State revenue shows positive signs

	Customs sector collects nearly VND 160 trillion for State revenue
	Customs sector collects nearly VND55,000 billion to state revenue
	Hai Phong collects nearly VND 84,200 billion to State revenue

Customs operation at Ha Noi State Treasury. Photo: Internet.

State revenue jumps 15.2%

In the first five months of 2021, State revenue hit VND667.9 trillion or 49.7% of the estimate, up 15.2% year-on-year.

Domestic revenue was estimated at VND552.9 trillion or 48.8% of the estimate, rising by 14.2% compared to the prior year.

The economic recovery since the end of 2020 and the increase in revenues from the banking, securities, real estate, automobile manufacturing and assembly industries, and from mergers, consolidation and asset revaluation in contributing and transferring capital, have raised State revenue in the first five months of 2021.

Business and production, goods imports and exports showed positive signs, along with the effective implementation of measures to fight the Covid-19 pandemic while supporting import and export firms, clearing goods to ensure smooth trade flow, leading to the increase in customs revenue.

Balanced budget revenue from imports and exports was estimated at VND98.5 trillion, up 30.1% year-on-year, while revenue from VAT refund was about VND58.4 trillion.

Revenue from crude oil was estimated at VND15.96 trillion or 68.8% of the estimate, down 18.4% compared to the same period in 2020. The decline in this revenue stems from the drop in production output and the unchanging oil price in the first months of the year compared to the same period last year, according to the State Budget Department.

The State budget expenditure hit VND581.6 trillion or 34.5% of the estimate, including the development investment expenditure VND102 trillion, interest payment was VND47.8 trillion, and recurrent expenditure VND430.8 trillion.

The Ministry of Finance said State budget expenditure is implemented in line with the estimate and the progress of budget-using units. The central and local budget have been allocated for Covid-19 control and prevention, ensuring facilities and conditions for the election of the 15th National Assembly and People's Councils at all levels for 2021-2026.

The total Government’s debt repayment was VND161,686 billion, with internal debt repayment around VND137,475, and foreign debt repayment was about VND24,211 billion.

The Ministry of Finance has issued VND109.7 trillion of Government bonds with an average term of 12.32 years, interest rate of 2.27% per year. In the first five months of the year. Total divested capital was VND 286.6 billion, earning VND2,165 billion.

Strengthen management of State budget revenue

The Government has managed well the budget revenue and expenditures. The level of revenue and expenditure and the budget deficit is still under control and at a safe level, according to economist Le Duy Binh, Director of Economica Vietnam.

“This show great efforts of the finance sector amid the Covid-19 pandemic. The revenue growth helps ensure the stable operation of the apparatus, re-invest the economy through the development investment expenditure, and support the Covid-19 prevention and control. This is a great contribution of the finance sector,” economist Le Duy Binh said.

Minister of Finance Ho Duc Phoc requests the General Department of Taxation and the General Department of Vietnam Customs to strengthen revenue management; prevent transfer pricing, tax evasion; anti-smuggling and trade fraud, and outstanding collection.

The ministry also asked departments to review shortcoming and overloaded legal documents; propose solutions to resolve difficulties for people and businesses, create momentum for socio-economic development and advise to ensure funding for Covid-19 prevention and control.

Earlier, Minister Ho Duc Phoc requested the entire sector to take measures to fulfill revenue collection. This is the most important task.

The space for the use of fiscal and monetary policies should be paid attention to in the final months of the year to promote and support economic development with the same high scenario as last year.

To achieve the economic development goals set by the National Assembly and the Government, the space is not large and the current priority is to balance fiscal policy on a large scale, coordinate between the fiscal and monetary policies in a tight and flexible manner to ensure economic development goals, and support macroeconomic stability amid the inflation may lurk back, economist Le Duy Binh said.