State Budget Sees Uptick: Revenue Reaches 1,188 Trillion VND, Up 14.6% Year-on-Year

Highlights

• Domestic revenue growth surpasses expectations: Domestic revenue is estimated at 995 trillion VND, up 15.8% year-on-year, showing that business production and operations are gradually recovering and expanding.
• Positive revenue from production and business activities: Direct revenue from production and business activities increased by 7.5% year-on-year, reflecting an improvement in the business environment and the operational efficiency of enterprises.
• High growth in revenue from certain sectors: Land use fees, lottery revenue, dividends, and profits all grew well, contributing significantly to total budget revenue.
• Budget revenue in many localities met and exceeded the plan: This shows the efforts of localities in tax collection and budget management.

Deeper Analysis of Revenue Sources

• Corporate income tax (CIT): A major contributor to total budget revenue, with businesses having provisionally paid 4/5 of their CIT for the year.
• Personal income tax (PIT): Strong growth, especially from the transfer of real estate and securities.
• Revenue from import and export activities: Stable growth thanks to the recovery of trade activities.
• Revenue from crude oil: Although lower than the same period, it still reached a good proportion compared to the estimate.

Factors Affecting the Budget Revenue Situation

• Enterprise support policies: Policies to exempt, reduce, and extend taxes, fees, and charges have helped businesses overcome difficulties and resume production and business activities.
• Administrative procedure reform: The promotion of digital transformation and modernization of tax collection has created favorable conditions for taxpayers.
• Strengthening revenue management: Tax authorities have strengthened inspection, review, prevention of tax evasion, and debt recovery.

Challenges and Solutions

Besides the positive results, there are still some challenges to be addressed:

• Slow progress in collecting some items: It is necessary to accelerate the recovery of bad debts, especially tax debts.
• Pressure to refund taxes: It is necessary to find a balance between supporting businesses and ensuring revenue sources for the budget.

To achieve the annual budget target, agencies need to continue:

• Perfecting the legal framework: Updating and supplementing regulations on taxes, fees, and charges.
• Improving revenue management efficiency: Applying modern information technology, strengthening inspection and supervision.
• Supporting businesses: Continuing to implement policies to support businesses, creating a favorable business environment.

Conclusion: The state budget situation in the first seven months of 2024 shows positive signs, however, there are still challenges to be addressed. With appropriate solutions, Vietnam can fully achieve its annual budget target and ensure resources for socio-economic development tasks.