Vietnam’s 2024 Fiscal Policy Execution: Flexibility Meets Success with a 17.4% Surplus in Total State Budget Revenue
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Developing and Perfecting Legal Policies
According to the Ministry of Finance’s report, based on resolutions and directives from the Party, National Assembly, and Government, the ministry promptly formulated action plans to implement socio-economic development plans and state budget estimates. Fiscal policies were adjusted accordingly, focusing on addressing difficulties faced by businesses and citizens, promoting growth, and safeguarding social welfare.
Additionally, rigorous inspection, supervision, and progress-tracking efforts were implemented across localities, ensuring public investment disbursement and the execution of national target programs. The Ministry of Finance submitted and provided feedback on several crucial bills to the National Assembly, including amendments to the Securities Law, Accounting Law, and laws related to budget and taxation. They also adjusted the value-added tax policy, reducing tax rates by 2% for certain goods and services to support businesses.
Concurrently, the ministry issued over 80 guiding circulars and presented numerous decrees and decisions to the Government and Prime Minister for issuance, thereby enhancing the legal framework for finance and budget sectors.
Executing the Government’s 2024 Work Program, the Prime Minister’s Directive No. 01/NQ-CP on tasks and solutions for implementing the socio-economic development plan and state budget estimates for 2024, the Ministry of Finance had accomplished 63 out of 72 assigned projects (87.5%) as of December 27, 2024. This included 38 projects and tasks assigned during the direction and administration process. By December 31, 2024, the ministry is expected to complete 70 out of 71 assigned projects (98.6% of the plan)…
Overall, the research and development of financial mechanisms and policies closely followed the Party’s guidelines and directives, meeting the requirements of content and progress as instructed by the Government and the Prime Minister. It also addressed significant complex issues and emerging challenges facing the country amid economic hardships. These efforts contributed to macroeconomic stability, inflation control, sustainable economic development, effective social issue management, administrative procedure reform, improved business environment, enhanced national competitiveness, and continued restructuring of the state budget.
Total State Budget Revenue Surpasses Estimate by 17.4%
In 2024, total state budget revenue reached VND 1,997.3 trillion, exceeding the estimate by 17.4%. Domestic revenue achieved 115.2% of the estimate, while revenue from crude oil reached 126.2%, and trade balance revenue stood at 134.2%.
The exemption, reduction, and extension policies, with a total value of VND 197.3 trillion, provided much-needed support to businesses and citizens, helping them overcome challenges and maintain production and business operations. These measures also played a part in curbing inflation and ensuring macroeconomic stability.
State budget expenditure for 2024 is estimated at VND 1,830.8 trillion, equivalent to 86.4% of the estimate, including development investment expenditure at 7.1% of the estimate and regular expenditure at 94.5%, ensuring timely response to emerging tasks.
Moreover, the Ministry of Finance saved VND 5 trillion from regular expenditures to supplement essential social programs such as providing permanent housing for the poor, improving the transportation system, and addressing the aftermath of natural disasters.
Based on the revenue and expenditure outcomes, the budget deficit for 2024 was maintained at 3.4% of GDP, lower than the estimate. The government bond issuance mobilized VND 330.4 trillion at an average interest rate of 2.52%/year, contributing to the stability of the financial and monetary market. Moving forward, the Ministry of Finance will focus on administrative reform solutions, enhance digitalization in financial and tax management, and promote public investment disbursement to drive sustainable economic development.
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Previously, in a discussion with the press, the government leader emphasized the challenges faced by the Vietnamese economy in 2024 due to external factors such as tax, interest rate, exchange rate, inflation, and conflict issues. Given the country’s high level of economic openness, these factors had significant impacts. Despite these challenges, under the leadership of the Party and the Government, and with the dedication of authorities at all levels, businesses, and citizens, Vietnam successfully accomplished its socio-economic development tasks for 2024, as evident in the achievement and surpassing of set economic growth targets. |
– 21:45 30/12/2024
