State budget revenue in nine months rises by 9.2%

Import and export tax revenue rose 30% year-on-year. Photo: Source: Internet

State collects more than VND1,077 trillion

In September, the control of the pandemic saw positive changes. Hanoi and some southeast and southwest provinces eased social distancing to establish a “new normal state” to help restore social-economic activities and stabilize people’s lives.

According to a report from the Ministry of Finance, the State budget revenue from January to September rose by 9.2% year-on-year to more than VND1,077 trillion, equalling 80.2% of the estimate. Of which, the central budget was estimated at 76.5% and the local budget 84.7%.

Domestic revenue rose by 5.9% to VND872.28 trillion, reaching 77% of the estimate.

The Ministry of Finance said despite being severely affected by the Covid-19 pandemic, state budget revenue in the first nine months of 2021 increased year-on-year thanks to economic growth in the remaining months of 2020. Some industries and fields benefited from fiscal and monetary policies to help remove difficulties for businesses and people and maintain a positive growth rate such as banking, securities and real estate, creating more revenue for the state budget.

However, due to the resurgence of Covid-19 in April 2021, domestic revenue has tended to decline. Of which, tax and fee revenue decreased 10.8%, 21% and 26.5% in July, August and September year-on-year respectively.

Import and export turnover in the past nine months rose by 3.3% to more than VND175 trillion, or 98.2% of the estimate. But, the import and export revenue from August has seen a plummet month-on-month. The revenue in August and September decreased 19.1% and 13.6% month-on-month respectively.

Many solutions offered to compensate for budget deficit

According to the Ministry of Finance, the State spent over VND1,030 trillion, equalling 61.1% of the estimate, of which: recurrent expenditures reached more than VND725 trillion or 70% of the estimate and interest payment reached nearly VND219 trillion or 45.8% of the estimate.

The spending was conducted according to the estimate’s progress and budget-using units’ tasks. Both the central and local budgets have prioritized spending on the prevention and control of the Covid-19 pandemic. By the end of September, the state spent more than VND29 trillion for pandemic prevention. Of which, the central budget spent VND16.35 trillion and local budget VND12.75 trillion.

The Ministry of Finance said that the overall state budget balance in nine months had a surplus, of which the central budget saw a deficit while the local budget reported a large surplus.

The ministry has actively managed the issuance of Government bonds to both effectively use the state budget and ensure funds to compensate for overspending and pay due principal debts of the State budget, contributing to orienting market development and restructuring public debt.

Regarding solutions to offset overspending due to the Covid-19 pandemic, the Ministry of Finance said the ministry is closely working with other ministries, governmental agencies and local agencies to deploy solutions, focus on disease control, remove difficulties for production and business, and accelerate capital disbursement of public investment, creating a driving force to promote and restore economic growth in the remaining months of 2021, thereby creating more revenue for the state budget.

Along with that, the ministry will strengthen collection management, urge handling and collection of outstanding debts, and increase revenue in the fields and areas with advantages to compensate for overspending due to the impact of the pandemic and to have more revenue for pandemic prevention and support people, ensure social security and state budget balance in 2021. At the same time, the ministry will continue to mobilize more funding sources and voluntary contributions from the business community and people to spend on Covid-19 prevention and control, reducing pressure on the state budget balance.