State budget becomes more sustainable: Finance Minister
Finance Minister Dinh Tien Dung presented a report on the State budget performance in 2019, estimates for 2020 and the five-year financial plan (2016-2020) to the National Assembly on October 31.
Finance Minister Dinh Tien Dung speaks at the National Assembly's plenum on October 31 (Photo: VNA)
Hanoi (VNA) – Finance Minister Dinh Tien Dung presented a report on theState budget performance in 2019, estimates for 2020 and the five-yearfinancial plan (2016-2020) to the National Assembly on October 31.
Accordingto the report, the spending structure of the State budget is shiftingpositively with most essential five-year targets surpassed.
Overspendinghas been kept under control, averaging 3.6-3.7 percent of the GDP during theperiod from 2016 to 2019, while the target is 3.9 percent. The rate is envisionedto be at 3.44 percent of the GDP in 2020, the report said.
TheFinance Minister also talked about difficulties of the State budget, one ofwhich is the declining revenue from tax and fees, mainly caused by droppingcontribution from crude oil and import-export.
Therefore,it is necessary to revise the revenue policy in order to collect an additional300 trillion VND to compensate for the reduction in revenue from crude oil andimport-export activities.
Inaddition, several industries and sectors would not achieve the high growth asexpected, affecting contributions to the State budget.
MinisterDung said the ministry is researching on measures to ensure both thecompetitiveness of the investment environment and budget revenues in accordancewith international practice. The ministry will also take measures to fight taxevasion and transfer pricing, and address tax arrears, so as to fulfill thefive-year targets at the highest level possible.
Inreply to some NA deputies’ concern about unsustainable budget revenue, theminister said the State budget is becoming more and more sustainable, withrevenues from the three economic sectors (state, non-state and foreign-investedsectors) are projected to make up nearly 45 percent of total State budgetrevenue, while the rate was only 39 percent in 2017./.
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The State budget’s domestic revenue in the first eight months of 2019 is estimated at 808.8 trillion VND (34.8 billion USD), according to the Ministry of Finance.
Collection of the State budget between 2016 and 2020 is expected to meet the target of 6.8 quadrillion VND (nearly 293 billion USD), the Ministry of Finance (MoF) reported on October 21.
The National Assembly (NA) will continue the discussion on socio-economic and State budget performance on October 31 as part of the ongoing 8th session.
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Finance Minister Dinh Tien Dung speaks at the National Assembly's plenum on October 31 (Photo: VNA) 
