Progress of state budget collection in three major economic sectors
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State budget revenue from production and business activities was quite similar in the last five months. Photo: H.V |
The revenue reached 44.5%
State budget revenue in May was estimated at VND 110.2 trillion. Accumulated revenue of the five months reached VND 628.1 trillion, equal to 44.5% of the estimate, up 12.9% over the same period in 2018.
Domestic revenue in May was estimated at VND 81.9 trillion, about VND 29.7 trillion lower than the previous month. Accumulated revenue of the past five months reached VND 506.9 trillion, equal to 43.2% of the estimate, up 13% over the same period in 2018 (in the same period in 2018 the figure reached 42.1% of the estimate, up 15%).
The Ministry of Finance has instructed the Tax Agency to strengthen revenue management from the beginning of the year, to review and understand the objects and budget revenues in the area, to check the tax declaration and tax finalisation of enterprises and strive to properly and fully collect revenues arising to the state budget.
As of May 31, 2019, the Tax Agency conducted 19,141 inspections; proposed dealing with VND 12,039 billion, of which VND 3,494 billion was contributed to the state budget (collected VND 1,755 billion into the state budget), reducing a loss of VND 7,941 billion; tax debt collection in the five months reached VND 13,390 billion of outstanding debts from the previous year.
As a result, the tax declaration and payment results of enterprises in the first five months of 2019 were positive and relatively similar in large economic sectors.
A major problem in state budget collection in 2018 that has been solved is the collection progress in the three production and business sectors.
Last year, although total revenue exceeded the estimate, the revenue from three production and business sectors decreased compared to the report. Discussing this issue at the National Assembly’s session, Minister of Finance Dinh Tien Dung said there were both objective and subjective reasons.
Regarding the objective reasons, Dung said despite economic prosperity, the production and business activities of enterprises were still difficult. In 2018, there were 131,300 newly established enterprises but there were also nearly 107,000 that temporarily stopped operations or dissolved.
Moreover, newly established enterprises are mainly small and medium-sized and super small enterprises, which are entitled to tax incentives, thus revenues contributed to the state budget are not significant. The number of enterprises reporting profit accounted for 40% of the total number of enterprises submitting tax declarations. The number of enterprises with positive VAT accounted for only 26% of the total number of enterprises declaring. Some enterprises with large revenues in 2018 had lower growth than expected, even lower than the previous year such as mining enterprises, crude oil exploiters, natural gas exploiters and mobile phone producers
Regarding the subjective reasons, the revenue estimate is higher than the actual capacity. Compared to 2017, revenue estimates of SOEs increased by 13.1%, revenue from FDI sector increased by 30.1%, revenue from non-state economic sectors increased by 20.4%; in which economic growth and inflation combined were only 11%.
Thereby, the Ministry of Finance has drawn experience to submit to the National Assembly the budget estimate for 2019 at a more appropriate level; an increase of 7.7% compared to 2018, of which the SOEs sector is equal to revenue of 2018, the FDI sector increases by 13.4% and the non-state economic sector increases by 13.3%.
In the last five months, the collection progress of the three sectors reached 41.1% of the estimate, approximately equal to the average progress of domestic revenues, up by 12.9% compared to the same period last year.
The state budget continues to see a surplus
Revenue from crude oil in May was estimated at VND 5.1 trillion, a month-on-month increase of VND 520 billion. The accumulated revenue of the five months was estimated at VND 23.39 trillion, equivalent to 52.4% of the estimate, a year-on-year decrease of 2.4%. The average payment price of crude oil reached US$ 66.5 per barrel, up US$ 1.55 per barrel compared with the estimated price, equal to 95.6% compared to the same period in 2018; the output was estimated at 4.9 million tonnes, equal to 47% of the plan and 98% of the same period in 2018.
Revenue from imports and exports in May was estimated at VND 23.1 trillion. Accumulated revenue in the first five months was estimated at VND 97 trillion, equal to 51.3% of the estimate, up 15.8% over the same period in 2018, equal to 48.8% of the estimate, up 20.5% over the same period in 2018. The value-added tax refund was about VND 49.7 trillion, equal to 44.7% of the estimate.
The Customs agency has strengthened post-customs clearance audit; coordinated closely with competent forces to fight smuggling, trade frauds and fake goods; which has had a positive impact on the revenue.
Total state budget expenditure in May was estimated at VND 120.7 trillion; the accumulated expenditure of the five months reached VND 550.2 trillion, equal to 33.7% of the estimate, up 4.2% over the same period in 2018.
In particular, development investment expenditure reached VND 94.1 trillion, equivalent to 21.9% of the estimate, approximately the same level as the previous year; expenditure for interest debt payment reached VND 51.56 trillion VND, equivalent to 41.3% of the estimate, up 1.7%; recurrent expenditures reached VND 401.6 trillion, equal to 40.2% of the estimate, up 5.6% over the same period in 2018.
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Because the spending progress was slower than the collection progress, the state budget balance in May and in the five months saw a surplus. In addition, the Ministry of Finance has operated the issuance of Government bonds, which both effectively uses the state budget and ensures expenditures sources to pay original debts and contribute to orienting the development of the market and restructuring public debts.
As of May 23, 2019, a total of VND98.3 trillion of Government bonds were issued with an average term of 12.75 years and an average interest rate of 4.94% per year.
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