Ministry of Finance plans to increase revenue collection in 2021 by 1.5% compared to the estimate in 2020

The estimate of domestic revenue accounted for 84.4% of the total revenue. Photo: Thùy Linh

This report included four parts, namely evaluation on the implementation situation of revenue collection in 2020; plan on revenue collection estimation in 2021; financial – State budget plans in three years 2021-2023 and an appendix about related data.

According to the report, the Ministry of Finance estimated it would collect VND 1,343.3 thousand billion to balance the State budget in 2021, up 1.5% compared to the estimation in 2020, decreasing 11.1% over the current appropriation in 2020. The rate of mobilising to the State budget is about 15.5% of adjusted GDP, of that mobilising from tax and charges about 13% GDP.

The estimate of domestic revenue is VND 1,133.5 thousand billion, accounting for 84.4% of the total balanced revenue of State budget, meeting the requirement of increasing proportion of domestic revenue in the revenue structure (the estimate in 2020 is 83.6%, estimated implementation is 84.3%).

Estimated revenue collected from crude oil is 23.2 triillion VND, 1.7% of total State budget balance revenue on the basis of exploited output of about 8 million tons, estimated price of 45 USD / barrel. Estimated balanced revenue from import and export activities is VND178.5 thousand billion, 13.3% of the total balanced revenue of the State budget. Estimated revenue collecting from aid is VND 8.13 thousand billion.

The estimate of State budget expenditure in 2021 is built on the basis of continuing to apply the principles, criteria and norms of the allocation of recurrent State budget expenditures for 2017-2020; at the same time, continue to grasp the resolutions of the central Government on restructuring the apparatus, streamlining and renovating the public service sector.

The principles and orientations for the arrangement of the State budget expenditure 2021 estimate are consistent with revenue capacity.

Prioritising the arrangement of increasing the proportion of development investment expenditures, continuing to request concentrated arrangement, avoiding scattering; save recurrent expenses associated with streamlining the apparatus, improving the autonomy of non-business units, cutting costs of organising conference, domestic business trips and aboard as well as other expenses that are not necessary. Strictly complying with the principle of State budget deficit that is only used for development investment expenditure.

Besides that, arranging to pay interest fully and on time; strictly manage loans; arrange to ensure the task of expending for three national target programmes for key tasks will be appropriate with the implementation capacity in 2021; basically converting expenditure tasks of the 21 target programmes in 2016-2020 into expenditure tasks of ministries, central agencies, provinces and cities in accordance with the Law on State Budget; arrange expenses on national reserves in accordance with regulations to ensure timely handling of urgent tasks arising in the year.

With the above principles and orientations, estimated expenditure to balance the State budget in 2021 is VND 1,687 thousand billion, lower than VND 60.1 thousand billion (-3.4%) the 2020 estimate.

Expenditure for investment and development is expected to be VND 477.3 thousand billion, 28.3% of the total expenditure, up VND 6.7 thousand billion compared to the estimate in 2020; interest payment is VND 110.1 thousand billion, accounting for 6.5% of total expenditure, down VND 8.1 thousand billion compared to the estimate in 2020. Recurrent expenditure is VND 1,036.7 thousand billion, accounting for 61.4% of the total expenditure and down about VND 20 thousand billion (-1.9%) compared to estimate in 2020.

With such estimates, in the context that State revenues cannot be recovered, to have resources to allocate expense for development investment, contributing to stimulating economic growth, the rate of State budget deficit in 2021 is expected to be about 4% of adjusted GDP.

By the end of 2021, public debt is expected to be about 46.1% of adjusted GDP, the Government debt is about 41.9% of adjusted GDP.

Currently, "the report on publicising the State budget estimate in 2021 submitted to the National Assembly by the Government" is being publicly posted on the portal of the Ministry of Finance to collect comments from organisations and individuals. So that the task of developing State budget estimates is increasingly transparent and effective, contributing to promoting socio-economic development and aiming to serve society and the community in the best way.