Financial sector accelerates reform
VGP – As budget collection outstripped estimate in 2018, the financial sector will continue to perfect regulations, promote administrative reform, cut administrative procedures, and facilitate business development.
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Minister of Finance Dinh Tien Dung |
According to Minister Dung, the financial sector enforced law regulations and State budget tasks for 2018; worked with other ministries, agencies, and localities to manage tax collection; avoid tax loss; prevent trade smuggling; handle tax debts; and strengthen tax investigations.
In 2018, budget collection was higher than estimate. As of December 31, 2018, State budget collection valued 1.422 trillion, exceeding VND 103.5 trillion (7.8%) of forecast. Tax and fee collection made up 21.1% of GDP.
Thanks to high state budget revenues, budget spending was ensured, serving for socio-economic development, natural disaster overcoming, social security, national defense, and security.
Budget spending structure was transformed in positive manner. Proportion of investment development hit over 27%. Regular spending was kept under 62% of State budget spending. Localities got over VND 2.5 trillion of central budget to overcome disaster consequences. In addition, 122,400 tons of rice relief was given to natural disaster victims and difficult pupils.
However, Minister Dung acknowledged the slow progress in disbursement rate of State budget capital. As of late December, State budget disbursement accounted for only 67.6% of estimate (lower than the rate of 70.7% in 2017).
State budget overspending was kept under 3.6% of GDP. Public debt accounted for under 61% of GDP.
Regarding administrative reform, the Ministry of Finance fundamentally accomplished the administrative reform plan in 2018.
The Ministry implemented 66 solutions and tasks for 188 products; abolished 18 administrative procedures out of 166 unnecessary ones (accounting for 10.8%); streamlined 111 procedures; and cut 117 out of 190 business conditions.
The Ministry of Finance also expanded IT application; modernize financial sector; raise quality of e-tax registration.
In 2019, the Ministry will closely regulate fiscal policy and flexibly combine with monetary and other macro policies to extricate business difficulties; boost production and business; manage and oversee budget spending; prevent tax loss; prevent trade smuggling; and reduce tax debts under 5% of State budget./.
By Kim Loan
