Financial strategy - state budget 2023-2025: Increase domestic revenue by 8-9% every year on average

DNHN - Circular 47/2022/TT-BTC mandates and proposes to collect the state budget for three years from 2023 to 2025 to increase the domestic income growth rate, excluding land use charges, lottery, and state capital sales. Dividends, profit after tax, and the gap between State Bank income and expenditures are around 8-9%/year on average across the country.

Circular 47/2022/TT-BTC states the three-year plan for state budget collection in 2023-2025 will go into effect on September 12, 2022, based on the country's economic development capacity and each industry, sector, and locality in 2022-2024, by the 10-year socio-economic development strategy 2021-2030, 5-year plans for the period 2021-2025, and the contents and tasks of implementing the Recovery Program and socio-economic development according to Circular Resolution No. 43/2022/QH15 of the National Assembly, Resolution No. 11/NQ-CP of the Government; factors of change in investment capacity, labour productivity, competitiveness, improvement of the business environment, support and development of production and business of enterprises and trade, import and export activities of each year; factors affecting the process of international integration.

Strive to raise domestic income between 2023 and 2025, excluding land use levy, lottery collection, earnings from the sale of public stock in firms, dividends, profit after tax, and the gap between revenues and expenditures. The average annual growth rate of the State Bank is roughly 8-9% nationally; the average annual growth rate of income from import and export activities is about 5%. The unique revenue growth rate of each location may be higher or lower than the general average, depending on the conditions and features, as well as the economic growth rate in each area.

For retained revenues, tuition fees, medical service prices, public non-business service revenues that are not on the list of fees, and revenues transferred to the service pricing mechanism: develop a collection plan separately by regulations, and develop a plan to use it to send it to the competent authority to supervise and continue to implement the mechanism to generate sources of this revenue for salary reform by regulations; send it to the finance department.

The Circular states that the cost estimate for 2023-2025 is to develop with a base pay of 1,490,000 VND/month. The Ministry of Finance will notify and guide later based on the decision of the competent authority on the plan to implement wage reform under Resolution No. 27-NQ/TW of the 7th Conference of the 12th Central Committee on reforming the salary policy for employees, Ministries, civil servants, public employees, armed forces, and employees in enterprises.

The three-year state budget expenditure plan for the years 2023-2025 of the ministries, central agencies, and provincial agencies and units shall be prepared by the requirements specified in Article 17 of this Circular; the 2023 estimate made in Chapter II of this Circular; in which specific explanations of objectives, tasks, programs, schemes, projects (including national target programs), policies, and regimes have expired/newly approved by competent authorities

Concurrent with the planning of annual state budget revenues and expenditures for the period 2023-2025 (the part directly implemented by the ministries), it is necessary for ministries managing sectors and fields to calculate and determine the total funding needs for implementation mechanisms, policies, and tasks promulgated by competent authorities each year for the period 2023-2025 nationwide, along with specific explanations based on calculation.

PV