Revenue 7% higher than estimates and up 13% against 2014.
State budget revenue exceeded targets in 2015 despite global oil prices being down 50 per cent on estimates, thanks in part to the efforts made by the financial sector, Deputy Prime Minister Vu Van Ninh told a conference on December 30 summarizing activities in the sector.
2016 will still present many challenges, he added, especially from unpredictable developments in global financial markets that will require further determination from the sector.
A report from the Ministry of Finance (MoF) showed that budget revenue in 2015 reached VND976 trillion ($42.9 billion), VND65 trillion ($2.86 billion) higher than the VND911 trillion ($40 billion) estimated. Budget revenue was therefore 7 per cent higher than estimates and rose 13 per cent compared to 2014.
A further highlight was that revenue from tax debts stood at VND38 trillion ($1.67 billion), exceeding the target of VND34 trillion ($1.49 billion).
Total budget expenditure from 2011-2015 were around targets, increasing more than 70 per cent in 2015 against 2010. Expenditure to GDP fell from over 30 per cent in 2010 to 26 per cent in 2015.
Deputy Minister of Finance Vu Thi Mai said that policies reducing collections and increasing expenditure made balancing the budget a problematic task, with the budget deficit remaining high and public debt increasing rapidly. Appropriate measures, she said, are needed to address the situation in the future.
She added that 2016 will be more positive than 2015 but risks remains from both domestic and international economic circumstances. The formation of the ASEAN Economic Community along with the signing and implementation of free trade agreements will present many opportunities for development but also create problems for production by domestic enterprises.
2016 is the first year of implementing the Socio-economic Development Plan for 2016-2020 and will also see major events such as elections for National Party Congress XII and People’s Councils at all levels around the country, so there must be more determination in managing budgets, Deputy Minister Mai added.
Based on the socioeconomic development plan for 2016 and expectations for the domestic and global economic situation, the government approved budget revenue estimates of $44.6 billion for the year. Expenditure, meanwhile, is estimated at $56 billion, of which development expenditure is to be $11.2 billion, recurrent expenditure $36.2 billion, and debt and aid repayments $6.82 billion.