The Kiên Giang Oncology Hospital under construction. The MoF will accelerate the disbursement of public money to meet the fiscal spending target set by the PM.— VNA/VNS Photo Lê Huy Hải

HÀ NỘI — The Ministry of Finance (MoF) hit its target in the first six months of 2023 with fiscal revenue of VNĐ876 trillion (US$37 billion) and expenditure of VNĐ805 trillion ($34 billion). 

This was the remark made by a MoF representative in a virtual conference yesterday, which was attended by Deputy Prime Minister Lê Minh Khái. 

The representative said MoF's proactive approach to fiscal policy had helped Việt Nam sustain its economic growth and produced favourable effects on the business sector. Fiscal revenue in the first half of the year reached 54 per cent of the annual target, whereas fiscal expenditure was 38.8 per cent. 

The Ministry's efforts in improving the legal framework were another praiseworthy contribution to the financial sector. The MoF pushed the draft Law on Price through the National Assembly in June and accomplished 16 out of 26 legal projects assigned to it in six months.

Bond-issuance was the next task that the Ministry performed well. By late June, nearly VNĐ180 trillion ($7.6 billion) of government bonds had been issued, with an average term of 12.23 years and an average annual coupon of 3.7 per cent.

The Ministry also did a great job in promoting domestic consumption through its proposal of Resolution No.101. The Resolution, approved by the National Assembly in June, will trigger VAT cuts of 2 per cent on certain categories of goods and services between July 1 and December 31.

The Ministry has doubled its tax-based efforts by proceeding with three more resolutions during the period, namely Resolution No.12, Resolution No.36, and Resolution No.41. Resolution No.12 grants tax extensions to businesses in 2023 in regard to income and value-added taxes.

The combined effect of the three resolutions was expected to amount to around VNĐ200 trillion ($8.5 billion) for the whole year. In the first six months of the year, approximately VNĐ70 trillion ($3 billion) of tax was extended in favor of the business sector.

It was also worth noting that the Ministry's price management was on the right track, with six-month CPI growth kept at 3.29 per cent and core inflation at 4.74 per cent.

The representative forecast that the second half of 2023 would remain tough for the MoF because more challenges were emerging. To overcome the challenges, MoF's to-do list must involve measures to keep public debt in check and improve the efficiency of loan usage.  

Additionally, the Ministry must accelerate the delivery of public money to reach the disbursement target set by the Prime Minister for 2023. Surveillance must be strengthened to ensure a sound and healthy financial system.

The securitisation and divestment of State capital in State-owned enterprises must be expedited to supplement the fiscal revenue and improve the efficiency of public finance. — VNS