The pressure on the budget deficit will likely increase in the remaining months of this year due to the anticipated rapid rise of investments in capital construction. (Source: VNA) Hanoi (VNA) - The pressure on the budget deficit will likely increase in the remaining months of this year due to the anticipated rapid rise of investments in capital construction.
This was stated in a report by the National Financial Supervisory Commission (NFSC).
NFSC in its latest economic report said budget deficit, as of August 15, totalled nearly 111.5 trillion VND (4.98 billion USD), equivalent to 43.8 percent of the estimate for the entire year.
Although budget deficit dropped by 1.135 trillion VND against the same period last year, NFSC said that budget deficit would expand in the remaining months as investments in capital construction were rapidly rising.
Disbursed investments in capital construction saw a significant increase in August, following Government Resolution 60/NQ-CP, dated July 8, NFSC said.
As of August 15, disbursement in capital construction investments was equivalent to 42.2 percent of the estimate, compared with the 36.2 percent for the seven-month period.
Budget collection from crude oil and state-owned enterprises (SOEs) was struggling due to low fuel prices as a result of stagnant state stake divestments.
Vietnam’s crude oil selling price averaged 41 USD per barrel, 19 USD lower than the estimated price.
According to the Ministry of Finance, only 10 trillion VND, or one third of the National Assembly’s plan, was added to the national coffer from selling stake in SOEs in the first eight months of this year.
The ministry’s statistics revealed budget collection in August totalled 69.49 trillion VND, falling by 28.9 trillion VND from the previous month. State revenue totalled 649.46 trillion VND in the first eight months, or 64 percent of the estimate.
The finance ministry said it would improve budget collection in the remaining months of this year by tightening tax management, especially tax arrears.-VNA
