State budget revenue shows promising growth amidst global economic challenges

DNHN - Amidst a complex global economic backdrop, the review report on the 2024 state budget reveals encouraging results.

Mr. Le Quang Manh, Chairman of the National Assembly's Finance and Budget Committee, announced that in 2024, the total state budget revenue is estimated to reach VND 5,083 trillion, marking an impressive 37% growth compared to the same period last year. This outcome is not only a commendable achievement but also reflects the effectiveness of the government's policies. It demonstrates that efforts to reform and promote economic development are starting to bear fruit, especially in the context of a global economy still reeling from the impacts of the pandemic and economic crises. Vietnam's strong economic recovery has opened up new opportunities for investment and development, contributing to the country's enhanced position on the international stage.

However, alongside these notable successes, the report also highlights some concerning issues in budget management. The quality of budget revenue forecasting still falls short of high standards, leading to projections that do not fully align with actual outcomes. This can create difficulties in budget adjustments and the implementation of development programs. To address this, authorities need to improve forecasting capabilities, allowing for appropriate adjustments in financial policies to optimize budget revenue.

On the expenditure side, despite growth in revenue, the pace of disbursement for development investment funds remains slow. This may affect the implementation of key projects and hinder sustainable economic growth. The Finance and Budget Committee has suggested that the government issue specific directives for ministries, sectors, and localities to accelerate the disbursement of public investment funds. This would not only maximize resources but also ensure timely project implementation, contributing to economic development and improving people's livelihoods.

As the economy continues its recovery, enhancing the efficiency of public investment fund disbursement is more crucial than ever. The government should link the responsibilities of agency heads with disbursement progress, creating incentives for executing investment projects. At the same time, there needs to be mechanisms for monitoring, evaluation, and timely adjustments to ensure resources are used most effectively, thereby driving sustainable socio-economic development and improving quality of life for the population.

In the first nine months of the year, regular expenditures are estimated to reach 68% of the forecast, increasing by 1.2% compared to the projection, indicating that the government has made reasonable decisions in spending. However, delays in disbursing funds for national target programs still persist, and the reasons behind this must be clarified with effective solutions to address them.

Looking ahead to 2025, state budget revenue is expected to see growth in several streams, especially from the business sector. However, the Finance and Budget Committee has noted that while certain revenues are projected to decrease significantly, actual 2024 performance exceeded estimates. The government needs to analyze the reasons for these discrepancies to adjust strategies accordingly.

The budget forecast for crude oil in 2025 is set at $75-80 per barrel, lower than in 2024. This requires the government to provide more detailed analysis and forecasts on oil prices to ensure the accuracy of the budget projections. Additionally, revenue from import-export activities is also expected to fall short of targets, requiring special attention from relevant agencies.

The review report also points out various issues that need to be clarified in the 2025 central budget allocation plan. The Finance and Budget Committee has called on the government to clarify why there has been no specific allocation for the three national target programs from the beginning of the year. This is crucial to ensure that resources are used most effectively for programs that directly benefit people's lives.

The committee also agrees with the proposed plan to handle balance expenses for 2024 and suggests increasing supplemental allocations to localities receiving transfers from the central budget. For the VND 20 trillion expected to be allocated for investment tasks outside the scope of the Public Investment Law, it is essential to clarify the allocation levels for each specific task.

With many challenges and opportunities in budget management, Vietnam stands at a critical juncture. The government needs to continue building on its successes while addressing lingering issues. Improving forecasting quality, accelerating investment fund disbursement, and enhancing budget efficiency will be key factors in ensuring sustainable economic growth for Vietnam in the future. Consensus among all levels of government and functional agencies will be the driving force behind this progress, ultimately delivering tangible benefits to society as a whole.

Dai Hai