8
of reserves at all levels. The Ministry of Finance
has also reviewed and submitted to competent
authorities for amendment and promulgation of
policies and spending regimes suitable to reality;
To closely tighten control over state budget
expenditure and in strict accordance with the
regime.
By December 31
st
2017, recurrent expenditure
tasks have basically been completed according
to the estimates, to meet in time and fully the
tasks of agencies and units using the budget. The
regular spending is quite close to the estimate.
However, state budget spending on development
investment accounted for only 75.9% of the
estimate and government bond investment
accounted for about 23.5% of the estimate (as
of December 31
st
, 2017 the figure was 77% and
45.3% of estimates).
Due to good state budgeting, the state
budget deficit is lower than the budget deficit
plan in 2017 which was estimated at VND 174.3
trillion, equivalent to 3.48% of GDP, lower than
the estimate of 3.5% of GDP. In summary, the
implementation of 2017 state budget spending
tasks is quite positive.
Lessons from state budgeting in 2017
Firstly
, the timely management and
direction of changes in the economic situation
play an important role in the implementation
of state budget estimates. Many solutions
implemented by the Ministry of Finance
with the issuance of Directive No. 14/CT-TTg
dated April 19
th
2017 on centralized directing
the implementation of financial tasks - State
budget in 2017 is an important reason for the
success of fiscal year 2017
Secondly
, in the context of high revenue
estimates, there is no change in tax policy, the
strengthening of inspection and supervision in
the management of tax collection; To concentrate
on handling tax arrears; To implement measures
enforcing tax debts to recover outstanding debts
and generate new tax debts which need special
attention.
Thirdly
, the estimation of the state budget
should be adjusted in line with the expected
changes in the economic situation, especially in
terms of GDP growth, foreign trade and prices.
Fourthly
, it is necessary to continue taking
proactive and active measures to save state
budget expenditures, coordinate with ministries
and branches in reviewing all investment
projects so as to take measures to eliminate
poor investments. The development of a legal
framework for the management and allocation
of public investment should continue to be better
suited to the real situation.
Issues
In 2018, the Government continues to set
the target of economic growth of 6.7%, average
consumer price index of about 4%, equal to 2017‘s
target. Total export turnover planned to reach
USD 36-37 billion, control trade deficit less than
3% of total export turnover; Total retail sales of
goods and services increased by about 10%, and
agriculture increased by 3%.
According to the estimation of the state budget
in 2018 approved by the National Assembly,
the state budget revenue is estimated VND
1,319.2 trillion; The state budget expenditure
estimate is VND 1,523.2 trillion. In addition, the
original repayment of state budget was about
VND 159.74 trillion. The state budget deficit
is estimated at VND 204 trillion, equivalent to
3.7% of GDP (according to the new calculation
of the State Budget Law in 2015, this figure does
not include the payment of principal), of which
central budget deficit 3,5% of GDP; 0.2% of the
budget deficit.
In the context of the domestic and world
economy in 2018. The implementation of this
estimate will have to address the following
issues:
Firstly
, the risk of external factors may
adversely affect growth, which reduces the
state budget revenues. Vietnam’s economy is
In 2018, it is expected that the state budget
deficit will increase by only 7.4% compared
to the estimated figure for 2017, which will
be favorable for completing the expenditure
estimate. The Government’s determination to
reform public spending will also be a good
opportunity to achieve the targets set in the
2018 State Budget.
