14
Secondly,
the restructure of budget spending was
not really effective when the total value of budget
spending to GDP in 2017 was 28.2%, higher than
the targeted rate of 24-25% for the period of 2016-
2020; Simultaneously, the enhancement of public
resource efficiency in supplying public services was
limited while the implementation of autonomy for
the non income-generating agencies was low and
delayed resulted in less attractiveness to the outer
resources for public service supply.
Thirdly,
the assignment of investment capital
has been implemented slowly that affect negatively
to the distribution progress of state budget and
government bond in different ministries, industries
andauthorities. The assignment of capital using state
budget and government bond in 2017 was sluggish
and multifold. At the end of April, the Congress
passed the official list and limit of government bond
for the projects which was divided into three times
of capital distributions inApril, May and September
2017. By 31st December 2017, the allocationof capital
using state budget was 75.9%; government bond
was solely 23.5% of the plan.
Fourthly,
the difficulty in mobilizing long-term
capital. The cost of foreign capital mobilization
tends to increase, hence, the accessibility to ODA
packages of WB, ADB and other funds in the future
might be decreased, as a result, the reduction of
incentive for investors or preference for repayment
is forecast to raise the interest rates and, therefore,
the foreign liabilities. This will significantly affect
the sustainability of foreign liabilities.
Orientation of finance and state budget for 2018
At the fourth session, the XIV Congress
asserted the implementation of Resolution of
Political Bureau on restructuring state budget and
public debt management, the fiscal policy of 2018
continues to actively implement the consolidation
and strictness of financial state budget disciplines
and regulations; anti-transfer pricing, avoiding
losses and accrued tax, enhancing control of budget
spendings to ensure economization and efficiency
of public debt ratios and to keep them within
acceptable limit. According to that, the financial
goal of 2018 state budgeting is: total state budget
receipt will be 1,319.2 thousand billion VND, total
spending will be 1,523.2 thousand billion VND,
state budget deficit rate will be 204 thousand billion
resources for socio-economic development.
The capital mobilization of Government bond
from the market experienced positive changes, the
list of Government bonds were improved in both
maturity and rate, relief in short-term debts and
reduction in liquidity risk. In 2017, the State Treasury
mobilized 159.9 thousand billion VND on HASTC
including 100% government bonds with maturity of
5 years and longer; average maturity was 13.52 years
which was longer than in 2016 of 8.71 years. Average
rate was 6.07%/year which was lower than in 2016
with 6.49% and the costs of borrowing were also
reduced. Additionally, the issuance of government
bonds for Vietnam Social Insurance reached the
value of 63 thousand billion VND with maturity of
10 years and rate of 5.82%/year.
The challenges
Firstly,
there were receipts and taxes executed
with lower results compared to the estimation plan,
the structure of receipts was not sustainable when
large amounts of revenue in relation to business
operation such as revenues from state enterprises,
foreign enterprises and private sectors were lower
than planned estimation. Revenue from state
enterprises was at 87.9% of the plan, from foreign
enterprises was 85.1% and from private sector was
93.1%. The main reason was due to the changes and
volatilities in economic growth of the earliermonths
(quarter I was 5.15% and quarter II was 6.28%) that
affected business performance of enterprises. In
addition, the readjustment of import tax according
to FTA commitments also affected significantly the
operation of foreign enterprises. Furthermore, the
slow equitization process of the state enterprises
had negative impact on budget receipts.
Total state budget revenue
Total state budget expenditure
Importand
exportactivities
revenue:
179 trillionVND
Crudeoil
revenue:
35.9 trillionVND
Domestic
revenue:
1,099.3 trillionVND
Aid revenue:
5 trillionVND
1,319.2
trillionVND
1,523.2
trillionVND
Aidexpenditure:
1,300 trillionVND
Regularexpenditure:
940,748 trillionVND
Payroll reformand
reduction
expenditure:
35.767billionVND
Financial reserve
fundexpenditure:
100billionVND
Interestpayment
expenditure:
112,518billionVND
Statebudget reserve:
32,097billionVND
Development
investment
expenditure:
399.7 trillionVND
2018 STATE BUDGET ESTIMATION
Source: Decision 2610/QD-BTC
