Proactive fiscal policy, determined to successfully implement the 'dual goals'

On the morning of July 16, the Ministry of Finance held a national online conference to review the state financial and budget work in the first 6 months of the year and deploy tasks for the last 6 months of 2021.

Attending and directing the Conference, at the Ministry of Finance bridge point, there were comrades: Le Minh Khai - Secretary of the Party Central Committee, Deputy Prime Minister; Ho Duc Phoc - Member of the Party Central Committee, Minister of Finance.

At Nghe An province bridge, comrade Nguyen Duc Trung - Deputy Secretary of the Provincial Party Committee, Chairman of the Provincial People's Committee chaired.

Deputy Prime Minister Le Minh Khai attended the conference at the Ministry of Finance headquarters. Photo: Duc Minh (thoibaotaichinhvietnam)

21.5 TRILLION VND SPENT TO PREVENT AND FIGHT COVID-19

In the first 6 months of this year, overcoming many difficulties and challenges, closely following the policies and resolutions of the Party, the National Assembly, and the Government, the Finance sector has closely followed the practical situation, proactively proposed fiscal policy solutions, actively contributing to the dual task of both preventing the Covid-19 pandemic and developing the economy and society, ensuring people's lives.

The results of state budget collection were positive, meeting the set requirements. Accordingly, state budget collection in the first 6 months of the year reached 781 trillion VND, equal to 58.2% of the estimate, up 16.3% over the same period in 2020. Of which, domestic revenue reached 56.3% of the estimate, up 13.9%. Nationwide, 60/63 localities ensured the progress of domestic revenue estimates (reaching over 50%), of which 48 localities reached over 55% of the estimate; 54/63 localities had revenue growth, of which some localities had revenue growth of over 15% over the same period in 2020.

Panoramic view of Nghe An province bridge. Photo: Pham Bang

State budget expenditures are strictly managed, thoroughly saving regular expenditures right from the budget preparation stage and during the implementation process, associated with the implementation of the work of restructuring the apparatus, streamlining the payroll, and innovating the public service sector according to the Resolutions of the 6th Central Conference (Term XII). State budget expenditures in the first 6 months are estimated at 694.4 trillion VND, equal to 41.2% of the estimate. Up to this point, the Ministry of Finance has spent 21.5 trillion VND on anti-epidemic work.

Fiscal policy management has been proactive and active in removing difficulties for businesses and people to respond to the Covid-19 pandemic. The Ministry of Finance has submitted to the Government Decree No. 52/2021/ND-CP on tax and land rent deferral; issued a circular to continue reducing fees and charges... In the first 6 months of 2021, 27.5 trillion VND worth of taxes, land rents, fees and charges have been exempted, reduced, and extended.

Overview of the bridge at the Ministry of Finance. Photo: thoibaotaichinhvietnam

The Ministry of Finance has also advised on the establishment of the Covid-19 Vaccine Fund, issued a Circular guiding the organization, operation, management, use, accounting, settlement, and financial disclosure of the Covid-19 Vaccine Fund. As of 5 p.m. on July 15, the fund has collected VND8,133 billion and has spent VND2,500 billion from the fund to buy vaccines.

In Nghe An alone, the province's growth rate in the first 6 months of 2021 reached 7.58%, up 2.97% over the same period, ranking 14th out of 63 provinces and cities. State budget revenue in the first 6 months of 2021 reached VND 10,042 billion, equal to 76.3% of the estimate assigned by the Prime Minister, equal to 71.6% of the estimate assigned by the Provincial People's Council, up 37.8% over the same period in 2020, the highest compared to the same period of previous years, exceeding the scenario set by the Provincial People's Committee at the beginning of the year. Local budget expenditure in the first 6 months of 2021 reached VND 12,439 billion, reaching 48.4% of the estimate assigned by the Provincial People's Council; disbursement of public investment capital reached 34% of the plan.

CONTINUE TO REMOVE DIFFICULTIES FOR PEOPLE AND BUSINESSES

Speaking at the Conference, Deputy Prime Minister Le Minh Khai commended and highly appreciated the positive financial and budget results in the first 6 months of 2021, contributing to the implementation of the "dual goal": both preventing and fighting the epidemic and developing the economy.

The Ministry of Finance has advised the Government to promptly issue proactive fiscal policies, actively remove difficulties for businesses and people to respond to the Covid-19 pandemic. Actively advise, mobilize, and guide the use of resources for Covid-19 prevention and control and vaccine purchase.

Assessing the complicated developments of the Covid-19 pandemic, affecting all aspects of socio-economic life, the Deputy Prime Minister said that despite many difficulties, the Government still maintains the goals and targets for socio-economic development in 2021.

To achieve the set goals and targets, Deputy Prime Minister Le Minh Khai requested the Finance sector to continue researching fiscal solutions to submit to competent authorities for decision to proactively and actively remove difficulties for businesses and people to respond to the Covid-19 pandemic; ensure funding sources for Covid-19 pandemic prevention and control work. Thereby, continue to firmly and successfully implement the dual goal - focusing on effective pandemic prevention and control, stabilizing the macro-economy, developing production and business, ensuring social security for the people.

In addition, the Ministry of Finance focuses on building and perfecting institutions and financial - state budget projects according to plan. Reviewing and resolving overlapping points, cutting administrative procedures, simplifying business procedures, creating favorable conditions for enterprises, creating an environment of equal competition between enterprises and improving national competitiveness; implementing tax laws and state budget collection tasks in 2021; determined to collect the highest level of the estimate decided by the National Assembly; strictly managing the state budget; strengthening price management; synchronously developing all types of financial markets.

Chart: Hong Van (thoibaotaichinhvietnam)

Along with the above solutions, the Finance sector continues to operate fiscal and monetary policies proactively and cautiously; control inflation, stabilize the macro-economy, support recovery and promote economic growth. Strictly control state budget deficit, maintain state budget deficit and public debt... Promote restructuring and equitization of state-owned enterprises; review and rearrange the organizational apparatus, effectiveness and efficiency, promote innovation in financial mechanisms of public service units, public service prices; proactively cooperate and integrate into international finance...

Concluding the Conference, Minister of Finance Ho Duc Phoc emphasized that the complicated developments of the Covid-19 pandemic are putting the Finance sector in front of enormous challenges. Therefore, the entire sector must make greater efforts and determination to achieve the targets and objectives assigned by the National Assembly, successfully implementing the "dual goal": both preventing and fighting the pandemic and developing the economy.

Recalling the industry's outstanding results in the first 6 months of the year, the Minister of Finance said that, based on the guiding and operating viewpoints stated in Resolution No. 63/NQ-CP dated June 29, 2021 and the Government's Resolutions, the Ministry of Finance will urgently deploy many solutions on flexible and stable fiscal policy management, proactively combining fiscal and monetary policies.

Along with that, focus on building and perfecting institutions and financial - state budget projects according to plan; well implementing tax laws and state budget collection tasks in 2021; determined to collect the highest level of revenue as estimated by the National Assembly; strictly managing the state budget; strengthening price management; synchronously developing all types of financial markets.

Chairman of the Provincial People's Committee Nguyen Duc Trung presents gifts to the Covid-19 epidemic prevention and control checkpoint in Vinh City. Photo courtesy of Pham Bang