REPORT
State Budget Execution Review Note for Quarter I, 2024
In the first months of 2024, the global economy continued to face prolonged risks and instability, posing many difficulties and challenges for Vietnam's economic development. However, at all levels from central to local, decisive efforts have been made to implement the resolutions of the Government on socio-economic development and the Prime Minister’s directives aimed at achieving the highest results of the production and business plan for 2024. The macroeconomic situation is stable, inflation is within control, major balances are ensured, and many important results have been achieved in various sectors: GDP growth reached 5.66%, the highest quarterly growth since 2020; CPI increased by 3.77% compared to the same period last year, with core inflation rising by 2.81%.
These results have affected the state budget revenue and expenditure in the first quarter of 2024 as follows:
1. Total state budget revenue is estimated at VND 539.5 trillion, equivalent to 31.7% of the Budget Plan, an increase of 9.8% compared to the same period in 2023. Specifically:
a) Domestic revenue is estimated at VND 467.5 trillion, equivalent to 32.4% of the Plan, an increase of 13.5% compared to the same period in 2023. The revenue in the first quarter exceeded the estimate mainly due to the concentration of revenue from 2023’s fourth quarter occurrences and the difference in corporate income tax, value-added tax, personal income tax, etc. (declared for state budget submission in the first quarter of 2024 according to the regime). Specifically, revenue from three economic zones (accounting for 50.9% of the domestic revenue estimate) is estimated to reach 35.4% of the Plan1, an increase of 12.2% compared to the same period in 2023; personal income tax is estimated to reach 33.4% of the Plan, an increase of 5.9%; revenue from lottery activities is estimated to reach 42.5% of the Plan, an increase of 41.1%;...
The Tax Department has focused on fulfilling the assigned budget collection tasks, continuing to implement policies supporting enterprises and people to overcome difficulties in production and business activities, and to recover and improve the socio-economic situation. An estimated amount of tax exemptions and reductions, fees, and charges in the first three months of the year is approximately VND 20.6 trillion2. At the same time, there's a concerted effort to timely and effectively implement measures to enhance revenue management, inspect and review all registered businesses to accurately determine the number of temporarily suspended businesses, businesses reporting cessation of operations, and to tightly control value-added tax refunds.
b) Revenue from crude oil is estimated to reach VND 15.8 trillion, equivalent to 34.4% of the Plan, an increase of 2.1% compared to the same period in 2023.
c) Balanced revenue from import and export activities is estimated to reach VND 56.2 trillion, equivalent to 27.5% of the Plan, a decrease of 12.5% compared to the same period in 2023.
2. Total balanced state budget expenditure is estimated at VND 393.5 trillion, equivalent to 18.6% of the Budget Plan, an increase of 8.3% compared to the same period in 2023, including: capital investment expenditure estimated at VND 89.9 trillion, equivalent to 13.3% of the Plan, an increase of 22.8% compared to the same period in 2023; recurrent expenditure estimated at VND 271 trillion, equivalent to 21.5% of the Plan, an increase of 3.4% compared to the same period in 2023; debt interest payment estimated at 32.5 trillion dong, equivalent to 29.1% of the Plan, an increase of 16.6% compared to the same period in 2023.
In overall, the budget expenditure mandates have been executed in compliance with the budget plan in Quarter I, 2024, meeting the budgetary requirements for socio-economic development, national defense and security, public administration and service of due debt as well as provision for pandemic control activities, social protection, including for the beneficiaries of state budget funded payroll, pension and social assistance.
In addition, implementing the the Prime Minister's decision, the Ministry of Finance had disbursed 12.7 thousand tons of rice from the national reserve to provide relief and aid to people during the Lunar New Year and early months of the year.
3. With the aforementioned revenue and expenditure results, the balance of the central budget and budgets of local authorities is ensured.
1 Revenue from state-owned enterprises is estimated to reach 33% of the Plan, an increase of 7.9%; revenue from foreign-invested enterprises is estimated to reach 34.6% of the Plan, an increase of 12.5%; revenue from the non-State sector is estimated to reach 37.4% of the Plan, an increase of 14.3% compared to the same period in 2023.
2 This includes policies issued in 2023 and are continued to be implemented in 2024 and policies issued and implemented in 2024, which reduce collectible state revenue, namely: Government’s Decree No. 44/2023/ND-CP dated June 30, 2023 and Decree No. 94/2023/ND-CP dated December 28, 2023 on reducing the rates of value-added tax; the Standing Committee of the National Assembly’s Resolution No. 30/2022/UBTVQH15 dated December 30, 2022 and Resolution No. 42/2023/UBTVQH15 dated December 18, 2023 on implementing reduced environmental protection tax rates for gasoline (except ethanol), diesel oil, mazut oil, lubricants, grease, fuel oil, and aviation fuel.
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