Vietnam’s Posts Smaller-than-Expected Fiscal Deficit in 2016

Vietnam had a state budget deficit of 192.2 trillion dong ($8.47 billion) in the year to December 15.


                       A vendor sell farm produce on a street in Hanoi. Photo: Internet

Vietnam’s fiscal deficit reached 192.2 trillion dong ($8.47 billion) in the year to December 15, lower than the year’s initial plan of $11.2 billion, official data shows.

The fiscal shortfall is equivalent to 4.27% of the country’s gross domestic product (GDP), below the cap of 4.95% of GDP the National Assembly, the country’s supreme legislative body, according to a report released by the General Statistics Office.

In the 11-month-and-a-half period, the Southeast Asian country collected 943.3 trillion dong ($41.56 billion) for state coffers, meeting 93% of the year’s plan.

Of the sum, budget collection from crude oil totaled 37.7 trillion dong ($1.66 billion), 30.8% below the year’s estimate. Foreign-invested companies paid 147.7 trillion dong ($6.5 billion) in taxes, compared to $8.53 billion paid by state-owned enterprises.

The office added that budget expenditures totaled 1,135.5 trillion dong ($50 billion) in the period, or 89.2% of the yearly plan, of which 150.3 trillion dong ($6.62 billion) was spent on debt repayments.

Finance Minister Dinh Tien Dung said at a government teleconference on December 29 that budget revenue fell short of some $100 million in comparison with the initial estimate as the average crude oil price hovered around $40 a barrel in the year, below the projected $60 a barrel.

In addition, taxes paid by commercial banks declined 30% as they increased provisions for credit losses, the minister added.

Tuan Minh / BizLIVE