REVIEW
of
FINANCE -
Feb. 2018
13
39.8 thousand billion VND from accrued tax
liabilities in 2016. Customes agencies also carried
out more than 8.2 thousand inspection after customs
clearance to increase the State budget an additional
value of 2.2 thousand billion VND; settled and
recollected 589.7 billion VND from arisen accrued
tax liabilities before 31st December 2016.
Secondly,
State budget spendings ensured
resources to implement successfully socio-economic
development goals.
Industries, sectors and local authorities strictly
executed instructions of the Government, Prime
Minister and Ministry of Finance to ensure rational
and reasonable spendings; revised and arranged
to save normal expenditure; rational procurement;
securedfinance for salary andwages, socialwelfares
and development, etc.
In the condition of limited central budget,
Ministry of Finance consulted the Government to
actively proceed budgeting to execute important
contents such as: political responsibilities,
successfully hosting and organizing APEC Summit
2017, rearranging pension, social insurance benefits
and subsidies for contributive people to increase
by basic salary since 1st July 2017 and supported
supplementary salary to local authorities who
were in difficulty balancing their financial
sources. In addition, 4.2 thousand billion VND
had been disbursed from cental budget provision
to overcome the outcomes of storms, floods and
to recover production after natural calamities;
distributed more than 127.3 thousand tons of rice
from national reserve to support communities and
pupils of underdeveloped regions; timely covered
the losses and damages to marine environment
from the compensation of Formosa.
By December 31st 2017, the normal expenses
had been disbursed according to plan to fund the
functional activities of agencies and units using
state budget.
Thirdly,
capital mobilization and budget
balancing had been executed with security.
Due to positive results in State budget receiving
of local authorities and implementing tight policy
on spending, budget deficit of 2017 was within the
limit proposedby theCongress, it is estimated about
174.3 thousand billion VND equivalent to 3.48% of
implemented GDP. This was an encouraging signal
in implementing financial budget duties to ensure
market; diversifying long-term government
bonds to increase the State budget capacity and to
relieve the stress of short-term debts; minimizing
government guarantee for new loans, avoiding
loan-based lending and government bond-based
funding activities; periodically and adequately
assessing the impacts on government and local
authority debts and their solvency before making
new loans.
Financial budgetary duties in 2017 – The results
Firstly,
the State budget revenues had been
implemented positively and excessively in
compared to the budgetary schedule for 2017.
Although there were changes in socio-economic
situation impacting the process of State budget
receips, the budget plan still obtained positive
results due to reasonable and effective fiscal
policy. By 31st December 2017, the State budget
receipts account was 1,283.2 thousand billion
VND exceeding 71 thousand billion, equivalent
to 5.9% in comparison to the plan and exceeding
43.7 thousand billion VND in comparison to the
Parliament’s report equivalent to 25.6% in GDP,
in which taxes and charges accounted for 21% of
GDP. The local budgetary revenue also obtained
positive results in comparison with plan statement
which facilitated local budgeting.
Management of receipts, avoiding losses and
reducing accrued liabilities of tax had encouraging
results. In 2017, tax agencies conducted inspection
over 86.55 thousand enterprises and raised an
additional tax revenue of 16.3 thousand billion VND
that contributed to the State budget approximately
12 thousand billion VND; recollected approximately
Total state budget revenue
Budget revenue growth rate
Budget expenditure growth rate
Total state budget expenditure
FIGURE 1: STATE BUDGET REVENUES AND EXPENDITURES,
REVENUE AND EXPENDITURE GROWTH RATES DURING
2012-2017
Source: Ministry of Finance
