State budget revenues surpassed the yearly target to hit VND1.1 quadrillion (US$48.4 billion) as of December 31, 2016, up 7.8 % or VND79.6 trillion higher than the target.

The information was reported by Deputy Minister of Finance Huynh Quang Hai during a teleconference held in Hanoi late last week. The State budget collection from localities reached VND77.8 trillion, representing an increase of 18.6 of the yearly target.

As many as 58 out of the total 63 localities across the country have done well in budget collection despite difficulties caused by natural disasters across the country and fluctuations in the regional and world financial market, Hai said.

Hai attributed the success in budget collection to various reasons, one of which was the systems of budget collection and management of the tax agencies at all levels, as well as customs supervision and inspection.

Public debt to GDP ratio was estimated at 64.73 %, Hai said, adding that this level was close to the permissible level of 65 % set by the National Assembly. The country recorded a Government debt to GDP ratio of 53.62 % in 2016.

Attending the event, Prime Minister Nguyen Xuan Phuc asked the Ministry of Finance to take prompt measures to collect revenues for the State budget right from the beginning of 2017.

Phuc said the level of public debt remains too high, having increased over 18 % and currently three times higher than the economic growth rate. He said increasing regular expenditures have put a strain on the State budget, warning that unless the trend is stopped, national finances will inevitably collapse. 

Phúc directed the ministry to closely monitor tax declarations, as well as cases of trade fraud, and to prevent tax evasion. The ministry must crack down on wastefulness and scale down expenditures for conferences and procurement of expensive assets, he said, adding that individuals or organisations causing budget losses must be strictly punished, thereby strengthening public trust in the Party and State.

The PM hailed the ministry’s pilot model of offering fixed expenditure for transport for Government agencies, saying that the sector needs to strive to reduce the number of Government vehicles which should be auctioned to generate additional revenues for the State budget.

However, he pointed out that the biggest public asset is public offices and land, which have not been managed well and used effectively,  becoming a hotbed of corruption and vested interest, blocking economic growth.

He urged research of  appropriate methods to effectively manage and tap this extremely important resource. The PM also requested that the ministry speed up equitisation and divest from non-core areas in line with approved plans.

VNS