According to a report by the Ministry of Finance, total State budget revenues in the first half of 2006 were estimated at VND 115,980 billion, equal to 48.8 per cent of the estimated figure and up by 14.6 per cent against the same period of 2005. The figure was driven by revenues from domestic sources, which were equal to 48.5 per cent of the estimated figure; crude oil, 50.4 per cent and up by 25.3 per cent, and import and export, 46.9 per cent.
Tran Van Ta, deputy minister of finance, budget revenues saw a lower increase than the same period of some previous years. For example, the figure was put 54.6 per cent for 2004 and 53.3 per cent for 2005. This is because production and business activities of some fields, such as motorbike and automobile manufacturing and assembly, and land, have faced many difficulties, producing an impact on budget revenues. Also, the co-operation between ministries, agencies and localities and among local authorised agencies has not been good enough.
Total budget expenditures were estimated at VND 134,220 billion, equal to 45.6 per cent of the estimated figure and up by 18.5 per cent against the same period of 2005. Of the figure, expenditures for development investment reached 42.7 per cent of the estimated figure, up by 16.2 per cent; debt and aid payment, 44.6 per cent and up by 2.9 per cent; and expenditure for socio-economic development, including salary renewal, 49.6 per cent.
Ta said that in the second half of 2006, the Ministry of Finance would strive to increase budget revenues by five per cent against the estimated figure assigned by the Prime Minister. Also, the ministry will strive to increase estimated State budget revenues in 2007 to 22 per cent of gross domestic product (GDP), of which revenues from taxes and fees will be put at over 21 per cent against GDP.
To achieve its plans to increase budget revenues by at least five per cent in the final half of 2006, Ta said the Ministry of Finance would concentrate on implementing the following solutions: to assign concrete norms for agencies, to take strong measures to prevent tax revenue losses, to settle tax debts, to fight smuggling and trade fraud. Also, the ministry will promote the disbursement of capital, the improvement of investment effectiveness and prevention of wastes and losses of State’s capital. Ministries, agencies and localities should address obstacles in design, estimating, bidding, site clearance and compensation, as well as perform a shift of capital from not good projects to good ones to increase investment effectiveness.
The Ministry of Finance will review and remove unnecessary procedures in public finance management, publicly announce procedures and responsibility for budget expenditure, settlement, examination and auditing to create a change for the better nationwide. At the same time, Vietnam’s international integration commitments with AFTA and WTO should be disseminated to enterprises, economic organisations and individuals. Impacts on each field, locality and industry should be taken account, so they can develop their solutions.
Lan Anh
Vietnamese
