Revenue collection in 2020 estimated to reach 98.3% of current appropriation, higher than the figure reported to the National Assembly

The Minister Dinh Tien Dung made a speech at the conference.

Many key provinces collect revenue exceeding current appropriation

Minister Dinh Tien Dung said that We had been gone through 2020 with many difficulties and challenges. However, socie-economic and revenue collection results achieved so far were quite comprehensive and positive.

Revenue collection as of December 28reached VND 1,426 thousand billion, 94.32% of the estimate, VND 101.4 thousand billion higher than the figure reported to the National Assembly.

The Ministry of Finance is still directing tax, Customs and State Treasury authorities to work with all levels and sectors to continue urging revenue collection in accordance with regulations, sufficiently, promptly and not encourage businesses to pay undue amounts in advance.

Based on updating the revenues up to now, the Ministry of Finance estimated the revenue collection of the whole year 2020 would reach VND 1,472 thousand billion, 98.3% of current appropriation, VND 148 - 150 thousand billion higher than the evaluated number in August and September, for reporting to the National Assembly. In particular, domestic revenue was more than 98% of current appropriation, revenue collected crude oil was 97.7% of current appropriation and balance revenue collected from import-export activities reached 85.6% of the current appropriation.

According to decentralisation, revenue collection for balancing in localities was estimated to exceed VND 40 thousand billion (106%) of current appropriation; 56/63 localities estimated domestic revenue collection would exceed the estimates assigned by the Prime Minister, while 55/63 localities were estimated to exceed the local revenue collection for balancing.

In particular, for key provinces of revenue collection, Hai Phong, Quang Ninh, Hai Duong, Hung Yen, Bac Ninh, Dong Nai, Binh Duong, Ba Ria Vung Tau and Can Tho City were assessed to exceed the current appropriation.

Some localities have not completed the task such as: HCM City is estimated at 90%, Vinh Phuc is estimated at 93.6%; Da Nang touched 70.9%; Quang Nam reached 89.4%, Quang Ngai reached 76.1% and Khanh Hoa hit 70.7%.

Revenue collection for balancing central revenue is estimated at VND 776 thousand billion, some 88.4% of current appropriation, VND 51 thousand billion higher than the figure reported to the National Assembly.

Although revenue collection was implemented in difficult conditions, it still ensured the source of implementation of important expenditure tasks in accordance with the estimate, especially expenditure on development investment, at the same time, additional expenditures for pandemic prevention and support for labourers affected by the pandemic leading to a deep decrease in income and expenditure on prevention, fighting and overcoming the consequences of natural disasters.

To share difficulties with businesses and people, State authorities have saved 70% of expenses for organising conferences, seminars, and expenses for business trips and an additional saving of 10% from recurrent expenses.

Regarding disbursement of development investment capital in 2020, according to the Minister of Finance, "there was a great progress". It is estimated by the end of December 31, it would reach the rate of 82.8% of current appropriation (if including capital transferred from previous years to 2020, the disbursement rate would reach 73%), of that domestic capital would reach 87%, foreign capital 46%; the group of ministries, central agencies would be 69.4%, and localities 86.7%. Striving to the end of January 31,2021, the disbursement rate would reach 92 - 93%.

Thanks to the higher result of revenue collection and thoroughly saving expenses, the budget deficit this year is estimated at 4.1 - 4.2% of GDP, lower than the rate reported to the National Assembly of 4.99% of GDP. The public debt rate by the end of 2020 is estimated at 55-56% of GDP.

“In general, for five years, we have basically exceeded the targets of the five-year financial plan (2016 - 2020) in both the mobilisation rate into the State budget, the proportion of development investment expenditure, the State budget deficit rate and the public debt ratio have complied with the Resolution of the XII Party Congress, the Resolution No. 07-NQ/TW of the Politburo and the Resolution 25/2016-QH14 of the National Assembly, contributing to ensuring financial security and safety, macro stability, and improvement of Vietnam's credit rating,” Dung affirmed.

Continue to thoroughly saving

Regarding State budget-finance tasks in 2021, Minister Dinh Tien Dung said that the finance sector would urgently review and report to the Government and competent authorities on preferential, exemption and reduction solutions of taxes, fees and charges to remove difficulties for businesses, attracting investment capital shifting sources in accordance with the goals and requirements of economic development, striving for economic growth at a higher level than planned. However, policies must be based on the actual situation, ensuring the key point.

Besides that, along with the recovery of the economy, it is suggested that sectors, authorities and local authorities should pay attention to direct the task of revenue collection, ensuring correct, sufficient and timely collection of arising revenue; combating revenue loss, price transfer, tax evasion, smuggling, commercial fraud and fraudulent origin, while assigning the target of reducing tax arrears to below 5%; striving to increase the revenue collection at minimum rate by 3% compared to the estimate assigned by the central Government.

On the basis of the assigned estimates, the head of the finance sector requested ministries, sectors and localities to promptly assign to each State budget-using unit, ensuring important political tasks; comply with regulations on State budget management; it is necessary to overcome the delay in the allocation of investment capital, especially foreign investment capital.

Regarding recurrent expenditures, the Ministry of Finance suggested authorities, units and localities continue thoroughly saving expenses for organising meetings, festivities, and limit the purchase of expensive cars and equipment.

For authorities and units applying a specific mechanism, at least 15% reduction compared to estimates of 2020 in accordance with Resolution No. 129/2020/QH14 of the National Assembly; to step up arrangement and renovation of the public non-business sector, reduce at least 5% of the State budget's support for partly-funded non-business units; not providing support for recurrent expenditure for units that have full cost autonomy.

According to Minister Dinh Tien Dung, for regular policies, regimes and tasks under the national target programmes, the target programme for 2016-2020 needed to implement continuously to ensure stable life for people's living, socio-economic efficiency, the Ministry of Finance requested assigned ministries and agencies to promptly review and propose the plan for budget allocation for 2021 in accordance with regulations and reality which were done in the past years, send to the Ministry of Finance and report to the Prime Minister on additional cost estimates for their implementation.

“Heads of ministries, central agencies and localities are responsible for directing the implementation of the 2020 public investment plan from the first day, the first month, striving to disburse all assigned capital, contributing to raising high efficiency in using budget, supporting economic recovery,” Minister Dinh Tien Dung said.

According to the minister, in 2021, it is necessary to continue promoting the restructuring and equitisation of State-owned enterprises, restructuring the banking sector, resolving loss of investment projects, improving the operational efficiency of the whole system.

Therefore, the minister proposed that the State revenue estimate for 2021 which was included VND 40 thousand billion of equitisation and divestment of the central budget. Therefore, ministries and authorities need to urgently and drastically implement the equitisation and divestment roadmap at the beginning of the year, avoiding accumulation at the end of the year as in recent years.