Finance Minister: Risk of budget imbalance

Minister of Finance Dinh Tien Dung said that there is a potential risk of state budget imbalance in 2016.

Unstable factors appear

According to the assessment of Minister of Finance Dinh Tien Dung, in the implementation of socio-economic and financial tasks - State budget in 2016, besides favorable factors, there have also appeared unstable factors, difficult to quantify and forecast, significantly affecting the implementation of macroeconomic policies and potentially causing the risk of imbalance in the State budget in 2016.

Many potential risks of state budget imbalance in 2016 (Illustration: KT)

Pointing out the risks, the Minister stated: The economic growth rate in the first months of 2016 showed signs of slowing down (GDP in the first 6 months increased by 5.52%, lower than the set target of 6.7%); world crude oil prices fluctuated at a low level (average in the first 6 months was about 40 USD/barrel and is currently fluctuating around 45-48 USD/barrel, down over 20% compared to the estimate); the situation of severe drought and saltwater intrusion in the Mekong Delta and the Central Highlands, serious marine environmental pollution incidents in some central provinces...

According to the Minister, in the first 6 months of the year, despite synchronous implementation of solutions and achieving some important results in building institutions, policies and regimes in the financial sector; revenue management; strengthening tax debt collection, fighting against transfer pricing, smuggling and trade fraud; strictly managing expenditures, proactively and actively operating the State budget, ensuring adequate and timely resources to meet spending tasks... However, in operation, many difficulties and challenges still arise.

Notably, the progress of state budget collection is low, the risk of revenue reduction is large (mainly the central budget revenue reduction) due to the decrease in oil prices and the impacts of participating in free trade agreements (FTAs); many large budget expenditure needs arise for both the central budget and local budgets to overcome the consequences of natural disasters, epidemics, ensure national defense and security in the new situation..., which will continue to affect state budget collection and state budget management in the last 6 months of 2016.

Shorten time and reduce costs of import and export procedures

Faced with many difficulties in balancing the national budget, the Minister of Finance said that in order to successfully complete the financial tasks - State budget in 2016, to achieve the goal of stabilizing the macro economy, controlling inflation, ensuring social security... especially without changing the management orientation, without adjusting the targets and indicators for socio-economic development, the Ministry has proposed many basic solutions in the last 6 months of the year. In particular, it will continue to perfect institutions; promote administrative procedure reform, especially in the fields of tax and customs; improve the investment and business environment, and enhance national competitiveness.

The Ministry will also build a database on taxpayers, expand electronic invoices, electronic tax payments and electronic tax refunds... Implement the national one-stop task; minimize paperwork, shorten time, and reduce costs of administrative procedures in the field of import and export.

Strengthening tax inspection and examination

The Ministry will focus on implementing solutions to remove difficulties for production and business, striving to achieve and exceed the set growth target of 6.7%; manage to collect correctly, fully and promptly all arising revenues. Resolutely fight against revenue loss, transfer pricing, smuggling, trade fraud and tax evasion; enforce and collect tax debts according to the provisions of law, reduce tax arrears. Strengthen tax inspection and examination. Strictly manage and control VAT refunds.

Regarding budget expenditure, the Minister emphasized: Manage state budget expenditures strictly, economically, in accordance with regulations, and prevent waste; improve the efficiency of state budget use; accelerate the progress of construction and disbursement of public investment capital, especially investment capital from the state budget and government bond capital; Only propose to issue policies to increase state budget expenditures in cases of real necessity and with guaranteed sources.

Tightly control public debt management

Implement synchronous and flexible capital mobilization solutions; Continue to restructure the public debt portfolio towards sustainability. Strengthen inspection and supervision of borrowing, use of loans and debt repayment. Strictly control local government debts; implement the local government re-lending mechanism. At the same time, strengthen financial discipline, promote administrative reform, practice thrift, fight waste and corruption./.

According to VOV