Ministry of Finance Ho Duc Phoc

State budget balance in 10 months witnessed a surplus

State budget revenue in October reached VND133.2 trillion. In particular, domestic revenue reached VND116.3 trillion, revenue from crude oil reached VND3.8 trillion and revenues from import-export reached VND12.95 trillion.

Accumulated state budget revenue in tens of months reached VND1,221 trillion, equaling 90.9% of current appropriation, up 5.5% over the same period in 2020.

Regarding state budget expenditure, the Ministry of Finance said that the total state budget expenditure in October reached VND107.3 trillion. Accumulated expenses in ten months reached VND1,149.4 trillion, equaling 68.1% of current appropriation. Accordingly, development investment expenditures reached VND257.39 trillion, equaling 53.9% of the estimate decided by the National Assembly; interest payment reached VND85.37 trillion, equaling 77.6% of current appropriation; recurrent expenditure reached nearly VND798.1 trillion, equaling 77% of current appropriation.

According to the Ministry of Finance, in terms of state budget balancing, the overall state budget balance in ten months witnessed a surplus as the expenditure schedule was lower than the revenue schedule. However, while the central budget balance is overspending, local budgets experienced a large surplus.

The Ministry of Finance has actively managed the issuance of Government bonds to both effectively use the state budget, ensure payment sources, pay due to principal debts, and contribute to directing the development of the market development, public debt restructuring.

Till October 28, 2021, VND253.86 trillion of Government bonds were issued with an average term of 13.34 years, an average interest rate of 2.27%/year.

In October, the Ministry of Finance continued to closely monitor market price movements, coordinate with ministries, agencies, and localities to carry out appropriate solutions to stabilize market prices to remove difficulties, promote production - business, ensure social security in association with the requirements set out on pandemic prevention and control.

With the implemented solutions, in the first ten months of 2021, market prices were basically kept stable, without abnormal fluctuations, contributing to controlling inflation following the target set for 2021 (the average CPI growth rate was not more than 4%).

Also, in the first ten months of the year, the state capital was divested in 13 enterprises with a book value of VND287 billion, earning VND2,166.4 billion.

Regarding the stock market, due to the complex situation of Covid-19 in many localities, the market's activities were affected in October. By the end of October 28, 2021, the VN-Index reached 1,438 0.01 points, increasing by 7.1% from the end of last month (up 30.3% compared to the end of 2020).

Striving to increase revenue from import and export activities

Speaking at the conference, Director General of Vietnam Customs Nguyen Van Can say that on the basis of September's import-export turnover, after loosening social distancing in southern provinces, the total import-export turnover increased by approximately 2%, leading to an increase in revenue from import and export activities in October compared to September, reaching VND28 trillion.

From now until the end of the year, with many different solutions, the Customs sector would strive to exceed the estimate of revenue from import-export activities that were reported to the National Assembly (VND331,500 billion).

Regarding anti-smuggling and against trade fraud, Director General Nguyen Van Can say that in the meeting of the third quarter of the National Steering Committee 389, the Steering Committee assessed that in nine months, the number of seizures of the police, border guard, coast guard all decreased by about 300% compared to last year. In particular, the results of the Customs sector decreased by 12% including the number of seizures, the number of goods, exhibits, and the number of criminals. In recent years, in the border area, the Customs force has been very active and highly appreciated by the Steering Committee.

Director General Nguyen Van Can also said that in October, the whole sector prosecuted seven criminal cases, including the case of importing medical equipment, used gloves, and medicines, especially importing live pigs without completing customs procedures.

The Customs sector has also directed units in the whole industry to review the backlogged containers showing signs of a legal violation. At present, they have discovered dozens of containers containing banned goods. Hence, from now until the end of the year, the customs authority will continue to review to ensure revenue collection.

At the conference, Mr. Cao Anh Tuan, Director General of Taxation, said that, in terms of revenue collection solutions, on November 1, Deputy Minister Tran Xuan Ha chaired the meeting and assessed the situation of revenue collection in ten months and discussed solutions for revenue collection management in the last two months of the year. The General Department of Taxation was closely coordinating with units of the Ministry to advise the Ministry of Finance on the operating scenario for the last two months of the year.

According to Cao Anh Tuan, October’s revenue increased by about 10% compared to August and September. In November and December, the unit will review to increase year-end revenue, such as PIT due to real estate transfer, mergers and acquisitions.

Regarding the Scheme on Electronic Invoice (E-Invoice), after piloting in six provinces (accounting for 60% of enterprises and 70% of the country's invoices), the work was being implemented on schedule, currently preparing to issue an activation command for e-invoice systems in those six localities.

Efforts to complete a huge amount of work

Speaking at the conclusion of the conference, Minister Ho Duc Phoc affirmed that in the past ten months, amid the pandemic with many difficulties and great challenges, the whole finance sector had strived to fulfill the assigned tasks. In particular, the Finance sector has actively implemented fiscal policies to support economic recovery.

The Ministry of Finance advised the Government on many mechanisms and policies, especially fiscal policies such as funding for pandemic prevention, relaxation and tax reduction, completing the task of developing legal documents, completing projects assigned by the Government to support compatriots in provinces, establishing a vaccine fund for Covid-19 prevention and control.

Since October, the country has loosened social distancing measures and is operating production and business, recovering the economy, the task of both fighting the pandemic and developing the economy is the most important today.

"With the huge workload of a multi-sectoral ministry, the Finance sector has made great efforts to complete the assigned tasks, recognized by the Government," Minister Ho Duc Phoc said.

Praising the efforts and sense of responsibility of the units in the industry, the Minister suggested that in the future, the units under the Ministry of Finance must regularly check the work progress; make every effort to fulfill the financial and budgetary tasks in 2021.

Along with that, it is necessary to take the initiative, complete the task of elaborating legal documents, immediately report problems in the process of developing legal documents; promptly reply to comments of ministries and sectors; advising on fiscal policy to the Government.

In November and December, the Minister emphasized a number of key tasks including preparing the contents of the 2nd session of the 15th National Assembly on issues such as budget estimates related to rates of regulatory and allocation of central budget; answering questions from members of parliament on issues related to the Finance sector.

Focusing on completing and submitting development strategies in areas of the sector to the Government such as tax, customs, treasury, securities, insurance, public debt, reserves; formulate a decision on the implementation of the estimate, assign and publicize the 2022 budget estimate; complete the decentralization project to ensure the leading role of the central budget and the initiative of local budgets.

The Minister also asked the units to coordinate in preparing for the signing of a cooperation agreement between the Ministry of Finance and the Ministry of Information and Communications on tax administration on digital platforms and e-commerce. At the same time, speeding up the deployment of e-invoices, building an e-invoice data center and managing it with artificial intelligence.

Along with that, strictly manage the corporate bond market, including private placement bonds, control the manipulation of securities; manage ODA loans effectively; issue government bonds to cover overspending; definitively solve the recording of revenue and expenditure of grants.