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Last updated: Friday, April 20, 2018


Solutions Adopted to Achieve Financial Tasks in 2017

Posted: Wednesday, June 21, 2017

Finance Minister Dinh Tien Dung said that the Ministry of Finance announced 10 major solutions to achieve financial and budgetary tasks in 2017.

Ensuring budgetary balance in early months
According to a report released by the Government, Vietnam maintained stable economic growth in general and State budget in particular in the first four months of 2017.

In the January-April period, State budget revenue was estimated at VND396.47 trillion, equal to 32.7 per cent of the full-year plan and up 17.8 per cent from the same period of 2016. Wherein, domestic collection was projected at VND325.9 trillion, equal to 32.9 per cent of the full-year estimate and up 15.7 per cent year on year. Excluding incomes from land-use fees, corporate dividends, retained profits and lottery proceeds in four months, it fulfilled 33.4 per cent and rose 12.3 per cent year on year. Crude oil revenue reached VND15.4 trillion, equal to 40.2 per cent of estimate and up 23.4 per cent over the same period of 2016. Revenue from import-export activities totalled VND92 trillion, equivalent to 32.3 per cent of the full-year estimate and up 15.8 per cent year on year. After refunding VND37 trillion of value added tax, State budget balanced revenue was VND55 trillion, equal to 30.6 per cent of the estimate and up 31.3 per cent year on year.

Budget expenditure was forecast at VND393.38 trillion, equal to 28.3 per cent of the full-year estimate and up 9.8 per cent over the same period of 2016. Of the sum, development investment was VND68.56 trillion, equal to 19.2 per cent of the estimate and up 20 per cent year on year. Interest payments to borrowings amounted VND36.7 trillion, equal to 37.1 per cent of the estimate and up 10 per cent year on year. Regular expenditure was VND287.35 trillion, equal to 32.1 per cent of the estimate and up 7.4 per cent year on year.

The Government noted that budget spending tasks were ensured to be line with the estimation and the execution progress of investors and State budget-funded units, timely respond to natural disaster recovery tasks, restore production, meet national defence and security tasks, and implement social security policies.
The balance of central budget and local budget was guaranteed. By the end of April 2017, Vietnam issued VND81.6 trillion of government bonds to meet budget spending demands and repay debts.

Tightening fiscal policy, boosting production and business
However, the Government’s report also indicated many difficulties, challenges and unfavourable impacts on the implementation of financial and budgetary tasks in 2017.

To successfully achieve socio-economic development and State budget tasks in 2017 adopted by the law-making National Assembly will require great efforts from all levels and branches, from central to local, to apply solutions adopted by the National Assembly and the Government, particularly solutions stated in the Governmental Resolution 01/NQ-CP, the Prime Minister's Directive 14/CT-TTg on guides to implementation of State budget tasks in 2017.

In the financial-budgetary field, the Government defined that it is necessary to properly carry out nine groups with 26 solutions submitted to the National Assembly, control State budget estimates in 2017 in an active, prudent and lawful manner, improve the efficiency of budget funds, strictly manage and ensure financial security and public debt safety, intensify price and market management, and uniformly develop financial markets and public units. In particular, there is a need to concentrate on carrying out following groups of major solutions:

One, focusing on institutional improvement; stepping up administrative procedure reform in financial domains, with a focus placed on tax and customs domains, to improve the business environment, stimulate business start-ups, business development, raise productivity and quality, efficiency and competitiveness.

Further accelerating financial management modernisation, especially in tax and customs administration and State Treasury, to better the business environment, encourage business start-up and business development, particularly small and medium-sized enterprises and the private sector in the spirit of the Resolution 05-NQ/TW of the Central Party, increase productivity, quality, efficiency and competitiveness in a bid to reach the goal of equating ASEAN - 4 countries in business environment.

Two, carrying out tight fiscal policy together with monetary policy to support production and business development to ensure macroeconomic stability and control inflation as expected.

Three, enforcing tax laws and carrying out budget collection tasks in 2017; minimising proposals and issuances of new policies resulting in reduction in revenue; determined to reach and exceed estimated values passed by the National Assembly.

The Government asked ministries, central agencies, Party committees and local authorities to direct concerned bodies to work closely with tax and customs offices to make sure of revenue sources, take initiative in proposing solutions; drastically and continuously directing them to achieve and exceed estimated budget revenues from production and business activities in 2017 by 14-16 per cent higher than the value collected over 2016 and from export and import activities by 5-7 per cent higher; prevent tax loss, price transferring, smuggling, trade fraud and tax evasion; focus on treating and recovering tax arrears.

Four, managing State budget expenditures in a close, efficient and proper manner; improving the efficiency of using the State budget; only proposing policies that increase the State budget when it is really necessary and secure.

The Government is determined to thoroughly save State budget expenditure; step up administrative reforms together with thrift practice, waste combat, staff streamlining and staff restructuring; actively review and arrange spending tasks; minimise and disclose meeting expenses; and limit spending on procurement of expensive public vehicles and equipment.

Five, strengthening strict management and control of public debt, government debt, sovereign debt, local government debt; arranging debt repayment in full and in time.

Actively managing public debt, government debt and local government debt, ensuring debt safety; strictly controlling loans, minimising Government guarantees for new loans, not transferring loans for re-lending; and fully assessing the impacts on public debt, local government and medium-term debt repayment capacity of central and local budgets before seeking new loans.

Sixth, strengthening and promoting market management and inspection.

Seven, accelerating financial reform for public service delivery units and public service prices; building and improving autonomous operation mechanism of public service delivery units in each domain, promoting roadmaps of calculating public service delivery prices.

Eight, accelerating State-owned enterprise restructuring and equitisation, SOE divestment according to roadmaps approved by competent authorities.

Nine, tightening financial discipline, stepping up thrift practice and waste combat.

Ten, in addition to the above solutions, the Government asked the National Assembly for permission to handle some issues arising in State budget management in 2016 and 2017 such as allowing supplements to State Budget estimates and finalising State Budget in 2016 for housing and land arrangement in earlier years of the Ministry of National Defence (VND470.9 billion) and the Vietnam Social Insurance (VND1.9 billion) as recommended by the State Audit of Vietnam.

Thanh Nga

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