A tax official at the Ha Noi Department of Taxation provides instructions to a tax-payer. The finance ministry said it would tighten tax management to improve budget collection over the remaining months of this year. – VNA/VNS Photo Hoang Hung

This was stated in a report by the National Financial Supervisory Commision (NFSC).

NFSC in its latest economic report said budget deficit, as of August 15, totalled nearly VND111.5 trillion (US$4.98 billion), equivalent to 43.8 per cent of the estimate for the entire year.

Although budget deficit dropped by VND1.135 trillion 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 per cent of the estimate, compared with the 36.2 per cent 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.

Viet Nam's crude oil selling price averaged $41 per barrel, $19 lower than the estimated price.

According to the Ministry of Finance, only VND10 trillion, 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 VND69.49 trillion, falling by VND28.9 trillion from the previous month. State revenue totalled VND649.46 trillion in the first eight months, or 64 per cent 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. — VNS