Explaining the reason why Nghe An's budget revenue in 2023 is lower than in 2022

In 2023, the Provincial People's Council assigned a state budget revenue estimate of VND 15,857 billion. In the first 10 months of 2023, the Provincial People's Committee collected VND 13,371 billion, reaching 84.3% of the estimate assigned by the Provincial People's Council and equal to 72.8% compared to the same period in 2022.

Director of the Department of Finance Trinh Thanh Hai said that, based on the results of 10 months' collection and drastic efforts in the last months of the year, the estimated implementation for the whole year of 2023 is 17,771 billion VND, equal to 112% of the estimate assigned by the Provincial People's Council, equal to 79% of the implementation in 2022.

Of which, domestic revenue for the whole year of 2023 is estimated to reach 16,600 billion VND, reaching 113% of the estimate, equal to 78.5% compared to the implementation in 2022.

14/16 domestic revenue items have completed the estimate assigned by the Provincial People's Council. However, there are still 2 domestic revenue items, namely environmental protection tax and registration fee, that have not met the estimate assigned by the Provincial People's Council, due to the State's policies to support businesses affected by the Covid-19 pandemic and fluctuations in world gasoline prices.

The total budget revenue of the district block in the area in 10 months was 5,809 billion VND, reaching 96.9% of the estimate assigned by the Provincial People's Council, equal to 57% compared to the same period in 2022. 10/21 units exceeded 100% of the estimate assigned by the Provincial People's Council, some units achieved high revenue rates such as districts: Do Luong, Tan Ky, Nam Dan,...

Director of the Department of Finance Trinh Thanh Hai said that 2023 is a pivotal year for implementing the Resolution of the 13th National Party Congress, Resolutions of Party Congresses at all levels and the 5-year socio-economic development plan for 2021-2025.

However, since the beginning of 2023, the world situation has been evolving rapidly, complicatedly, and unpredictably. The global economy has grown slowly; inflation is high; financial, currency, and real estate markets are fraught with risks; import and export activities have shrunk.

The domestic economy and Nghe An province are clearly affected, especially the export market, domestic market purchasing power, production and business growth is slow. Production and business activities of enterprises, especially enterprises with key products continue to face difficulties in the market and financial resources, reducing the amount of payment to the state budget.

According to Mr. Nguyen Dinh Duc - Director of the Provincial Tax Department, compared to 2022, domestic revenue in 2023 decreased by about 4,150 billion VND.

The Director of the Tax Department said that the reason for the decrease was due to objective factors, such as the difficult operations of some businesses with key products such as beer, hydropower, cement... in the area, reducing revenue contribution by about 1,300 billion VND.

In addition, due to the sluggish real estate market, land-related revenues have decreased sharply, expected to decrease by VND 3,500 billion compared to 2022. Of which, land use fees are expected to decrease by about VND 3,000 billion; personal income tax from real estate transfers decreases by VND 300 billion; real estate fees decrease by VND 90 billion...

On the other hand, the implementation of policies to exempt, reduce, and extend some tax, fee, and charge collections by the National Assembly and the Government to stimulate the economy also reduces the province's domestic revenue.

Director of the Provincial Tax Department Nguyen Dinh Duc said that the province's budget collection situation is stable and positive, and the Tax sector is determined to drastically implement solutions, trying to collect over 18,000 billion VND in budget in 2023.