What are regulations on requirements for development of state budget estimate in 2023 in Vietnam?

What are regulations on requirements for development of state budget estimate in 2023 in Vietnam?

In Article 12 of Circular 47/2022/TT-BTC (effective from September 12, 2022), requirements for development of state budget estimate are as follows:

1. The state budget estimate in 2023 is built in accordance with the provisions of the State Budget Law and guiding documents; have a full explanation of the legal basis and basis for calculation; in line with the 10-year socio-economic development strategy for the 2021-2030 period, the 5-year plans for 2021-2025, and the objectives according to the central resolutions; consistent with the objectives, orientations and principles of allocation of medium-term public investment plans for the 2021-2025 period in the National Assembly's Resolution No. 29 /2021/QH15 and the plan and progress of tasks and solutions measures to implement the socio-economic recovery and development program according to Resolution No. 43/2022/QH15 of the National Assembly, Resolution No. 11/NQ-CP of the Government and Resolution No. 18/2022/UBTVQH15 of the Standing Committee of the National Assembly; specific mechanisms and policies for the development of a number of localities according to regulations, legal documents and directions of relevant competent authorities.

2. On the basis of the implementation assessment in 2022, ministries, central agencies and localities shall identify key tasks for implementation in 2023, proactively arrange expenditures and prioritize the implementation of these tasks. tasks, programs, projects and schemes approved by competent authorities according to their urgency, importance and ability to be implemented by 2023, in accordance with the ability of resources (including legal other law as prescribed); thoroughly thrift, combat waste right from the stage of cost estimation, ensure the implementation of unified tasks from the stage of cost estimation to the allocation, management and use of the state budget.

3. Ministries and central agencies in charge of sectors and fields, when formulating estimates, need to consider the overall review of regimes and policies (especially social security policies) to abolish, or integrate according to their competence, or submit to competent authorities for annulment or integration of overlapping, duplicating and ineffective policies; only propose promulgating policies to increase budget expenditure when absolutely necessary and with guaranteed sources; proactively anticipate full funding needs for implementation and mobilize resources corresponding to new policies, regimes and tasks decided by competent authorities; do not arrange expenditure estimates for policies that have not yet been issued. Arrange estimates to recover state budget expenditure advances that are due for recovery within the year as prescribed in Article 50 of the Law on State Budget.

4. Focus on directing, handling and solving right from the stage of making estimates of shortcomings and mistakes in financial and budget management that have been detected and recommended by inspection and audit agencies in accordance with provisions of the law.

What are regulations on formulating the state budget revenue estimate in 2023?  

According to Clause 1, Article 13 of Circular 47/2022/TT-BTC (effective from September 12, 2022), which prescribes principles for formulating the state budget revenue estimate in 2023, the following provisions are made:

1. General principles

a) Estimates of state budget revenue in 2023 must be made in accordance with the provisions of the State Budget Law, the Law on Tax Administration and the Laws on Taxes, Fees and Charges and relevant legal documents, and the recovery of the economy, ensuring correct and adequate collection of state budget revenues.

b) Develop a revenue estimate in 2023 closely following the world and domestic socio-economic and financial situation, specifically calculating the factors of increase, decrease and shift in revenue due to changes in legal policies on tax revenue. collection, on collection management, policies on tax exemption and reduction, fees and charges, extension of tax payment time, land rent and implementation of a tax reduction roadmap to fulfill commitments to international economic integration, including new generation free trade agreements; budget revenue impacts associated with the implementation of tasks specified in Resolution 43/2022/QH15, Resolution 18/2022/UBTVQH15 and the addition of charter capital for 03 State-owned commercial banks holding shares for expenditures. distributed according to Resolution No. 43/2022/QH15; budget revenue impacts due to the performance of the Government's obligations with respect to commitments with foreign investors have been submitted to the competent authorities.

c) The development of revenue estimates must be associated with drastic implementation of administrative reform measures and modernization of revenue management; strengthen the management, prevent loss of revenue for businesses and individuals doing business in the field of commerce and services, especially against loss of tax revenue in business, real estate transfer and revenue sources from urging implement recommendations of audit and inspection agencies; step up tax inspection and examination, combat transfer pricing, trade fraud, tax evasion, strictly manage taxable prices; effectively manage new sources of revenue arising from e-commerce, digital-based business and other services of overseas suppliers without permanent establishments in Vietnam; drastically handle tax arrears and strictly control tax refund.

d) Striving to estimate domestic revenue in 2023, excluding land use levy, lottery, sale of state capital in enterprises, dividends, profit after tax and the difference between revenues and expenditures of the Bank. The average state increase of the whole country is about 7-9% compared to the assessment estimated to be implemented in 2022 (after excluding the factors of increase and decrease in revenue due to policy changes). The specific increase in revenue depends on the conditions, characteristics and the economic growth rate in each locality. Estimated revenue from import and export activities in 2023 will increase by 4-6% on average compared to the estimated assessment in 2022.

Best Regards!