Budget revenue reaches over VND800,000 billion in the first quarter of 2025
Budget revenue reached more than VND800,000 billion in the first quarter, thanks to the strong economy and support policies implemented synchronously since the beginning of the year.
Reducing taxes and fees helps businesses reduce their burden
At the meeting of working groups for March and the first quarter of 2025, held on the afternoon of April 18, Minister of Finance Nguyen Van Thang emphasized that the results achieved in the first quarter are a testament to the efforts and high responsibility of the entire industry.
According to the Ministry of Finance, in the first 3 months of the year, the direction and management work continued to be carried out drastically and closely. Key tasks are implemented quickly, clearly with people, work, progress and results, closely following the direction of the Central and the Government. The Ministry proactively monitors the situation closely, develops appropriate operational scenarios to respond to unpredictable developments in the world and in the region.
In response to tariff fluctuations, the Ministry of Finance promptly submitted to the Government to issue Decree 73/2025/ND-CP dated March 31, 2025, adjusting preferential import taxes on 16 groups of goods - right before the US announced a new tax policy. At the same time, the Ministry promotes the signing of cooperation agreements and supports the rapid implementation of investment projects from US enterprises in Vietnam.
Regarding fiscal support policies, the Ministry has proposed a 2% reduction in value added tax for goods and services subject to a tax rate of 10% in the first half of 2025, with a support level of about VND 26,100 billion. Along with that, environmental protection tax on gasoline and grease continues to be adjusted down, with a support scale of about 44,000 billion VND. In addition, the Ministry will extend tax incentives for the automobile support industry until the end of 2027, maintain a 10-50% reduction in fees and charges for online public services and implement a policy to support registration fees for battery-powered electric cars.
The total estimated fiscal support in 2025 is about VND204,000 billion - higher than in 2024, to accompany businesses and people in the recovery period.
In parallel with support policies, institutional building work is being promoted. The Ministry of Finance has submitted to the Government and the Prime Minister to issue 22 Decrees and 2 Decisions; proposed to develop a Law on Personal Income Tax (replacement) and a Law on Savings and Combat-waste. The Ministry is also completing 8 draft laws (5 laws, 3 resolutions) to submit to the National Assembly in the May 2025 session and issuing 18 Circulars in the financial sector.
Domestic revenue increases sharply, many localities make a breakthrough
As of April 15, 2025, total state budget revenue reached VND 801,900 billion, equal to 40.77% of the annual estimate. Of which, central budget revenue reached VND 407,200 billion (39.9%), local budget revenue reached VND 394,700 billion (41.7%).
Domestic revenue continued to be a bright spot with a result of VND 646,300 billion, equal to 38.7% of the estimate and increasing sharply by 34.5% over the same period. This is the result of the economic recovery momentum from the end of 2024 until the beginning of this year, along with the tax sector strengthening collection management, preventing losses, applying technology in tax refunds and handling outstanding debts.
Revenue from three key economic regions reached VND 317,100 billion, equal to 38.5% of the estimate, up 20.4% over the same period. In which: the FDI sector reached 36.2% of the estimate (up 19.9%), the non-state sector reached 45.1% (up 36%), the state-owned enterprise sector alone reached only 28.9% and decreased by 7.6%.
Regarding the locality, 35/63 localities have achieved an inland revenue progress of over 30% of the estimate, 53 localities have recorded revenue growth compared to the same period.
In the spending direction, total state budget expenditure in the first quarter of 2025 reached VND 428,200 billion, equal to 16.8% of the estimate, up 11.6% over the same period. Of which, development investment expenditure is about 78,700 billion VND, disbursed at 9.53% of the plan assigned by the Prime Minister - continuing to be a major bottleneck of the budget. Interest payment reached 29.5% of the estimate, regular expenditure reached 20.2%.
Budget expenditure tasks are carried out on schedule, meeting the requirements of socio-economic development, ensuring national defense - security, social security and taking care of salary and allowance recipients. The Ministry of Finance has also issued 6,040 tons of national reserve rice for relief and hunger relief according to the Prime Minister's decision.
Minister Nguyen Van Thang affirmed that the achieved budget collection results are an important foundation for continuing to implement tasks in the coming time. Despite many difficulties, the whole industry has been proactive, flexible and successfully completed the targets set out in the first quarter of the year.
Read the original here
