Sustainable revenue calculating for the state budget

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​Production workers at a company in Nhon Trach 3 Industrial Park

Positive results

In the 2016-2020 period, the state budget revenue in the province reached over VND 253 trillion, reached 100.5% of the estimate. In which, domestic revenue was over 175.4 trillion dong, reached 101.48% of the estimate. However, if excluding land use levy and lottery collection, the domestic revenue of the above years was over 149.6 trillion dong, only reached 94% of the estimate; import-export revenue reached over 77.7 trillion dong, reached 98.4% of the estimate. The factors to achieve the estimate in the past years were thanks to land-related revenues such as collection of land use fees, land rents, receipts, etc and from lottery.

Also from the above revenue sources, in the first quarter of 2021, the results from the lottery reached VND 846 billion; land use fee collection reached over 2.3 trillion dong, reached 117% of the estimate, contributed to the state budget revenue in the province reaching nearly 22.3 trillion dong, reached 47% of the estimate, increased of 35 % compared to the same period. In which, domestic revenue reached nearly 17.9 trillion dong, reached 53% of the estimate and increased 39% compared to the same period; the province's import-export revenue reached over VND 4.4 trillion, increased 23% compared to the same period in 2020.

However, although the province's budget revenue is high, the main source of revenue is still based on land, while some other sources of income are low. Therefore, the financial sector of the province has re-evaluated the number of businesses in the province to ensure a solid source of revenue for the locality.

Find a sustainable solution

Over the past years, in order to solve a number of goals to strive to complete the tasks of revenue - expenditure and balance the assigned budget, Dong Nai has implemented a number of solutions such as improving the business environment, encouraging businesses development, improving productivity, quality, efficiency and competitiveness ... at the same time drastically implement state budget collection, determined to achieve and exceed assigned estimates.

In order to achieve the set goals, the financial industry, besides supporting the development of businesses, the financial industry must make clear changes in the prevention of revenue loss, handle and prevent acts of smuggling and commercial fraud, production and trading of counterfeit goods, transfer pricing, tax evasion; strive to reduce the rate of tax arrears to less than 5% of total state budget revenue.

In order to balance revenue and expenditure because the revenue balance did not meet the estimate, the Department of Finance based on the regulations to advise the Provincial People's Committee to develop a plan to make up for the deficit and report to the Provincial People's Council. Results after 5 years, the local budget still basically ensures the implementation of a number of key and focused contents, social security regimes and policies, spending on education and training development and profession teaching …

Director of the Department of Finance Do Khoi Nguyen said that the department would continue to focus on monitoring and forecasting the economic and investment situation; the situation of production and business development and import-export activities of enterprises to promptly advise the Provincial People's Committee to remove difficulties and obstacles, create conditions for enterprises to stabilize and develop production and business. Simultaneously, coordinated with functional agencies and localities to strengthen monitoring, evaluation and forecasting of budget revenues and expenditures, based on actual revenues to the state budget to arrange disbursement of spending tasks.