Prime Minister Nguyen Xuan Phuc wants the MoF to continue its reform process and set up a development strategy for the next five to ten years, which is essential during a strong volatile world with high risk of financial crisis.
Such a high fiscal deficit is due to low state budget revenue and increase in regular spending under the severe Covid-19 impacts.
As of July 20, the government delayed a payment worth VND47.6 trillion (US$2.04 billion) of land rental fees and taxes for enterprises, organizations and household businesses.
Such increases have created a burden on the citizens, while multinationals are taking advantage of Vietnam’s incentive policies to avoid taxes.
The finance ministry is seeking preferential loans from international organizations to relieve pressure of growing borrowings from domestic sources.
During the first quarter, budget revenue collection reached VND391 trillion (US$16.75 billion), equivalent to 25.9% of the year's plan and up 1.8% year-on-year.
To mitigate negative impacts from the epidemic, the local tax authority said it would continue to reform administrative procedures and adopt e-tax payment scheme.
In January, tax revenue stood at VND166.7 trillion (US$7.17 billion), equivalent to 11% of the year's plan and up 4.8% year-on-year.
Total capital expenditure in the 2016 – 2020 period would exceed the target of VND2,000 trillion (US$86.45 billion), accounting for 27 – 28% of total spending.