Understanding Vietnam’s Government Budget

“Worrying about tomorrow’s meal today” – this old Vietnamese saying still holds true, especially when it comes to financial management, from household budgets to national finances. The government budget, therefore, is not just a collection of dry numbers, but the “common purse” of the country, a key to the prosperity and sustainable development of the entire nation. So, what is the government budget and how is it calculated? Let’s explore with “XE TẢI HÀ NỘI”!

What is the Government Budget?

Simply put, the government budget is like the nation’s “wallet,” recording all expected revenues and expenditures for a fiscal year. The main sources of revenue come from taxes, fees, and charges paid by individuals and businesses. Meanwhile, budget expenditures are used to invest in crucial sectors such as education, healthcare, national defense, security, and social welfare.

Types of Government Budgets

Government budgets are divided into two main types:

• Central Budget: Includes revenues and expenditures of the central government and is managed by the central government.
• Local Budget: Includes revenues and expenditures of each locality and is managed by the local government.

How is the Government Budget Calculated?

Developing and calculating the government budget is a complex process, requiring the participation of many agencies and departments, based on scientific and transparent principles. This process typically goes through the following basic steps:

1. Macroeconomic Forecasting: Forecasting key economic indicators such as GDP growth, inflation, imports and exports,… to serve as a basis for developing budget revenue and expenditure estimates.
2. Revenue Estimation: Based on economic forecasts and the current tax, fee, and charge policies, relevant authorities will calculate the estimated budget revenue for the next fiscal year.
3. Expenditure Estimation: Based on the spending needs of sectors, levels, and localities, the government will develop budget expenditure estimates, ensuring resource balance and prioritizing critical areas.
4. Budget Review and Approval: The National Assembly, the representative body of the people’s will and aspirations, will review and approve the budget estimates submitted by the government.
5. Budget Implementation and Settlement: The government is responsible for implementing the budget in accordance with legal regulations. At the end of the fiscal year, the government will prepare a budget settlement report and submit it to the National Assembly for review and approval.

Government budget and economic development

Budget Transparency: The Key to Trust

“As clear as day” – that’s what people expect in the management of the state budget. Budget transparency allows citizens to monitor and evaluate the effective use of “people’s tax money,” thereby enhancing the accountability of state agencies in using the budget effectively, economically, and combating waste and corruption.

XE TẢI HÀ NỘI: Partnering in National Development

Just as effective government budget management contributes to the country’s development, XE TẢI HÀ NỘI always strives to be a trusted partner for customers, contributing to the development of the Vietnamese logistics industry.

We are proud to offer a diverse range of trucks, light trucks, and vans to meet all your cargo transportation needs. From 1-ton, 2-ton, 3.5-ton trucks to 8-ton trucks, XE TẢI HÀ NỘI is committed to providing you with the most optimal, efficient, and economical transportation solutions.

XE TẢI HÀ NỘI's Truck Fleet

Useful Links:

• VinCity Policy
• Financial Accounting Book 2

For truck consultation and quotation, please contact:

Phone Number: 0968239999

Email: [email protected]

Address: No. TT36 – CN9 Road, Tu Liem Industrial Park, Phuong Canh Ward, Nam Tu Liem District, Hanoi.

XE TẢI HÀ NỘI – Your companion on every road!