Minister of Finance Ho Duc Phoc: There is no such thing as 'exhausted budget'
Minister of Finance Ho Duc Phoc affirmed: There is no such thing as a depleted budget, the budget still fully ensures the spending tasks according to the estimates approved by the National Assembly. Only the 2021 budget reserve (usually accounting for 2-4% of the budget) has been used up for epidemic prevention and control, so the Government has directed to increase spending savings and submitted to the National Assembly Standing Committee for permission to transfer 14,620 billion VND in savings from regular expenditure sources to supplement the budget reserve, serving the work of preventing and controlling the Covid-19 epidemic.
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| Minister Ho Duc Phoc said that the Ministry of Finance will advise competent authorities to arrange a separate budget for epidemic prevention and control in 2022. Photo: VGP/Nhat Bac |
Recently, some public information has misunderstood that the State budget is exhausted. Could the Minister please provide more information to explain clearly about the transfer of resources from regular spending savings to State budget reserves?
Minister Ho Duc Phoc:The State budget will never run out. The 2021 budget revenue approved by the National Assembly is VND 1,343 trillion, and has so far reached 77% of the estimate and the Finance sector is striving to reach 100%, while still supporting people and businesses facing difficulties due to the pandemic. I affirm that the State budget will fully ensure the spending tasks assigned by the National Assembly and the Prime Minister.
However, the budget reserve has been used up. According to the Budget Law, the reserve accounts for 2-4% of the total budget estimate. In 2021, 17,500 billion VND was allocated as a budget reserve. Due to being used for Covid-19 prevention and control, this reserve has been used up. Following the Prime Minister's direction, ministries, branches, localities and agencies have saved at least 50% of conference and domestic and international travel expenses, and saved an additional 10% of other remaining regular expenditures in 2021 to supplement resources for Covid-19 prevention and control and other necessary tasks. To date, about 14,620 billion VND has been saved from regular expenditures. Therefore, the Ministry of Finance has reported to the Prime Minister to submit to the National Assembly Standing Committee for permission to transfer this savings to supplement the central budget reserve in 2021, to provide ministries, agencies and localities to serve the most effective epidemic prevention and control work.
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| Minister of Finance Ho Duc Phoc. Photo: Quochoi.vn |
In 2022, there will be a separate budget for epidemic prevention and control.
In the context of the Covid-19 pandemic, how has the Ministry of Finance advised the Government on solutions to prevent and control the epidemic and support people and businesses?
Minister Ho Duc Phoc:The Ministry of Finance has advised the Government on solutions to prepare funding sources for epidemic prevention. To date, the budget has spent VND 21.4 trillion on epidemic prevention and control. At the same time, the Covid-19 Vaccine Fund was established, and to date, nearly VND 8,700 billion has been mobilized.
Along with that, the Ministry has advised on a number of solutions to support businesses. The Government has issued Decree 52/2021/ND-CP on extending the deadline for payment of value added tax, corporate income tax, personal income tax and land rent in 2021. The total amount of tax deferral and extension is estimated at about 115 trillion VND and has so far implemented 85 trillion VND. The Ministry also advised on applying a reduction in environmental protection tax on aviation fuel in 2021 to support the aviation industry; together with other agencies, it advised the Government to issue a support package of 26 trillion VND for employees and employers facing difficulties due to the pandemic. Most recently, the Ministry also advised on a draft resolution to reduce value added tax, corporate income tax, exempt late payment penalties... with a total estimated cost of about 21,300 billion VND. The total value of the above items is approximately VND 203.5 trillion.
In addition, the Ministry of Finance coordinates with other agencies such as the Ministry of Labor, War Invalids and Social Affairs, Vietnam Social Security, State Bank of Vietnam, Ministry of Information and Communications, Ministry of Industry and Trade to have support policies on telecommunications fees, electricity bills, interest rates, etc. with an amount of about 40 trillion VND. Thus, there is about 250 trillion VND to support businesses and people in the difficult context due to the pandemic.
How will the funding for epidemic prevention and control in 2022 be prepared, sir?
Minister Ho Duc Phoc:In the coming time, we will continue to advise the Government and the National Assembly on solutions to increase budget savings, ensure spending tasks for epidemic prevention and control, ensure social security, care for people, and contribute to rapid economic recovery and development. The Ministry of Finance will advise competent agencies to allocate a separate budget for epidemic prevention and control in 2022.
Thank you very much Minister!
Pursuant to Resolution No. 86/NQ-CP dated August 6, 2021 on urgent solutions to prevent and combat Covid-19, the Government requests the Ministry of Finance, ministries, branches and localities to prioritize the arrangement and allocation of the State budget and other legal resources to ensure funding for Covid-19 prevention and control and Covid-19 treatment facilities. Reduce at least 50% of the remaining domestic and international conference and work expenses of ministries, central agencies and localities (except for important and urgent operating expenses and epidemic prevention and control expenses of the Ministry of Health, Ministry of National Defense, Ministry of Public Security, diplomatic expenses of the Ministry of Foreign Affairs) and save an additional 10% of other remaining regular expenditures in 2021, excluding salaries and other incomes; Recover regular expenditures that are not really necessary and slow to be implemented to supplement the central and local budget reserves, focusing funds on Covid-19 prevention and control.
Based on the requirements of Covid-19 prevention and control, after reviewing, mobilizing, and using local budgets and other legal resources but still facing difficulties, the Provincial People's Committee requests the Central budget to support implementation. The Ministry of Finance shall preside over the review and appraisal, propose to the competent authority to decide on the level of support and temporary allocation from the Central budget to support localities.
For issues stipulated by law under the authority of the National Assembly and the National Assembly Standing Committee related to funding for Covid-19 prevention and control, ministries, branches, central and local agencies shall propose the Ministry of Finance to synthesize and submit to the Government a report to the National Assembly Standing Committee for consideration and decision before implementation according to the provisions of Point 3.2 of Resolution No. 30/2021/QH15 of the National Assembly.
