Six-month budget: Surplus but difficulty

Illustrative photo (Photo: Reporter/Vietnam+)

Hanoi (VNA) - Budget revenue is making good progress, especially state budget revenue, even reaching the highest level in the last five years. However, the process is also facing many difficulties.

Central budget revenue sees highest level  in five years
Speaking at the conference on reviewing budget and finance work during the first 6 months on July 12, Deputy Minister of Finance Do Hoang Anh Tuan said that the State budget revenue in the first 6 months hit 745,400 billion dong, equal to 52.8 percent of the estimate, up 13.2 percent over the same period in 2018.

Of these, domestic revenue reached 51.1 percent of the estimate, up 13.6 percent over the same period in 2018 as the revenue reaching 48 percent of the estimate.

The revenue from crude oil reached 68 percent of the estimate and is equal to 100.7 percent over the same period in 2018. Statistics indicated that the above result is due to the average oil price reaching 68.4 USD per barrel, 3.4 USD per barrel higher compared to the estimated price.

Meanwhile, Deputy Minister Do Hoang Anh Tuan said that the balance of revenue from import and export activities reached 59.8 percent of the estimate, up 13.7 percent over the same period in 2018.

According to the leaders of the finance sector, in the first half of the year, the central and local budget revenues were good, of which central budget revenue reached 51.5 percent of the estimate (the revenue  reached 46.7 percent in the same period in 2018), the highest level in the last five years. Local budget revenue reached 54.3 percent of the estimate (the revenue reached 54 percent in the same period in 2018), with 50 out of 63 localities collecting over 50 percent of the estimate.

However, "there have been difficulties," the Deputy Minister said.

"Remarkably, the revenues from production and business activities are from State-owned, foreign-invested and private sectors. Although the revenues from the three sectors from May have been higher than the same period, but there are signs of slowing down and lower than the average level, which stand at 46.1 percent, 47.3 percent and 48.9 percent of the estimate," Deputy Minister of Finance said.

Disbursement of new capital construction investment just over 32 percent

According to the Deputy Minister of Finance, the State budget expenditure in the first 6 months reached 666,100 billion VND, equaling 40.8 percent of the estimate, up 2.6 percent over the same period in 2018.

The management of budget expenditures is tight and in accordance with the estimates, according to the Ministry of Finance official.

However, the Deputy Minister said, the disbursement progress of capital construction investment in the first 6 months of the year reached 32.4 percent of the estimate assigned by the Prime Minister, lower than the level disbursed in the same period in 2018 when it reached 33.9 percent.

Another problem according to Mr. Do Hoang Anh Tuan is that the progress of restructuring, equitizing State-owned enterprises and divesting State capital is still slow.

Statistics showed that in the first 6 months of the year, only six enterprises have plans of their equitization been approved, of which one enterprise must be equitized as planned.

"Accumulated from 2017 to now, 35 of 127 enterprises have been equitized as planned, reaching 28 percent, the remaining 92 enterprises, equivalent to 72 percent of the plan must go public," the Deputy Minister said.

As regard to the last six months, the Deputy Minister of Finance said that the authorities will strengthen the management of revenue and have solutions to manage budget revenues suitable for each field and locality in a bid to increase revenue of the estimate by five percent over the estimate./.