Numerous shortcomings exist in the management, administration, and use of the budget.

Báo Quân đội Nhân dân•12/05/2023

In 2021, more than 97 trillion VND was spent on epidemic prevention and control and supporting the people.

Reporting at the session, Minister of Finance Ho Duc Phoc stated that in 2021, the Covid-19 pandemic seriously affected all aspects of the socio-economic life of countries around the world, including Vietnam - a deeply integrated and highly open economy. The disruption of international trade chains caused by the pandemic strongly impacted domestic economic and financial activities.

In this context, financial policies in 2021 were implemented synchronously and promptly, alleviating difficulties for businesses and people affected by the pandemic. Therefore, from the end of the third quarter of 2021, economic activities began to recover and grow positively, the macroeconomic situation for the whole year was assessed as stable, the major balances of the economy were basically ensured; import and export turnover increased sharply, the financial and monetary markets were stable, social security was ensured, and national defense and security were maintained.

The Minister of Finance stated that the final state budget revenue increased by 17.2% compared to the projected figure; tax and fee revenue alone reached 15.1% of GDP. Domestic revenue increased by 15.9% compared to the projected figure, mainly due to increases from land and housing revenue, lottery revenue, and other budget revenues; the proportion of domestic revenue to total state budget revenue reached 82.5%.

Regarding budget expenditure settlements, according to the Minister of Finance, this figure also increased by 0.4% compared to the projected figures; of which, central government budget expenditure settlements reached 91% of the projected figures; and local government budget expenditure settlements reached 107% of the projected figures.

Notably, in 2021, the state budget spent over 97,000 billion VND on disease prevention and control and support for people affected by the Covid-19 pandemic, contributing to effective disease control and ensuring social welfare.

The budgeting for some revenue items was not accurate.

Presenting the verification report at the session, Deputy Chair of the Finance and Budget Committee Nguyen Thi Phu Ha stated that many members of the Standing Committee believe that, despite being severely affected by the Covid-19 pandemic, the State budget revenue settlement achieved the above results, in addition to the reasons of cautious budget planning, high increases in revenue from land, securities, crude oil, etc., and is a great effort of the entire political system, people, and businesses, with particularly impressive results in import-export balance (up 21.2% compared to the budget estimate).

However, many argue that the high increase in State budget revenue in 2021, despite the implementation of numerous tax and fee exemption and reduction policies, was due to inaccurate forecasting of some revenue items. These opinions suggest that, given the difficulty in accurately predicting State budget revenue, the Law on State Budget should be reviewed and amended to establish mechanisms and policies for strict management of the decentralization and use of increased State budget revenue, ensuring tight control over spending and focused investment, avoiding wasteful spending.

Regarding the 0.4% increase in expenditure compared to the budget estimate, Deputy Chair of the Finance and Budget Committee Nguyen Thi Phu Ha also stated that the low level of State budget expenditure (including carried-over funds) is due to inaccurate budget planning, low public investment disbursement, and slow implementation of national target programs. The cancellation of budget estimates and large-scale fund transfers lead to resource waste and negatively impact the implementation of the State's economic and social welfare policies.

Many long-standing shortcomings in budget management, administration, and utilization have yet to be resolved.

In his concluding remarks, Vice Chairman of the National Assembly Nguyen Duc Hai emphasized that the Standing Committee of the National Assembly highly appreciated the Government's efforts in the face of the serious impact of the Covid-19 pandemic on all aspects of socio-economic life. Vietnam's economic growth rate in 2021 reached 2.58%, unemployment and underemployment increased, and the lives of workers faced difficulties, requiring the implementation of tax exemptions and reductions, as well as policies to support businesses and people.

Under those conditions, total budget revenue exceeded the forecast by 12.7%, the proportion of domestic revenue reached 82.5% of total state budget revenue, budget expenditure basically ensured the fulfillment of state tasks, the budget deficit was lower than the forecast approved by the National Assembly, and discipline in state budget revenue and expenditure was gradually improved.

According to the State Audit Office's report, the Finance and Budget Committee's verification report, and the National Assembly Standing Committee's opinions, many shortcomings in the management, operation, and use of the budget have persisted for many years without being addressed. Pointing out several existing limitations, Deputy Chairman Nguyen Duc Hai urged the Government to take decisive measures to resolve them.

In particular, issues such as: general and unclear data; unsustainable budget revenue sources, with increases mainly coming from land, securities, real estate, and oil and gas; slow allocation of recurrent and investment capital; frequent adjustments and additions to capital, with some cases of capital allocation not in accordance with regulations; and instances of spending not in accordance with established norms and regulations…

The Vice Chairman of the National Assembly emphasized that each year has its own characteristics and circumstances, so the reports need to clarify and make timely recommendations to address the issues raised, such as amending legal documents, clarifying the responsibilities of heads of departments, and issues related to directing the implementation of audit conclusions…

Text and photos: THAO NGUYEN

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