HA NOI (VNS)— State budget revenue dropped by 1.9 per cent in the first two months of the year to VND114.8 trillion (US$5.52 billion), accounting for 14.1 per cent of the year's estimated total, according to the Ministry of Finance.
According to the ministry, the decrease was mainly due to weak domestic revenue, which totalled VND80 trillion ($3.85 billion), equivalent to 14.7 per cent of the target for the full year and 1.5 per cent less than what was collected in the same period last year.
Domestic business and production were still struggling, inventories continued to be high and consumption of goods and services was still slow.
The extension of the deadline to pay value added tax (VAT) from last June to the upcoming April also affected domestic revenue.
In the first two months of the year, only 27 out of 63 provinces and cities saw collections for the state reach the estimated total of 16 per cent, while 11 localities - including the economic hubs of Ha Noi and HCM City – saw fewer contributions than predicted.
Collection from export-import activities reached VND27.92 trillion ($1.34 billion), equal to 11.8 per cent of the year's estimate and a decrease of 3.1 per cent year on year, as export-import turnover of many commodities with high import tax rates saw a sharp decline.
Turnover of crude oil, automobiles and motorbikes fell by 40 per cent, 69 per cent and 70 per cent respectively.
However, crude oil continued to be a significant source of State budget revenue, accounting for VND16.98 trillion ($816 million), or 17.2 per cent of the year's target, thanks to a $25 per barrel increase in the world crude oil price to an average price of $115 per barrel.
The issuance of government bonds raised over VND43.8 trillion ($2.1 billion), equal to 22.4 per cent of the annual target - making up for state budget deficits.
The Ministry also noted that in general, State budget spending in the last two months has corresponded roughly to estimates.
Money from the budget has gone towards ensuring social security, helping localities overcome the consequences of natural disasters, price stabilisation and providing 29,000 tonnes of rice to the poor during Tet.
In the first two months, the State budget's overspending was estimated at VND23.035 trillion ($1.1 billion), or 14.2 per cent of the year's target. — VNS