To proactively manage the State budget to have sources for salary reform in Vietnam

To proactively manage the State budget to have sources for salary reform in Vietnam (Internet image) 

Regarding this issue, LawNet would like to answer as follows:

On December 15, 2023, the Prime Minister issued Official Telegram 1372/CD-TTg strengthening the management of State budget revenues, saving expenses, and proactively managing the State budget in December 2023 and the first months of 2024.

To proactively manage the State budget to have sources for salary reform in Vietnam

Specifically, the Prime Minister requested the Minister of Finance chair and coordinate with Ministers, Heads of ministerial-level agencies, Government agencies, and Chairmen of People's Committees of provinces and centrally-run cities to implement the following contents:

- Continue to operate expansionary fiscal policy in a reasonable, focused, effective manner, coordinated closely, and in harmony with monetary policy to promote investment, especially non-state investment, promote public investment to serve growth, stabilize the macroeconomy, control inflation, and ensure major balances of the economy. Strictly control the State budget deficit and public debt within the allowable range.

- Drastically deploy the State budget revenue and expenditure tasks in the remaining period of 2023 and right from the first months of 2024; proactively manage state budget expenditure estimates; thoroughly save regular expenses, especially during the Lunar New Year; review and cut tasks that are not really necessary and are slow to deploy;... devoting resources to socio-economic recovery and development; preventing and overcoming consequences of natural disasters, epidemics, and climate change; carrying out social security spending tasks; ensuring security; national defense; and reforming salary and social insurance policies according to regulations.

- Continue to promote the restructuring of state budget expenditures in a sustainable direction, gradually reducing the proportion of regular expenditures associated with innovating the regular expenditure allocation mechanism, ensuring spending on people, social security, health, environment, defense, security, and the fields of education - training, science - technology, etc., according to the law; increasing the proportion of development investment spending and debt repayment in total State budget expenditures; and reducing State budget deficit according to the provisions of Resolution 23/2021/QH15 of 2021.

- Focus on directing and closely monitoring price and market fluctuations before, during, and after the New Year and the Lunar New Year of Giap Thin in 2024; Managing supply and movement of goods to meet demand; price control during Tet; inspecting, monitoring, and strictly handling violations of price regulations and other relevant laws.

- Continue to direct value-added tax refunds promptly and in accordance with regulations for businesses and people.

To strengthen state budget revenue management and strive to further increase state budget revenue in Vietnam

Regarding the request "Strengthening the management of state budget revenues, striving to further increase state budget revenues," the Prime Minister requested Ministers, Heads of ministerial-level agencies, and agencies under the Government; Chairman of the People's Committees of provinces and centrally run cities shall carry out the following contents:

- Direct the review of all revenue sources and extended tax amounts, firmly grasping budget payers in the area and field to have appropriate and effective revenue management solutions, and exploiting remaining and potential revenue sources such as business on digital platforms, e-commerce, entertainment services, food and beverage, gasoline, etc.

Focus on handling and removing difficulties in auctions, land allocation, and project implementation to promote land use fee collection to ensure capital for development investment.

- Inspect and control the tax declaration and tax finalization of businesses, organizations, and individuals to ensure the correct, complete, and timely collection of taxes, fees, charges, and other revenues into the state budget. Urging the collection of tax amounts that are due to be remitted into the state budget. Speed up tax refund work, ensuring it is timely, to the right subjects, and in accordance with regulations.

- Strengthen tax inspection, check and strictly control tax declaration and refund records, and detect and promptly handle tax and invoice fraud; Direct departments, branches, and branches to coordinate closely with local revenue agencies in revenue management, preventing revenue loss, completing inspections and examinations, and urging full collection of revenues. According to the conclusions of the inspection and audit, the state budget will be collected and tax debt recovered.

- Strengthen prevention of trade fraud, transfer pricing, import price fraud, and cross-border smuggling, especially business activities on digital platforms, real estate transfers, and petroleum smuggling via sea and across borders. Strengthen inspection and supervision of the implementation of regulations on price management, taxes, fees, and stabilization of prices of raw materials and essential goods for production and people's lives.

- Implement restructuring and restructuring of state-owned enterprises; promote equitization and divestment of state capital in enterprises according to the plan approved by the Prime Minister, but absolutely do not allow negative or group interests to occur during the restructuring process; Accelerate settlement work for equitized enterprises and divest state capital in enterprises to collect the state budget.

Continue to review and implement measures to reduce fees and input costs for businesses to improve business performance.

More details can be found in Official Dispatch 1372/CD-TTg, dated December 15, 2023.

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