Budget revenue increased 9 times in just one quarter: National Assembly noted 1 important issue

Budget revenue is still good, many unexpected revenues

The Government has just sent the National Assembly an additional assessment report on implementation results State budget in 2021, the implementation of the state budget estimate in 2022.

Accordingly, in 2021, budget revenue will reach VND 1.56 million billion, exceeding VND 225.1 trillion (+16.8%) compared to the estimate, an increase of VND 202.9 trillion compared to the National Assembly report (1, 36 million billion dong)

A number of industries and fields (construction, iron and steel production, automobiles, etc.) have generated high profits, contributing to an increase in revenue for the state budget; at the same time, arise some unexpected unexpected revenues when making estimates.

That is: collection of corporate income tax from the transfer of Phuoc Hung urban area project of 2,373 billion VND; income from real estate transfer activities of Ecopark Group 1,290 billion; collection of gas price difference in the off-take selling to two BOT power plants (of Ho Chi Minh City and Ba Ria – Vung Tau province) from March 20, 2019 and in 2020 is VND 2,457 billion; income from capital transfer of some enterprises is about 5,300 billion dong…

In addition, the sudden revenue from collecting one-time land use fees for the entire project life (US Embassy, ​​Van Huong Investment and Tourism Joint Stock Company; Vinaconex Tourism Development and Investment Joint Stock Company). , Industrial Development and Investment Corporation, etc.) about VND 7,000 billion; last year’s recovery and expenditure of Thu Thiem Project Management Board is 2,515 billion VND.

In addition, income from e-commerce and digital business activities of foreign suppliers without business establishments in Vietnam also showed better signs.

The result of tax collection management for cross-border goods and services from 2018 to the end of December 2021, through organizations in Vietnam is over 4,500 billion VND (over 1,000 billion VND/year on average). In which, some large corporations such as Facebook are 1,694.77 billion VND; Google is 1,618.42 billion VND; Microsoft is 576.62 billion VND.

However, the Government also assessed that the analysis and forecast of budget revenue was not close to the reality of production and business activities of enterprises. State budget revenue exceeded the estimate and reported to the National Assembly, but mainly exceeded the revenue from land use levy of the local budget, which is unstable and sustainable revenue. Tax collection management for business activities in the network environment is still complicated; Tax arrears tend to increase.

The forecast has problems, lasting for many years without stopping

Along with the above concerns, the Finance Committee budget According to the National Assembly, the forecasting of state budget revenue in 2021 for the preparation of the State budget estimate in 2022 is not of good quality, not close to reality, there is a huge difference between the number of reports to the National Assembly. at the 2nd Session in October 2021 and the number of additional reviews.

According to this Committee, in a very short time (in the fourth quarter alone), State budget revenue increased more than 9 times compared to the number reported to the National Assembly, the increase in revenue accounted for about 90.1% of the increase in state budget revenue for the whole year.

Although the 2021 state budget estimate was developed in the context of the complicated developments of the Covid-19 epidemic, making it difficult to predict accurately, the difference is too large compared with the estimate and the number reported to the National Assembly at the Third Session of the National Assembly. 2 shows that the forecasting and evaluation capacity is still limited, not fully forecasting socio-economic changes with factors affecting state budget revenue in the last months of the year.

In particular, this situation has lasted for many years, greatly affecting the preparation of the next year’s estimate and the efficiency of allocating and using the state budget.

Therefore, the Finance and Budget Committee proposed the Government to learn from experience, have solutions to overcome, improve the capacity to analyze and forecast revenue sources to create a solid basis in formulating annual state budget revenue estimates. 2023 and subsequent years.

There is an opinion that the increase in revenue is due to the low estimate of state budget revenue in 2021, in fact, the revenue in 2021 is only equivalent to the state budget revenue in 2019, so it is necessary to evaluate the management situation in detail. revenue and growth rate, ensuring that state budget revenue in the coming years will achieve more positive results.

In addition, the Finance and Budget Committee noted that the leading role of the central budget was reduced. Central budget revenue has increased but accounted for a low proportion (over 48.9 trillion VND, accounting for about 21.7% of the total revenue increase), increased revenue from the local budget (exceeding 176.3 trillion VND compared to the forecast) math) accounts for a high proportion.

Although some revenues increased quite large, the Finance and Budget Committee warned that “the revenue structure is not really sustainable, depending on the exploitation of resources”.

According to the Government’s report, revenue from crude oil exceeded 21.4 trillion VND compared to the estimate, an increase of 9,400 billion VND compared to the number reported to the National Assembly. The Finance and Budget Committee assessed that the increase in revenue was due to both price increases and an increase in exploitation output. However, from 2017 onwards, the exploitation output has always exceeded the assigned estimate. Meanwhile, the building of forecasts on annual crude oil production has a feasible basis: scale, quantity, and exploitation capacity of fields.

This committee recommends that the Government focus on forecasting, and at the same time, make an overall report on the size of the mines, their reserves, and the proposed expansion plan in order to develop an overall and reasonable exploitation plan. take a long-term vision, avoid being passive in management and administration when crude oil resources decrease.

Besides, The collection of land use fees has a large increase compared to the estimate (increased by 74,081 billion VND) and the number of reports to the National Assembly (increased by 44,881 billion VND) is also a matter of concern. The Finance and Budget Committee said that this is an unstable and unsustainable revenue for local budget balance. Therefore, the Committee proposed the Government to direct localities to develop reasonable and prudent management and exploitation plans with an appropriate roadmap to ensure effective and long-term exploitation of land resources. At the same time, it is necessary to develop a closer estimate to operate the state budget proactively and effectively.

Luong Bang

Although it is very difficult, not yet the end of the year, the budget revenue has exceeded the target

Despite the difficulties of the Covid-19 pandemic, budget revenue for the first 11 months of 2021 exceeded the estimate, even increasing by nearly 9% over the same period.