Many revenue increases due to policy adjustments

(Baonghean.vn) - According to the audit report of the Finance and Budget Committee (FBPC) on the 2016 budget year, the total state budget revenue is estimated to increase by 2.4% compared to the estimate (equivalent to 24,500 billion VND).

Of which, domestic revenue is estimated to increase by 5.6% of the estimate, revenue from crude oil is estimated to reach only 72.5% of the estimate, revenue from export and import is short of 2.9% of the estimate. Highly appreciating this issue, the National Assembly Committee believes that the estimated total state budget revenue exceeding the estimate has demonstrated the Government's great efforts in managing the state budget revenue estimate.

However, through detailed data and monitoring results in some localities, the National Assembly Committee found that there are still many difficulties and challenges to strive to achieve the estimated level as reported by the Government. Therefore, the National Assembly Committee recommends that the Government should closely follow the 2016 State budget revenue estimate; continue to closely monitor, have synchronous solutions, remove difficulties and obstacles to complete the revenue estimate more reliably. In particular, although domestic revenue increased compared to the estimate (5.6%, equivalent to 44,000 billion VND), in reality, the increases were mainly due to policy adjustments and increased revenue from land. Therefore, to achieve the estimated implementation as reported by the Government, the State budget revenue in the fourth quarter will require great efforts, especially for the state-owned enterprise sector.

Officers of Vinh City Tax Department inspect businesses in the area. Photo: Document.

Regarding state budget expenditure in 2016, the Government estimated that the state budget expenditure for the whole year was 101.9% of the estimate, an increase of VND 24,500 billion. The Committee for Financial and Budgetary Affairs believes that the Government has made efforts to proactively manage state budget expenditure, strictly manage state budget expenditure, and save within the estimate decided by the National Assembly.

Regarding the balance and deficit of the State budget, the National Assembly Committee recommends that the Government review and fully report on the public debt situation to have proactive and timely solutions for managing and balancing the State budget. In case of a deficit in the State budget, it is recommended to reduce corresponding spending tasks to reduce the deficit, ensuring that public debt is within the allowable limit.

Commenting on the 2017 State budget estimate, the Finance and Budget Committee said that the 2017 budget estimate is of great importance. In order to build the 2017 State budget estimate to ensure it is close to reality, balanced, sustainable and proactive, the Finance and Budget Committee believes that the GDP growth target of over 6.7% is quite high, which may lead to risks when forecasting the State budget revenue and expenditure targets. Therefore, it is possible to study and propose to the National Assembly 2 options: growth rate of 6.5% and 6.7%; in case 6.7% is not achieved, the Government needs to innovate the management method, accordingly, it will recommend the National Assembly to make adjustments after 6 months of implementation to ensure more stable macro balances.

In addition, determining the GDP growth rate at actual prices needs to be calculated based on scientific forecast data and close to reality. GDP percentages such as state budget deficit and public debt should also be calculated, evaluated objectively and reflect the actual state budget balance.

In particular, the 2017 State budget deficit (according to the 2015 State Budget Law) of about 3.5% of GDP is a positive deficit level. It is necessary to consistently implement this deficit level to ensure that public debt ratios are within safe limits. In case revenue does not meet the estimate, expenditure must be reduced and the State budget deficit must not be increased. In case of increasing State budget revenue, priority must be given to reducing the deficit according to the provisions of the State Budget Law. This should be considered an important principle in State budget management during the new budget stabilization period of 2017-2020.

To implement the 2017 State budget estimate, the National Assembly Committee basically agrees with the Government's groups of solutions, and at the same time proposes to emphasize some specific solutions. In particular, the Government should soon complete the documents guiding the implementation of the 2015 State Budget Law as a legal basis for the development of the 2017 State budget estimate as well as for the 2017-2020 budget stabilization period; At the same time, the Government needs to strengthen budget discipline and clearly define the responsibilities of the heads.

Red River