Finalization of budget 2016: The budget deficit is equal to 4.95% of GDP estimation

Minister Dinh Tien Dung spoke at the 24th session of the Standing Committee of the National Assembly.

Budget revenue exceeded 1.7%

According to the Minister of Finance Dinh Tien Dung, at the 10th session, the XIII National Assembly decided to collect and spend State budget in 2016 with a total revenue of VND 1,014,500 billion; total expenditure was VND 1,273,433 billion; overspending VND 254,233 billion, equivalent to 4.95% of GDP. The management of State budget revenue and expenditure is VND 91,245 billion; re-lending loans were VND 43,010 billion.

With estimated budget revenue of VND 1.014 trillion, the balance was VND 1,107,381 billion, up 9.2 percent (VND 92,881 billion) against the budget, mainly due to the increase in land use fees and dividends, The remaining profit was from state-owned enterprises, of which the local budget was VND 89,515 billion.

In addition, in Resolution No. 99/2015 / QH13 on the fiscal and state budget tasks in 2016, the National Assembly decided to spend VND 1,273,433 billion, VND 1,295,061 billion was finalized, up 1.7% (VND 21,628 billion) compared with the estimate, the main increase was investment development (VND 41,501 billion) from the increase of land use fees and previous year source transferred under the provisions of the State Budget Law.

Final settlement of central budget was VND 592,674 billion, equaling 98.8% of the estimate. Finalization of local budget expenditures was VND 702,387 billion, up 4.3% (VND 28,827 billion) against the estimate, mainly due to the previous year's transfer, local budget revenue increase as regulated and supplementary sources. Targeted by the central budget according to the provisions of the State Budget Law and the Resolution of the National Assembly.

The State budget deficit was decided at VND 254.233 trillion, compared with GDP, estimated at VND 5.130 trillion, equivalent to 4.95 percent of GDP, compared with the realized GDP of VND 4.502.733 trillion, 5.65 percent. The total deficit was VND 248,728 billion, a decrease of VND 5,505 billion compared to the National Assembly's decided plan (domestic capital decreased by VND 835 billion and foreign capital decreased by VND 4,670 billion). Decision No. 89 / NQ-CP of the Government in September 2016); equal to 5.52% of GDP was realized.

On the source of compensation, domestic borrowing is VND 197.165 billion; Overseas loans were VND 51.563 trillion, diversified loans in term of debt raised the term of Government bonds, so that the average term of loans in 2016 was extended to 8.71 years, 2015 was 6.98 years, 2014 was 4.84 years), meeting the requirements of the National Assembly Resolution No. 99/2015 / QH13 November 11, 2015.

As a result of the implementation of the above-mentioned revenue and expenditure estimates, the Government debt is equal to 52.8%, 63.8% is public debt, within the limits stipulated by the Government and Congress.

Still limited

Commenting on the contents of the state budget settlement in 2016 by the Government, Chairman of the Finance and Budget Committee of the National Assembly, Nguyen Duc Hai pointed out some limited issues. They are: The implementation of some content related to fiscal policy in 2016 is not really effective; The structure of revenue collection is not sustainable, mainly the increase of revenues from natural resources and land; The proportion of State budget revenues and expenditures remains quite far from the target of 2016-2020; The allocation of estimates exceeds the feasibility of implementation, resulting in 2016 with 12 local balance deficits of about 5,300 billion; a balance loss of VND 1.398 trillion and no source of bonus to over 7 provinces eligible for over-rewards.

Financial Committee - Budget, the Government has made many efforts in managing the implementation of state budget revenue in 2016; Revenues of basic importance reached budget. The tax office has improved its capacity, accelerated the application of information technology, contributing to the limitation of tax evasion; Actively carried out many measures to inspect, check and combat price transfer, urge the recovery of tax arrears .... The Finance and Budget Committee has consistently stated that the balance sheet of the State budget in 2016 has been fully absorbed by the Standing Committee of Finance and Budget, the Standing Committee of the Finance- The proposal of the Government to submit to the National Assembly for consideration and approval of the State budget in 2016 is as follows: Total budget is VND1,407,572 billion (including the transfer from 2015 to the 2016, collection of local budget surplus in 2015, mobilization of investment from local budget and collection from financial reserve in accordance with the State Budget Law); Total budget of VND 1,574,448 billion; Budget deficit was VND 248,728 billion, equal to 5.52% of GDP (excluding VND 81,852 billion of local budget balance). Speaking at the 24th session on this issue, the Standing Committee of the National Assembly said that basically the data in the Government's report on the State budget finalization in 2016 has been properly assessed and fully qualified to be submitted to the National Assembly for approval.

However, through study, the Standing Committee of the National Assembly assesses; the financial discipline is still loose, there is still a state of arrears in the capital construction, the status quo of the regime is still large. On behalf of the Standing Committee of the National Assembly, Vice Chairman of the National Assembly Phung Quoc Hien, requested the Finance and Budget Committee to chair and coordinate with the Ministry of Finance and the State Audit to continue to study, agree data, refunds, and make reports before submitting to the National Assembly for consideration.