Effectively manage financial and budget tasks in 2023

This afternoon (December 27), the Ministry of Finance held an online conference to review the state budget and finance work in 2023 and deploy tasks for 2024. Deputy Prime Minister Le Minh Khai attended and directed the conference.

Conference overview

One of the outstanding successes of the Ministry of Finance in 2023 is to proactively and flexibly operate fiscal policies to promptly support the economy , remove difficulties for businesses and people; stabilize the macro-economy, control inflation; promote economic growth, ensure social security; strive to increase revenue, strictly manage, and increase savings in state budget expenditures.

Regarding state budget revenue, the Ministry of Finance has proactively researched, proposed, chaired, and coordinated with ministries, branches, and localities to submit to competent authorities to issue policy packages to exempt, reduce, and extend taxes, fees, charges, and land rents in 2023, with a scale of about VND 200 trillion (exemption, reduction of VND 79 trillion; extension of VND 121 trillion).

Among them, there are many major policies, such as: 2% reduction in value added tax; 50% reduction in environmental protection tax on gasoline, oil, and grease; extension of value added tax, corporate income tax, personal income tax, and land rent in 2023; 10-50% reduction on 36 fees and charges in the last 6 months of 2023. There is a policy of extension amounting to more than 100 trillion VND. For the policy of reducing 36 fees and charges in the last 6 months of 2023 alone, the Ministry of Finance expects a revenue reduction of about 700 billion VND.

In the context of economic difficulties, implementing solutions to support businesses and people, the Finance sector has successfully completed the task of collecting state budget revenue to meet and exceed the set estimate.

By December 25, 2023, state budget revenue reached VND 1,693.5 trillion, an increase of VND 72.7 trillion (up 4.5%) over the estimate, down 4.2% over the same period in 2022 (central budget (NSTW) increased by 4.6%; local budget (NSĐP) increased by 4.4% over the estimate).

Of which, domestic revenue increased by 5.7%; crude oil revenue increased by 44.6%; balanced revenue from import-export activities reached 92.1% of the estimate. The total amount of tax, fee, charge and land rent exemptions, reductions and extensions for businesses and people was about 193.4 trillion VND, of which: exemptions and reductions were about 78.4 trillion VND; extensions were about 115 trillion VND.

In 2023, the Ministry of Finance has also strengthened the management of state budget expenditures, strictly and thoroughly saving regular expenditures. The Ministry has advised the Government and the Prime Minister to direct the management and operation of state budget expenditures to be strict and thoroughly saving regular expenditures.

Notably, in management, the Ministry of Finance has prioritized increasing development investment expenditure right from the stage of allocating estimates and allocating sources of increased revenue and saving expenditure of the central budget, especially investing in developing the highway system and inter-regional traffic connections (in the first 3 years of the 2021-2025 term, the whole country has completed over 730 km of highways, bringing the total length of highways to 1,900 km).

In addition, the Ministry of Finance has handled arising issues such as: arranging funding for purchasing vaccines for the expanded immunization program; solutions to remove difficulties and obstacles, speed up implementation and disbursement of public investment capital, national target programs; reporting on inconsistencies between the State Budget Law and the Public Investment Law.

Delegates participated in online speeches at the Conference

Thanks to proactive management, the 2023 state budget expenditure tasks have basically completed the set targets.

Total state budget expenditures as of December 31, 2023 are estimated at about VND 1.73 million billion, equal to 83.4% of the estimate. Of which, development investment expenditures reached 79.8% of the estimate decided by the National Assembly, equal to 81.9% of the plan assigned by the Prime Minister, an increase of VND 144 trillion (33%) over the same period in 2022; regular expenditures reached 90.3% of the estimate. State budget expenditures have promptly met the expenditure tasks arising according to the implementation progress of budget spending units; ensured national defense, security, social security and fully paid due debts, overcame the consequences of natural disasters and epidemics; ensured funding for salary reform from July 1, 2023 (about VND 470 trillion of budgets at all levels have been allocated to implement salary policy reform), and issued social security policies.

With such results of state budget revenue and expenditure, the balance between the central and local budgets is ensured. It is estimated that in 2023, the state budget deficit will be about 4% of GDP, a decrease of VND 40.3 trillion compared to the estimate.

Along with that, the Ministry of Finance has proactively managed the issuance of government bonds to both effectively use the state budget and ensure payment sources, and timely repay principal debts due. Accumulated to December 25, 2023, VND 296.7 trillion of government bonds have been issued, equal to 74.2% of the plan at the beginning of the year, with an average issuance term of 12.54 years and an average interest rate of 3.21%/year.

Another notable success, in addition to the task of collecting state budget revenue and supporting businesses, is to strengthen management and strictly control public debt, and continue restructuring in a safe and sustainable direction. It is expected that by the end of 2023, public debt will be about 37% of GDP, government debt will be about 34% of GDP, lower than the ceiling and warning threshold allowed by the National Assembly, in Resolution No. 23/2021/QH15 of the National Assembly.

This achievement significantly contributes to the national credit rating in the context of many difficulties arising in the socio-economic development situation. In 2023, all three credit rating organizations S&P, Moody's and Fitch Ratings continued to positively assess Vietnam's national credit rating, in which Fitch Ratings upgraded Vietnam's long-term national credit rating from BB to BB+ "Stable Outlook"; S&P and Moody's maintained Vietnam's national credit rating (respectively BB+ "Stable Outlook"; Ba2 "Positive Outlook").

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