State Treasury: Strict control of recurrent expenditure estimates

VCN - In the first half of 2017, the State Treasury system succeeded its assigned tasks, contributing importantly to the finance sector in effectively implementing the Government's solutions for direction and administration to support the country's socio-economic development.
state treasury strict control of recurrent expenditure estimates
The State treasury units discovered 9,081 expenditures of insufficient procedures under regulations in the first six months. Photo: Thuy Linh

Strict control of recurrent expenditures

Closely following the State expenditure estimates, the municipal and provincial State Treasury units have actively coordinated with the collecting agencies in the provinces and cities to effectively and drastically implement solutions and measures under the guidance of the Ministry of Finance and local authorities in collecting, exchanging and providing information and facilitating taxpayers in order to aggregate quickly and enter revenues in the accounts sufficiently, timely and exactly for budget levels. The total State budget revenue in the first half of 2017 was 637,594 billion VND. In which, the total revenue in balance was 564,712 billion VND, reaching 46.59% of the estimate.

Collaboration with commercial banks for State budget collection has continued to be promoted nationwide by collecting at banks' transaction counters or via internet electronic channels, ATM, POS at some State Treasury units. In the first 6 months of 2017, the State Treasury expanded the State budget collection through POS installed at the head office of the State Treasury with VietinBank; submitted to the Ministry of Finance for approval of the orientation of opening payment accounts and specialized collection accounts of State treasury units at commercial banks. Accordingly, each State Treasury unit will open five specialized collection accounts at five State Owned Commercial Banks (Vietcombank, VietinBank, BIDV, Agribank, and MB).

In addition, the State Treasury at all levels has actively checked and reviewed the interim revenues waiting for state budget payment and temporary deposits waiting for settlement of agencies and units that opened their accounts at the State Treasury with a total estimated amount of 40,505 billion VND by the end of June 2017; also notified the balance of each account to the account holders or the management agencies to urge the settlement and aggregate into State budget in a timely fashion.

State budget expenditure through State Treasury in the first half of 2017 was strictly controlled. By the end of June 30th, 2017, the State Treasury system controlled 359,527 billion VND, equivalent to 39.8% of the recurrent expenditure estimates of the State budget through State Treasury (excluding expenditures for debt payment, aids and additional expenditures for the financial reverse fund). Thereby, the State Treasury units discovered 9, 081 expenditures of insufficient procedures under regulations that have been required to supplement necessary procedures. The actual amount that was refused for payment was 10.2 billion VND.

Regarding expenditure for construction investment, by the end of June 30th, 2017, the Government's capital for disbursement was 87,739.5 billion VND, accounting for 29.8% of the plan assigned by the State through State Treasury. In which: expenditure for construction investment from the state budget was 85, 454.1 billion VND, accounting for 31.3% of the plan; Expenditure from government bonds was 1,100 billion VND, accounting for 10.9% of the plan; Targeted program expenditure was 1,185.4 billion VND, accounting for 10.5% of the plan. Disbursement of other capital sources was estimated at 9,266.7 billion VND, accounting for 42% of the plan received by the State Treasury.

Through the control of capital investment payment, the State Treasury system refused 22 billion VND which was requested to pay for unapproved arising amounts and some expenditures of insufficient procedures under regulations.

Capital mobilization term raised

A noteworthy point is the capital mobilization. Through specific solutions, by the end of June 30th, 2017, the total mobilized capital of Government bonds reached 125,744.7 billion VND, equal to 68.6% of the year plan. The average loan term of bonds in 2017 as of June 30th, 2017 was 14.07 years, raising the average term of the Government bond portfolio on the market from 5.98 years at December 31st, 2016 to 6.75 years at June 30th, 2017. The average mobilization interest rate is 6.28% per year. In addition, the State Treasury has 43,000 billion VND of government bonds to Social Insurance to mobilize capital for State budget; paid principals and interests of Government bonds promptly and fully according to regulations in order to ensure the Government’s prestige for investors.

The State Treasury has also paid attention to the administrative reform to enhance the quality and efficiency of their performance, better satisfy the customer’s requirements and reduce costs of time and materials in its system.

In the first half of 2017, the State Treasury system has continued to implement the single window model with one staff; closely coordinated with relevant units of the Ministry of Finance in implementing review and evaluation in order to reform and simplify administrative procedures related to account opening and control of State budget expenditures through the State Treasury; expanded the interbank payment system and State budget collection through POS; piloted the project on unifying units controlling State budget expenditures in Phu Tho and Thua Thien Hue; publicized and posted administrative procedures at places receiving and processing administrative procedures in a timely fashion; and implemented the eDocTC document management program in the State treasury system in order to step by step computerize the clerical activities, minimize paper documents and vouchers.

Furthermore, the State Treasury has also enhanced the cooperation with the General Department of Taxation, General Department of Vietnam Customs and commercial banks in the reform of collaboration for state budget collection, bilateral payment, and interbank payment.

In the first six months of 2017, the State Treasury system discovered and seized 83 counterfeit notes of all kinds and returned 1,231 overpaid amounts worth more than 2.3 billion VND for customers.
By Hong Van/ Huyen Trang

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