State Finance Report: Publishing the “health” of the national economy

VCN- The Draft of the Decree on State financial report (SFR) isbeing consulted by the Ministry of Finance. 
state finance report publishing the health of the national economy

This is new content in State accounting process in order to accurately and transparently reflect the information onState property, public debts and other liabilities of the State,and the sources ofState assets and capital; revenues, expenditures and financial results of State activities, and cash flows from financing activities of the State budget at the national and local level. Customs Newshad an interview with Ms. Dang Thi Thuy - Deputy Director of the State Treasury–the office thatis assigned to draft this Decree by the Ministry of Finance.

Ma'am, if this Decree is put into practice,SFR 2018 will be published on the internet for people to know and supervise. This is an issue that is very interesting to the public. Could you please tell us more about this issue?

The SFR is new content in the State accounting progress of Vietnam. Currently,the information on State property, public debts and other liabilities of the State, sources of State assets and capital; revenues, expenditures and financial results of State activities, cash flows from financing activities, etc., is tracked and recorded in several units, not aggregated in a comprehensive and consistent formin scale, content and method on the scale of national or local government. Therefore, it has not been effective in providing data for evaluating the effectiveness of public spending, analyzing the financial potential of the State as well as local governments, evaluating the effectiveness of the implementation of financial and budget structures and policies, as well as serving other macro management progress.

The State Treasuryis assigned to draft the Decree on SFR by the Ministry of Finance to provide details of the provisions in Article 30 of the Law on Accounting 2015. Until now, the draft hasbeenconsulted widely by ministries, branches and localities with its main content on publishing the SFR.

Accordingly, the People’s Committees of provinces and cities and the Ministry of Finance will publish the main information in the SFR of each province/city and the whole nation, including: the status of State property; public debts and other liabilities of the State, the sources of State assets and capital; revenues, expenditure and financial results of State activities, and cash flows from financial activities.

It will be published in forms such as: publishing via the information electronic portal (provinces’ and the Ministry of Finance’s), issuing publications and other forms prescribed by law.

The draft of theDecree is currently prescribingthe first SFR will be calculated according to the financial data of 2018. Also, the draft prescibesthe first SFR will be published in the shortest time being 12 months (for the provinces) and 18 months (for the nation). Thus, if properly planned, from 2020, the SFR will be published to all people.

The State Treasury is the office assigned to establish the SFR. How has the State Treasury prepared to perform this responsibility, ma'am?

To perform the task of establishing the SFR, many processes need to be implemented synchronously. Currently, the State Treasury has been deployed on the main processesas follows:

Regarding the legal framework, since the process of drafting the Law on Accounting, the State Treasury has recommended and commented on the regulations on theSFR. At the same time, the State Treasury was assignedby the Ministry of Finance to research and draft a Decree of the Government, which is currently being consulted widely by ministries, branches and localities, as well as documents guiding the implementation of the Decree on SFR to concretize the regulations outlined in the Law on Accounting 2015. In addition, the State Treasury is also working with the offices in charge of drafting the documents to supplement, amend, replace the accounting system in the officesthat willbe responsible for providing information to establish the SFR (domestic tax accounting system, import-export tax accounting system, administrative and professional officesaccounting system, commune’s budget and finance accounting system, investors accounting system, financial management of State funds units accounting system, including Funds of social insurance, health insurance, protection unemployment insurance, State reserves, etc.) to ensure the input sources to provide information for the State Treasury to establish the SFR.

Regarding perfecting theorganizational apparatus, with the target to ensure the human resources to meet the requirement of establishing the SFR task, the State Treasury has strengthened the organizational structure in the State Treasury (Central office), established the SFR Synthesizing Divisionunder the Department of State Accounting. At the same time, the State Treasury has also continued to strengthen the organizational structures in Local Treasuries to ensure the Departments of State Accounting under Local Treasuriescould establish the local SFR.

Regarding the construction of the information system, with the aim of designing and operating asuitable information system, which is effective to receive, aggregate and exploit the information for the SFR, the State Treasury is currently working with offices relating tostudying, researching, assessing thestatus of the information and data in a number of relevant offices, as well as researchingappropriate software application models.

Regarding training, along withthe construction of the legal framework, completing the organizational apparatus, and building the information system, the State Treasury is also working with relevant offices to prepare thenecessary conditions to train and implement the policy structure and the related accounting regulations, professional processes; train and implement the information system to the accounting staff of the State Treasury and the accounting staff of the units providing the information to establish the SFR.

Could you please tell us more, when the SFR is published, what benefits will people, enterprises and the State get?

With the financial informationis aggregated on the local and national scale, the SFR is expected to bring many benefits.

Specifically, for the State: the SFR is a tool to manage the State budget and financial funds outside the State budget, a tool to analyse and assess the situation and contribute to manage the entire resources and obligations of the State (public assets, public debts, etc.). Therefore, it will help leaders, managers and operators in assessing more accurately and comprehensively theState financial situation, setting out suitable orientations and solutions for the future, improving the allocation and use of State resources in the direction of more rational, balanced and more efficient, managing and reducing debts, reducing financial risksand ensuring the future obligations of the State.

For people and enterprises: The publishing ofthe SFRwill help people and businesses in getting information on their contributions to fulfill the obligations with the State through the payment of taxes, the use of people’s and enterprises’ tax money in thespending of the State and local governments, as well as the overall picture of the State finances. With the information reflected on the SFR about tax revenues and receivables tax revenues, the expenditures of the State, public assets, public debts, etc., people and enterprises can participate in the process of inspecting and monitoring the economic - financial activities of the State and supervising the implementation of the State to ensure the rights and policies for people and enterprises.

Ma'am, is the monitoring mechanism powerful enough to ensure that the report will be made public and transparent?

The draft of the Decree is currently prescribing the mechanism of monitoring the SFR that the Ministry of Finance will inspect whenestablishing of the SFR (nationally and locally) and the provided information to establish the SFR to ensure openness and transparency of the report at the request of financial management.

Could the State Treasury ensure the time of publication and supervision, ma'am?

The SFR will be established on the basis of the consolidation of the financial statements of State offices, public service units, economic organizations and other relevant units under the control of the State (nationally and locally). Accordingly, to ensure the time of establishing, announcing and monitoring the SFR, the close and active coordination between reporting units (the State Treasury) and the unit providing information for the report (the ministries, branches, localities and relevant agencies) is needed.

In addition, with the time-limit for the publication stated in the Draft, the State Treasury will continue to urgently implement the above tasks to ensure the rate of publishing the SFR progresswill be as stipulated by law.

Thank you, ma’am!

By Thuy Linh / Duy Duc

Related News

Ho Chi Minh City achieves record state revenue of over VND500 trillion in 2024

Ho Chi Minh City achieves record state revenue of over VND500 trillion in 2024

VCN - For the first time in its history, Ho Chi Minh City’s budget revenue surpassed VND500 trillion in just 11 months of 2024.
Multiple drivers propel positive growth in budget revenue

Multiple drivers propel positive growth in budget revenue

VCN - Dr. Bui Dang Dung, former Deputy Chair of the National Assembly’s Finance and Budget Committee, believes that the 2024 state budget revenue results are highly encouraging, reflecting the concerted efforts of the Government, relevant agencies, and the business community amid challenging economic conditions.
Fiscal policy needs to return to normal state in new period

Fiscal policy needs to return to normal state in new period

VCN - To recover the economy during and after the Covid-19 pandemic, fiscal policy has been flexibly and promptly managed, becoming a solid foundation to help businesses and the economy gradually overcome difficulties. After nearly 5 years, although there are still difficulties, the economy is gradually returning to a high growth trajectory. In that context, it is necessary to let fiscal policy return to normal state.
Risks for the economy when cash flow has not yet been put in to production and business

Risks for the economy when cash flow has not yet been put in to production and business

VCN - Investment channels in Vietnam have a lot of potential, but financial and banking expert Dr. Nguyen Tri Hieu, Director of the Institute for Research and Development of Global Financial and Real Estate Markets, said that cash flow into production and business is still modest, leading to risks for the economy.

Latest News

Vietnam

Vietnam's stock market to develop strongly and sustainably

VCN - This was emphasized by Minister of Finance Nguyen Van Thang at the Conference to review the work of 2024 and deploy the work of 2025 of the State Securities Commission (SSC) held on the afternoon of December 18.
Tax sector achieves revenue target of about VND1.7 million billion

Tax sector achieves revenue target of about VND1.7 million billion

VCN – Motivated by the revenue collection by the end of December 2024, the General Department of Taxation has accomplished the revenue collection.
General inventory of public assets raises efficiency of use and management of country

General inventory of public assets raises efficiency of use and management of country's resources

VCN – The implementation of the General Inventory Project by the Ministry of Finance, ministries, central and local agencies has ensured progress according to Project 213 and the plan issued by the Ministry of Finance. This is the information provided by a representative of the Department of Public Asset Management (Ministry of Finance) at the press conference on the implementation of the General Inventory Project of public assets organized by the Ministry of Finance on the afternoon of December 18.
Publicizes progress of public investment disbursement for important national projects

Publicizes progress of public investment disbursement for important national projects

VCN – Important national projects, inter-regional transport projects, riverbank and coastal erosion treatment projects all have disbursement rates lower than the estimated average disbursement rate of the whole country, the Ministry of Finance said.

More News

Six SOEs to be transferred back to industry ministry

Six SOEs to be transferred back to industry ministry

Six State–owned enterprises (SOEs) with a total State stake of 800 trillion VND (31.5 billion USD) will be transferred back to the Ministry of Industry and Trade (MoIT) after six years under the management of the Commission for the Management of State Capital at Enterprises (CMSC).
PM urges stronger measures to manage interest rates

PM urges stronger measures to manage interest rates

Prime Minister Pham Minh Chinh has asked the State Bank of Vietnam (SBV) to proactively, flexibly, promptly, and effectively manage the monetary policy in combination with the expansionary fiscal policy and others.
Six SOEs to be transferred back to industry ministry

Six SOEs to be transferred back to industry ministry

Six State–owned enterprises (SOEs) with a total State stake of 800 trillion VND (31.5 billion USD) will be transferred back to the Ministry of Industry and Trade (MoIT) after six years under the management of the Commission for the Management of State Capital at Enterprises (CMSC).
Vietnamese products: Conquering foreign customers in supermarket systems

Vietnamese products: Conquering foreign customers in supermarket systems

VCN - According to the Ministry of Industry and Trade, the proportion of Vietnamese goods in distribution channels currently reaches more than 80% in supermarkets and 60% or more in traditional retail channels. For many retailers, Vietnamese goods have become a growth driver as they not only do business successfully in the domestic market but also export.
Answering many questions from businesses at dialogue conference on tax and customs policies

Answering many questions from businesses at dialogue conference on tax and customs policies

VCN - Many opinions and recommendations related to tax and customs issues were raised by the business community at the dialogue on tax and customs policies and administrative procedures in 2024, organized by the Ministry of Finance.Representatives of the Ministry of Finance, the General Department of Taxation, and the General Department of Customs provided specific responses, and affirmed that they will continue to research and advise on the assessment, review, and amendment and supplementation of appropriate regulations.
Enterprises face difficulties in tax refunds due to partners closing

Enterprises face difficulties in tax refunds due to partners closing

VCN - On December 13, at a dialogue conference on tax and customs policies and administrative procedures organized by the Ministry of Finance in coordination with the Vietnam Chamber of Commerce and Industry (VCCI), enterprises proposed solutions to many problems related to tax policies such as VAT refunds, tax declaration procedures, electronic invoices, etc.
Strengthen the management and use of electronic invoices for e-commerce

Strengthen the management and use of electronic invoices for e-commerce

VCN - Prime Minister Pham Minh Chinh requested ministries, branches and localities to strengthen the management and use of electronic invoices and improve the efficiency of tax collection for e-commerce.
Ministry of Finance proposes comprehensive amendments to the Personal Income Tax Law

Ministry of Finance proposes comprehensive amendments to the Personal Income Tax Law

VCN - The Ministry of Finance has just completed the proposal to draft the Personal Income Tax Law (PIT) and officially solicited public comments. By amending and supplementing nearly 90% of the total number of articles of the current PIT Law, the Ministry of Finance has submitted to the Government for permission to propose the draft PIT Law to replace the PIT policy system. The project is expected to be approved by the National Assembly in May 2026.
Expansionary fiscal policy halts decline, boosts aggregate demand

Expansionary fiscal policy halts decline, boosts aggregate demand

VCN - Customs News interviews Ms. Nguyen Thanh Nga, Deputy Director of the Institute for Financial Strategy and Policy (Ministry of Finance).
Read More

Your care

Latest Most read
Vietnam

Vietnam's stock market to develop strongly and sustainably

VCN - This was emphasized by Minister of Finance Nguyen Van Thang at the Conference to review the work of 2024 and deploy the work of 2025 of the State Securities Commission (SSC) held on the afternoon of December 18.
Tax sector achieves revenue target of about VND1.7 million billion

Tax sector achieves revenue target of about VND1.7 million billion

VCN - With the determination to accomplish the revenue collection to create resources for economic development under the Prime Minister's direction, the entire Tax sector has made efforts to perform the revenue collection in the last days of 2024.
General inventory of public assets raises efficiency of use and management of country

General inventory of public assets raises efficiency of use and management of country's resources

VCN – The implementation of the General Inventory Project by the Ministry of Finance, ministries, central and local agencies has ensured progress according to Project 213 and the plan issued by the Ministry of Finance. This is the information provided by
Publicizes progress of public investment disbursement for important national projects

Publicizes progress of public investment disbursement for important national projects

VCN - The Ministry of Finance has issued Document No. 13213/BTC-DT to publicize the progress of public investment disbursement of key national projects.
Six SOEs to be transferred back to industry ministry

Six SOEs to be transferred back to industry ministry

Six State–owned enterprises (SOEs) with a total State stake of 800 trillion VND (31.5 billion USD) will be transferred back to the Ministry of Industry and Trade (MoIT) after six years under the management of the Commission for the Management of State Capital at Enterprises (CMSC).
Mobile Version