Những nhân tố ảnh hưởng đến thu NSNN REVENUES OF STATE BUDGET

MINISTRY OF INDUSTRY AND TRADE
HO CHI MINH CITY UNIVERSITY OF INDUSTRY
FALCULTY OF FINANCIAL AND BANKING

PUBLIC FINANCE
Topic:

REVENUES OF STATE BUDGET
Instructor: Ph.D. Vo Van Hop
Name of students:
1.
2.
3.
4.
5.
6.
7.

Le Dan Thy………………..10279821
Le Hoang Viet……………..10302821
Tran Van Phuoc…………...10178081
Le Thi Minh Tam………….10302811
Nguyen Bich Thao………...10138541
Nguyen Ngoc Tram………..10283411
Nguyen Dao Thuy Tien……10302221

Class: IUH-BFB – 6A

Ho Chi Minh city, February 2014

TABLE OF CONTENT

TABLE OF CONTENT...................................................................................... 1
INTRODUCTION .............................................................................................. 2
CHAPTER 1: STATE BUDGET AND REVENUE OF STATE BUDGET . 3
1.1.

State Budget ......................................................................................... 3

1.1.1.

Concepts ......................................................................................... 3

1.1.2.

Characteristics................................................................................ 3

1.1.3.

Features .......................................................................................... 3

1.2.

Revenue of State Budget ..................................................................... 4

1.2.1.

The sources of revenue .................................................................. 4

1.2.2.

Elements affecting the revenues of State Budget ....................... 5

1.2.3.

Stability of the State Budget through Revenues ........................ 5

CHAPTER 2: VIETNAM’S REVENUE OF STATE BUDGET 2011-2013 . 7
2.1.

The revenue of State Budget in Vietnam from 2011 to 2013 .......... 7

2.2. The factors affect to the stability of state budget in angle of
revenues ........................................................................................................... 9
2.2.1.

Gross Domestic products (GDP) ................................................... 9

2.2.2.

Tax ................................................................................................ 10

2.2.3.

Charge, fees and others .............................................................. 11

2.3.

Results and weaknesses .................................................................... 12

2.3.1.

Results: ......................................................................................... 12

2.3.2.

Weaknesses of state budget revenues .......................................... 13

CHAPTER 3: CONCLUSIONS AND RECOMMENDATIONS ................ 14
3.1. Conclusions ............................................................................................. 14
3.2. Recommendations .................................................................................. 14
REFERENCES .................................................................................................. 15


REVENUE OF STATE BUDGET | GROUP 1
INTRODUCTION
Budget exist along with the development of the State. Budget has become an
important tool to mobilize financial resources, adjusting the macro-economic as well
as regulating the income of government to ensure social security - welfare program for
Vietnamese people. Through the budget revenues, government and ministries can
orient investment, stimulate or limit business production in order to develop the
country.
Recognizing the urgent of the problem, with the aim to learn about operation of state
budget revenues, our group has decided to choose topic "Revenues of State budget
from 2011 to 2013" to consolidate lessons and apply knowledge into practice.
The article includes following:
 Chapter 1: The theories of State Budget and revenue of State Budget.
 Chapter 2: The revenue of State Budget in Vietnam from 2011 to 2013.
 Chapter 3: Recommendations.
We are lack of specialized knowledge about state budget, so this essay still has many

shortcomings. We are looking forward to receive teacher’s comments and classmate’s
feedback to complete this subject.

LECTURER: Ph.D. VO VAN HOP

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REVENUE OF STATE BUDGET | GROUP 1
CHAPTER 1: STATE BUDGET AND REVENUE OF STATE BUDGET
1.1. State Budget
1.1.1. Concepts
The State Budget is originated from the commodity economy and government
establishment. Government set tax rates and manage State Budget to maintain the
government operation, military and develop the economy.
1.1.2. Characteristics
 The State Budget is link directly with economic and political power of local
government.
 Delegation from State budget to provincial budgets.
 It operates based on transparent, democratic, centralized and authorities.
 Prioritized to archive social objectives, national benefits.
 The State Budget has balanced between state revenue and state
expenditures.
1.1.3. Features
 Distribution functions:
The State decisions are always the subject of the distribution relations related to the
State Budget, the State maximum use of political power to the distribution function of
the State Budget. It’s to use monetary unit of account, as a means of distribution. It
impact supply and demand sides of the economy, associated with the formation and
use of the state budget funds. Implementation results of the distributed manufacturing

process and supply of goods and services, primarily through taxes, fees, property
income and expenses the State Budget for the community; not participate fully in the
process of distribution of input, mainly direct state investment, business pension,
subsidies to the economy.
 Controlled functions:
In principle, the State Budget controlled is done by state entities, but in fact made by
the official representatives of the Government, such as National Assembly, State
President, the Council of the population, the agency shall be authorized as state
auditor, the state inspector ... It’s done all at the micro and the macro level, both
directly and indirectly. The State Budget controlled to provide balanced information
on budget revenue and expenditure, on the status of revenues, expenditures and the
State Budget reserve fund at the required moment, the national debt situation and
solvency of the government. Through the function of the state budget controlled, the
state financial controlled macro situation. The controlled targets of the state budget is
the basic criteria, occupied an important position in the system of financial monitoring
indicators of each country. The State Budget controlled also consider the level of
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REVENUE OF STATE BUDGET | GROUP 1
performance mode, limits in budget expenditure basis, considering the financial
executive at the law firms and government agencies to use the state budget. The tool
of State Budget controlled is statistics, accounting operations, the audit, inspection
operations, financial control, financial public regime, the budget and the public media.
1.2. Revenue of State Budget
1.2.1. The sources of revenue
 Tax
Tax is a compulsory contribution to meet the needs of spending of state. Taxes reflect

the process of redistribution of income in society, to show the financial relationship
between the state and legal persons and it’s a basic tool to distribute finance.
 Charges and Fees
Fees and charges fees is a compulsory revenue, but they oppose each other, it means
that fees and charges are essentially money that citizens have to pay to the state when
they use the services that are provided by state. Compared to tax, the legality of the
fees and charges has much lower. Charges associated with the recovery a part of the
investment costs for goods and services, tangible public. Fees associated with the
enjoyment of the benefits from the provision of administrative services, legal.
 The revenue from the economic activity of the state
 Income from capital on the basis of economic that is owned by the state.
 Withdrawal of capital in state institutions.
 Recovery of loans by the state.
 Income from business activities
Revenues have a profit from the operation of the facility or business that is owned by
state.
 Revenues from the sale or lease of natural resources and assets are owned by
state.
The nature of this revenue is a partly recovery of capitals and not only raise the
effective use of national assets but also has increased the revenues for the state budget.
The revenues from the sale or lease of assets, resources, nature are owned by the state.
 Revenues from fines, confiscation, forfeiture of assets
Revenues are also an important part of the revenue of state budget and is required by
law.
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REVENUE OF STATE BUDGET | GROUP 1

1.2.2. Elements affecting the revenues of State Budget
 Gross Domestic Product (GDP)
GDP is the deciding factor in the encouragement of the state budget. GDP of a nation
is affected by two factors: total collects of a nation and the number of population. If
the total collects of a nation get the stability in one period but the number of
population increased rapidly, the GDP will be low. The GDP low leads to the loss of
State Budget’s revenue lower. It will not enough money from the State Budget to use
for the economic and social activities of government. This trend leads to the rise of
State Budget deficit and the State budget become less stable. So, the government need
to find the solutions to increase the total collects of nation and control the number of
population at suitable level to ensure the growth rate of GDP and the revenue of State
Budget.
 Profitability rate in the economy
This is expenditure reflects investment efficiency of economic, this ratio becomes so
larger that the financial resources larger, so the state budget dependents on the level to
defray expense of the state. An economy has low profitability rate will has the low
collects from GDP leads to the low collects of State Budget’s revenue.
 The potential of natural resources
This factor is not really a main factor but also an important factor affect to the
development of a nation’s economy. A nation has high value of natural resources will
has suitable strategy to use for the production and make the development of economy
more stable.
 Organizational system from revenue of state budget
Factors directly affect the results of revenue. The organizational system’s operation
work well can help the government control the revenues of State Budget more
effective.
1.2.3. Stability of the State Budget through Revenues
There are many factors affect to the stability of State Budget but it also has four main
factors affect to the stability of State Budget in the view of revenue as follow:

 GDP
Therefore, what GDP represents, economic production and growth, has a large impact
on nearly everyone within that economy. When the economy is healthy, GDP
increases, you will typically see low unemployment and wage increases as businesses
demand labor to meet the growing economy. Therefore, the welfare also increases.
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REVENUE OF STATE BUDGET | GROUP 1
Finally, that leads to the increasing in tax. In contrast, when GDP decreases, the
country will have more unemployment, enterprises have difficulty on their businesses,
tax decreases eventually. A significant change in GDP, whether up or down, usually
has a significant effect on the stock market. It's not hard to understand why: a bad
economy usually means lower profits for companies, which in turn means lower stock
prices. Investors really worry about negative GDP growth, which is one of the factors
economists use to determine whether an economy is in a recession.
 Tax
Tax is the main source of State Budget’s revenue. The stability of tax structure lead to
the stability of State Budget’s revenue in long-term. The non-stability of tax structure
lead to the non-stability of State Budget’s revenue. When we do the analysis of tax,
we should divide it into two factors of tax: import-export tax(it includes: importexport tax and import value added tax in Vietnam) and domestic tax (it is 11 kinds of
domestic tax in Vietnam).
 Charge, fees and other short-term sources of State Budget’s revenue
Charge, fees and other short-term sources of State Budget’s revenue not only the main
but also the sources of State Budget’s revenue. This affect level of these factors not
high because they are not the main factors but we must work carefully with them
when we make the analysis the stability of State Budget in the angle of revenue.

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REVENUE OF STATE BUDGET | GROUP 1
CHAPTER 2: VIETNAM’S REVENUE OF STATE BUDGET 2011-2013
2.1. The revenue of State Budget in Vietnam from 2011 to 2013
According to the Law of the National Assembly number 01/2002/QH11 Budget, the
state budget revenues include:





Revenues from taxes, fees and charges
Revenues from economic activities of the State
The contributions of organizations and individuals
Aid, other revenues as prescribed by law.
VIETNAM’S REVENUES OF STATE BUDGET 2011-2013
(Unit: Billion VND)

No

Items

Final
account
2011

Final
account
2012

1st
Budget
estimate
2013

721,804

743,190

790,800

655,476
618,846
196,058
38,469
1,589
1,478

688,936
637,706
213,953
44,970
1,193
1,572

745,564

678,598
222,399
45,772
1,205
1,590

15,700
192,064
42,686
38,123

11,820
193,787
43,356
42,278

12,991
222,168
50,096
36,368

72

69

55

1
2
3

4

State budget revenues &grants
(I+II+III)
Current revenues
Taxes
Corporate income tax
Individual income tax
Land and housing tax
Business license tax

5
6
7
8

Registration tax
Value added tax
Domestic excise tax
Natural resources tax

9

Agricultural land - use tax

10

Imp - Exp. tax, excise tax and
environmental protection tax on Imports

81,406

72,028

74,300

Environment protection tax

11,201

12,680

11,654

Fees, charges and non-tax
Fees and charges (include gasoline fee)

36,630
10,341

51,230
8,198

66,966
15,205

Land rents
Miscellaneous revenues
Capital revenues (revenues from sale
of State - owned houses, land user

right assignment)

5,869
20,420

7,762
35,270

5,740
46,021

54,225

46,429

40,236

A
I
I.1

11
I.2
12
13
14
II

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REVENUE OF STATE BUDGET | GROUP 1
III
B
C

Grants
Brought forward revenues
Investment mobilizations under Point
8 Article 3 - The State budget Law

12,103
236,500

7,825
22,400

5,000

4,678
(Sources: The Ministry of Finance)

In general, the State budget revenues increased significantly from 2011 to 2013 (about
68,996 billion dong).
In 2011 and 2013, taxes accounted for 91.01% and fees, charges and non-tax
accounted for 8.98% in current revenue.
In 2012, the current revenue increased (about 33,460 billion compared to 2011), tax
took up 92.56%, due to the amount of fees, charges and non-tax occupied 7.44%.

Capital revenues decreased slightly from 54,225 (hold 7.51% of Stage budget
revenues) in 2011 to 40,236 (hold 5.08% of State budget revenues) in 2013.
Grants reduced gradually from 2011 to 2013 and accounted a very small proportion of
the State budget revenues (respectively 1.67%, 1.05%, 0.61%)
 Causes
Although our country is facing many difficulties due to the economic crisis (debt
crisis in Europe in 2011-2012) but revenue of Vietnam still remain increasing
 State has many instructions (such as number 02/CT-BTC Date 08/08/2013) to
monitor, evaluate and direct the tax system continuously, to promote the
revenue management, reduce losses, enhance inspection, handle tax debts in
accordance with law. In particular, coordinating with Ministry of Public
Security and Money Laundering Department of the State Bank to exchange
information, investigate and prosecute towards organized and individuals with
violations of deduction and refund of value added tax in a number of
enterprises, anti-transferring price, smuggling and commercial fraud.
 General Department of Taxation has launched 15 major solutions with 36
detailed solutions to control thoroughly in the entire system. In May 2013, the
tax authorities inspected 54 714 enterprises, increasing total tax revenues
through inspection was 11717.3 billion, equal 104.7% over the same period.
The amount of tax payable to the government through inspection was 7786.5
billion, equal 127.2% over the same period.

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REVENUE OF STATE BUDGET | GROUP 1
2.2. The factors affect to the stability of state budget in angle of revenues
2.2.1. Gross Domestic products (GDP)

VIETNAM'S GDP GROWTH RATE 2011-2013
900,000

6.00%

800,000

5.80%

700,000

5.60%

600,000
500,000

5.40%

400,000

5.20%

300,000

5.00%

200,000

4.80%

100,000

Total revenues (Bil.VND)
Taxes (Bil.VND)
GDP growth rate (%)

2011
721,804
618,846
5.89%

2012
743,190
637,706
5.03%

2013
790,800
678,598
5.42%

4.60%

(Sources: The Ministry of Finance)
From 2011 to 2012, the GDP growth rate decreased from 5.89% to 5.03%. In 2012,
Vietnam economy have some difficult because it under pressure of financial crisis and
public debt crisis in Europe still haven’t had the perfect solutions. The inflation rate of
Vietnam increased 6.81% in compare with 2011. So we can said that in this period the
GDP growth rate decreased slightly is suitable with the current situation.

From 2012 to 2013, the GDP growth rate increased from 5.03% to 5.42%. We can
said that Vietnam economy had the flourishes. The effects of financial crisis all over
the world and public debt crisis in Europe had solve by the government. It’s a good
news for Vietnam economy and the revenue of State Budget.
From 2011 to 2013, the decreasing of tax, fee and charge above GDP made state
budget went down (respectively 22.7% GDP, 20.6% GDP, 18.4%GDP). According to
specialist, it estimated in 2014 about 17.2%. This figure is lower than the target 22 –
23% from the Government. In this trend, we can see the State Budget’s revenue is
stable because the encourage of State Budget’s revenue through GDP is stable.

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REVENUE OF STATE BUDGET | GROUP 1

2.2.2. Tax
VIE T NAM' S RE VE NUE S FRO M TAXE S 2011 -2013

Imp-Exp.tax (Bil.VND)
Domestic taxes (Bil.VND)
Taxes (Bil.VND)

F/a 2011
81,406
537,440
618,846

2nd Est- 2012

72,028
565,678
637,706

1st Est- 2013
74,300
604,298
678,598

(Sources: The Ministry of Finance)
The tax is one factors affect to the stability of State Budget in the angle of revenues
because the tax is one in main sources of State Budget’s revenues. To analyze the
effect of tax to the stability of State Budget in the angle of revenues, we should divide
the tax into two sectors as: import - export tax and domestic taxes.
 Import – Export taxes
Import – Export taxes or Tariff is the same name for calling two types of taxes in the
area of international trade . That is the import taxes and export taxes. Export and
import taxes are used to increase the revenue of state budget.
When the government increased the import taxes, the consumer was damaged and the
suppliers took advantage of increasing of the goods. Under the stimulus, the suppliers
must make more and more productions and make a lot of profit. But when the prices
was so high, it makes the consumer have to pay more amount of money. This money
was transferred by the government. Therefore, the revenue of state budget will
increase dramatically.
The import- export tax has decreased from 2011 to 2013 and decreased about 8.73%.
In detail, the revenue from import-export tax decreased 11.52% in the period of 20112012 and increased 3.15% in the period of 2012-2013. This trend make the revenue of
state budget gone down in short-term but it will make the revenue of State Budget
gone up in long-term base on the policy of reducing the revenue from import-export
tax.
 Domestic taxes

The revenue of State Budget from domestic tax increased in the period of 3 years. The
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REVENUE OF STATE BUDGET | GROUP 1
revenue from domestic tax increased 5.25% from 2011 to 2012 and it increased 6.83%
from 2012 to 2013. In summary, the revenue of State Budget from domestic tax
increased 12.44% in the period of 2011-2013.
These information said that the revenues from domestic tax links with the domestic
business activities, consuming and investment had the strong development. This is a
success of tax renovations of the government in the period of 2011-2015.
In structure of State Budget’s revenue, the collects from domestic always has the high
percentage. In 2011, collects from domestic tax was 74.46% of State Budget’s
revenue. This ratio were 76.11% and 76.42% in 2012 and 2013. This information said
that the State Budget’s revenue from domestic tax got the stability in the period of
2011-2013 and in the trend of developing. The revenue of State Budget was in the
trend of reducing the collects from short-term sources and increasing the collects from
long-term sources. This facts secured for the stability of Vietnam State Budget in the
angle of revenue in the period of 2011-2015.
2.2.3. Charge, fees and others
VIE T NAM' S RE VE NUE S FRO M FE E S , CH ARGE S
AND O T H E RS 2011 -2013

Fees and charges (Bil.VND)
Others (Bil.VND)

F/a 2011
10,341

26,289

2nd Est- 2012
8,198
43,032

1st Est- 2013
15,205
51,761

(Sources: The Ministry of Finance)
Generally, from 2011 to 2012, the charges and fees increased slightly from 8,012 to
8,967, around 11.9%. In 2012 – 2013, the charges and fees went up strongly from
8,967 to 10,378, which was equivalent to 15.7%. In order to results above, the
government has adjusted charges and fees according to market mechanism. At the
present, there are 357 fees and 75 charges are being organized in Vietnam. This is
large revenues for state budget. However, charges and fees depend on each
administrative division. It makes the decision of fees and charges, how much
collections are, non-synchronous. In addition, the nature of the fees and chargers are
short-term. It just uses to collect revenues in short term not in the long-term. So the
government should cut down some fees and charges in the future.
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REVENUE OF STATE BUDGET | GROUP 1

(Oil)

2011

2012

2013

69,300

87,000

99,000

25.54%

13.8%

Density (%)

From 2011 to 2012, the oil increased strongly from 69,300 to 87,000, about 25.54%.
From 2012 to 2013, the oil went up slightly from 87,000 to 99,000, which was
equivalent to 13.8%. In general, we can see the oil rose in 3 years because Vietnam
has rich natural resources. In addition, the target in 2050 is using the effectiveness and
reasonability in order to create the stability revenues. So if the government exploits
well, we can receive much revenue for state budget. However, using natural resources
is the short-term way because natural resources have limited so the government should
find another natural resources to instead of oil.
2.3.

Results and weaknesses

2.3.1. Results:
Administrative reforms in tax and customs continue to be strengthened, reducing time
declare and pay taxes for enterprises, thereby encouraging enterprises conduct online
tax declaration which create favorable condition to the taxpayer.
On the basis of the first 9 months working with local authorities , revenue 25,200
billion deficit in 2013, not including revenue - expenditure over the estimates ( 38 430
billion), 63 630 billion deficit . The last months of the year, with the drastic effort,
enhanced handling of tax debts, controlling the refund of VAT, the results of the total
estimated budget gained about 99 %, increased 16.000 billion compared to
Congressional report. In particular, the State Budget has collected 20,000 billion
dividends on state-owned enterprises and the retained earnings after deduction of
funds in accordance with law was about 42,500 billion, exceeding 3,300 billion
compared to Congressional reports. The local exceeded revenue estimates in the area
include: Hồ Chí Minh, Đồng Nai, Bình Dương, Bà Rịa - Vũng Tàu, Vĩnh Phúc.
Due to increasing budget revenues, the State ensures timely resources to meet the
needs of estimated expenditures, including expenditures to ensure welfare program
and funding sources to implement the basic salary increase policy (from 1,050,000
VND / month up to 1,150,000 VND / month) from 07.01.2013 and additional funding
for the prevention of natural disasters, epidemics. At the same time, Ministry of
Finance strengthened inspecting and supervising policies and handling problems
related to policy mechanisms.
State has implemented policies through preferential credit channel, including lending
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REVENUE OF STATE BUDGET | GROUP 1
policies towards ethnic minorities, the credit policy for pupils and students in difficult
circumstances. In addition, the Ministry of Finance has issued 44 624 rice tones of

national reserves, equivalent to 441 billion for people who suffer from hunger in the
region. Exporting a wide range of storage equipment worth hundreds of billion in
service of flood protection, search and rescue, contribute to ensuring social security welfare program.
The Ministry of Finance has directed to deploy the pilot agricultural insurance. As
reported by the local and insurers, the pilot agricultural insurance was implemented in
all provinces and cities with 171 360 households participated insurance contract (of
which 85 % poor) with the value of crops, livestock, fisheries is 3,480 billion, the
premium is 227 624 million. At the present, the enterprises have resolved to
compensate for people who incurred losses due to natural disaster, epidemics in the
amount of 349 billion.
2.3.2. Weaknesses of state budget revenues
Revenues exceeded budget estimates are mostly derived from objective factors, a
large proportion is due to rising prices, increasing import taxes for items which not
encourage imports, increasing revenues from natural resources (crude oil) and
housing, land. Factors that increase revenue from business activities are only about
20% of the total. This reflects revenue of the state budget increased but lack solid, not
derived from the internal resources of the economy. In addition, the legal system still
weak, multinational companies abusing transfer prices cause losses to the state budget

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REVENUE OF STATE BUDGET | GROUP 1
CHAPTER 3: CONCLUSIONS AND RECOMMENDATIONS
3.1. Conclusions
Aside from expenditures, the revenues is a component to the state budget. The
revenues which are not effective will affect the operation of the state apparatus, the
economic life of the people and society. From 2011 to 2013, our country has increased

significantly the state budget revenues but those revenues depends heavily on nonsustainable factors. Vietnam still struggling to seek alternative sources to ensure no
budget deficit. Therefore, the State should have the practical solution which make
state budget more sustainable in the future and ensuring the revenues.
3.2. Recommendations
To intensify monitor and control of the tax declarations from the companies,
individuals in order to detect some cases that fraud tax or pay insufficient tax. The
government has directed and penalized about the loss of revenues with tax-dodger,
take back the tax arrears from previous years, the revenues from the investment
project has invalid the preferential duties. In addition, the state should attach special
importance to the price transfer, electronic commerce.
To propagandize and support taxpayers in order to increase the awareness as well as
answer the questions of taxpayers in pay taxes. To intensify the propaganda has
affected the taxpayers understanding the types of tax that need to pay, how to
calculate the tax and the period to pay tax. Therefore, the government doesn’t waste
time to monitor the taxpayers.
Besides, the government should promote the advisory tax because if we have a tax, the
taxpayers will increase the professional and understanding the laws in pay tax so that
the fraud tax will decrease in the future.

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REVENUE OF STATE BUDGET | GROUP 1

REFERENCES
1. CỔNG THÔNG TIN ĐIỆN TỬ BỘ TÀI CHÍNH [Online] Avaible from:
[Acessed: 19th February
2014].

2. THANH TRA VIET NAM (2013) Nâng cao hiệu quả thanh tra thuế góp phần
tăng thu ngân sách nhà nước. [Online] Available from:
/>[Accessed: 19th February 2014].
3. Congressional Budget Office, The Budget and Economic Outlook: Fiscal Years
2007 to 2016, Washington, DC:U.S Government Printing Office, 2006b

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