Continue to control inflation, maintain macroeconomic stability

On the morning of July 13, the Ministry of Finance held an online conference to review the national financial sector's performance in the first 6 months of 2023 and deploy tasks for the last 6 months of 2023. Comrade Le Minh Khai - Secretary of the Party Central Committee, Deputy Prime Minister attended and directed the conference.

At Nghe An province, comrade Bui Thanh An - Member of the Provincial Party Standing Committee, Vice Chairman of the Provincial People's Committee; leaders of the Department of Finance, Tax Department, Customs Department, State Treasury.

ENSURING THE MAJOR BALANCES OF THE ECONOMY

The Ministry of Finance said that in the first 6 months of the year, the socio-economic situation continued to face many difficulties and challenges. Right from the beginning of the year, the Finance sector has been determined, striving, focusing on fully and synchronously implementing the proposed financial and state budget solutions.

Thanks to that, the economy is stable, inflation is controlled, major balances of the macro economy are ensured, national defense and security, social order and safety are ensured, social security policies are well implemented, and people's lives are stabilized.

State budget revenue in the first 6 months of 2023 reached VND 875.8 trillion, equal to 54% of the annual estimate and down 7.8% over the same period last year. Of which, domestic revenue was VND 721,665 billion, equal to 54% of the estimate; crude oil revenue was VND 30,515 billion, equal to 72.7% of the estimate; balanced revenue from import-export activities was VND 123,974 billion, equal to 51.9% of the estimate. Budget expenditure is estimated at VND 804.6 trillion.

In the first 6 months of the year, over 70 trillion VND in taxes, fees, charges and land rents were exempted, reduced and extended. The balance of the central budget and local budgets at all levels was ensured; 179.9 trillion VND of government bonds were issued, with an average term of 12.23 years and an average interest rate of 3.7% per year, contributing to ensuring the balance of the state budget for principal repayment and market interest rate orientation.

The Finance sector has strengthened management and strictly controlled public debt, continuing to restructure in a safe and sustainable direction. All three credit rating agencies, S&P, Moody's and Fitch, continue to positively assess Vietnam's national credit rating.

In addition, the industry has managed prices and markets in accordance with the actual situation, removed difficulties for production and business, controlled inflation, stabilized people's lives, and strengthened state management of the stock market, corporate bonds, and insurance.

Domestic market prices are basically stable, with an average CPI increase of 3.29% over the same period in the first 6 months, and core inflation up 4.74%. The stock market is showing signs of recovery, with the stock market capitalization reaching VND5,783 trillion, up 10.7% compared to the end of 2022.

In addition to the achieved results, budget revenue in the first 6 months of the year decreased compared to the same period. Progress in some revenue items, taxes and budget revenue in some localities was low. The implementation of budget expenditure estimates and detailed allocation of public investment capital plans in some ministries, branches and localities was slow and prolonged.

In addition, the issuance of some guiding documents and the removal of difficulties and obstacles in the implementation of target programs is still slow. There are still cases of fraud, tax evasion, violations in the management and use of the budget, public assets, loss and waste in some agencies and units.

In the first 6 months of the year, Nghe An province's state budget revenue is estimated at VND 8,489 billion, reaching 53.5% of the estimate assigned by the Provincial People's Council and equal to 80.6% over the same period in 2022. Of which, domestic revenue is estimated at VND 7,858 billion; Revenue from import-export activities is estimated at VND 630 billion. Local budget expenditure is estimated at VND 16,862 billion.

Total tax debt as of May 31, 2023 is VND 2,552 billion, an increase of VND 1,181 billion compared to December 31, 2022. Of which, land use fee debt increased by VND 530 billion, environmental protection tax increased by VND 284 billion, corporate income tax increased by VND 136 billion, VAT increased by VND 90 billion, other taxes, fees and charges increased by VND 141 billion.

At the conference, ministries, branches and localities focused on discussing solutions; brought up good and effective lessons; proposed solutions to improve state financial and budget tasks in the last 6 months of 2023.

CONTINUE TO CONTROL INFLATION, MAINTAIN MACROECONOMIC STABILITY

Speaking at the conference, Deputy Prime Minister Le Minh Khai assessed that in the first 6 months of the year, the Finance sector has been very determined, made great efforts, and focused on fully and synchronously implementing the proposed financial and state budget solutions.

On the other hand, the industry has operated fiscal policies proactively and flexibly, supporting the economy, removing difficulties for businesses and people, recovering and developing the socio-economy..., making an important contribution to implementing socio-economic development tasks, maintaining economic stability, controlling inflation, and ensuring a large balance of the macro-economy.

Emphasizing that in the last months of the year there are many difficulties and challenges, requiring utmost determination and effort, Deputy Prime Minister Pham Minh Khai requested the Finance sector to closely follow the theme for management and the Government's directives to focus on implementing the assigned tasks.

The Deputy Prime Minister requested the Finance sector to strictly implement the directions of the Party, the National Assembly, and the Government on socio-economic development in general and the Finance sector in particular. Focus on implementing fiscal policy solutions, combined with monetary policy and other macroeconomic policies to support the economy, remove difficulties for businesses and people; control inflation, maintain macroeconomic stability, ensure major balances of the economy; strive to complete and exceed the economic growth target set for 2023.

The sector also needs to work with ministries, branches and localities to strive to achieve and exceed the budget estimates decided by the National Assembly. Continue to improve institutions, policies and laws on state budget collection, strengthen revenue management, prevent revenue loss, and handle tax arrears. Manage state budget expenditures strictly, economically and effectively according to the estimates. In particular, focus on accelerating the disbursement progress of public investment capital plans and capital for national target programs.

In addition, control public debt within the scope permitted by the National Assembly, the obligations to repay the state budget's reserve debt, local government debt, ensure national financial security, and improve the efficiency of loan use. Issue government bonds in accordance with the progress of revenue, expenditure, and disbursement of public investment capital.

Continue to improve the legal framework, price and market inspection and supervision mechanisms to ensure the stable and safe operation of the financial market; strictly handle violations, promote fair competition among economic sectors. Enhance financial discipline and order in the public finance sector.

Deputy Prime Minister Le Minh Khai also requested to strengthen inspection, examination, supervision and publicity and transparency in the use of the state budget and public assets, especially in areas prone to corruption and waste. Step up inspection activities against smuggling, trade fraud and counterfeit goods. Step up administrative reform and digital transformation in the financial sector to facilitate people and businesses...