Vietnam budget overspending reaches US$1.5 billion in 7 months
Vietnam`s state budget revenue is estimated to reduce by some VND30.15 trillion (US$1.32 billion) this year as the country has to remove multiple tariffs under signed free trade agreements (FTAs), according to the Vietnam Customs.
Vietnam saw a budget deficit of VND35.9 trillion (US$1.54 billion) year to July 15, going down from a surplus of VND2.5 trillion (US$107.58 million) recorded 15 days ago, according to the General Statistics Office (GSO).
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Of the total, collections from domestic taxes and fees in the period stood at VND540.1 trillion (US$23.23 billion) or 49.1% of the year's estimate, of which, the state sector contributed VND74 trillion (US$3.18 billion) or 44.5% of the year's plan, the FDI sector VND87.7 trillion (US$3.77 billion) (excluding crude oil) or 39.4%.
Revenue from trade jumped to VND107.8 trillion (US$4.63 billion) or 60.2% of the estimate, and that from crude oil exports VND31.7 trillion (US$1.36 billion) or 88.2%.
Additionally, personal income tax contributed VND53.2 trillion (US$2.28 billion) to the state budget or 54.9% of the year's estimate, and land use rights VND84.8 trillion (US$3.64 billion) or 98.7%.
Meanwhile, Vietnam's state budget expenditures as of July 15 totaled VND717.5 trillion (US$30.85 billion), equivalent to 47.1% of the year's plan. Of the total, regular spending reached VND494.2 trillion (US$21.25 billion) or 52.5%. Expenditure for development investment reached VND150 trillion (US$6.45 billion) or 37.5% and interest payment of VND67.2 trillion (US$2.89 billion) or 59.7%.
Vietnam's state budget revenue is estimated to fall short of some VND30.15 trillion (US$1.32 billion) this year as the country has to remove multiple tariffs under signed free trade agreements (FTAs), according to the Vietnam Customs.
This year is considered as an important transitional year, following the elimination of tariff barriers for commodities imported from ASEAN countries, of which over 90% of the goods under the ASEAN trade agreement (ATIGA) will bear zero tariff. A large amount of tax reductions are applied to items with high tax revenues such as cars (from 30% to 0%), components and spare parts (from 5% and 20% to 0%), steel (5% to 0%), among others.
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