The above message was given by Minister of Finance Ho Duc Phoc at the conference to review the state budget and finance work in the first 6 months of the year and deploy tasks for the last 6 months of the year, which took place on the morning of July 15.

The Minister of Finance said that next year there will be no tax reduction for businesses. Photo: BTC

Referring to the outstanding results of the financial sector, Minister Ho Duc Phoc said that the state budget revenue in the first 6 months of the year reached more than 1 million billion VND, equal to 61% of the estimate, up 17.7% over the same period in 2023. That result was achieved thanks to the policy of supporting people and businesses that has come into life. At the same time, economic growth in the first half of the year achieved positive results, GDP increased by 6.42%, inflation in the first 6 months of the year increased by 4.08%. On average, in the first 6 months of the year, core inflation increased by only 2.75% over the same period in 2023. "We have supported businesses and taxpayers according to policies approved by the National Assembly and the Government. Accordingly, the policy of deferring and reducing taxes, fees, charges, and land rents is up to 184 trillion VND in difficult economic and public financial conditions," said the Minister. However, the leader of the Ministry of Finance emphasized: Our expansionary fiscal policy will end this year to start a new cycle. "Now we need to invest public financial capacity to build airports, highways, reform wages... Therefore, we must implement a tight fiscal policy, no longer reduce taxes and fees. We need to send a message to the National Assembly and the Government for support, so that by 2025 we will stop implementing the expansionary fiscal policy, focus on removing difficulties and obstacles for businesses, production and business, boost the economy, and enhance the capacity of businesses," Mr. Phoc shared. Pointing out the current difficulties of businesses, the Minister of Finance said that "big businesses have no money, small businesses have no jobs". The commander of the financial sector also suggested that localities pay attention to public investment disbursement. If this public investment problem cannot be solved, it will be very difficult to promote economic development. "The amount of money that cannot be disbursed is more than 1 million billion VND, while ODA loans are 6%. Enterprises borrow up to 12%/year. This is a waste, so we must pay attention to public investment," Mr. Phoc expressed. The second area that the financial sector leaders said needs attention is real estate. According to incomplete data, the current national land use tax debt is 98 trillion VND. This not only causes budget loss, wastes social resources but also creates conflicts in society.