In the context of the Covid-19 pandemic, State budget revenue continued to be affected, however, the results of budget revenue in the first nine months of the year still increased compared to the same period in 2020. At the same time, both the central budget and local budget continue to prioritize spending on pandemic prevention and control. To compensate for the decrease in revenue, the Ministry of Finance is implementing synchronous solutions to compensate for the revenue shortage.

Tax collection through import and export increased by 30.3%
over the same period in 2020. Source: Internet 

Budget revenue is estimated at VND1,077.4 trillion

In September, the control of the Covid-19 pandemic had positive changes. Hanoi and a number of Southeast and Southwest provinces have adjusted pandemic prevention measures and gradually eased social distancing in accordance with the risk level of each locality, in order to establish the “new normal”, creating conditions for the restoration of socio-economic activities and stabilizing people's lives.

According to the Ministry of Finance's data, in the first nine months of 2021, State budget revenue was estimated at VND1,077.4 trillion, equalling 80.2% of the estimate, up 9.2% over the same period in 2020. The central budget reached 76.5% of the estimate and the local budget was at 84.7% of the estimate.

In which, domestic revenue was estimated at VND872.28 trillion, reaching 77% of the estimate, up 5.9%. According to the Ministry of Finance, despite being severely affected by the Covid-19 pandemic, State budget revenue in the first nine months of 2021 still ensured the estimated schedule and increased over the same period last year thanks to the economic growth momentum from the past months of 2020, and a number of industries and fields such as banking, securities, real estate benefited from fiscal and monetary policies to help remove difficulties for enterprises and people, maintained positive growth, creating more revenue for the State budget.

However, the Ministry of Finance also said that since the pandemic broke out again in April 2021, domestic revenue tended to decrease. In which, domestic revenue from taxes and fees (excluding the extension factor) increased from 9.1% in June, decreased by 10.8% in July, decreased by 21% in August and decreased by 26.5% in September over the same period in 2020.

As for the budget balance revenue from import-export activities, in the past nine months, this revenue was estimated at VND175.3 trillion, equalling 98.2% of the estimate and increasing by 30.3% over the same period in 2020 on the basis of the total tax collection estimated at VND284.6 trillion, equalling 90.3% of the estimate, up 24.5% over the same period last year, mainly due to the increase in import and export turnover in the first months of the year (in which the import and export turnover with accumulated tax in nine months was estimated to increase by 33.14% over the same period last year) and the value-added tax refund under the regime was about VND109.3 trillion, equal to 80.1% of the estimate.

However, according to the Ministry of Finance, due to the impact of the Covid-19 pandemic on the import and export activities of enterprises, the revenue from import and export activities from August tended to decrease sharply compared to the previous month, specifically, revenue of August decreased by 19.1% compared to July; revenue of September decreased by 13.6% compared to August.

Deploying many solutions to compensate for the loss

According to the Ministry of Finance, in the past nine months, the State budget which had spent was estimated at VND1,030.5 trillion, equalling 61.1% of the estimate. In which, development investment expenditure reached VND218.55 trillion, equalling 45.8% of the estimate; recurrent expenditure reached VND725.3 trillion, equalling 70% of the estimate.

According to the Ministry of Finance, budget expenditure in the first nine months of the year was implemented according to the estimate and progress of specialized tasks of the units using the budget. Both central and local budgets had prioritized spending on the prevention and control of the Covid-19 pandemic. By the end of September, the State budget had spent VND29.1 trillion on Covid-19 prevention and supporting people in difficulties. In which, the central budget spent VND16.35 trillion and localities spent VND12.75 trillion.

The Ministry of Finance said that, in general, the State budget balance in nine months had a surplus, however, the central budget balance had an overspending, while local budget had a large surplus. The Ministry of Finance has also actively managed the issuance of Government bonds to both effectively use the State budget and ensure payment sources, timely pay off due principals and contribute to the orientation of market development and public debt restructuring.

Regarding solutions to compensate the State budget deficit in the context of revenue loss due to the Covid-19 pandemic, the Ministry of Finance said that in September, the situation of controlling the Covid-19 pandemic had changed positively, however, it is predicted that the pandemic would still have complicated developments in the future, impacting State budget revenues and increasing State budget expenditures for pandemic prevention and control. Accordingly, the Ministry of Finance is closely coordinating with ministries, branches and localities to synchronously deploy solutions, focus on pandemic control, remove difficulties for production and business, and accelerate public investment capital disbursement, creating a driving force to promote and restore economic growth in the last months of the year, thereby creating more revenue for the State budget.

Along with that, strengthening collection management, urging handling and collection of outstanding debts, striving to increase revenue in the fields and areas meeting enough conditions to compensate for the decrease in revenue due to the impact of the pandemic, adding resources to spend on pandemic prevention and control and to support people, ensure social security and ensure the balance of the State budget in 2021.

At the same time, continue to mobilize more funding sources and voluntary contributions from the business community and people to spend on Covid-19 prevention and control, reducing the pressure on the State budget balance.