Total state budget revenue increases, in 2025 priority will be given to development investment spending

In 2025, to ensure the efficiency of budget revenue and expenditure, the Deputy Prime Minister requested that central ministries and branches strive to save an additional 10% of regular expenditures compared to 2024 to reduce budget deficit.

Deputy Prime Minister and Minister of Finance Ho Duc Phoc presented a report on the implementation of the state budget in 2024, the state budget estimate, the central budget allocation plan in 2025, and the three-year state budget-finance plan for 2025-2027. (Photo: Phuong Hoa/VNA)

According to the agenda of the 8th Session, on the morning of October 22, 2024, authorized by the Prime Minister, Deputy Prime Minister and Minister of Finance Ho Duc Phoc presented a Report on the implementation of the State budget in 2024, the State budget estimate, the central budget allocation plan in 2025 and the 3-year State budget - finance plan for 2025-2027.

Total budget revenue increased

According to the Deputy Prime Minister, in 2024, the estimated state budget revenue is 1,700.99 trillion VND, reaching 85.1% of the estimate in the first 9 months, an increase of 17.9% over the same period in 2023.

The whole year's assessment is estimated at 1,873.3 trillion VND, exceeding 172.3 trillion VND, up 10.1% compared to the estimate; reaching the mobilization rate into the State budget of about 16.5% of the estimated GDP, of which tax and fee revenue reached 13.1% of GDP.

The Government's report assessed that basically all areas of state budget revenue reached and exceeded the assigned estimates.

Of which: domestic revenue is estimated at 1,572.7 trillion VND, exceeding 8.9% of the estimate; revenue from crude oil is 59.3 trillion VND, exceeding 28.9% of the estimate; balanced revenue from import-export activities is 235.2 trillion VND, exceeding 15.3% of the estimate.

Regarding state budget expenditure, the estimated expenditure is 2,119.4 trillion VND; the implementation in 9 months reached 59.3%. The estimated total for the year is 2,281.7 trillion VND, up 7.7% compared to the estimate, mainly from the source of estimated revenue exceeding the estimate.

Deputy Prime Minister and Minister of Finance Ho Duc Phoc said the estimated state budget deficit in 2024 is VND399.4 trillion, equal to 3.6% of GDP.

Regarding the State budget estimate and allocation for 2025, the estimate is 1.96 million billion VND, an increase of 15.6% compared to 2024. The budget mobilization rate is equal to 16% of GDP, of which the domestic revenue estimate is 1.6 million billion VND, equal to 85% of total revenue, an increase of 6.1%.

The above estimate is assessed positively in the context of the domestic and international socio-economic situation still containing potential risks and challenges. The estimated budget deficit is VND 471,500 billion, equivalent to 3.8% of GDP. By the end of 2025, the public debt ratio will be 36-37% of GDP, and the government debt will be 34-35% of GDP, within the scope allowed by the National Assembly.

For further information, Deputy Prime Minister and Minister of Finance Ho Duc Phoc said that to implement the policy of supporting the elimination of temporary and dilapidated houses for poor and near-poor households, the Government reported to the National Assembly for permission to use an additional 5% savings of regular expenditures in 2024 of both the central and local budgets for this task.

Furthermore, by the end of 2024, the unused savings will be allowed to be transferred to 2025 for continued implementation.

In addition, localities are allowed to use this savings to support other localities in implementation. At the same time, the National Assembly is requested to assign the Government to guide and organize the implementation of this content.

In 2025, to ensure salary payment for the public sector, in addition to the balanced capital from the budget and salary accumulation sources, Mr. Phoc proposed to supplement the local budget balance of more than 200,000 billion VND; the estimate of more than 14,000 billion VND for localities, ensuring spending.

Accordingly, the budget allocation for development investment expenditure is estimated at VND 315,000 billion, including VND 215,000 billion for the 2021-2025 medium-term public investment task, an increase of VND 70,000 billion. The local development investment expenditure estimate is VND 475,700 billion, expenditure from land use revenue and lottery has increased....

In 2025, to ensure the efficiency of budget revenue and expenditure, the Deputy Prime Minister requested that central ministries and branches strive to save an additional 10% of regular expenditures compared to 2024 to reduce budget deficit. (Photo: Vietnam+)

The estimated regular expenditure of the local budget is 828.6 trillion VND, ensuring resources to carry out socio-economic development tasks according to decentralization.

Appropriate budget level

Reviewing this report on the implementation of the State budget in 2024, Chairman of the National Assembly's Finance and Budget Committee Le Quang Manh requested ministries and branches to continue to have solutions to improve the quality of forecasting in budget preparation in the coming years.

Regarding the report that 11 localities will not meet their budget estimates for the whole year of 2024, the Finance and Budget Committee recommends that localities continue to strive to increase revenue, cut unnecessary expenditures, and use reserve funds to ensure completion of the year-end estimate for state budget expenditures in 2024.

Regarding the allocation and assignment of development investment expenditure estimates, according to the Government's report, up to now, there are still a number of budget expenditures that have not been submitted to the National Assembly or the National Assembly Standing Committee for allocation according to regulations.

The Chairman of the Finance and Budget Committee suggested that it is necessary to report to clarify the cause and urgently allocate or submit to the competent authority for allocation to ensure the ability to disburse and use resources effectively.

Regarding the progress of disbursement of development investment expenditure, the audit report also recommends that in the last months of the year, the Government continue to direct ministries, branches and localities to urgently take solutions to accelerate the implementation progress, ensure disbursement as planned, and take specific and drastic measures associated with the responsibility of heads of agencies and units in implementing commitments on disbursement progress.

Regarding budget expenditure, according to the Finance and Budget Committee, this expenditure level is appropriate, especially in the context that in 2024, many unexpected tasks must be arranged and partly to ensure the increase in basic salary from July 1, 2024 according to regulations./.

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