State Treasury managed state budget flexibly and reduce waste in 2019

Scene of the conference. Photo: TL.

Control income – expense strictly

In 2019, State Treasury completed its work successfully.

In State revenue management, State Treasuries of provinces and cities closely followed estimations of revenue collection in 2019, actively coordinating with collecting agencies to quickly concentrate, keep business account fully, timely and accurately revenue to all levels of budget; provide information on revenue data to authorities regularly and continuously, serving management of revenue collection at all levels.

As of December 15, State revenue accumulation in the balance reached over VND 1.4 million billion (equaling by 100.21 percent of the current appropriation of 2019). By December 31, total revenue collection will reach the target, exceeding 5 percent of the estimate assigned by the Government in Resolution No. 01/NQ-CP.

For the control of State budget expenditure, in normal expenditure, as of November 30, 2019, the State Treasury system has implemented control of VND 731,613 billion, 70.2 percent of the normal expenditure estimate of State revenue through the State Treasury (excluding debt payment, aid, extra expenditure for financial reserve fund and reserve).

Through State budget expenditure control, State Treasury units have detected about 16,625 inadequate expenditures which have not completed procedures as prescribed, thus it was required to supplement procedures and the amount of refused payment was VND 68.3 billion.

Particularly, in capital construction investment, as of November 30, 2019, accumulated disbursed investment capital under the 2019 plan was VND 244,973.7 billion, reaching 63.7 percent of the assigned plan in 2019. Along with that, the source of disbursement was VND 2,118.2 billion, 55.1 percent of the plan the State Treasury has received.

Through controlling payment of investment capital, the State Treasury system refused to pay VND 82.7 billion due to the investor requesting to pay the arising amount which has not been approved, or lacked payment documents as prescribed.

Notably, in capital mobilisation for the State budget and for development investment, as of December 15, VND 229,418 billion was mobilised, reaching 92 percent of the adjusted plan. During the year, the State Treasury managed government bonds flexibly and closely following the market. Specifically, the average interest rate of Government bond issuance in 2019 was 4.51 percent, down 0.20 percent compared to 2018 and decreasing by 1.85 percent compared to 2015.

According to the State Treasury, the reduction of interest rates saved the cost of interest payments to the State budget of about VND 458 billion per year compared to the interest rate in 2018 and saved VND4,236 billion per year compared to the interest rate of 2015.

Striving to disburse investment capital to achieve 100 percent

Speaking at the conference, Ta Anh Tuan, General Director of the State Treasury said2020 is the last year to implement the five-year socio-economic development plan for 2016-2020. It is also a year with many political events and many great celebrations of the country and the finance sector in particular.

To achieve the 2020 goal, which is “Completing the objectives of the State Treasury Development Strategy to 2020, developing the State Treasury Development Strategy for the 2021-2030 period; striving for reaching 100 percent of units which have been used the State budget to have transactions with the State Treasury units, using online public services at level 4; tightening discipline, administrative discipline, raising the responsibility of the leaders of the unit; continue to streamline the apparatus in combination with modernising management technologies to improve the effectiveness and efficiency of the State Treasury system”, the State Treasury has concretised by the key tasks.

The State Treasury would continue to manage fund of the State budget to ensure strictness, safety and enhance the role and responsibilities of the State Treasury in performing financial - budgetary tasks and strengthen management of public expenditure.

“The State Treasury would strengthen coordination with relevant units to promptly remove obstacles, accelerate the disbursement of investment capital and strive to reach the rate of 100 percent disbursement of capital construction investment under the directives of Prime Minister,” the State Treasury said.

At the same time, the State Treasury would strive to complete the task of mobilising capital in 2020 as assigned by the Ministry of Finance. Along with that, managing interest rates appropriately and in line with the direction of managing monetary policy to stabilise the market, save costs for the budget; payment of government bonds, ensuring safety, accuracy and convenience for bondholders.

In 2020, the State Treasury would continue to carry out work under the State General Accounting Scheme on technical solutions and professional process to implement the work on preparing State Financial Statements, to ensure progress in March 2020 to submit to the Government and National Assembly agencies, together with the State budget finalisation report; it would be reported to National Assembly in May 2020.