Update news state budget
The revenue from personal income tax (PIT) witnessed a minus growth rate in the first three months of the year for the first time in the last 10 years. However, PIT collections still account for a large proportion of the total state budget revenue.
Minister of Finance Ho Duc Phoc says the 2 percent VAT cut will not be applied to some business fields, including securities, banking and finance, explaining that if it was applied to all fields, this would put pressure on the state budget.
For 2023, the city has been assigned a budget revenue target of nearly VNĐ470 trillion.
The Government has proposed allocating an additional VND2.5 trillion in the 2023 state budget for regular spending. The Standing Committee of the National Assembly discussed this proposal during its 27th session on October 17.
The State budget overspending in 2023 is expected to be equivalent to 4 percent in 2023, lower than the previous forecast of 4.42 percent, according to the Ministry of Finance (MoF).
The Finance Ministry reported to the National Assembly that the state budget expense in 2022 was VND342.6 trillion, making up 3.6 percent of the national GDP. This is a drop of VND61.7 trillion compared to estimation of 4.3 percent of GDP.
Contrary to projection of a deficit, Vietnam’s state budget landscape in 2022 has witnessed a major surplus, with enterprises in general gradually weathering difficulties to ensure their performance.
From now to 2025, about 400 cadres will be sent to training courses abroad each year. From 2026 to 2030, the figure will be 500.
The Vietnamese Government will implement solutions to ensure the efficient management and use of the funds.
The State budget overspending in 2020 stood at over 216.4 trillion VND (9.3 million USD), equivalent to 3.44 percent of GDP, statistics showed.
Vietnam may not be able to increase its budget deficit next year in order to ensure state budget spending, with the economy still sabotaged and business revenues still dented.
The Ministry of Finance (MoF) is concerned the COVID-19 pandemic would continue to affect State budget revenue in the coming months.
The total state’s spending in 2021-2025 is predicted to reach VND10.26 quadrillion, of which 28 percent would be spent for investment and development.