The Government directs to increase revenue collection and review saving expenditure

On behalf of the Prime Minister, the Minister of Finance presented the report. Photo: quochoi.vn

The revenue collection of the whole country is estimated to increase by 14.3%

On behalf of the Prime Minister to present the report, Minister of Finance Ho Duc Phoc said that, in the first nine months of 2022, revenue collection reached 94% of the current appropriation. Accordingly, domestic revenue achieves 88.9% of the current appropriation,

Budget revenue for the year is estimated to increase by 14.3% compared to the estimate.

The state budget mobilization rate reached 17.2% of GDP, and mobilized from taxes and fees reached 13.9% of GDP. In particular, domestic revenue reached 9.8%, crude oil revenue exceeded 141%, and revenues from import and export activities exceeded 23.6%.

Regarding budget expenditure, the Minister of Finance said that by the end of September, it was estimated to reach 60.9% of the current appropriation, of which investment and development expenditures reached 48.1%. Assessing the whole year, the state budget expenditure was 114.1 % of the current appropriation, of which the settlement of investment capital was estimated at 96% of the plan assigned by the Prime Minister. Interest payments reached 96.1%, and recurrent expenditure reached 100.7% of the current appropriation.

The Minister of Finance said that the additional overspending for tasks under the Recovery Program and projects that need to accelerate the progress of Resolution 43 was 0.41% of GDP. Accordingly, the budget deficit in 2022 was estimated to be equal to 4.5% of GDP, within the scope permitted by the National Assembly.

In the administration, the Government has been directed to strive to increase budget revenue, review spending savings, and cut unnecessary spending tasks to continue to reduce the overspending level compared to the report.

In this report, the Government also submitted to the National Assembly several issues, including the unaccomplished task of wage reform under Resolution 27-NQ/TW in 2023.

From July 1, 2023, increasing the base salary for cadres, civil servants and public employees to VND 1.8 million/month (about 20.8%); increasing about 12.5% spending on pensions and social insurance benefits guaranteed by the state budget ​​(along with the 7.4% increase in adjustment made in 2022, it is equivalent to the increase in base salary) and additional support for those who retire before 1995 with low benefits; increasing spending on preferential allowances for meritorious people and increasing spending on social security policies associated with the base salary by about 20.8%.

From January 1, 2023, they are adjusting to increasing the occupational incentive allowance for preventive medicine and grassroots health workers following Conclusion No. 25-KL/TW dated December 30, 2021, of the Politburo.

Regarding the three-year financial plan 2023-2025, the Minister of Finance said that the proportion of development investment and recurrent expenditures in the total budget expenditure must be kept close to the 5-year financial plan target, ensuring the implementation of some important goals and tasks such as funding for national defence and security and socio-economic development; reforming salaries for cadres and civil servants, implementing national target programs, allocating funds for other development investment spending tasks.

A thorough assessment of the estimated implementation of state budget revenues in 2022

Presenting the report on verification of the state budget implementation in 2022, the state budget estimate, the plan to allocate the central budget in 2023 and the 3-year financial plan from 2023-2025, Chairman of the Finance and Budget Committee of the National Assembly Nguyen Phu Cuong said that the total balance of state budget revenue exceeded the estimate relatively high, rising 14.3% compared to current appropriation, an increase of 2.9% compared to the estimated implementation in 2021. In particular, both the central and local budgets exceeded the estimate.

Chairman of the Finance and Budget Committee of the National Assembly Nguyen Phu Cuong. Photo: quochoi.vn

Besides that, he also noted many issues such as forecasting in the development of estimates; carefully assessing the pivotal role of the central budget, the structure of increasing state budget revenue is still uncertain, the proportion of revenue growth from land is still enormous; local budget revenue is not equal among localities, many localities have not reached the estimate; there are inadequacies in the decentralization of revenue sources between the central and local governments.

The Finance and Budget Committee also suggested that the Government carefully evaluate the estimated implementation of state budget revenues in 2022 to ensure correct and sufficient collection close to the actual situation; request to report the causes, responsibilities and solutions for the failure of the revenue from equitization or divestment of state capital in enterprises for many years; it is recommended to assess the causes of the increasing tax debt carefully.

Regarding state budget expenditure in 2022, Chairman of the Finance and Budget Committee Nguyen Phu Cuong stated that state budget expenditure in 2022 has ensured the tasks of spending on state management, defence and security, foreign affairs and complete payment of social security regimes and policies and debt obligations as committed.

However, it still has some emerging problems in the allocation and assignment of development investment expenditure estimates and the progress of disbursement of development investment expenditures. At the same time, he asked the Government to evaluate the ability to disburse capital of the three national target programs by the end of May 2022, the ability to complete the estimate, clarify the causes and have solutions.

Regarding the state budget estimate in 2023, the Finance - Budget Committee, on the central budget allocation plan, besides the principles stated in the Government's report, the Finance - Budget Committee proposed to grasp several principles thoroughly: central budget allocation must closely follow the principles, criteria, capital allocation norms in the Resolutions of the National Assembly and the National Assembly Standing Committee; speeding up capital allocation, only allocating capital to projects that have completed all investment procedures; arrange payment of principal and interest on time; definitively handle outstanding debts for capital construction, a maximum refund of advance capital and ensure the implementation of social security policies; reserve backup resources to proactively handle urgent situations; at the same time, ensure publicity, transparency, thrift, and strengthen anti-corruption work.

Furthermore, the Finance and Budget Committee also commented on the increase in base salary. Accordingly, the majority of opinions agreed with the increase in base salary (VND 1.8 million/month) and increased payment for some subjects as the Government proposed.

The Finance and Budget Committee said that, due to the impact of the pandemic on the state revenue collection, the base salary had not been adjusted since 2020. Accordingly, if it continued to keep at VND 1,490,000/month like in 2019, it would affect the lives of some workers in the public sector.

In addition, some people who retired before 1995, meritorious people and vocational allowances for medical cadres working at grassroots and preventive medicine still have low benefits, especially in the current context. Hence, the adjustment of the salary for these objects is appropriate.

Regarding the finance-state budget plan for three years from 2023-2025, Chairman of the Finance-Budget Committee Nguyen Phu Cuong said that through verification, the financial planning for the 3 years of 2023-2025 had been complied with the regulations, closely following the objectives of the Resolution of the Party Congress and the Resolution of the National Assembly, in line with the Strategy for Development of Sectors and Fields; ensure the main task of the stage. Therefore, this will be the initial basis for assessing the possibility of completing the 5-year financial plan 2021-2025.