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Banking & Finance

Agency budgets held to offset falling crude oil revenues

Released at: 17:42, 10/06/2015

Agency budgets held to offset falling crude oil revenues

MoF announces plan to hold 10% of operational budgets of ministries and local government departments until position of State budget becomes clearer.

by Hung Nguyen

Following an order from the Prime Minister, the Ministry of Finance (MoF) has announced that 10 per cent of the operational budgets of ministries and local government departments will be temporary held in order to balance the State budget in case budget revenue significantly decreases, according to a report released at an MoF press conference on June 9.

Mr. Huynh Quang Hai, Head of the Budget Department at the Ministry, said that holding 10 per cent held may become a permanent measure if the State Budget continues to be greatly affected by the falling crude oil price.

In the first five months of this year the average price of crude oil was roughly $58.7, which is certain to affect State revenues. In estimates presented to the National Assembly previously the price was calculated at an average of $100 per barrel, so revenue from the source will be some 34 per cent less than anticipated.   

In August MoF will review the State budget and take additional steps regarding it holding 10 per cent of operational budgets.

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