(VCN) Prime Minister Pham Minh Chinh addressed a virtual conference to review the performance of financial and budgetary tasks in 2021 and set out tasks for 2022, held by the Ministry of Finance.
The State budget revenue in 2021 is estimated to increase 3.7% to VND 1,563.3bilion
The virtual conference was attended by Politburo member, Secretary of the Hanoi Party Committee Dinh Tien Dung, Secretary of the Party Central Committee, Deputy Prime Minister Le Minh Khai and leaders of ministries, central government agencies, Minister of Finance Ho Duc Phoc and leaders of the ministry’s departments and localities.
According to the Ministry of Finance, the financial and budgetary tasks in 2021 have been performed as Vietnam faced disadvantages and advantages. However, the country has suffered from more difficulties and challenges.
The Covid-19 pandemic has seriously affected socio-economic development and people’s lives.
The Finance sector has made great efforts to overcome difficulties, closely monitored the actual situation, proposed and implemented solutions to complete tasks, contributing to the achievements in performing the dual goals of disease prevention and control, protection of people’s health, and economic recovery and development in the new normal situation.
In addition to perfecting the institutions, policies and projects related to the State budget, improving the efficiency and effectiveness of the State management, and tightening financial discipline, the Ministry Finance has issued flexible fiscal policies and effectively responded to the Covid-19 pandemic, supported the economy, removed difficulties for businesses, business households and people, and ensured social security.
The Ministry of Finance has made an action plan to implement the socio-economic development and the State budget estimate in 2021 and performed this from early in the year.
The Ministry has proposed competent authorities to adjust fiscal policies in line with the actual operation in 2021.
The effective implementation of fiscal, monetary and other macroeconomic policies and the good control of the Covid-19 pandemic since the end of September have helped restore the business production in the new normal situation.
The State revenue is expected to rise 3.7% to VND 1,563.3 trillion year-on-year.
The increase in revenue is mainly from crude oil, imports, exports and land use fee, domestic taxes and fees. The rate of capital mobilization into the state budget reached 18.6% of GDP (exceeding the target of 15.5% of GDP).
The central budget revenue is estimated at 106.7% and the local budget revenue is forecast at 128.2% of the estimate.
Strictly control public debt
The management of state budget expenditure has been also implemented in an effective manner. The recurrent expenditure has been saved and given priority for pandemic prevention and control and ensuring social security and people’s lives.
The State expenditure in 2021 is estimated at VND1,879 trillion, meeting 111.4% of the estimate.
The State budget has spent VND74 trillion for disease prevention and control and support for people affected by Covid-19; provided 141,970 tons of rice from the national reserve to support people hit by the public health crisis in 33 localities.
As of the end of December 31, the disbursement progress of development investment capital reached 74.7% of the plan set out by the National Assembly and 77.3% of the plan assigned by the Prime Minister.
In 2021, the balance of the central budget and local budget is ensured. the state budget deficit will be less than 4% of GDP.
The Ministry of Finance has strictly controlled and restructured public debt in a stable manner. By the end of 2021, the public debt was about 43.7% of GDP, the government debt at about 39.5% of GDP, the loan outstanding balance at 39% of GDP, expenditure for the Government’s repayment at less than 23% of the total revenue.
The ministry has strengthened price and market management in line with the actual situation; removed difficulties and promoted business production; controlled inflation; developed the financial market and restructured state-owned enterprises.
The market prices have maintained stability. The average CPI increased 1.84%, contributing to controlling inflation under the target set out in 2021. The legal framework for price management continues to be improved and perfected.
Regarding the development of the stock market, the market continued to sharply grow in 2021. By the end of December 31, the VN-Index hit 1,498.28 points, increasing by 35.7% year-on-year. The market capitalization of stocks reached about VND 7,729 trillion, an increase of 46% compared with the previous year.
The insurance market continues to see strong growth. The total insurance premium revenue is estimated at VND 214.9 trillion, up 15.59% year-on-year; total assets reached VND 710 trillion, up 23.86%; capital invested back into the economy reached VND 577.1 trillion, up 22.24%.
2021 is also the year the Ministry of Finance promotes administrative procedure reform; builds e-Government; and establishes a streamlined, effective and efficient apparatus.
The Ministry has completed 100% of the tasks; reviewed and abolished 198 administrative procedures; amended, supplemented and replaced 19 procedures and issued 115 new procedures related to customs, tax management, securities, insurance; regularly updated the national database on administrative procedures, reaching 100% of the plan (896 of 896 procedures); researched and proposed amendments and supplements to 290 periodical reporting regimes.
In 2021, the Ministry has improved the efficiency of management and use of public assets; strengthened inspection and examination of finance-budget, anti-smuggling, commercial fraud and counterfeit goods.
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