07:13 (GMT +7) - Thursday 15/11/2018

Banking & Finance

Budget deficit at $7.14bn

Released at: 08:56, 04/11/2016

Budget deficit at $7.14bn

Photo: Duc Anh

Deficit represents 62.8% of annual plan.

by Anh Duy

The State budget deficit for the first ten months of 2016 has been estimated at VND159.5 trillion ($7.14 billion), equal to 62.8 per cent of the annual plan, the latest figures from the Ministry of Finance (MoF) reveal.

Collections totaled VND821 trillion, ($36.77 billion), or 80.9 per cent of the annual plan, up 6.1 per cent year-on-year, while spending stood at VND980.5 trillion ($43.91 billion), or 77 per cent of the annual plan, up 6.9 per cent year-on-year.

Domestic business activities generated VND663 trillion ($29.69 billion) in collections, equal to 84.5 per cent of the plan for 2016 and up 13.3 per cent year-on-year. Operating and manufacturing activities saw better than expected results, with many important revenue sources increasing over the same period last year.

Revenue from industry and trade activities (excluding SOEs) increased 19.6 per cent year-on-year, from the FDI sector 16 per cent, from personal income tax 15.4 per cent, from land use fees and taxes 35.4 per cent, and from licenses and registration fees 22.2 per cent.

A number of revenue sources remained low. Revenue from fees and charges were 75.5 per cent of the annual and from the non-State sector  69.1 per cent. Revenue from State-owned enterprises (SOEs) also failed to improve.

Estimated revenue from the SOE sector reached just 68.8 per cent of the annual plan by the end of October, down 1.8 per cent year-on-year, largely because of the difficulties being experienced by corporations and companies within the petroleum, coal, mineral and hydroelectric sectors.

Budget collections from crude oil reached VND32.46 trillion ($1.45 billion), equal to 59.6 per cent of the annual plan and down 42.4 per cent year-on-year. Total crude oil sales in the first ten months was estimated at 12.67 million tons, equal to 90.3 per cent of the annual plan, with the average price per barrel standing at $42.7 during the period, down $17.3 compared to the pricing plan.

Collections from import-export activities were estimated at VND215.76 trillion ($9.66 billion), equal to 79.9 per cent of the annual plan and up 3.3 per cent year-on-year. After deducting VAT, collections were VND122.26 trillion ($5.47 billion), or 71.1 per cent of the annual plan and down 4.3 per cent year-on-year.

Investment and development spending, meanwhile, reached VND163.2 trillion ($7.31 billion), equal to 64 per cent of the plan for the year and up 19.1 per cent year-on-year. Disbursement of construction investment has improved over recent months thanks to ministries, authorities and provinces focusing on implementing solutions to promote capital disbursement in accordance with the government’s Resolution No. 60.

State budget investment for projects was estimated at VND161.6 trillion ($7.23 billion), equal to 64 per cent of the annual plan. Disbursement from government bonds was estimated to equal 44.1 per cent of the annual plan, while it reached 54 per cent in the same period last year.

Debt repayment and aid stood at VND130.84 trillion ($5.86 billion), representing 84.4 per cent of the year’s plan and up 2.8 per cent year-on-year. Due debts were fully paid on time in accordance with commitments and did not have a negative impact on the macro-economic situation.

Spending on socioeconomic development, national defense and security, and administrative management totaled VND679.9 trillion ($30.45 billion), equal to 82.5 per cent of the annual plan and up 4.2 per cent year-on-year.

According to MoF, the task of issuing government bonds in 2016 has fulfilled responsibilities under planning. As at October 24, government bonds totaling VND268.3 trillion ($12 billion) were issued.

User comment (0)

Send comment