Solutions for state budget deficit in the last 6 months of 2016

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	Determined to successfully complete financial tasks - State Budget 2016
	Deputy PM wants balanced State budget

The conference of financial tasks - the state budget for the first 6 months and preparation for the last 6 months of the Ministry of Finance on July 2, 2016 in Hanoi. (Photo: H.V).

At the meeting summarizing the financial tasks - budget 2015 and assigned tasks in 2016, the Government leaders as well as leaders of the Ministry of Finance used the word "aggressive" when referring to the work of raising budget revenues. In order to achieve and exceed assigned estimates of the year, the Ministry of Finance has specified key tasks and set out detailed measures to implement in the finance sector.

The results for the first 6 months of 2016 of the state budget were at 476.8 trillion VND, 47% of the budget estimate, an increase of 6.1% over the same period of 2015. Of which, domestic revenue was 48.8% of the estimate and up 13.8% over the same period of 2015. A positive point is that the progress of important revenues from production – business activities have reached good results. Of which: Revenue from industrial and commercial areas reached 53.8% of the estimate, up 22.9%; revenue from the business sector investment reached 49.1% of the estimate, up 12.8%; personal income tax reached 56.1% of the estimate, up 16.8%; land use services fees reached 75.2% of the estimate and up 34.2%, etc.

“Prevent group benefits from impacting on policy of budget collection"

Although the State budget collection reached optimistic numbers, in the last 6 months, it is still subject to high risk, especially the central budget due to lower oil prices and the impact of Vietnam participating in free trade agreements. This task is extremely severe, especially when the Prime Minister has expressed his determination that he "does not change the operating direction or adjust the goals of social and economic development indicators". In order to do this, the Ministry of Finance also has its own expectations.

The Minister of Finance, Mr. Dinh Tien Dung said: It is important to focus on amending institutions; promote the reform of administrative procedures, especially in the field of taxation and customs; improve the investment environment and business, enhance national competitiveness. These are the radical solutions to promote growth and sustainable profit.

The Ministry of Finance should focus on solutions to remove difficulties for production and business; management of accurate and full collection and timely collection of revenues. The Taxation and Customs authorities should enhance activities against revenue loss, transfer pricing, smuggling, commercial fraud and tax evasion; resolutely enforce and collect tax debt to bring the debt amount to not exceed 5% compared to state budget revenues of 2016. In particular, we need to strengthen tax inspections, focusing on the oil and gas sector, petroleum, aviation, banking, electricity, telecommunications equipment, automobiles, pharmaceuticals, medical equipment, real estate business, enterprises transferring projects and enterprises with foreign investment In relation to transaction activities; examine certificates of origin (C / O) of imported goods subject to preferential tax entitled under the free trade agreements; strengthen inspection after customs clearance; implement surveillance for goods temporarily imported for re-export, transferring gates and goods in processing zones, bonded warehouses, etc.

Deputy Prime Minister, Mr. Vuong Dinh Hue said that the Ministry of Finance needs to take drastic action in regard to the fiscal budget. In particular, for domestic tax revenue, the Ministry of Finance should actively expand the tax base, especially non-state tax; review the presumptive tax regime; review collection policy, strengthen the implementation of the tax exemption, reduction and refund tax.

5 Months : State budget revenue from customs sector reached VND 102 trillion VCN- According to the statistics of the General Department of Customs, in the first 5 months of 2016 ...

In particular, Deputy Prime Minister of Finance noted: Prevent group benefits from impacting on the policy of budget collection; ensure tax policies are consistent, transparent and equal. For export revenues, Customs should strengthen the work force at entry gates, strictly control the taxable value through intensive construction of schemes on this issue.