New notable points in the State Budget Estimate 2023

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VCN – The Ministry of Finance proposed the development of the state budget estimate in 2023 closely following the socio-economic and financial situation in the country and overseas. There must be a specific calculation of the factors of increase, decrease and shift of revenue sources due to changes in legal policies on revenue, policies on exemption and reduction of taxes, and fees and charges. The construction of the budget expenditure estimate 2023 must comply with the regulations on principles, criteria, and norms for allocation of development investment capital and recurrent expenditures of the state budget; and meet the requirements of budget restructuring.

For the development of investment and expenditure estimates, the Ministry of Finance requires that they should be given to the arrangement of the 2023 estimate to accelerate the implementation of important projects
For the development of investment and expenditure estimates, the Ministry of Finance requires that they should be given to the arrangement of the 2023 estimate to accelerate the implementation of important projects

Increasing domestic revenue by 7-9%, import-export revenue by 4-6%

In Circular 47/2022/TT-BTC guiding the development of the state budget estimate in 2023, the financial-state budget plan for the three years of 2023 – 2025 has just been issued by the Ministry of Finance. The Ministry of Finance requires the state budget estimate in 2023 should comply with the provisions of Law on State Budget and guiding documents, in line with the 10-year socio-economic development strategy for the period of 2021 – 2030 and the 5-year plan from 2021 to 2025. Besides that, it must follow closely the impacts of revenue collection associated with the implementation of tasks specified in Resolution No. 43/2022/QH15, Resolution No. 18/2022/UBTVQH15 and the addition of charter capital for three state-owned commercial banks holding shares in accordance with Resolution No. 43/2022/QH15.

The Ministry of Finance proposes to strive to increase domestic revenue in 2023 by about 7-9% compared to the estimated assessment in 2022 excluding land use levy, lottery collection, proceeds from the sale of state capital in enterprises, dividends, profit after tax and the difference between revenues and expenditures of the State Bank (after excluding the factors of increase and decrease in revenue due to policy changes). The specific increase in revenue will depend on the conditions, characteristics and economic growth rate in each locality.

Localities should develop domestic revenue estimates in 2023. Besides ensuring the objectives and regulatory requirements, they must fully synthesize the revenue sources within the scope of state budget revenue arising in the locality. The state budget revenue estimate in 2023 must be built on the basis of an information system on land and taxpayers; ensure the correct and sufficient calculation of each revenue, tax, revenue field for each locality, detail revenue from newly put into operation projects with large revenue in accordance with current regulations on taxes and fees, fees and other state revenues.

For revenue from import-export activities, the development of an estimate in 2023 will increase by an average of 4-6% compared to the estimated assessment in 2022. The Ministry of Finance also requires the development of an estimate of revenue from import-export activities must be based on the forecast of growth in turnover of taxable export and import goods in the context of integration, especially traditional products with high revenue and new items.

As well, it is necessary to consider influencing factors, such as; expected fluctuations in domestic prices and international market prices of commodities with large state revenues; fluctuations in crude oil prices in the world; the exchange rate between the Vietnamese dong and the currencies of strategic trading partners; the impact of reducing revenue from the implementation of the tariff reduction roadmap under the signed free trade agreements and the implementation of commitments in 2023; the degree of trade facilitation and the effect of technical barriers; and scale, implementation progress of key investment projects with imported equipment, raw materials, etc.

Prioritize the arrangement of the 2023 estimate for important projects

Regarding the formulation of state budget expenditure estimates in 2023, the Ministry of Finance requires the development of expenditure estimates must comply with regulations on principles, criteria, and norms for allocation of development investment capital and recurrent expenditures; and meeting the requirements of budget restructuring, the policy of reorganizing the apparatus, streamlining the staff, and the focal point of the public non-business sector should follow the resolutions of the Central Committee and the Politburo, and at the same time continuing to gather resources on reforming salary and social insurance policies.

The Ministry of Finance also suggests that ministries, sectors and localities, when formulating expenditure estimates, strictly adhere to the principles of publicity and transparency and the implementation of thorough thrift and anti-wastefulness right from the stage of defining tasks. The ministry also noted that ministries, sectors and localities should actively review duplicated policies and tasks, and arrange the prioritized expenditures following their urgency, importance and ability to implement in 2023 in order to complete tasks, programs, projects and schemes approved by competent authorities on the basis of allocated state budget sources and other lawful mobilized sources.

For the development of investment and expenditure estimates, the Ministry of Finance requires that they should be given to the arrangement of the 2023 estimate to accelerate the implementation of important, urgent projects that are capable of solving and quick disbursement; payment of capital construction debt in accordance with the Law on Public Investment, recovery of advance capital from the state budget; and projects that have been completed but have not yet allocated sufficient capital; projects completed in 2023.

The Circular also requires ministries, sectors and localities to make separate estimates for 2023 for programs, projects and tasks under the Socio-economic Development and Recovery Program, ensuring the distribution level in two year in 2022-2023 for these tasks as prescribed in Resolution No. 43/2022/QH15 and Resolution No. 11/NQ-CP, detailed by industry and field, with detailed appendixes for each program, projects and tasks under the program of socio-economic recovery and development; and approval decision; total approved investment; proposed budget for 2023.

By Hoài Anh/Thanh Thuy

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