The press conference of the Ministry of Finance on April 5 (Photo: VNA)Hanoi (VNA) – The Ministry of Finance (MoF) hasannounced the outcomes of the implementation of financial and budgetary tasksin the first quarter of 2019, noting that there was a state budget surplusduring this period.
At a press conference on April 5, the MoFreported that total state budget revenue reached 381 trillion VND (over 16.4billion USD) during the last three months, equivalent to 27 percent of thetargeted figure for this year – higher than the 23 percent of annual targeted revenueachieved during the same period last year.
That sum included 315.4 trillion VND gained fromdomestic sources, up 13.8 percent year-on-year, the ministry said, adding that49 of the 63 provinces and centrally-run cities had revenues from domesticsources equivalent to over 24 percent of their estimates for this year.Fifty-four localities reported year-on-year increases in their Q1 revenues.
Meanwhile, the state budget spending during theperiod surpassed 315 trillion VND, equivalent to 19.3 percent of this year’sspending estimate.
The MoF said spending tasks have been performedin line with the set plans, ensuring social security. As the spending demand inQ1 was low, there was a budget surplus.
Several economic experts held that the restructuringof the state budget has resulted in positive outcomes. Revenues from unstablesources decreased in the three months, including that from crude oil (12.28trillion VND – down 14.3 percent year-on-year).
Assoc. Prof. Le Xuan Truong, Dean of theTaxation and Customs Faculty at the Academy of Finance, said the structure ofstate budget revenue has become steadier in recent years. Revenue from domesticsources has been rising fast, accounting for 82 percent of the total statebudget revenue in 2018.
However, he also pointed out theunsustainability of the state budget revenue structure for many localities,noting that their budget collection still mainly depends on land-relatedrevenue – an unsustainable source – while contributions from production andbusiness activities have failed to reach the set targets.
The MoF also admitted some big problems such astax losses, late tax payment, and transfer pricing, which will require thefinancial sector to tighten control to ensure stable revenue and fair taxcollection among businesses.
Truong said authorised agencies shouldprioritise creating an optimal environment for production and business so as toconsolidate the foundation for state budget collection.
In the long term, it is necessary to press onwith economic restructuring towards capitalising on Vietnam’s advantages, aswell as to promote enterprise participation in stages with high added value inglobal value chains, thus improving their operational efficiency and theeconomy’s competiveness.
Effective economic restructuring will positivelyaffect the state budget revenue structure, he concluded. –VNA
VNA
