Nghe An needs to create a premise to break through budget revenue for the new period

On the afternoon of September 12, the Provincial People's Committee worked with the Supervisory Delegation of the National Assembly's Finance and Budget Committee on assessing the implementation of the State budget in 2019 and building the State budget estimate for 2020 of Nghe An province.

Comrade Dinh Van Nha - Vice Chairman of the National Assembly's Finance and Budget Committee as Head of the Delegation. Working with the Delegation on the side of Nghe An province were Comrade Thai Thanh Quy - Alternate Member of the Party Central Committee, Deputy Secretary of the Provincial Party Committee, Chairman of the Provincial People's Committee and leaders of relevant departments and branches. Photo: Thanh Duy

Budget revenue in 2019 is expected to reach and exceed estimates.

In 2019, the budget revenue in Nghe An is expected to reach and exceed the estimate assigned by the Ministry of Finance of 12,588 billion VND and the Provincial People's Council of 13,498 billion VND. Accordingly, in the first 7 months of the year, the budget revenue in the area reached 8,713 billion VND. The estimated implementation for the whole year is 14,261 billion VND.

Local budget expenditure in 2019 promptly ensures salary regime and social security policies, funds for implementing urgent tasks, site clearance for key projects... Accordingly, budget expenditure in the first 7 months of the year was nearly 14,205 billion VND; estimated to be over 24,996 billion VND for the whole year.

The total capital allocated to implement the National Target Program on New Rural Construction in 2019 is over 676 billion VND, of which development investment capital is over 501 billion VND (67.6% disbursed) and public service capital is 174.8 billion VND (units are preparing documents and procedures for payment through the State Treasury).

The total capital for implementing the National Target Program on Sustainable Poverty Reduction this year is more than 498 billion VND, of which development investment capital is more than 380.5 billion VND (44.4% disbursed) and career capital is more than 117.5 billion VND (units are preparing documents and procedures to make payments through the State Treasury).

Comrade Nguyen Xuan Hai - Director of the Department of Finance reported on the province's budget revenue and expenditure situation to the Supervisory Delegation. Photo: Thanh Duy

At the meeting, Nghe An proposed that the Supervisory Delegation report to the National Assembly for comments on the estimate of public investment expenditure supported by the central budget to ensure the correct capital source announced in the 2016 - 2020 period and 10% of the central budget reserve allocated to the province; give comments to the Government and ministries and branches to fully allocate the remaining estimate of the 2016 - 2020 Plan and 10% of the unallocated reserve to the province for capital of National Target Programs.

The members of the Supervisory Delegation acknowledged the province's budget collection, especially the high domestic revenue rate compared to the assigned estimate; at the same time, they also raised a number of issues requesting the province to clarify such as: some revenue shortfalls, tax arrears, the arrangement of counterpart funds for some key projects, the structure of excess revenue, solutions towards balancing the province's budget revenue and expenditure in the medium term; and the province's total debt for basic construction. Representatives of some provincial departments and branches explained related opinions.

Implement solutions to increase budget revenue

Speaking at the meeting, the Chairman of the Provincial People's Committee accepted the opinions of the Supervisory Delegation; at the same time, discussed a number of contents related to budget collection work.

Accordingly, Nghe An is a province with a large area, including 11 mountainous districts and towns; a large proportion of annual budget expenditure for education, health and social security.

Therefore, to increase budget revenue, the province focuses on attracting businesses to invest in the province. However, many projects are currently in the preferential period, so it takes time to collect taxes.

In the coming time, Nghe An will continue to improve the effectiveness of investment attraction, especially attracting strategic investors to create a large source of budget revenue; striving to balance the budget revenue and expenditure in the next term.

Comrade Thai Thanh Quy - Alternate Member of the Party Central Committee, Deputy Secretary of the Provincial Party Committee, Chairman of the Provincial People's Committee spoke at the meeting. Photo: Thanh Duy

Comrade Thai Thanh Quy also discussed the new rural construction work that the delegation was interested in, including the issue of outstanding debt.

Accordingly, by the end of 2019, Nghe An is expected to have 4 district-level units completing the task of building new rural areas and about 60% of communes reaching the finish line. The province's viewpoint on building new rural areas is: no debt, no over-mobilization of people, no achievements.

The Chairman of the Provincial People's Committee also discussed a number of issues related to the ability to balance resources for coastal roads, autonomy of public service units, budget savings, etc. At the same time, he hoped that through supervision, the Delegation would share with the province and convey the province's recommendations so that Nghe An could better perform its tasks in the coming time.

Japanese agencies and enterprises survey VSIP Nghe An Industrial Park in Hung Nguyen. Photo: Thanh Le

Concluding the meeting, comrade Dinh Van Nha highly appreciated the comprehensive results of the province's financial and budget situation in recent years.

However, the driving force for Nghe An to grow strongly is still unclear, so the budget revenue growth rate is still low. Therefore, the province needs to focus more and be more determined to complete the target by 2020 and create a premise for a breakthrough in the new period; focus on solutions to increase budget revenue, prevent revenue loss...

Comrade Dinh Van Nha - Deputy Chairman of the National Assembly's Finance and Budget Committee spoke at the meeting. Photo: Thanh Duy

Regarding budget expenditure, the Vice Chairman of the National Assembly's Finance and Budget Committee noted that the province allocates the budget for spending tasks assigned by the Central Decree to ensure accuracy and sufficiency; pays more attention to practicing thrift and combating waste; does not leave unsettled projects; and speeds up disbursement progress.

Regarding the 2020 budget revenue estimate, Nghe An needs to more closely assess the revenue task to have a suitable revenue increase rate compared to 2019. Regarding the budget expenditure estimate, it is necessary to prepare a plan for capital allocation.