Goods are transported for export at a port in HCM City. The total State budget revenue, including from im-export, in the past three years is estimated to reach VNĐ5 quadrillion. — VNA/VNS Photo
The restructuring of the State budget has achieved positive results after three years of implementing the National Financial Plan and the Public Debt Repayment Plan for the 2021-25 period, the Government said in a recent report.
Specifically, the total State budget revenue in the past three years is estimated at VNĐ5 quadrillion, equal to 61 per cent of the plan, while the average rate of State budget revenue is at 17.9 per cent of GDP against the 16 per cent goal set in the Financial Strategy until 2030, issued by the Prime Minister on March 21, 2022.
In the 2021-25 period, the Government expects total State budget revenue to reach more than VNĐ8.4 quadrillion, equal to 101 per cent of the plan; and the rate of State budget revenue to be about 16.4 per cent of GDP.
Meanwhile, the total expenditure in the past three years is about VNĐ5.9 quadrillion, equal to 57.5 per cent of the plan.
According to the Government, State budget spending has been strictly managed, with priority given to development investment and minimising regular expenditures. The budget has ensured funding for pandemic prevention, security, national defence, social security, important political tasks, socio-economic recovery and development programme and salary increase in 2023.
Specifically, the total budget spending for development investment is estimated at more than VNĐ1.7 quadrillion. If excluding the expenditure for socio-economic recovery and development programs, it is about 56 per cent of the plan.
The expenditure is very positive in the context of a large deficit in revenue from selling State capital at enterprises, according to the Government.
The total regular expenditures in the past three years is at about VNĐ3.3 quadrillion, equal to 52 per cent of the plan.
The Government estimated the total State budget expenditure for the 2021-25 period is about VNĐ10.14 quadrillion, equal to 99 per cent of the plan.
Meanwhile, the average State budget overspending rate in the 2021-23 period is estimated at about 3.4 per cent of GDP, within the range approved by the National Assembly. The rate for the 2021-25 period is also expected to be within the target range of 3.7 per cent of GDP.
However, according to the Government's view, the process of restructuring the State budget still has many shortcomings. Notably, State budget revenue tends to decrease and will depend on the recovery of the economy.
Some targets of the National Financial Plan for the 2021-25 period are also predicted to be difficult to meet. The targets include the average proportion of domestic revenue in total budget revenue; revenue from equitisation and divestment of State capital; expenditure for development investment from foreign capital sources; and the Government's direct debt repayment obligation compared to State budget revenue.
The average proportion of domestic revenue in total State budget revenue is unlikely to reach the target of 85-86 per cent by 2025 as set by the Financial Strategy to 2030, while revenue from equitisation and divestment of State capital at enterprises is very low, according to the Government. — VNS