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State budget suffered deficit in January due to holiday allocation

Update: February, 13/2015 - 08:50
In January, the State budget raked in VND81.3 trillion ($3.82 billion), up 9.2 per cent over the revenue recorded last January. — VNA/VNS Photo

HA NOI (VNS) — With expenditures outweighing revenue for the January State budget, the month recorded a deficit of around VND13.3 trillion (US$625 million), reported Vietstock, an onnline financial newspaper.

A Finance Ministry report cited a few reasons for the deficit, one being the ministry's early allocation of funds to keep Government institutions and organisations running through the holiday season.

Additionally, the Government distributed pensions and other benefits for February early so as to arrive with its beneficiaries in time for the Tet (Lunar New Year) holiday.

In January, the State budget raked in VND81.3 trillion ($3.82 billion), up 9.2 per cent over the revenue recorded last January.

Domestic sources of revenue accounted for VND62.1 trillion ($2.87 billion) of the intake, equal to 9.7 per cent of the yearly domestic revenue. The figure was higher than the target of average 8.3 per cent per month set by the Government.

January revenues collected from production and business saw increases from the levels of the same period last year, registering an 18 per cent rise in the State sector; a 7.2 per cent hike in the sector with foreign investment and a 6.8 per cent climb in the non-State industrial and commercial sector.

The unexpected increase in January's revenue has been attributed to a series of positive economic developments seen in late 2014 and early 2015, according to the report.

The fourth quarter of 2014 registered a growth in GDP by 6.96 per cent, and so far 2015 has also shown some promising macroeconomic growth.

Compared to January of last year, the Index of Industrial Production (IIP) rose by 17.5 per cent, and retail and service revenues increased by 13 per cent. Both numbers are testament to reports of a healthy national economy.

Besides the pre-Tet expenditures, the VND94.6 trillion ($4.44 billion) spent in January went primarily to socio-economic development projects, national defence and security, as well as State administration and debt servicing. — VNS

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