Vietnam Fiscal Deficit Widens to $7 billion as of Oct 15

Minh Tam

16:26 27/10/2015

BizLIVE - Vietnam has run an estimated state budget deficit of 157.9 trillion dong ($7.02 billion) in the year to October 15, or 69.87% of the year’s estimation, widening from 136 trillion dong ($6.04 billion) a month earlier.

Vietnam Fiscal Deficit Widens to $7 billion as of Oct 15

Employees count bills at a BIDV branch in Hanoi/ (Photo: CNBC)

The country’s budget expenditures hit 867.7 trillion dong ($38.56 billion) in the nine-month-and-a-half period, meeting 75.6% of the plan, the government-run General Statistics Office said in a report released Tuesday.
Of the sum, 605.1 trillion dong ($26.89 billion) was spent on national defense, security and the running of the administrative apparatus, 134.3 trillion dong ($5.97 billion) on socio-economic development projects and 120.8 trillion dong ($5.37 billion) on settlement of aids and debts.
The office added that state budget collections were likely at 709.8 trillion dong ($31.55 billion) in the period, meeting 77.9% of the year’s target. The amount includes 522.5 trillion dong ($23.22 billion) collected from inland taxes and fees, 129.9 trillion dong ($5.77 billion) from import-export activities, and 53.8 trillion dong ($2.39 billion) from crude oil.  
Foreign-invested companies, excluding those operating in the oil industry, contributed 103.3 trillion dong ($4.59 billion) to Vietnam’s state budget, compared to 158.5 trillion dong ($7.04 billion) in taxes paid by state-owned enterprises, according to the office.  
Finance Deputy Minister Do Hoang Anh Tuan said at a press meeting on Monday that the country’s budget revenue is likely to surpass the plan by 17.4 trillion dong ($733.3 million), but the central budget will fall short of 31 trillion dong ($1.38 billion), due mainly to lower-than-expected oil prices.
Collections from personal income tax are expected at 55 trillion dong ($2.44 billion) this year, close to 60 trillion dong ($2.67 billion) in revenue from crude oil, he said.
Vietnam’s state budget plan for 2016 has been built based on a projection of $60 a barrel, lower than $100 a barrel projected for 2015, the deputy minister tipped.