Budget burden in the second quarter of 2023

In the second quarter of 2023, it is forecasted that the state budget revenue in the province will continue to face difficulties when by the middle of the second quarter, the state budget revenue will only reach 35% of the 2023 estimate.

The number of people completing land procedures at the Bien Hoa City Public Administration Center has decreased significantly compared to the same period last year. Photo: N. Lien

Therefore, completing the task of collecting the state budget according to the annual estimate is a difficult problem for functional sectors in the financial sector, because according to forecasts, the economic situation is still facing many difficulties, all sources of revenue from the fields of production and business, import - export (XNK), real estate and revenues from fees and charges... have all decreased sharply since the beginning of the year.

* Main source of income decreased sharply

As of May 15, Dong Nai 's total state budget revenue was nearly VND21.3 trillion, reaching 35% of the estimate. Of which, domestic revenue was over VND14.8 trillion (37% of the estimate) and revenue from import and export reached over VND6.4 trillion (30% of the estimate). Although forecasts were made at the beginning of the year, in reality, difficulties arose more than forecasts.

Director of Dong Nai Tax Department Nguyen Toan Thang said that due to the difficult economic situation, the business results of enterprises in the area were not positive, causing workers to lack jobs, income to decrease, investment demand, spending transactions, and shopping also decreased sharply. This is also the reason why the state budget revenue from all sources has decreased.

Specifically, some major revenue sources from land, capital transfer, projects, and capital investment of the production and business sector in the area only reached over 30% compared to the same period. Enterprises contributing large amounts of revenue to the state budget are all affected by the general difficult situation, causing low profits or losses, and no corporate income tax, such as: CP Vietnam Livestock Joint Stock Company has not generated tax for more than 4 months, while in the same period in 2022, this enterprise paid the state budget 348 billion VND; Renze Textile Joint Stock Company only paid the state budget 4 billion VND, while in the same period, it paid 315 billion VND...

Graphics showing budget collection results in the province from the beginning of 2023 to May 15, 2023 (Information: Thuy Moc - Graphics: Hai Ha)

For the field of collecting state budget revenue from import and export, it is even more difficult when businesses lack orders, many businesses have to cut or temporarily lay off workers to wait for new orders, leading to many consequences...

Deputy Director of Dong Nai Customs Department Nguyen Phuc Tho said that since the beginning of the year, the state budget revenue has decreased mainly due to the import-export turnover of taxable goods decreasing by 30-40% (chemicals, equipment, iron and steel) compared to 2022. On average, only 1.4 trillion VND is collected each month, while according to estimates, the industry must collect 1.8 trillion VND. Through reviewing from enterprises, it is forecasted that the budget revenue situation is still unstable, with the expected revenue in the first 6 months of the year reaching only 41% compared to the same period in 2022. Enterprises with large revenues in the province still have unsold orders. Due to the lack of orders, the import of raw materials for production has decreased, these are directly taxable goods, contributing greatly to the state budget revenue.

* Difficulties continue

In the context of the world economy continuing to grow slowly, some major economies facing the risk of recession, these will still be difficult impacts for the Vietnamese economy in general and Dong Nai in particular. Especially for import-export enterprises, leading to difficulties for workers, domestic consumption market, transactions... sharply decreasing, affecting the state budget revenue in the coming time.

Commenting on the state budget collection situation in the second quarter as well as the end of 2023, Director of the Department of Finance Truong Thi Huong Binh said that by the end of this year, Dong Nai's state budget collection will still face many difficulties. Especially in completing the collection task from tax and customs units. Therefore, the Department of Finance has recommended that the Provincial People's Committee direct units to strengthen the review of all revenue sources, mobilize all resources, and have effective solutions in state budget collection. In order to save the state budget, departments, branches, and public service units at all levels must implement state budget expenditures according to strict principles, thorough thrift and efficiency.

Produced at Kien Phuc Export Wood Processing, Refining, Household Wood Products, Interior Decoration Company Limited (Ho Nai 3 Commune, Trang Bom District). Photo: HUY ANH

Recently, at the second quarter financial conference of 2023, Vice Chairman of the Provincial People's Committee Vo Tan Duc requested units to focus on a number of key tasks to boost state budget collection in the coming time. In particular, the Tax and Customs sectors must closely monitor the progress of state budget collection; strengthen information collection, analysis, and assessment of the production and business activities of enterprises; and at the same time strengthen inspection and examination to avoid loss of revenue to the state budget. In addition, review, classify, and collect arising tax debts. At the same time, strictly implement fiscal policies, coordinate with financial sectors to provide comprehensive analysis and assessment of the economic situation to advise provincial leaders to make decisions appropriate to the actual situation.

Chairman of the Provincial People's Committee CAO TIEN DUNG: It is necessary to develop a scenario for state budget collection

Faced with the common difficulties of the whole country, departments and branches need to make more efforts, especially the efforts of heads of agencies and units in directing and operating to carry out tasks. State budget collection is a political task of each agency, creating a common value for the province. The Department of Finance must closely monitor the budget collection and expenditure situation in localities. In addition, it is necessary to develop scenarios in implementing the collection task to achieve the highest results.

Director of Department of Planning and Investment NGUYEN HUU NGUYEN: Review revenue sources from land

The Department of Planning and Investment is reviewing projects with the potential to collect state budget revenue in the province to speed up the completion of documents and call for investment. From 2020 to now, the source of exploitation from new land has only reached over 5.6 trillion VND out of a total of 45 trillion VND. Currently, some land plots in the 2023 plan can bring in significant revenue for the state budget. However, there are still some regulations in the implementation process. In the coming time, the Department will continue to coordinate with departments, branches and localities to review projects, promptly complete procedures and documents to organize auctions, and bring revenue to the state budget.

Deputy Director of Dong Nai Customs Department NGUYEN PHUC THO: Will dialogue and remove difficulties for businesses

Dong Nai Customs Department is increasing support for enterprises to apply preferential regulations and policies from the Government and the Ministry of Finance. It is expected that in June 2023, the Customs sector will organize dialogues and remove difficulties for enterprises. Strengthen the dissemination of the State's legal policies. In addition, the sector will continue to review and grasp revenue sources, especially for units with large projects. In addition, strengthen inspection and examination to prevent loss of State budget revenue in terms of quantity, weight, type, name of goods; value of imported and exported goods; origin of goods to improve efficiency in combating fraud and counterfeiting of origin; closely monitor the implementation of regulations on tax exemption and tax reduction according to the right subjects and regulations.

Ngoc Lien

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