HCMC – Prime Minister Pham Minh Chinh has directed that Vietnam’s budget revenue for 2024 exceed the National Assembly-approved target by 10% to fund wage reforms and cover unforeseen expenses.
In a directive issued on September 2, the PM noted that the economy showed signs of stability and recovery during the first eight months of this year. State budget revenue reached 78.5% of the year’s target, while the fiscal deficit and public debt levels remained within acceptable limits.
Despite these positive indicators, some businesses continue to face challenges, and inflationary pressures persist. Revenue from land-use fees has been particularly sluggish. Monitoring efforts have revealed issues with financial discipline, including tax evasion and the misuse of public funds in certain areas.
He urged ministries and local authorities to refine tax policies and enhance management to prevent revenue loss.
This includes improving tax regulations on real estate, e-commerce, foreign suppliers, and businesses providing direct-to-consumer services, especially in the food and beverage sector.
To address budget spending, PM Chinh instructed ministries and local authorities to cut and save 5% of regular expenses this year. For 2025, they must save an additional 10% of regular expenses and 10% of extra recurring costs, with these funds directed towards wage reforms, deficit reduction, or urgent development projects.
