Central Technology Platform No 2 at Bach Ho oil field of Vietsovpetro Joint Venture. — VNA/VNS Photo Huy Hung

Budget revenues were estimated at VND280.9 trillion (US$12.4 billion) in the first quarter of this year, up 15.2 per cent compared to the same period in 2016 and meeting 23.2 per cent of the annual estimate, the Ministry of Finance (MoF) said yesterday.

Domestic collection for the period was VND232 trillion, equivalent to 23.4 per cent of the projected revenues, and 13.3 per cent higher than the same period last year.

In March, revenues from crude oil exports were estimated at VND3.95 trillion, down nearly VND400 billion compared to the previous month due to large redundant supply, the MoF said. However, budget revenues from crude oil exports in the whole quarter reached roughly VND11 trillion, meeting 28.9 per cent of estimates, up 15.9 per cent against 2016.

Import-export activities contributed VND66.8 trillion to the State budget, totaling 18.5 per cent higher than the same period last year, and equalling 23.4 per cent of targeted revenues.

Budget collections from production and business activities grew strongly compared with last year, with 25.4 per cent collected from the private sector, 30.3 per cent from personal income tax and 35.2 per cent from housing and real estate tax.

The MoF attributed the robust results to the close and effective coordination between central and local authorities. The results represent the sound leadership of the Government, the directions of the finance ministry and the efforts of tax authorities who strengthened budget collection measures early this year to prevent shortfalls in the middle and end of the year.

The increase in revenue may also be attributed to the vigorous economic growth in the last quarter of 2016, with GDP growth in the fourth quarter estimated at 6.68 per cent, the MoF said.

Meanwhile, budget expenditure reached nearly VND285 trillion in the first quarter, up 7.8 per cent from the same period last year and equivalent to 20.5 per cent of the annual plan. Expenditures for development investment were recorded at VND44.1 trillion, while debt payment and interest expenses totalled VND29.1 trillion, and regular spending reached VND 211.2 trillion.

Overspending stood at over VND4 trillion, 2.27 per cent of the yearly estimates, the MoF said. In terms of capital mobilisation for the State budget, as of March 31 MoF issued roughly VND56.5 trillion worth of Government bonds to offset excessive budget spending and to cover investment and development expenditure. — VNS