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MoF releases State budget figures

Released at: 13:46, 03/11/2015

MoF releases State budget figures

October and year-to-date figures point towards growing budget deficit for the year.

by Son Ho

The Ministry of Finance has announced that balanced State budget revenue in October has been estimated at VND95.6 trillion ($4.28 billion) and VND777 trillion ($34.83 million) for the first ten months of the year, equal to 85.3 per cent of the annual plan and a 6.3 per cent increase compared to the same period last year.

Domestic revenue saw the most positive results. The figure in October was estimated at VND75 trillion ($3.36 billion), some $1.48 billion (78.6 per cent) higher than in September, primarily due to October being the deadline for enterprises to declare and pay taxes on revenues generated in the third quarter.

Accumulated domestic revenue for the first ten months was VND578.2 trillion ($25.9 billion); 90.5 per cent of the annual plan and a 16.2 per cent increase year-on-year. Many revenue sources reached the annual plan. Environmental protection tax stood at 158.3 per cent of the annual plan due to tax increases on petrol and oil products applicable since May 1. Agricultural land use tax was 133.3 per cent, house and land use fees 128.9 per cent, and registration fees 115.6 per cent of the annual plan.

Balanced revenue from imports and exports in October reached only VND16 trillion ($716.8 million), with total revenue at VND22 trillion ($985.6 million) and VAT refunds at VND6 trillion ($268.8 million). Accumulated total revenue for the ten months was VND209.3 trillion ($9.38 billion), equal to 80.5 per cent of the annual plan and roughly the same year-on-year. After VAT refunds of VND70 trillion ($3.14 billion), balanced revenue was at VND139.3 trillion ($6.24 billion), equal to 79.6 per cent of the annual plan.

Revenue from crude oil continued to decline. In October it was estimated at VND4.2 trillion ($188.16 million) and VND55.5 trillion ($2.49 billion) for the first ten months, representing 59.7 per cent of the annual plan and a 37.7 per cent fall compared to the same period of 2014. Full payments were made on an estimated 13.9 tonnes during the ten months; 94.3 per cent of the annual plan and an 11.4 per cent increase year-on-year. The average crude oil price was $58.4 per barrel; $41.6 lower than expected.

October expenditure has been estimated at VND97.9 trillion ($4.39 billion) and at VND918.4 trillion ($41.14 billion) for the first ten months, equal to 80.1 per cent of the annual plan and 7.4 per cent higher than in 2014.

Investment and development spending in October stood at VND13.1 trillion ($586.88 million), with accumulated spending for the first ten months at VND137.9 trillion ($6.18 billion), representing 70.7 per cent of the annual plan and 8.1 per cent higher year-on-year. As at the end of October disbursement of basic construction investment was at VND133.5 trillion ($5.98 billion), or 70.1 per cent of the annual plan and 70.6 per cent of last year’s figure. The spending of capital from government bonds during the ten months was estimated at 54 per cent of the annual plan and below the 64.9 per cent recorded last year.

Debt and aid repayments in October totaled VND13.5 trillion ($604.8 million), for a ten-month figure of VND127.3 trillion ($5.7 billion); 84.9 per cent of the annual plan and a 10.3 per cent increase year-on-year. The Ministry of Finance said that this payment was only on matured debts.

Socio-economic, defense and security, and administration expenses during October were at VND70.2 trillion ($3.14 billion), bringing the total for the first ten months to VND645.1 trillion ($28.9 billion), or 84.1 per cent of the annual plan and 5.4 per cent higher against the same period in 2014. Expenditure was met when needed for defense and security and overcoming natural disasters. The Ministry of Finance also provided 80,000 tonnes of national rice reserves to support the poor and hungry in many regions.

The State budget deficit for the first ten months was therefore VND141.4 trillion ($6.33 billion), representing 62.6 per cent the yearly estimate.

Funds mobilized for the State Budget reached VND30.452 trillion ($1.36 billion) as at October 25. Bonds issued by bidding were at VND8.162 trillion ($365.66 million); 3.3 times higher than in September and equal to 64.2 per cent of the figure in the same period of last year. As at October 26 accumulated mobilized capital for the State budget and investment and development was VND157.9 trillion ($7.07 billion), or 63 per cent of the annual plan.

10 months of year

Budget deficit

2015

$6.33 billion

2014

$6.01 billion

2013

$6.67 billion

2012

$5.6 billion

2011

$2.17 billion

Source: Ministry of Finance

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