H1 state budget collection estimated at 327.82tr dong

Since April 2011, domestic collection tended to decrease gradually and the average revenue in Q2 fell by 7 percent compared to the average revenue in Q1, 2011, Ministry of Finance (MoF) reported.
However, the state budget collection was estimated to reach 327.82 trillion dong in the first six months of this year, or 55.1 percent of the year’s estimate thanks mainly to the collection from land use tax of 21.8 trillion dong.

Additionally, the surging prices of goods and services made the taxable revenue increase, leading the increase in state budget revenue.

Many groups of import goods and commodities that are subject to high duties posted satisfactory turnover, contributing to the overall result such as the iron and steel turnover increased by 31 percent, making up some 1.6 trillion dong to the state budget, the increase of 27 percent in electronic components group made up 1.08 trillion dong, and the 25.4 percent rise of machineries, equipments and spare parts contributed 1.5 trillion dong to the state budget.

Regarding budget expenditures, the total spending was estimated at 355.6 trillion dong in H1, or 49 percent of the year’s estimate, of which, notably the spending on repayment for foreign debts and aids reached 45.9 trillion dong (over $2.2 billion), or 53.4 percent of the year’s estimate.

MoF said that it cut down and adjusted the capital for urgent projects some 8.333 trillion dong, including 5.556 trillion dong from the state budget and 2.777 trillion dong from government bonds.

In addition, state-owned corporations and groups also reviewed and reduced some 39.21 trillion dong public investment.

For frequent expenditures, in H2, some 10 percent or nearly 3.858 trillion dong of frequent spending estimate is expected to be saved from central and local ministries and departments, including 900 billion dong from central agencies and nearly 2.958 trillion dong from localities.

The state budget deficit was estimated at 27.78 trillion dong in H1, or 23 percent of the year’s estimate, lower than the estimated figure of some 30 trillion dong given by the General Statistical Office (GSO) previously.

This is the lowest state budget deficit against the same period of recent years (it was 25 percent in 2010 and 32 percent in 2009). – Vietbiz24

Tags: Vietnam state budget collection