Ministries propose government allow additional exploitation to ensure State budget revenue for 2015 given falling crude oil prices.
At a meeting of the government’s Macroeconomic Management Committee last week the Ministry of Finance (MoF), the Ministry of Industry and Trade (MoIT), and the Ministry of Planning and Investment (MPI) proposed the government permit additional oil exploitation of 400,000 to 500,000 tons to ensure State budget revenue this year.
The proposal was submitted in the context of the average crude oil price falling to $60 a barrel, which is $40 lower than the estimates of $100 a barrel.
State budget revenue from crude oil exploitation for the first half reached only VND35.9 trillion ($1.65 billion), equal to just 38.6 per cent of estimates for the period and 34.5 per cent lower than in the first half of 2014.
Speaking at the meeting, Minister of Finance Dinh Tien Dung stressed that Vietnam’s economic growth will struggle to reach the 6.2 per cent target approved by the National Assembly without an incredible effort.
He requested the finance sector strictly inspect the tax obligations of provinces and enterprises while collecting payments.