GUIDANCE ON FORMULATING THE STATE BUDGET PROJECTION FOR THE YEAR 2019
On June 08, 2018, the Ministry of Finance issues the Circular No. 54/2018/TT-BTC on providing the guidance on formulation of the State budget projection for the year 2019 and the three-year financial - State budget planning for the 2019 - 2021 period
With regards to the State budget revenue estimate:
- The State budget revenue estimate for 2019 must be established on the basis of the taxpayers data system; ensuring accurate and sufficient determination of the amount of specific revenues, taxes and collection sectors…
- The estimate of State budget revenues obtained by collecting land use fees and land rents must be established based on the plan for auction of the land use right in accordance with law;
- With respect to State budget revenues from collection of student’s school fees, medical service costs and public service charges), they shall not be assumed as State budget revenues and expenditures allocated or decentralized to ministries, central and local regulatory authorities, but must be represented in a separate State budget estimate. It shall be necessary to prepare a plan for use of these amounts to competent authorities…
For the state budget expenditure estimate:
- The estimate of the State budget’s capital expenditures should be arranged in order of priority by means of: Providing a full amount of funding in Stages of implementation of national target programs; Allocating adequate counterpart funds for projects using ODA funds; Funding newly opened projects if the funding source is available;
- The estimate of recurrent expenditures: Restrict the public procurement of motor vehicles; minimize the number of conferences, festivals
According to this Circular, by the year 2019, the proportion of mobilization of funds from taxes and fees to GDP will be approximately 21%; the national average domestic revenue will rise by the minimum rate of 12-14% compared to that estimated in 2018; the average revenue obtained from import and export activities will rise at the minimum rate of 4-6%.
This Circular takes effect on July 23, 2018.
