Finance Minister: The fiscal support package for the past 4 years has amounted to 700 trillion VND

ANTD.VN - Minister of Finance Ho Duc Phoc said that over the past 4 years, the fiscal package of up to 700 trillion VND has greatly supported economic recovery.

According to the head of the Finance sector, recently, the Government has made great efforts to support the economy through implementing a series of fiscal and monetary policies in a reasonable and effective manner.

During the 5-year term of 2021 - 2025, the Economic Recovery and Development Program that the Government issued early last year is an important highlight. In which, the fiscal support package plays a key role in boosting the economy.

We have implemented many policies to exempt, reduce, and defer many types of taxes, fees, and budget revenues. Overall, the economic support policies in recent years have been at an unprecedented level, accounting for about 8.3% of GDP, much higher than in countries with similar economic scale.

The total scale of support solutions in 2020 is about 129 trillion VND, in 2021 about 145 trillion VND, in 2022 about 233 trillion VND. In 2023, the Ministry of Finance will continue to submit to competent authorities and issue support policies under its authority with a scale of about 196 trillion VND.

Bộ trưởng Bộ Tài chính Hồ Đức Phớc ảnh 1

Minister of Finance Ho Duc Phoc

In addition, the Ministry of Finance has advised the Government and the National Assembly to issue Resolution No. 43/2022/QH15 of the National Assembly on fiscal and monetary policies to support the post-pandemic socio-economic recovery and development program, with an estimated support package of up to VND 347 trillion.

Thus, in the past 4 years (2020-2023), the fiscal support package amounted to about 700 trillion VND, helping businesses, people and the economy to recover and grow soon.

In 2023 alone, within its authority, the Ministry of Finance has issued a circular stipulating the reduction of 35 fees and charges, applicable from July 1, 2023 to December 31, 2023, with a reduction in state budget revenue of about 700 billion VND...

The Ministry of Finance has also studied and proposed a number of solutions to reduce taxes, fees and charges for 2024 such as: continuing to consider reducing VAT by 2% and considering reducing environmental protection tax rates on gasoline and oil as applied in 2023; continuing to review and reduce export tax and import tax rates to support domestic production and business; reducing the collection of some fees and charges...

According to Minister Ho Duc Phoc, the focus on drastic and synchronous implementation of financial policy solutions in recent times has had a positive impact in supporting businesses and people to stabilize production and business.

Tax reduction support packages, especially value added tax, special consumption tax, and environmental protection tax on gasoline and oil, have had a positive effect in curbing inflation; contributing to the recovery of production and business activities and economic growth in Vietnam.

Another important success is that public debt and government-guaranteed debt remain at a sustainable and stable level of around 36% of GDP in 2023 before falling to around 34.4% in 2025, much lower than the 60% threshold set by the National Assembly and still at a sustainable level.

Despite many successes in management, the Minister also noted that there will be many difficulties from now until the end of the year. According to the Resolution on the 2023 budget estimate, the National Assembly decided that the total state budget revenue in 2023 is more than 1.6 million billion VND. However, due to economic difficulties, completing the revenue estimate is still a challenge for the national budget and the budgets of many localities, especially those with large revenue sources from land and real estate business activities.

Meanwhile, the challenge in budget expenditure is that investment expenditure is still lower than planned. Investment expenditure plays an important role in the fiscal support package but the disbursement progress is slow. Many investment expenditures from the socio-economic recovery program have not yet been disbursed. Although the National Assembly Standing Committee has had many solutions, the situation of "full accumulation, hungry contribution" of investment expenditure has changed little. This will have a major impact on economic growth in the 2023-2025 period.

“I think that in special circumstances, special policies are needed. We can use one law to amend many laws and resolve bottlenecks.

Currently, the core issue is to increase the aggregate demand of the economy, so fiscal policy is only one of the solutions to solve the difficulties. It is necessary to synchronously implement solutions such as: implementing well monetary policy, investment policy, reforming administrative procedures, improving the investment and business environment effectively. Accelerating the disbursement of public investment capital, using public investment to lead private investment, activating all social resources" - the Minister said.

In addition, according to him, it is necessary to continue to synchronously implement solutions to remove difficulties for production and business enterprises, especially in the real estate sector; continue to promote the business environment to increase the attraction of foreign direct investment.

It is necessary to continue to remove difficulties, expand markets, increase exports of Vietnamese goods abroad through the participation of ministries and branches, step up investment promotion, connect supply and demand, seek partners, and develop potential export markets.

In addition, it is necessary to continue mobilizing credit capital and other resources to support production and business in addition to fiscal solutions. At the same time, it is necessary to reduce administrative procedures and remove difficulties for private investment projects, land, renewable energy projects, industry, etc.

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