State budget revenue to meet five-year target: MoF hinh anh 1Staff at the customs sub-department of the Huu Nghi International Border Gate in Lang Son province handle export-import procedures (Photo: VNA)

Hanoi (VNA) – Collection of the State budget between 2016 and 2020 is expected to meet the target of 6.8 quadrillion VND (nearly 293 billion USD), the Ministry of Finance (MoF) reported on October 21.

Noting a positive shift in the structure of budget revenue and expenditure, the ministry said the percentage of revenue from domestic sources has increased from 68 percent in the 2011 – 2015 period to 80.5 percent in 2016 – 2018, and 82 percent in 2019. The rate is forecast to reach 83.6 percent in 2020.

Meanwhile, collection from crude oil and import-export activities has fallen from 30 percent in 2011 – 2015 to 19 percent in 2016 – 2018, and 17.7 percent this year. It is forecast to decline further to 16.1 percent in 2020.

Regarding expenditure, the percentage of estimated budget spending on investment for development has been growing, and is expected to reach 27 – 28 percent between 2016 and 2020, higher than the targeted 25 – 26 percent. State budget spending on development investment is estimated at 2.15 quadrillion VND during the period, 2 quadrillion VND higher than planned.

The proportion of regular spending has decreased gradually, from 61.8 percent in 2018 to 61.2 percent in 2019, and hopefully 60.5 percent in 2020, while the target is under 64 percent.

Budget overspending estimates have also been falling, expected to account for 3.44 percent of GDP in 2020. The rate is likely to stay around 3.6 – 3.7 percent in the 2016 – 2020 period, according to the MoF.

The ministry also highlighted some improvements in public and government debt-related statistics, forecasting that by the end of 2020, public debt will account for around 54.3 percent of GDP, with Government debt at 48.5 percent. 

Besides, the country’s foreign debt is predicted to rise from 44.8 percent in 2016 to 45.5 percent of the GDP in 2020, compared to the cap of 50 percent, mostly due to growth in outstanding foreign loans borrowed and repaid by businesses, data showed./.