Ministry rolls out proactive fiscal policy to drive economic growth

Ministry rolls out proactive fiscal policy to drive economic growth

The Ministry of Finance is rolling out a proactive and flexible fiscal policy, aimed at supporting production and business activity and fostering economic growth.

The Ministry of Finance plans to develop new sources of tax revenue, particularly from e-commerce activities. VNA/VNS Photo

The Ministry of Finance is rolling out a proactive and flexible fiscal policy, aimed at supporting production and business activity and fostering economic growth.

From the early months of 2025, the Ministry of Finance has focused on expanding the tax base, improving revenue collection efficiency and intensifying efforts to combat tax evasion, smuggling, transfer pricing and revenue loss. Special attention has been given to managing tax revenues from new sectors such as e-commerce and the digital economy.

To increase the State's financial capacity, the ministry is pushing to maximise budget revenue collection as directed by the Government, with the goal of ensuring resources for wage reform, development investment and social welfare. 

By the end of the first quarter of 2025, total State budget revenue had reached VNĐ721.3 trillion (nearly $27.89 billion), equating to 36.7 per cent of the yearly estimate and marking a 29.3 per cent increase compared to the same period in 2024.

On the expenditure side, the ministry has maintained strict and efficient management of budget spending, ensuring alignment with the budget estimate approved by the National Assembly. Regular expenses have been closely monitored and implemented with a focus on thrift. 

In the first quarter, state budget spending reached VNĐ428.2 trillion, or 16.8 per cent of the annual estimate, up 11.6 per cent year-on-year.

In parallel with revenue and expenditure management, the Ministry of Finance is intensifying efforts to accelerate the disbursement of public investment capital - an important tool to boost economic growth. However, disbursement remains a challenge. 

In the first three months of 2025, only VNĐ78.7 trillion was disbursed, representing 8.98 per cent of the annual plan, slightly lower than the same period in 2024.

To address this, the ministry has introduced several measures, including public disclosure of monthly disbursement data for major national and inter-regional projects, as well as national target programmes. 

These efforts are designed to help ministries, Central agencies and local departments monitor progress and take timely action to speed up implementation.

The Ministry of Finance has also implemented a series of supportive policies, including tax extensions, exemptions and reductions to ease the financial burden on businesses and individuals. These measures are critical in sustaining business operations and stimulating demand, especially after the COVID-19 pandemic.

In the first quarter of 2025 alone, approximately VNĐ22.2 trillion in taxes, fees and land rents were either exempted, reduced or deferred. 

Over the 2020–2024 period, total tax and fee relief provided through fiscal policies is estimated at nearly VNĐ900 trillion.

The deputy director of the General Department of Taxation, Đặng Ngọc Minh, emphasised the Government’s commitment to supporting economic recovery through fiscal tools. 

“Policies on tax exemptions, reductions, and deferrals have played a vital role in alleviating financial pressure on businesses and individuals, especially during difficult times,” he said.

Despite the supportive policies, economic experts caution that large-scale tax reduction measures could put pressure on State revenues. 

To offset shortfalls, the ministry plans to manage budget revenues more tightly and develop new sources of revenue, particularly in the areas of e-commerce, the digital economy, along with real estate.

Bizhub