In 2023, Vietnam’s economy faced difficulties as the global economy experienced recession and inflation. This poses a considerable challenge for the finance sector to fulfill its budget collection tasks. In that context, the finance sector of Ha Giang province has devised action plans from the beginning of the year to ensure budget revenue for the province.
Advising flexible and effective budget management
Sticking to the government's 2023 working theme of "Solidarity - Discipline - Bravery - Flexibility - Innovation - Creativity - Timeliness - Efficiency," the Ha Giang Department of Finance has actively advised the Provincial People's Committee to adopt a flexible budget approach, balance available resources for social and economic development, and ensure national defense, national security and social security. However, due to various subjective and objective reasons, budget revenue was still low in the first six months of the year.
In the first six months of 2023, the province's budget revenue reached VND845 billion, equal to 37.3% of the plan assigned by the central government and 28.2% of the plan assigned by the province, down 19.3% from the same period of 2022. Of the sum, domestic revenue was VND739 billion, equal to 33.8% of the central plan and 25.7% of the provincial plan, down 26% year on year; budget revenue from import-export activities was VND100 billion, equal to 125% of the central plan and 111% of the provincial plan, up 141% year on year; and aid fund was VND6.5 billion, equal to 21.7% of the provincial plan.
In fact, state budget revenue did not come as expected in the first half of 2023, but declined from a year-ago period. According to preliminary data, the decline was attributed to reduced hydroelectricity revenue, personal income tax, registration fee, land use fee, and environmental protection tax. In addition, in 2023, the province continued to apply a number of tax exemption and reduction policies as stipulated by the Prime Minister and central agencies.
However, development investment spending was still of special concern. In the first half of the year, the budget spent (not including the fund rolled over from 2022) was VND1,897 billion out of VND6,912 billion, equal to 27.4% of the plan assigned by the province.
Despite budget revenue shrinkage, the finance sector still proposed competent authorities to introduce many support policies to help local people and enterprises to tackle hardships and stabilize business activities.
Effort to complete state budget targets in 2023
In the last months of the year, to ensure budget balance and complete full-year goals, the Department of Finance will focus on a number of solutions as follows:
Advising the Provincial People's Committee to manage state budget revenue and expenditure estimates for 2023 as per the Government's resolution on main tasks and solutions to direct and manage the implementation of socioeconomic development plans and state budget estimates in 2023; Directive 2352/CT-UBND dated December 20, 2022 of the Chairman of the Provincial People's Committee on implementation of socioeconomic development tasks and state budget estimates for 2023.
Coordinating with budget collection agencies, districts and cities to manage budget revenue; regularly evaluating, analyzing and forecasting factors that may affect state budget revenue in the province, revenue shortfalls due to policy impacts and objective causes to have solutions to increase revenue in potential areas.
Carrying out solutions to accelerate public investment disbursement plans; actively advising budget management, ensuring resources for prevention and control of natural disasters and epidemics; reviewing, reorganizing, reducing and postponing approved spending tasks and using resources to ensure balance of provincial budget revenues and expenditures in 2023.
Coordinating with relevant agencies and localities to estimate state budget revenue and expenditure in 2024 and financial and budgetary plans for the 3-year period from 2024 to 2026 to submit to the Ministry of Finance and Ministry of Planning and Investment for consideration and submit to the Provincial People's Council for decision according to the Law on State Budget.
Coordinating with other bodies to advise mechanisms and policies to carry out national target programs under the province's authority.
Urging and verifying the final settlement of projects submitted by investors; urging disbursement for capital transferred from 2022 and projects designated to be carried out in 2023, projects under three national target programs; coordinating with the Provincial State Treasury, the People's Committees of districts and cities and investors to execute investment capital management tasks in corresponding areas; coordinating with related bodies to advise preliminary assessment of professional capacity, experience and financial capacity of investors when they join investment projects in the province.
Strengthening discipline, improving the quality of public services and administrative reforms as planned by the department and based on Resolution 14-NQ/TU dated August 24, 2021 of the Standing Board of the Provincial Party Committee, Directive 623/CT-UBND of the Provincial People's Committee, and Project 56/DA-UBND dated August 30, 2021 of the Provincial People's Committee.
Mr. Nguyen Ngoc Thanh, Director of the Department of Finance, Ha Giang province, said: In the remaining months of this year, the finance sector will continue to coordinate with relevant bodies to carry out assigned tasks well; uphold the spirit of solidarity, dynamism and creativity; execute key tasks in 2023, closely follow directions and administration of the Government, the Ministry of Finance, the Provincial Party Committee and the Provincial People's Committee, concentrate all resources and strengthen cooperation to launch solutions on revenue management, tax debt recollection and budget loss prevention. First of all, the department will focus on utilizing all revenue sources and tapping potential and advantageous revenue sources. It will review and advise the Provincial People's Committee to direct the Tax Department to probe revenue sources based on forecasts on revenue sources, collection value and revenue and expenditure balance in 2023 to ensure the fund for essential tasks in the province, especially for welfare and salary reforms.
By Nguyen Bach, Vietnam Business Forum
Vietnamese
