Illustrative image (Photo: VNA) Hanoi (VNA) – An estimated 577 trillion VND (24.86 billion USD) was collectedfor the State budget in the first five months of the year, equal to 38.2percent of the estimate and down 9.2 percent compared to the same period lastyear.
Accordingto the State Budget Department under the Finance Ministry, the COVID-19pandemic, although already put under control in Vietnam, is still raging inmany big trade partners of Vietnam such as the US and the EU, thus greatlyaffecting budget revenues and spending.
Specifically,domestic revenues dropped 5.9 percent, revenues from crude oil were down 17.8percent and from import-export activities down 23.4 percent.
Budgetcollection from half of the revenue sources has not met the set target. Collectionfrom the State-run sector met only 33.4 percent of the estimate, and that fromthe foreign-invested sector met just 37.5 percent of the estimate.
Taxrevenue is also on the decline, including revenue from value-added tax, specialconsumption tax and corporate income tax.
Anotherreason behind the decrease in budget collection is the policy to postpone thepayment of tax and land use fees for enterprises, organisations and businesshouseholds affected by COVID-19. As of the end of May, the amount of delayedtax amounted to 37 trillion VND (about 1.6 billion USD).
Meanwhile,State budget spending in the five-month period was estimated at 603.4 trillionVND, or 34.5 percent of the estimate. Spending on development investmentreached only 26 percent of the estimate./.
VNA
