Key revenue up against January 2015.
Estimates from the Ministry of Finance (MoF) put total State budget revenue in January at VND102.6 trillion ($4.61 billion), equal to 10.1 per cent of the annual estimate and 95 per cent of the figure in January last year.
Domestic revenue was estimated at VND93 trillion ($4.18 billion), equal to 11.8 per cent of the annual estimate and up 5.8 per cent year-on-year.
Key revenues were higher compared to last January, with those from industrial and commercial sectors in the non-state area reaching 14.6 per cent of the annual estimate and up 14.2 per cent, those from foreign-invested enterprises reaching 14.4 per cent of the annual estimate and up 13.7 per cent, and personal income tax payments reaching 11 per cent of the annual estimate and up 20 per cent.
According to MoF the results are due to the positive development of the macro-economy and the determination of the tax offices in collection activities.
Crude oil revenue, meanwhile, reached only VND3.2 trillion ($144 million), equal to 5.9 per cent of the annual estimate and down 65.7 per cent against January last year. The reason was the falling global price of crude oil, which now stands at around $30 a barrel. Due to delayed payments, the oil price Vietnam received in January was around $38 a barrel, down $22 compared to the estimate.
Revenues from trade were estimated at VND17.8 trillion ($801 million), equal to 6.6 per cent of the annual estimate and down 19.8 per cent over the same period of 2015, mainly due to the falling crude oil price and also lower prices for petrochemical products. Turnover from many imported commodities that are major contributors to the State budget also fell.
Budget revenue in January
Total State budget expenditures were estimated at VND107.86 ($4.85 billion), equal to 8.5 per cent of the annual estimate. The budget deficit for the month is therefore estimated at VND5.26 trillion ($236 million).
The MoF said that expenditures were primarily for socioeconomic development and national defense and security, accounting for 63.6 per cent of the total, while debt repayments accounted for 19.4 per cent.
Expenditure on development and investment was low because allocations are still being considered.
Regarding capital mobilization, as at January 20 three bond auctions had raised VND5.713 trillion ($257 million), with three-year bonds totaling VND3.6 trillion ($162 million), five-year bonds VND1.75 trillion ($78.75 million), 15-year bonds VND303.4 billion ($13.65 million), and 20-year bonds VND60 billion ($2.7 million).
The MoF said it has notified ministries, agencies, and localities of budget revenue and expenditure in 2016 as prescribed by a National Assembly resolution and a Prime Ministerial decision.
Estimates put State budget expenditure in 2016 at VND1,273.2 trillion ($57.29 billion), VND126.1 trillion ($5.67 billion) higher than the estimate for 2015. To control expenditure MoF said it will continue to monitor allocations and savings.
Tax authorities and Vietnam Customs will continue to implement additional measures on State budget revenues, regularly inspect and check the number of registered enterprises, strengthen tax inspections, collect tax arrears, and tackle transfer pricing. MoF and related agencies will also continue to promote the reform of administrative procedures in taxation and customs and encourage electronic payments.
- Ministry of Finance