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Highlights in financial picture for 2022-2024

Domestic revenue is expected to rise 8-9% per year for 2022-2024

Trade revenue is expected to rise 5-6% per year

According to Circular No. 61/TT-BTC on building the State budget estimates in 2022 and the three-year financial plan from 2022 to 2024, ministries, central agencies, units and provincial units have developed a three-year financial - State budget plan from 2022 to 2024 in accordance with the Law on State Budget, Decree No. 45/2017 detailing 5-year financial planning and three-year financial - State budget planning, Circular No. 69/2017/TT-BTC, Laws on taxes, fees and charges, Law on Public Investment; five-year financial plan and the medium-term public investment plan for 2021-2025.

If the spending needs of ministries, central agencies and provincial-level units from 2022 to 2024 are higher or lower significantly than estimates in 2021 or exceed the State financial and budget resources that finance and investment agencies have updated and notified from 2022 to 2024, ministries, central agencies and provincial units will submit explanations and solutions to raise non-budget financial resources, ensuring budget balance. The primary salary is expected to VND1,490,000 per month.

The estimation of State budget revenue will be conducted on the basis of assessing the impact of natural disasters and diseases, especially the Covid-19 pandemic, which is still unpredictable; the development capacity of the whole country, of each industry, field and locality in 2022-2024 in line with the 10-year socio-economic development strategy from 2021-2030, the five-year socio-economic and financial plan for 2021-2025; factors of investment capacity, labour productivity, competitiveness, business environment improvement, support and development of production and business of enterprises and trade, import and export activities of each year and impact factors of the international integration process.

The State budget collection plan is also based on expected factors that increase, decrease and shift revenue sources due to the adjustment of collection policies, expansion of tax bases, and stricter revenue management in accordance with Resolution 07; the implementation of guiding documents of the Law on Tax Administration 38/2019/QH14; and the implementation of the tariff reduction roadmap according to integration commitments; a number of corporate income tax policies to support and develop firms and preferences from the informal economy sector.

The Ministry of Finance has set targets that the domestic revenue excluding revenues from land use levy, lotteries, proceeds from the sale of State capital in enterprises increases, dividends, profit after tax and the national average revenue and expenditure difference of the State Bank are about 8-9% per year and the average growth rate of revenue from import and export activities is about 5-6% per year.

The revenue growth rate of each locality may be higher or lower than the general average, depending on the conditions, characteristics and economic growth rate of each locality.

The ministry also requires the estimation of fees and charges for the years 2022-2024 in detailed as prescribed and only estimation for fees and charges paid to the State budget.

Assess Covid-19 pandemic impacts on revenues

Regarding the estimation of State budget spending for the three years from 2022 to 2024, the expenditures of ministries, central agencies and provincial units must specify the goals, tasks, and programmes, schemes, projects, policies and regimes that have expired/have just been approved by competent authorities, and pay special attention to the implementation of Resolutions 18 and 19 of the Government and Decree 60/2021.

For specialised management ministries, in addition to estimation of annual state budget revenues and expenditures for 2022-2024, it is necessary to calculate and determine the total fund to carry out mechanisms, policies and tasks issued by authorities each year from 2022 to 2024 nationwide.

Ministries must also make spending plans from ODA, concessional loans and non-refundable aid not under official development assistance in 2022-2024 for each project according to the implementation progress of the loan agreements which have been signed and approved or under negotiation. The planning of recurrent expenditures must also detail the implementation of valid/expired objectives, tasks, policies and regimes; and new and approved objectives, tasks, regimes and policies.

Planning of State finance and budget for provinces and centrally-run cities has a number of notable contents.

Based on assigned revenues, the scope of State budget collection as prescribed, and the state budget revenue estimate in the area in 2022, the provincial People's Committee requests the Department of Finance to assume the prime responsibility for, and work with the local tax departments and customs departments and other agencies to make plans for State budget revenue in 2022-2024. The plans must analyse and evaluate the impacts that increase, decrease and shift revenue sources; assess the impacts of pandemic, natural disasters on revenues; implement the tariff reduction roadmap according to integration commitments and several corporate income tax policies to support and develop enterprises.

Based on the estimated revenue in the province, estimated revenues of each local governments and the estimated additional amount from the central budget to the local budgets announced by the competent authority 2022 to 2024, the Provincial People's Committees assigns Departments of Finance to assume the prime responsibility for, and work with Departments of Planning and Investment, District People's Committees and other agencies to make local budget spending plans in 2022-2024, ensuring sufficient fund to implement the issued regimes, policies and tasks and spending commitments; and ensuring fund for the new spending tasks of the locality in each year from 2022 to 2024 in order of priority to implement the local key socio-economic goals and tasks, within the scope of resource capacity.

The planning of budget deficit and surplus, loans and debt repayment of the local budget for 2022-2024 must ensure that the outstanding loan balance of the locality at the end of each year does not exceed the prescribed limit.