revenue due to the implementation of tax exemption and reduction policies to support businesses and people but also exceed the estimate, thereby ensuring resources for the recovery program and increasing spending for development investment and for urgent tasks; and having additional resources to implement salary policy reform according to Resolution No. 27-NQ/TU of the Central Government.

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Moreover, the spending has been strictly controlled, unnecessary spending tasks have been cut, thrift practicing has been seriously implemented, recurrent spending has reduced and spending for development investment has increased. Furthermore, the inspection and examination, discipline have been strengthened, improving the efficiency of state budget collection and payment and the management and use of public assets.

The Government also affirmed that the overspending reduced compared to the estimate and the report but still ensured payment for the recovery program and arranged the investment capital plan for five expressway projects.

In addition, public debt decreased and was lower than the warning threshold ceiling according to the resolution of the National Assembly, continuing the sustainable structure of public debt, the Government said.

In addition, the Government has actively managed and reduced the issuance of Government bonds compared to the plan at the beginning of the year in line with the progress of state budget management and effective use of the state budget. The administrative reform, application of information technology, digital transformation, especially in the fields of taxation, customs, treasury have been accelerated.