The financial sector expects to collect over VND1.343 quadrillion (US$58.4 billion) for the State budget in 2021, equivalent to 15.5% of the country’s gross domestic product (GDP), said the Ministry of Finance.

The proportion of domestic revenues and revenues from crude oil and import-export activities are expected to account for 84.4%, 1.7% and 13.3% of the total, respectively.

Meanwhile, the year’s budget spending is forecast to reach VND1.687 quadrillion, VND60.1 trillion lower than the estimate in 2020.

In the 2021-2023 period, the sector aims to collect VND4.33 quadrillion (US$187.6 billion) for the State budget, equivalent to 15.5% of the GDP.

Domestic revenue is hoped to account for 85-86% of the State budget’s revenue by 2023.

Budget spending is expected to stand at VND5.4 quadrillion, while State budget overspending is equivalent to 3.8% of the GDP. Public debt will be equivalent to 48.1% of the GDP by 2023.

The ministry said serious impacts from the COVID-19 pandemic has caused challenges to the midterm State budget plan in 2021-2023 in ensuring the roadmap of implementation of wage reform and adjustments of social allowances and poverty standards.

In order to fulfill the State budget-finance tasks in 2021, the financial sector will continue to fine-tune the system of collection policies and institutions, create a favourable, transparent and fair investment and business climate, and consider implementing tax and fee exemptions and reductions and extension policies to support enterprises amid difficulties caused by the COVID-19 pandemic.

Due attention will also be given to strengthening the management of revenues, combating revenue losses, and promptly detecting and strictly handling acts of smuggling, trade frauds, production of and trading in counterfeit goods, transfer pricing, tax invasion and tax fraud, and abuse of tax refund policies.

The MoF will also focus on speeding up the disbursement of public investment, especially for key projects of the country and those serving interregional socio-economic development.