PM Nguyễn Xuân Phúc addresses a teleconference in Hà Nội on Friday reviewing the finance-budget work last year and launching tasks for 2020. — Photo courtesy of the Ministry of Finance

HÀ NỘI — Prime Minister Nguyễn Xuân Phúc on Friday asked the Finance Ministry (MoF) to work closely with the Ministry of Planning and Investment to step up public investment disbursement.

During a teleconference in Hà Nội to review the finance-budget work carried out last year and launch tasks for 2020, PM Phúc praised the finance sector’s achievements adding that all localities met targets on State budget collection for the first time and made important contributions to macro-economic stability.

The MoF had effectively worked with relevant ministries, agencies and localities to direct prices, especially those of electricity, he said, adding that it cut more than 2,100 procedures, improving the business environment regarding taxation and customs.

However, public investment disbursement remained slow, meeting 81.8 per cent, 75.8 per cent and 73.5 per cent of the respective for 2017, 2018, 2019 plans set by the National Assembly.

He requested removing difficulties in the restructuring, equitisation and divestment in State-owned enterprises, as well as cracking down on violations in land, natural resources and procurement.

In order to achieve the goal of being among the top ASEAN countries in terms of the business environment, he asked for continued reform to move up this year.

Amid complicated developments globally, the leader suggested the MoF pool resources for the nation and achieve the goal of earning US$300 billion from exports this year.

The sector was also asked to tackle barriers to production and trade.

MoF set a budget revenue target for 2020, 3 per cent higher than the target set by the National Assembly, said Minister of Finance Đinh Tiến Dũng during the teleconference.

The ministry will strive to maintain the State budget overspending at around 3.44 per cent of GDP, public debts no more than 54.3 per cent of GDP, government debts less than 48.5 per cent of GDP and external debts no more than 45.5 per cent of GDP by the end of this year, Dũng said.

According to MoF, State budget revenue last year was nearly VNĐ1.55 quadrillion (US$66.9 billion), 9.79 per cent higher than the yearly plan and 8.7 per cent higher than a year earlier.

Of the amount, domestic revenue grew 8.5 per cent to VNĐ100.2 trillion while revenue from oil production and exports hit VNĐ11.7 trillion, a surge of 26.1 per cent year-on-year. Collection from imports and exports exceeded VNĐ25.3 trillion, up 13.4 per cent.

Central budget collection reached over VNĐ32 trillion, 4 per cent higher than estimated, while local budget collection totalled more than VNĐ106.2 trillion, 17.7 per cent higher.

Dũng said the State budget revenue’s structure had changed as the domestic collection accounted for 82 per cent of the total in 2019, compared to the average of 68 per cent from 2011 – 2015, while collection from imports and exports fell to 3.6 per cent this year from the average of 13 per cent during the five-year period.

This year’s overspending was about 3.4 per cent of GDP, lower than the estimate of 3.7 per cent. Public, Government and external debts were 55 per cent, 48.5 per cent and 45.8 per cent of GDP, respectively, which were all under the limits set by the NA and Government, the minister said. — VNS