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Vietnam Today

Budget deficit at $6 billion for first nine months

Released at: 13:52, 05/10/2015

Budget deficit at $6 billion for first nine months

Budget revenue rises from January to September after a better contribution by the domestic sector.

by Le Tra - Quynh Nguyen

The latest figures from the Ministry of Finance (MoF) put State budget revenue in September at VND61.3 trillion ($2.69 billion), bringing the January to September total to VND683 trillion ($30 billion), or 75 per cent of the target for the first nine months and an increase of 7 per cent against the same period of 2014.

Domestic sector revenue increase impressively, at VND42.8 trillion ($1.88 billion), pushing up total revenues in the nine months to VND504.3 trillion ($22.1 billion), or 79 per cent of the target and 17.1 per cent higher year-on-year.

Revenue from exports and imports remained largely unchanged, at VND14 trillion ($616 million) in September, with value added tax refunds of VND6 trillion ($264 million). In the first nine months total revenue was VND187.4 trillion ($8.2 billion), equal to 72.1 per cent of the target and up 0.4 per cent over the same period of 2014. With value added tax refunds of VND64 trillion ($2.8 billion), revenue from exports and imports stood at VND123.4 trillion ($5.4 billion), or 70.5 per cent of the target.

Meanwhile, revenue from crude oil in September reached just VND4.2 trillion ($185 million), for a nine-month figure of VND51.78 trillion ($2.27 billion), equal to 55.7 per cent of the target and tumbling 34.8 per cent year-on-year.

MoF said that at the beginning of the year it instructed tax offices and customs offices to efficiently apply new tax laws, strengthening measures to improve management quality and taxpayer support while bolstering tax inspections and tackling smuggling and trade fraud.

State budget expenditure, meanwhile, was stable in September, at VND88.85 trillion ($4 billion), bringing the total in the first nine months to VND823.97 trillion ($36.2 billion), or 71.8 per cent of the target, up 7.8 per cent against the same period of 2014.

Debt repayments increased the most, up 12.5 per cent compared with the same period last year. Investment and development expenses during the month rose 7.4 per cent against September 2014.

The State budget deficit in September was therefore VND27.54 trillion ($1.2 billion), putting the total deficit for the nine-month period at VND140.97 trillion ($6.2 billion), approximately 62.4 per cent of the target.

Regarding the mobilization of funds for the State budget in September, the State Treasury issued government bonds totaling VND2.56 trillion ($112.6 million). Volatility in the foreign exchange market had a strong impact on investor sentiment in the market, according to MoF, leading to reduced demand for government bonds.

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