State budget revenue in 2020 reaches 98 per cent of target

State budget revenue, Finance Minister Dinh Tien Dung, State budget revenue, Finance Minister Dinh Tien Dung, Banking,
Prime Minister Nguyen Xuan Phuc shakes hands with participants at a conference to review the work of the State budget-finance in 2020 and the implementation of the tasks this year. VNA/VNS Photo Thong Nhat

The total state budget revenue in 2020 reached more than VND1.5 quadrillion (US$65 billion), as much as 98 per cent of the estimate, said Finance Minister Dinh Tien Dung on Friday in Ha Noi.

The Ministry of Finance (MoF) held an online conference to summarise the work relating to the State budget-finance in 2020 and the implementation of the tasks this year under the direction of Prime Minister Nguyen Xuan Phuc.

Dung reported to the PM that even though revenue was down VND31.9 trillion from the estimate, it was still an increase of nearly VND184 trillion, reported to the National Assembly at the 10th session.

The leader of the MoF said the state budget contributed about 23.9 per cent of GDP, taxes and fees were about 19.1 per cent of GDP, of which domestic revenue reached 100 per cent of the estimate; revenue from crude oil reached 98.3 per cent of the estimate, while revenue from import and export activities reached 93.8 per cent of the estimate.

Dung also said though the central budget revenue was about 90 per cent, VND89 trillion lower than the estimate, the local budget revenue reached 108.6 per cent of the estimate, exceeding VND56.8 trillion.

Of the whole 2016-2020 period, total budget revenue reached VND6.89 quadrillion, 100.4 per cent of the plan. Dung said: “It is a very positive point in 2020 when local economic growth is much lower than expected.”

He said: “The structure of state budget revenue is more sustainable. The average proportion of domestic revenue in total revenue increased from 68 per cent in the 2011-2015 period to 85.5 per cent in 2020, the average proportion of crude oil revenue and balanced revenue from import and export activities decreased from 30 per cent in the 2011-2015 period to about 14.2 per cent by 2020.”

At the same time, MoF said the budget expenditure in 2020, estimated at VND1,781.4 trillion, has completed the target and it also fully met the tasks of spending on socio-economic development, national defence, security, state management and payment of due debts.

Last year, the state budget spent more than VND18 trillion on pandemic prevention and control and helped people to overcome the impact of COVID-19.

In 2020, the central budget spent about VND12.4 trillion to assist localities in overcoming the consequences of storms, floods and restoring production after natural disasters, to supply nearly 37,000 tonnes of national reserve rice to help people suffering since the beginning of last year.

According to MoF, localities also actively spent VND8.2 trillion on disease prevention, disaster recovery, and production recovery, essential infrastructure and support for people's lives, ensuring social security.

The ministry said the bright spot in the implementation of budget spending last year was the faster progress of disbursement of development investment capital thanks to the drastic direction of the Government, the Prime Minister and the efforts of ministries and agencies. It is estimated that as of December 31, 2020, spending on investment and development reached 82.8 per cent of the estimate while the ratio in 2019 was only 62.9 per cent of the plan.

In addition, the capital disbursement transferred from 2019 to 2020 also reached about 75 per cent of the plan, adding there was still about VND26 trillion of foreign loans for development investment that cannot be disbursed.

The total budget expenditure in the 2016-2020 period was estimated at about VND7.66 quadrillion, as much as the average expenditure ratio of about 28 per cent of GDP, 1.5 percentage points lower than the 2011-2015 period.

The ministry said expenditure structure has shifted positively, the proportion of development investment spending in 2020 reached more than 29 per cent, higher than the target of 25 to 26 per cent.

With the results of budget revenue and expenditure, MoF also estimated the deficit in 2020 to be VND248.5 trillion, lower than 4 per cent of the estimated GDP. For the 2016-2020 period, the average budget deficit was about 3.6 per cent of GDP, ensuring the target of not exceeding 3.9 per cent of GDP according to Resolution No. 25/2016 / QH14 dated November 9, 2016 of the National Assembly. — VNS

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