Budget revenue rises 13 per cent in first half of year

16-Jul-2019 Intellasia | VNS | 6:02 AM Print This Post

Vietnam is well on the way to hitting one of its key economic targets for the year.

State budget revenue in the first six months of this year hit nearly VND745.4 trillion (US$31.9 billion), up 13.2 per cent over the same period last year and 52.8 per cent of the government’s target for the year.

The information was released at a conference yesterday in Hanoi held by the Ministry of Finance (MOF).

According to the MOF, domestic revenue reached 51.1 per cent of the annual target, up 13.6 per cent against 2018, while earnings from crude oil climbed 0.7 per cent to touch 68 per cent of the target.

The ministry said budget revenue from import and export activities in January-June was up 13.7 per cent, 59.8 per cent of the goal.

The central budget was estimated to have hit 51.5 per cent of the yearly target and the highest level in the past five years. Localities’ budgets reached 54.3 per cent of the target, with 50 more than halfway to their target.

At the conference, deputy minister of Finance Do Hoang Anh Tuan said there were still some difficulties in the collection of the State budget. For example, earnings from production and business activities of State-owned enterprises, foreign-invested enterprises and the private sector, are showing signs of slowing, reaching respectively 46.1 per cent, 47.3 per cent and 48.9 per cent of the annual target.

Budget spending was estimated at VND666 trillion in the period, or 40.8 per cent of the plan for the year.

In January-June, nearly VND112 trillion worth of government bonds were issued.

The ministry said it would work to ensure sufficient capital to achieve socio-economic targets.

The ministry also asked the general Department of Taxation and the general Department of Vietnam Customs to carry out efficient State budget collection, step up inspections on tax collection and better manage tax debts.

Addressing the conference, deputy prime minister Vuong Dinh Hue hailed the sector’s efforts to complete State budget collection targets assigned by the National Assembly.

He urged the financial sector to restructure State budget and public debt management to ensure safe finances for the nation.

He also noted the sector’s shortcomings, including slow progress in equitisation, divestment, reforming State-owned enterprises (SOEs) and disbursing public investment.

Ministries, sectors and localities that fail to complete their State budget collection targets would have to either find alternative sources to offset their deficits or cut expenditure, Hue said.

The deputy PM asked the finance ministry to accelerate the restructuring of SOEs, securities and insurance while completing legal documents on equitisation and divestment.

Representatives of leaders of some provinces and cities said the six-month State budget revenue in their provinces achieved positive results and they were striving to ensure revenue for the whole year would reach or exceed annual targets.

Vice Chair of Hai Phong City People’s Committee Nguyen Xuan Binh said from the beginning of this year, the city had carried out efficient State budget collection measures and improved the business environment.

However, budget collection still met difficulties such as the spread of African swine fever and an overloaded transport system, Binh said.

Duong Tan Hien, vice Chair of Can Tho City People’s Committee, said the realisation of budget revenue tasks in the first half also confronted challenges due to climate change, falling agriculture produce, sharp drop in pangasius prices and low disbursement of capital construction.



Category: Economy, Vietnam

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