Finance sector: Flexible budget management in the last months of the year
Although it is only the end of July 2021, the total state budget revenue (state budget) has reached 86.8% of the estimate, the total local budget expenditure has reached over 60% of the estimate.
However, in the context of task implementation which is still facing many difficulties, in order to complete the estimate of state budget revenue in 2021 to reach over 14,090 billion VND and local budget expenditure of over 12,201 billion VND, in the last months of the year, the Finance sector proactively builds the flexible budget management plan, thereby creating resources to promote economic development of the province.
Eiffel Yarn Joint Stock Company (Gia Le Industrial Park, Dong Hung District) committed to fully pay over 9 billion VND of tax extended under Decree No. 52 into the state budget after the expiry of extension period.
One of the biggest difficulties for budget revenue in the last months of the year is that Covid-19 epidemic continues to develop complicatedly in many localities throughout the country, it significantly affects the production and business activities of businesses in the province. Along with that, the implementation of Decree No. 52/2021/ND-CP of the Government on extending the deadline for payment of value added tax, corporate income tax, personal income tax and land rental in 2021 will delay about 520 billion VND to be paid immediately to the state budget, thereby creating great pressure on state budget revenue in the last months of the year.
Clearly identifying difficulties, in the last months of the year, the Finance sector focuses on implementing solutions to effectively implement the budget revenue in the area. As one of the units that actively contributed to increasing revenue for the state budget, by the end of June 2021, the total domestic revenue managed by the Tax sector reached over 4,466 billion VND, reaching 66.5% of the estimate assigned by the Provincial People’s Council, increasing 51.3% over the same period in 2020, accounting for 44.9% of total local budget revenue.
Mr. Do Hong Nam, Director of the Provincial Department of Taxation, said: Although in the first 6 months of 2021, Thai Binh was one of 50 provinces and cities that ensured the budget revenue estimate implemented by tax sector to reach over 50%, but Thai Binh tax sector may not be subjective in budget revenue in the last months of the year. Through the conference to review the implementation of the tasks in the first 6 months of the year, the whole sector seriously reviewed the shortcomings and limitations in budget revenue, on that basis, proposed overcome solutions to absolutely collect the revenue sources in the area. Along with that, the Tax sector actively deployed mechanisms and policies, especially new mechanisms and policies; focused on administrative reform, promoted the application of information technology in tax management in order to create a favorable, clear and transparent environment for taxpayers to fulfill their obligations to the state; proactively reviewed to timely collect the taxes extended under Decree No. 52 into the state budget, to prevent taxpayers from taking advantage of the state’s support policies to evade taxes, delay and owe tax; at the same time, actively coordinated with districts and city to grasp the information to promptly collect land use fee into the budget for projects that have been completed the auction of land use right.
Production Golden Star Co., Ltd, Thai Binh branch. Photo: Thanh Tam
Not only focusing on building solutions to increase revenue for the State budget, in the last months of the year, the Finance sector also focuses on controlling expenditure activities to ensure thorough savings but still timely meet the needs of socio-economic development, national defence, security, health and resources to implement social security policies. The budget expenditure result in the first months of the year shows that in the context of the complicated development of Covid-19 epidemic, from the budget revenue source in the area, the Finance sector focuses on spending on economic development to promote socio-economic development of the province, in which special attention is paid to inspecting and reviewing the disbursement progress of public investment capital for each project, on that basis, promptly grasping and removing difficulties and obstacles so that projects will be disbursed capital resources early. Therefore, by the end of June 2021, Thai Binh ranked the second in the country (behind Hai Phong) in terms of disbursement of construction investment capital with an amount of over 2,451 billion VND, reaching 75% of the estimate. With that viewpoint, in the last months of the year, in addition to giving priority of expenditure to epidemic and disease prevention and control, especially Covid-19 epidemic, the Finance sector continues to manage capital construction investment expenditure within the scope of the assigned capital plan, resolutely transfer capital plans from the projects which are inefficient and slowly disbursed to the projects which have good and effective disbursement progress, have need of supplementing capital to early completing and putting into use. Along with that, the whole sector builds the option to mobilize resources in accordance with the regulations in case the local budget revenue decreases in comparison with the assigned estimate to ensure the budget balance in 2021.
With the initiative and active deployment of flexible budget management options, it is hoped that by the end of 2021, the Finance sector will complete at the highest level the finance -budget goals and tasks, thereby creating an important buffering step to continue striving to fulfill the goals of the Resolution of the 20th Provincial Party Congress set out in the period of 2021 - 2025.
By the end of July 2021: