Boosting state budget collection

17:01 | 16/03/2015 Finance - Banking

(VEN) - To effectively use the nation’s financial resources, restructure the state budget and ensure major socioeconomic policies, the Ministry of Finance’s State Budget Department has announced specific budget estimates which exceed the 2015 goals set by the National Assembly.

Boosting state budget collection

The goal of VND920 trillion for this year

The International Monetary Fund (IMF) and the World Bank (WB) announced their forecasts in January 2015 that the global economy would grow by 3.8 percent and 3.4 percent in 2015, respectively. As for Vietnam, the economy is expected to continue its growth momentum and the economic structure will change for the positive. The government has outlined a number of socioeconomic goals for this year including the gross domestic product (GDP) to increase by 6.2 percent, the consumer price index (CPI) to increase by 5 percent, total development investment capital as a percentage of the GDP to account for 30-32 percent, export revenues to increase by 10 percent, and trade deficit to stand at 5 percent.

According to the National Financial Supervisory Commission, the CPI in Vietnam continued to fall as a result of the drop in the price of goods in the global market. However, 2015’s growth targets should be reached thanks to increased production and consumption and growing investor confidence

Major financial goals for this year include state budget revenues of VND911.1 trillion and state budget spending at VND1,147.1 trillion. State budget overspending will account for 5 percent of the GDP, public debts 64 percent, and foreign debts 42.6 percent, respectively.

In consideration of global and Vietnamese economic factors, the Ministry of Finance has made impressive state budget estimates for this year. Specifically, state budget revenues will reach VND911.1 trillion including VND638.6 trillion in budget revenue, VND93 trillion worth of crude oil revenue, VND175 trillion in foreign trade, and VND4.5 trillion worth of foreign grant aid. The Ministry of Finance estimated total state budget revenues at VND921.1 trillion including VND10 trillion worth of state budget revenues in 2014.

Many solutions to increase revenues

To ensure an increase in state budget revenues in 2015, the Ministry of Finance has presented a series of specific solutions focusing on resolving difficulties in production and trading, increasing the growth rate and facilitating production. In addition, it is necessary to strengthen tax and customs administrative reforms in a simple and transparent manner, while at the same time tightening inspections.

The Ministry of Finance will enhance electronic tax procedures  to reduce tax payment time. The ministry will also strengthen tax collection management and inspections to prevent tax losses and transfer pricing and to better resolve tax debts.

Since the beginning of this year, the Ministry of Finance has boosted state budget collections. As a result, state budget revenues reached about VND81.3 trillion in January, accounting for 8.9 percent of the estimate and increasing by 9.2 percent from a year ago. Of this, domestic revenues were estimated at VND62.1 trillion, accounting for 9.7 percent of the estimate and increasing by 10.9 percent from a year ago.

Most revenues from production and sales increased fairly high against a year ago. Revenue from the state-owned sector reached 9.3 percent of the estimate and increased by 18 percent from a year ago, the foreign-invested sector 10.2 percent and 7.2 percent, and the non-state sector 11.2 percent and 6.8 percent, respectively.

By Duy Minh