Making Efficient Use of Financial Resources

Under the leadership of the Provincial Party Committee, the Provincial People’s Council and the Provincial People’s Committee, together with the ongoing effort and resolve of all the staff, the financial sector of Son La province optimistically achieved its working results in the first nine months of 2022 and positively helped local socioeconomic development goals. Mr. Nguyen Duc Thanh, Director of Son La Finance Department, gives an inclusive interview to Vietnam Business Forum.

Could you introduce the remarkable budgetary results in the first nine months of 2022?

Under the leadership and direction of the Government, the Ministry of Finance, the Provincial Party Committee, the Provincial People’s Council, and the Provincial People's Committee, right in early 2022, all levels and sectors actively worked out plans for effective implementation of Resolution 01/NQ-CP dated January 8, 2022 of the Government on tasks and solutions for socioeconomic development plans and state budget estimates; Resolution 02/NQ-CP dated January 10, 2022 of the Government on major tasks and solutions for better business environment and stronger national competitiveness in 2022. As a result, the province's economic growth continued; inflation was curbed and social security policies were guaranteed.

Domestic budget revenue reached VND3,075 billion in the first 9 months of the year, equal to 82% of the full-year target set by central authorities, 68% of the target assigned by the Provincial People's Council and 62% of the sector's target. Budgetary expenditure was VND10,700 billion in the nine-month period, equal to 71% of the central target. Budgetary spending promptly met economic development, social security, defense, foreign affairs of the province.

What are the difficulties and advantages in budget collection in 2022?

Following the direction of the Ministry of Finance, the Provincial Party Committee, the Provincial People’s Council and the Provincial People's Committee on budget collection solutions, the budget revenue was based on production and business situations in the first nine months of the year. Fiscal administration was active, flexible and timely enough to effectively carry out tax and fee exemption, reduction and extension policies, budget revenue policies and support policies for companies affected by difficulties caused by COVID-19 epidemic. Thus, this helped foster economic recovery, ensure social security and stabilize people's livelihoods.

However, tax and fee exemption, reduction and extension policies, budget revenue policies and support policies for companies affected by difficulties caused by COVID-19 epidemic as per resolutions of the National Assembly and the Government significantly affected the fulfillment of tax and budgetary obligations and services.

In 2022, the finance sector of Son La province has tried to collect VND4,550 billion of domestic budget revenue, equal to 121% of the target assigned by central authorities and 100% of the target assigned by the Provincial People's Council. Doing so, the sector has focused on budgetary revenue sources from local companies, hydroelectric power plants and industrial manufacturers, environmental tax and land levy.

In the coming time, what solutions will the Department of Finance focus on to manage the state budget, effectively use financial resources, remove difficulties in business faced by local enterprises, solve social security issues and ensure national defense?

Removing difficulties in business faced by local enterprises and successfully completing socioeconomic development and state budget tasks in 2022 required great efforts of all branches and levels of authority, from the province to the grassroots. In particular, the Department of Finance has focused on consistently implementing the following solutions:

(1) Adapting flexibly and safely to COVID-19 epidemic prevention and control measures; regularly monitoring budget collection, identifying potential revenue sources as well as revenue-losing areas and activities; promptly removing difficulties and problems for businesses.

(2) Regulating budget estimates actively, closely and effectively; consistently and flexibly coordinating policies to remove difficulties and support growth recovery; implementing policy solutions regarding tax and fee exemption and reduction as guided by the Government, based on local actual situations; supporting businesses and individuals to restore production and business operations. 

(3) Administering budget expenditures in remaining months of 2022 according to given estimates in a close, economical, flexible, active and effective manner; drastically implement solutions to accelerate disbursement; reducing and transferring funds out of poorly performing projects for better ones; tightening financial and budgetary discipline, fighting against loss, waste and corruption.

(4) Speeding up allocation and disbursement of public investment funds; promoting the role of "seed capital" to attract other resources to better help socioeconomic recovery and development.

(5) Strengthening financial discipline of civil servants across the apparatus; inspecting, examining, supervising, publicizing and transparently managing budget revenues and expenditures, public assets, land and natural resources; preventing smuggling and commercial fraud; managing prices, market, inflation and macroeconomic stability; accelerating administrative reform and e-government construction to better serve people and businesses. 

Thank you very much!

By Duy Binh, Vietnam Business Forum