Prime Minister Pham Minh Chinh (third, R) at the conference (Photo: SGGP)
The PM made the statement on January 6 at an online conference to review and evaluate the implementation of state budget - finance tasks in 2021, and implement tasks in 2022 held by the Ministry of Finance with the participation of Deputy Prime Minister Le Minh Khai, Secretary of the Hanoi Party Committee Dinh Tien Dung, and leaders of 63 cities and provinces.
Mr. Chinh added that the policy should encourage localities to collect more.
According to the Ministry of Finance’s report, the total state budget revenue will reach over VND 1.5 million billion in 2021, exceeding 16.4 percent (equivalent to VND219,900 billion) the estimate, up 3.7 percent compared to 2020. According to management decentralization, central budget revenue is estimated at 106.7 percent of the estimate while local budget revenue is estimated at 128.2 percent of the estimate.
According to the Ministry of Finance’s report, the total state budget revenue will reach over VND 1.5 million billion in 2021, exceeding 16.4 percent (equivalent to VND219,900 billion) the estimate, up 3.7 percent compared to 2020. According to management decentralization, central budget revenue is estimated at 106.7 percent of the estimate while local budget revenue is estimated at 128.2 percent of the estimate.
In 2021, the annual state budget expenditure will reach nearly VND 1.9 million billion, equaling 111.4 percent of the estimate. Of the amount, the state budget has spent VND74,000 billion on epidemic prevention and support for people facing difficulties due to the epidemic.
However, the disbursement progress of development investment capital was slow by the end of December 31, 2021; it is estimated at only 74.7 percent of the estimate decided by the National Assembly, reaching 77.3 percent of the plan assigned by the Prime Minister (in 2020 reached 82.66 percent).
By the end of 2021, the public debt will be about 43.7 percent of the national gross domestic product (GDP), the government debt will be about 39.5 percent of GDP, and the outstanding national foreign loan will be about 39 percent of GDP. The Government's direct debt repayment obligation is less than 23 percent of the total state budget revenue, within the allowable safe limit.
Speaking at the conference, Prime Minister Pham Minh Chinh praised and highly appreciated the important contribution of the financial sector to the country's overall results and achievements.
However, the Prime Minister also pointed out several shortcomings and limitations of the industry such as low investment capital, slow disbursement of public investment capital, unsustainable revenues such as increased revenue from securities, real estate, crude oil, and increased budget deficit pressure.
Regarding the tasks of 2022, the Prime Minister requested smooth and effective coordination between fiscal policy and monetary policy. This policy must support and promote the other.
Regarding the tasks of 2022, the Prime Minister requested smooth and effective coordination between fiscal policy and monetary policy. This policy must support and promote the other.
Along with that, it is necessary to find ways to increase revenue, save expenses, carefully review and cut unnecessary expenses, and control overspending.
Moreover, responsible agencies must manage public debt so that overspending for economic recovery and development will increase but ensure a suitable balance for the situation.
The PM directed to how to make credit capital flows and budget money create new motivations for the economy.
The Prime Minister also asked the financial sector to analyze and clarify limitations and inadequacies in order to better manage public assets, equitize enterprises, and combat negativity as well as synchronously develop and improve the quality of financial, securities and insurance markets and control the issuance of corporate bonds.
