State budget collection to reach 20 pct of GDP

Thien Thanh Sanitaryware joint company



State budget collection to reach 20 pct of GDP

 

State budget collection for the next five years is expected to make up 20-21 percent of the GDP, Deputy Minister of Finance Do Hoang Anh Tuan said at a meeting of the Ministry’s Party Committee on July 17.

Tax and fee collections are expected to range between 19-20 percent of the GDP and domestic collection (excluding collections from crude oil) is set to reach 80 percent of the state budget revenue by 2020, according to Tuan.

The sector also aims to keep the budgetary overspending at four percent of GDP and the public debt below 65 percent of GDP by 2020.

In order to realise the targets, the sector needs to pursue a tight and effective fiscal policy, improve the management of tax collections to reduce the impact of decreasing budget revenues from natural and mineral resources, Tuan said.

He also underlined the importance of the private sector in increasing investment resources for the society.

Meanwhile, Minister Dinh Tien Dung highlighted the opportunities and challenges faced by the sector in international integration from 2015-2020.

The sector needs to build synchronous and transparent financial institutions in line with the development of the market economy and international integration.

Administrative procedure reform in the financial sector is a priority of the period to ensure a favourable business climate and enhance the competitiveness of the economy, Dung said.

He also urged science and technology application in the sector to improve effectiveness in tax collections, customs and stocks as well as strengthening the role of monitoring and supervision of public finances to ensure security of the public budget and prevent corruption and waste.

Reports at the meeting showed that state budget collections from 2011-2015 nearly doubled those from the previous five-year period.

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