Provincial budget revenue is quite good.

The state budget revenue collection sector in the first three months of 2024 has reached one-third of the year, achieving 30.7% of the provincial target, an increase of 16.17% compared to the same period last year.

Domestic revenue is improving, but concerns remain…

In the first quarter of this year, the province's economy achieved positive results in many areas. The province has many opportunities for rapid development, especially with the approval of the Binh Thuan Provincial Planning for the period 2021-2030, with a vision to 2050; continued utilization of the Vinh Hao - Phan Thiet and Phan Thiet - Dau Giay expressways, and vibrant tourism activities... This has contributed to promoting the province's socio-economic growth, creating favorable conditions for state budget revenue collection in the province. Simultaneously, state budget revenue collection has received regular attention and guidance from the Provincial Party Committee, the Provincial People's Council, and the Provincial People's Committee. The coordination of various sectors and levels, especially the tax sector, has focused on solutions for state budget revenue collection, concentrating on key revenue sources and accelerating the handling of outstanding debts. As a result, in the first three months of this year, budget revenue reached 3,070 billion VND, achieving 30.7% of the projected target and increasing by 16.17% compared to the same period last year. If revenue from import and export activities is excluded, domestic revenue for the three months was 2,758.7 billion VND, reaching 30.64% of the projected target and increasing by 14.89% compared to the same period last year.

Vibrant tourism activities have a positive impact on the economy, contributing to increased government revenue.

Notably, the non-state revenue sector collected 733.6 billion VND, reaching 44.22% of the projected target, showing strong growth of 19.39% compared to the same period last year. In addition, other revenue streams showed good progress, such as: land and water surface lease fees (reaching 67.43%); lottery revenue (reaching 44.22%); revenue from public land funds and other public property revenues (reaching 35.48%); personal income tax (reaching 35.05%); and fees and charges (reaching 31.15%). Ms. Tran Thi Dieu Hoang – Director of the Provincial Tax Department – assessed: Although the domestic budget revenue results were quite good, especially the growth in non-state revenue, it still contains elements of instability. This is because the increase is mainly due to real estate transfer activities and the collection of outstanding debts from large debtors.

Furthermore, 7 out of 16 revenue items still experienced significant declines compared to the same period last year, including: revenue from central state-owned enterprises (down 47.83%); revenue from mineral exploitation rights (down 35.52%); registration fees (down 23.9%); other budget revenue (down 21.27%); revenue from foreign-invested enterprises (down 17.82%); revenue from local state-owned enterprises (down 13.08%); fees and charges (down 17.62%); and non- agricultural land use tax (down 14.64%). The reasons for this decline are the general economic difficulties, the fragmented nature of provincial revenue sources, unresolved land-related issues, and reduced revenue from power plants. Additionally, the impact of government tax exemption and reduction policies further contributed to the decrease in revenue.

The business operations of enterprises are still facing difficulties.

Solutions to increase budget revenue

According to forecasts, the socio-economic situation of the province in the remaining months of 2024 will be a mix of difficulties and opportunities. The province's main revenue sources, such as land revenue and revenue from thermal power plants, remain lower than projected. Businesses continue to face many difficulties in production and business operations, including limited access to capital, prolonged losses, and many businesses operating at a reduced capacity, ceasing operations, or temporarily suspending business... leading to a tendency for tax arrears to increase, as well as difficulties in collecting revenue from businesses in the province… This will affect the state budget revenue collection in the last nine months of the year.

Focus on exploiting potential revenue sources.

Presiding over a recent meeting on budget revenue collection, Chairman of the Provincial People's Committee Doan Anh Dung emphasized: "The task of collecting state budget revenue is a very important indicator among the socio-economic development indicators." The Chairman of the Provincial People's Committee noted that although budget revenue increased compared to the same period last year, it was still lower than the national average, and some revenue sources increased but were not stable. Furthermore, revenue management was not thorough, especially revenue from land and mineral resources…

The Chairman of the Provincial People's Committee directed several key solutions to increase provincial budget revenue, linking them to the responsibilities of departments, agencies, and localities; especially the role of the tax sector in managing and exploiting revenue sources. Accordingly, it is necessary to accelerate administrative procedure reform, improve the investment and business environment; support and resolve difficulties and obstacles for businesses and investors to develop production and business. The process of auctioning land use rights in the province should be expedited, and timely collection of land-related revenue into the state budget should be ensured. Efforts should be intensified to attract capable and potential investors to create stable revenue sources. In addition, the approval process for investment projects should be accelerated to create new revenue sources; the disbursement of public investment capital should be accelerated, and capital should be put into circulation to promote economic development. The tax sector is closely managing budget revenue sources in the province, strengthening efforts to combat revenue loss, and focusing on exploiting potential revenue sources such as: gasoline, food and beverage services, entertainment, revenue from digital businesses, e-commerce, etc.

In 2024, the Provincial Tax Department was assigned a state budget revenue target of 10,000 billion VND by the Provincial People's Council, including 9,005 billion VND from domestic revenue and 995 billion VND from import and export activities.

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