Saving VND72,068 billion of State budget in 2021

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The meeting session. Photo: Vinanet

VND14,620 billion of central budget reserves for Covid-19 prevention and control

Reporting on the performance of thrift practice and waste combat in 2021, Minister of Finance Ho Duc Phoc said the state budget management and financial - State budget tasks in 2021 were implemented in the context that the country was facing many difficulties, especially the outbreak of Covid-19 pandemic in many cities and provinces.

In that context, the Government promptly made adjustments to fiscal policy to remove difficulties and support businesses, households and people. In 2021, the Government exempted, reduced and extended payment deadlines for VND119.4 trillion of taxes, fees, charges and land rent.

The state budget revenue recorded a high result with VND1,563.3 trillion in 2021, exceeding 16.4% of the estimate and rising 3.7% from last year.

The Government and the Prime Minister requested the ministries, Government agencies and local agencies to strengthen solutions on thrift practice and waste combat, issue resolutions and decisions on cutting at least 50% of the budget for meetings, domestic and foreign missions and saving another 10% of recurrent spending in 2021; submitted to the National Assembly Standing Committee for promulgation Resolution 393 dated September 30, 2021 on adding VND14,620 billion of the central budget reserve for Covid-19 pandemic prevention and control.

Minister of Finance Ho Duc Phoc speaks at the meeting. Photo: Vinanet

Thanks to the initiative in management, state budget spending tasks in 2021 achieved the set targets. The total state budget expenditure in 2021 was estimated at VND1,879 trillion, exceeding 11.4% of the estimate, of which VND74 trillion was used for preventing and controlling the Covid-19 pandemic and supporting people affected by the pandemic

According to the Government's report, the State saved VND 72,068 billion of State budget in 2021 and some cities and provinces gained high results in thrift..

However, due to the impact of the Covid-19 pandemic, the production and business activities of many businesses and business households faced many difficulties, the tax debt of businesses tended to increase; fraud, tax evasion, invoice trading, especially tax collection management for real estate business activities and business online are still a problem; the allocation of state budget estimates by ministries, government agencies and local agencies have not achieved good results and have still delayed capital disbursement.

Regarding public debt management, the Minister said, the Government directed ministries, Government agencies and local agencies to actively manage Government debt and Government-guaranteed debt and closely monitor local government debt, ensuring debt indicators in 2021 within the scope decided by the National Assembly.

By the end of 2021, it was expected that public debt would be about 43.3% of GDP, the Government debt was about 39.1% of GDP, the balance of national foreign loans was about 38.4% of GDP, the Government's direct debt repayment obligation over State budget revenue was about 21.7%. Thus, the public debt safety indicators were guaranteed within the debt ceiling and threshold allowed by the National Assembly.

Regarding state treasury management, the temporarily idle funds used to lend to the central budget according to regulations to offset the state budget deficit in 2021 was VND90,000 billion (by the end of 2021, the outstanding balance of State budget loans was VND288,864.5 billion). Therefore, the ministry reduced VND49,000 billion of Government bond issuance, reducing pressure on capital mobilization from the market, helping to maintain government bond issuance interest rates at a stable and low level.

Refuse to disburse VND12.36 trillion

Regarding thrift practice and waste combat in construction and public investment, Minister Ho Duc Phoc said from the beginning of 2021, the Government determined acceleration of public investment disbursement an urgent and important task, contributing to promoting economic growth, creating jobs and income for employees, especially in the context of the Covid-19 pandemic.

Disbursed capital in 2021 was VND383.57 trillion, reaching 83.15% of the plan assigned by the Prime Minister. From the beginning of 2021 to the end of January 31, 2022, VND431, 188.53 billion was allocated, reaching 93.47% of the plan assigned by the Prime Minister.

Through the verification and approval of project settlements completed in 2020, verification agencies at ministries, central agencies, groups, corporations, and localities refused to disburse VND12.36 trillion at applications for settlement of investors, accounting for 2.17% of the total value of the investor's applications for settlement.

The Minister also pointed out problems and limitations in thrift practice and waste combat in this field. That is, the allocation of capital plans by some ministries and central and local agencies was still slow; planning and allocation and the preparation of public investment projects in some places were ineffective.

Thus, many projects have received capital but have not been built; many localities have not fully allocated the capital plan and reported a low disbursement rate.

In the management and use of offices, official residences and public welfare facilities, the Minister of Finance said that by December 31, 2021, the ministry approved the plan to rearrange and settle 29,625 housing and land facilities; recovered 122 houses and land facilities and hand over 401 houses and land facilities to localities.

“The progress of rearranging and settlement of houses and land is slow both at the stage of planning and approval. Some regulations on rearranging and settlement of houses and land are not specific or inappropriate. Some public service delivery units managed by local and central agencies must terminate the use of public assets for business leasing, joint ventures or association purposes in contravention of regulations," said Minister Ho Duc Phoc.

Regarding the key tasks and solutions, Minister Ho Duc Phoc said that in 2022, the Government sets out six key tasks and solutions in the thrift practice and waste combat. Accordingly, the Government will strengthen the implementation of thrift practice and waste combat in various areas, focusing on state budget management; management of public investment capital; public debt management; public property management; management of natural resources and minerals, especially land; management of capital and assets invested by the State in enterprises; management of off-budget state financial funds; and labor management and working time.

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Simultaneously, the Government will step up inspections and strictly handle violations of regulations on thrift practice and waste combat in a number of key areas such as the management of land, natural resources and minerals; public investment; management and use of public property; and equitization of SOEs. Moreover, heads of agencies, units and individuals will be seriously handled for violations causing wastefulness.