Deputy Prime Minister VuongDinh Hue: Budget revenue makes an important contribution to the macro economy

	In 2019, State budget revenue and expenditure in cash through treasuries drops sharply
	Customs: Effective revenue collection from value management
	Great effort to prevent budget revenue loss

Deputy Prime Minister VuongDinh Hue speaks at the conference. Photo TL.

Finance sector must continue to raise its revenues

Speaking at the conference, Deputy Prime Minister VuongDinh Hue on behalf of the Government highly appreciated the efforts of the Ministry of Finance cadres and employees in general, as well as the Tax, Customs and Treasury in particular.

He said that 2019 is the second consecutive year the country has fulfilled 12 major targets set by the National Assembly, of which, budget revenue results were important contributions to the macro economy. Low inflation indicators, GDP growth, and retail of goods and services, especially the record of more than 139,000 newly established enterprises, reflected the positive economic situation.

He noted that in addition to remarkable results, there were still difficulties in budget collection that required closer coordination among units in the Ministry of Finance as well as relevant ministries. The budget estimation and allocation need to be further improved and closely follow the socio-economic situation.

In addition to ensuring revenue, the Deputy Prime Minister also suggested the Finance sector should have solutions to accompany and support businesses to develop, raise revenues and create better revenues for the future.

“The Ministry of Finance urgently finalizes the tax framework, such as corporate incometax and value added tax. Particularly, for personal income tax, it needs to take the adjustment of family allowances into account. The Ministry of Finance also needs to further promote and better perform the tasks of tax management and anti-trade fraud and develop a medium-term financial plan in the next five years. It needs to continue to streamline apparatus, enhance the application of information technology, create favorable conditions for people and businesses,” the Deputy Prime Minister said.

For Customs, the Deputy Prime Minister requested to well implement the risk management method. Post-clearance audit is determined to bea pillar of modern customs management, proactively promoting the collection and analysis of information, focusing on special projects, key areas and high-risk items. "The spread inspection is not really good, but must focus on the cases suspected of high risks," Mr. Hue said.

Making best efforts to implement directions

Minister of Finance Dinh Tien Dung said that he would absorb all the directions of the Deputy Prime Minister stated at the conference.

According to the minister, as of midnight on December 31, 2019, the total state budget revenue reached VND1,539.4 trillion, exceeding 9.1 percent (VND128.1 trillion) compared to the estimate. Thus, there is still time and potential for the whole Finance sector to collect more.

With the results of the state budget revenue and expenditure in 2019, the state budget deficit in 2019 decreased from 3.7 percent of the estimate to below 3.4 percent of GDP; public debt decreased to 56.1 percent compared to 63.7 percent at the end of 2016.

In 2019, the Government continued to restructure public debt and extend the term of Government bond issuance (the average term was 13.47 years, an increase of 0.78 years compared to the end of 2018); reduce public debt costs (the average interest rate of 11 months in 2019 was 4.68 percent/year, down from 1.2-1.6 percent/year compared to the beginning of 2019); increase the proportion of domestic loans, which is expected by the end of 2019 to reach 62.3 percent of total Government debt (compared to 60.1 percent in 2016).

Last year, the Finance sector also learned thoroughly and concretized the solutions under Resolution No. 01 / NQ-CP on the main tasks and solutions to implement the socio-economic development plan and State budget estimate in 2019. At the same time, the Ministry of Finance has also directed the local Tax, Customs and State Treasury agencies to closely coordinate with other ministries and sectors as well as the People's Committees and People's Councils of provinces to fulfill financial tasks.

Minister Dinh Tien Dung said that the Prime Minister’s guidance will be specified to continue to complete the assigned tasks.

Ha Giang Customs hit revenue target VCN- According to Ha Giang Customs Department, as of November 15, its revenue exceeded VND 267 billion. ...

"The achievement of the state budget task in 2019 is a favorable condition, an important step for successful implementation and fulfillment of the state budget task in 2020, as well as the completion of financial – budgetary objectives for the period of 2016 - 2020, positively contributing to macroeconomic stability and successfully accomplishing the socio-economic development targets for the 2016-2020 term,”the Minister said.