Finance sector accomplishes fiscal budgetary tasks in 2022

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Finance sector accomplishes fiscal-budgetary tasks in 2022
Prime Minister Pham Minh Chinh attended and addressed the conference.

State revenue exceeds about 20% of the estimate

Amid the difficult socio-economic situation in 2022, the Ministry of Finance has accomplished fiscal-budgetary tasks, ensuring the great balances of the economy, and contributing to the completion of socio-economic development tasks in 2022.

According to the Ministry of Finance’s report, the Finance sector has promptly and flexibly proposed and administrated fiscal policies, drastically performed to accomplish tasks, contributing to promoting socio-economic recovery and development and ensuring social security and people’s lives.

Amid the common difficulties of the economy, thanks to great efforts in revenue collection and providing solutions to support people and enterprises in production and business development, the Finance sector has achieved impressive revenue.

Finance sector accomplishes fiscal-budgetary tasks in 2022
The conference.

As of December 15, the revenue exceeded 19.8% of the estimate to VND1,691.8 trillion, VND78 trillion higher than the full-year performance assessment reported to the National Assembly at the fourth session in October and November.

Of which, the central and local budget revenues surpassed 19.3% and 20.4% of the estimate, respectively.

The Ministry of Finance said that in the remaining months of the year, the Ministry directed the Tax and Customs authorities to drastically perform revenue collection, strengthen tax debt collection, prevent revenue loss and strive to achieve higher revenues.

In 2022, the ministry has actively proposed the Government to make timely adjustments to fiscal policies to remove difficulties for businesses and support the program of socio-economic recovery and development.

These solutions are expected to support enterprises and people with a total extended and exempted taxes, land rents, fees and charges in 2022 of about VND233.5 trillion, including VND135 trillion of the extended amount and VND98.5 trillion of the exempted amount.

Finance sector accomplishes fiscal-budgetary tasks in 2022
The State revenue 2022 exceeds the estimate. Photo: Internet

The State expenditures in 2022 reached the targets. As of December 15, the total public expenditure recorded was about VND1,450 trillion, meeting 81.2% of the estimate. Of which, the investment expenditure and the recurrent expenditure hit 72.4% and 88.1% of the estimate, respectively.

Focusing on perfecting financial institutions and policies

Notably, 2022 is also the year the Ministry of Finance focuses on perfecting institutions and policies, building key fiscal-budgetary projects, improving the effectiveness and efficiency of state management, and tightening financial discipline.

In the whole year, the ministry has completed 80 of 85 projects and tasks. Some projects and tasks are delayed or have to be postponed to next year because they have to be fully evaluated or depend on the construction progress of other related projects and tasks.

The Ministry of Finance has strengthened the management, strictly controlled and restructured public debt in a sustainable manner.

Finance sector accomplishes fiscal-budgetary tasks in 2022
Restructuring a stable debt portfolio.

Realizing the goal of continuing to restructure the stable debt portfolio, the Ministry of Finance will issue government bonds with tenors of 10 years or more. Therefore, the remaining tenor of the Government bond debt portfolio has been maintained longer than in the previous period, reducing short-term debt repayment pressure.

The ministry has implemented debt repayment in full and on time as committed. In addition, it has effectively used sustainable debt management solutions, medium-term debt management programs, annual loan and repayment plans; strictly controlled government guarantees and on-lending loans; strengthened supervision and control of deficit expenditure and loans of local budgets, thereby, contributing to reducing public debt.

The public debt by the end of 2022 is expected at about 43-44% of GDP, the government debt is about 40-41% of GDP, and the government’s direct repayment is about 18-19% of total state budget revenue, lower than the ceiling and warning threshold allowed by the National Assembly in Resolution No. 23/2021/QH15 of the National Assembly.

Actively providing solutions to manage market prices

The Ministry of Finance has promoted the management of market prices in line with the actual situation, removed difficulties, expedited production and business, and controlled inflation; improved financial markets, and restructured state-owned enterprises.

Accordingly, the Ministry of Finance has regularly assessed and coordinated with relevant ministries and sectors to calculate and forecast factors affecting inflation, build scenarios, and recommend solutions to control market prices, suitable for each commodity, especially for petroleum products, and essential goods and services, which are administered and operated by the State.

Finance sector accomplishes fiscal-budgetary tasks in 2022
The Ministry of Finance actively provides solutions to manage market prices. Photo: Hoai Anh

Despite being greatly affected by the impact of price increases on the world market, the average consumer price index (CPI) in the first 11 months of 2022 increased by 3.02% year-on-year, contributing to controlling inflation under the target in 2022 (no more than 4%).

Regarding the development of the securities and corporate bond market, the Ministry has reviewed and completed legal documents to sustainably develop the securities, insurance and bond markets; strengthened inspection and supervision, and maintained the stable development of financial markets.

Regarding the stock market, in addition to improving the legal framework and policies for market development, the Ministry has expedited the state management for securities operators, securities issuance and public companies; inspected and handled violations to ensure the transparent development of the market.

In addition, the Ministry has researched and implemented digitization of financial assets on the stock market, applied new financial technologies (Fintech); standardized online account opening (e-contract); and electronic Know Your Customer (EKYC).

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