Restructure state budget revenues to take advantage of the industrial revolution 4.0

VCN- The 4th Industrial Revolution (FIR) is expected to bring many benefits to all aspects of socio-economic life. But with the financial sector, this is a big challenge, especially the impact on state budget revenue and expenditure. Therefore, forecasting about this challenge and providing solutions in the process of restructuring state budget in the coming time is very necessary.
restructure state budget revenues to take advantage of the industrial revolution 40
Industrial Revolution 4.0 contributes to increasing the competitiveness of enterprises, boosting economic growth and increasing state budget revenues. Picture: Nguyen Hien.

Reduced budget spending on many areas

In fact, the FIR is based on digital technology and integrates all smart technologies to optimize every process and production method. This will help to reduce costs of production, management and operation (by using integrated technology, connecting everything, etc…), improving productivity and improving labor productivity that increases the competitiveness of enterprises, promotes economic growth and increases state budget revenues. In addition, new arising economic activities that are related to digital technology will also be adjusted through a system of tax policies and revenue collection, thereby contributing to the state budget.

On state budget spending, FIR has contributed to reducing expenditures in some areas: The expense for environmental protection will be reduced thanks to the use of digital technology to reduce toxic waste, save costs, reduce waste and emissions to the environment. In addition, the administrative costs in the long term may decrease as the Government uses digital technology and smart technology to implement the management. However, FIR also puts pressure on increasing expenditure, especially spending on science and technology development, social security, security and national defense.

Brings some challenges in establishing a system of financial and state budgetary policies in line with the context and situation.

However, according to Dr. Nguyen Viet Loi – Director of National Institute for Finance, Ministry of Finance, FIR also brings some challenges in establishing a system of financial and state budgetary policies in line with the new context and situation for ensuring transparency and contributing to improving business environment and attract investment ... Accordingly, the system of tax policy and state budget revenues must be adjusted to ensure that both the import-export commitments are in line with the current trend and cover the new economic activities arising in the context that applies to digital technology, and integrates all the smart technologies. Moreover, the policy must ensure the effective mobilization of resources to carry out the restructuring of the economy, the development of priority industries and trades and the driving force for research and development, improving the business environment and enhancing national competitiveness.

Ensuring tax equality

Fully aware of the advantages and disadvantages in implementing the Directive No. 16/CT-TTg on enhancing capacity of access to FIR by the Prime Minister, the Ministry of Finance has issued a number of documents that orientates implementation of the application of technology of FIR in the field of finance – budget such as: Decision No. 556 / QD-BTC dated 24 March 2016 of the Minister of Finance approving the 5 year plan on applying information technology in the operation of the Ministry of Finance in the 2016-2020 period; Resolution No. 02-NQ / BCSĐ dated March 9, 1818 of the Party Committee of the Ministry of Finance on deployment of the application of the FIR in financial-budgetary field … At the same time, many policies and solutions have been paid attention by the Ministry of Finance to adapt and take advantage of FIR. Specifically, in the field of state budget, the tax branch continues to expand the online tax declaration system for businesses, expand the deployment of electronic tax payment services; Linking electronic tax information between tax authorities, customs, treasury and commercial banks. Customs offices carry out e-customs procedures and implement electronic payment gateways, nationwide VNACCS / VCIS system; Continuing to expand electronic tax refund, electronic services for individuals and organizations; piloting the connection between the customs office and the warehouse, port and yard business in Hai Phong to reduce customs clearance time and improve the efficiency of state management of customs. The tax reform efforts and customs administration have contributed to reducing paper, shortening time, reducing the cost of implementing administrative procedures in the taxation field for import and export that are appreciated by the domestic business community and overseas investors.

Addressing solutions, Dr. Nguyen Viet Loi said that in the coming time, the finance sector should continue to complete the system of policies in combination with the restructuring of state budget revenues, ensuring equality about tax among tax payers; ensuring compliance with international commitments; creating favorable production and business environment and promote investment, ensure national interests with correct tax collection, create favorable conditions for taxpayers to accumulate and encourage production and business development.

Besides, the Ministry of Finance shall study and issue management policies and revenue policies for e-commerce transaction activities and new services formed from FIR. At the same time, restructuring of state budget expenditure in line with the new context and situation of digital technology development, paying attention to the fields of human resource development, education and training, science and technology. ...; reviewing and making good use of capital mobilization channels, including sources of foreign direct and indirect debt, foreign currency remittances to diversify financial investment instruments so as to efficiently mobilize domestic and foreign resources to meet the requirements of socio-economic development and the process of industrialization and modernization of the country.

By Hong Van/Quynh Lan

Related News

More sanctions needed to promote budget transparency

More sanctions needed to promote budget transparency

VCN - The positive results achieved in budget disclosure in recent times show that the legal framework on budget disclosure and transparency is quite adequate, along with the proactive participation of relevant agencies in implementing this issue. To make budget disclosure and transparency better, in the process of amending the State Budget Law, the Ministry of Finance is researching and supplementing sanctions.
Strictly handle violations of invoices in a timely manner to avoid budget losses

Strictly handle violations of invoices in a timely manner to avoid budget losses

VCN - The General Department of Taxation has just issued a document directing local tax authorities nationwide to conduct close and timely review and supervision of businesses showing signs of risks in the illegal trade and use of invoices.
Accurate information, improving quality of state financial statement

Accurate information, improving quality of state financial statement

VCN - The preparation of state financial statement has been significantly improved for units in the State Treasury as well as at financial information providers, thereby assessing the state financial picture transparently and comprehensively.
State budget revenue reaches nearly 70% of the estimate

State budget revenue reaches nearly 70% of the estimate

VCN - In the first 7 months of the year, state budget revenue is estimated to reach VND1,188.1 trillion, equal to 69.8% of the estimate, up 14.6% year-on-year. In addition, state budget expenditure in the first seven months of the year is estimated to reach VND948.3 trillion, equal to 44.7% of the estimate, up 0.6% year-on-year.

Latest News

Many factors affecting tuna exports in the last months of the year

Many factors affecting tuna exports in the last months of the year

VCN - Tensions between Israel and Iran escalate, tuna businesses are worried, they may have to stop export orders to the Israeli market in the last months of the year.
Vietnam still dominates Philippine rice import

Vietnam still dominates Philippine rice import

Vietnam continues to assert its dominance as the top rice exporter to the Philippines, with 2.91 million tonnes shipped as of the late October, or over 79% of the Philippines' total rice imports, according to the Vietnam Trade Office in the Philippines.
Vietnam cements ties with partners to engage in global semiconductor, AI industries

Vietnam cements ties with partners to engage in global semiconductor, AI industries

By boosting cooperation with reputable partners across the globe, Vietnam is taking steps to gain a foothold in the world’s semiconductor and artificial intelligence (AI) industries.
Aquatic exports expected to rise in year-end despite challenges

Aquatic exports expected to rise in year-end despite challenges

Aquatic exports is expected to surge in the remaining months of this year, as the year-end festive season comes, despite many challenges in the international markets, according to insiders.

More News

Trade Defense: The Key to Success for Vietnamese Businesses

Trade Defense: The Key to Success for Vietnamese Businesses

VCN - From losses and near bankruptcy, many domestic enterprises have recovered thanks to timely application of trade defense measures. Trade defense is also an effective shield for Vietnamese enterprises against a series of lawsuits from importing countries, thereby maintaining advantages and developing on "away grounds".
Lao Cai Customs sees a triple-digit surge in export-import turnover

Lao Cai Customs sees a triple-digit surge in export-import turnover

VCN - Updated from the beginning of the year to October 24, total import and export turnover through Lao Cai Customs Department increased by 102%.
Coconut is expected to become a billion-dollar export item

Coconut is expected to become a billion-dollar export item

VCN - Talking to the press at the ceremony to launch the first train carrying fresh coconuts to China, Mr. Luu Van Phi, Director of the Department of Industry and Trade of Tien Giang province, said that Vietnam's agricultural export potential, especially fresh coconuts, is expanding with the appearance of international railway transportation from Song Than station.
Plastic exporters interested in converting to recycling technology

Plastic exporters interested in converting to recycling technology

VCN - The Vietnamese plastics industry is facing major challenges in terms of plastic waste and recycling needs. Secretary General of the Vietnam Plastics Association Huynh Thi My (pictured) shared important information about the transformation in production of plastics enterprises to meet increasing export demands.
Logistics sector must embrace innovative trends to stay competitive

Logistics sector must embrace innovative trends to stay competitive

The Vietnamese logistics industry must adapt to new trends and enhance infrastructure to remain globally competitive, speakers said at an event in Ho Chi Minh City on October 31.
Vietnam’s agro-forestry-aquatic product exports likely to set new record

Vietnam’s agro-forestry-aquatic product exports likely to set new record

Vietnam’s agro-forestry-aquatic product exports are likely to achieve a record high of 62 billion USD in 2024, said Deputy Minister of Agriculture and Rural Development Phung Duc Tien.
UKVFTA greatly benefits Vietnam-UK trade: Experts

UKVFTA greatly benefits Vietnam-UK trade: Experts

The UK-Vietnam Free Trade Agreement (UKVFTA), signed into law three years ago, has clearly benefited trade cooperation between the two countries, particularly in the context of Vietnam’s exports to most other major markets declining due to geopolitical tensions and headwinds in the global economy, said experts at a conference in Hanoi on October 30.
Agricultural exports likely to exceed 60 billion USD amid challenges

Agricultural exports likely to exceed 60 billion USD amid challenges

With swift production recovery and continued growth, Vietnam's agricultural sector could potentially surpass the 60 billion USD export target, according to the Ministry of Agriculture and Rural Development (MARD).
Vietnam-Philippines trade likely to exceed 8 billion USD for first time

Vietnam-Philippines trade likely to exceed 8 billion USD for first time

With the current rising trend, trade between Vietnam and the Philippines is likely to exceed 8 billion USD for the first time to hit about 8.5 billion USD in 2024, with Vietnam’s surplus of more than 3 billion USD, according to the Vietnamese Trade Office in the Philippines.
Read More

Your care

Latest Most read
Many factors affecting tuna exports in the last months of the year

Many factors affecting tuna exports in the last months of the year

VCN - In recent years, Israel has always been Vietnam's leading tuna export market after the US and the EU. Therefore, the recent escalation of Israel-Iran tensions is affecting Vietnam's tuna exports to this market.
Vietnam still dominates Philippine rice import

Vietnam still dominates Philippine rice import

Vietnam continues to assert its dominance as the top rice exporter to the Philippines, with 2.91 million tonnes shipped as of the late October, or over 79% of the Philippines' total rice imports, according to the Vietnam Trade Office in the Philippines.
Vietnam cements ties with partners to engage in global semiconductor, AI industries

Vietnam cements ties with partners to engage in global semiconductor, AI industries

By boosting cooperation with reputable partners across the globe, Vietnam is taking steps to gain a foothold in the world’s semiconductor and artificial intelligence (AI) industries.
Aquatic exports expected to rise in year-end despite challenges

Aquatic exports expected to rise in year-end despite challenges

Aquatic exports is expected to surge in the remaining months of this year, as the year-end festive season comes, despite many challenges in the international markets, according to insiders.
Trade Defense: The Key to Success for Vietnamese Businesses

Trade Defense: The Key to Success for Vietnamese Businesses

VCN - From losses and near bankruptcy, many domestic enterprises have recovered thanks to timely application of trade defense measures. Trade defense is also an effective shield for Vietnamese enterprises against a series of lawsuits from importing countr
Mobile Version