State budget overspending hits $6.28 billion till October

Wednesday, Nov 04, 2015 17:29

State budget overspending hit $6.28 billion in the first 10 months of this year. — Photo

HA NOI (Biz Hub) — State budget overspending hit VND141.40 trillion (US$6.28 billion) in the first 10 months of this year, the Ministry of Finance has reported.

The amount is equivalent to 62.6 per cent of the quota that the National Assembly had allocated for the country's budget overspending in 2015.

According to the ministry, budget revenues totalled VND777 trillion ($34.53 billion) in 10 months, representing more than 85 per cent of the annual target and increasing 6.3 per cent over the same period last year.

Revenues from domestic sources reached some VND578 trillion ($25.69 billion), up 16.2 per cent year-on-year, while foreign trade activities contributed about VND209 trillion ($9.29 billion) to the budget, equalling that of the same period last year.

Income from crude oil fell by 37.7 per cent year-on-year at around VND55.5 trillion ($2.47 billion), which represented 80.5 per cent of the target set for 2015.

Meanwhile, budget spending accumulated to VND918 trillion ($40.80 billion) in 10 months, accounting for 80 per cent of the annual quota and rising by 7.4 per cent from the figure of the same period last year.

Spending as payment for debts and other assistance alone reached more than VND127 trillion ($5.64 billion), up 10.3 per cent year-on-year. The ministry said the payment was sufficient and timely for mature debts.

In order to fulfil the annual targets, the ministry urged taxation and customs departments to intensify their supervision of tax and clearance activities.

It asked the state treasury to maintain bond issuances on schedule, and the price administration authority to closely monitor global petrol price developments, since the oil price could still decline.

It also asked the State Securities Commission to tightly observe stock market moves, and the corporate finance department to co-ordinate with ministries and sectors to speed up restructuring in State-owned enterprises (SOEs), especially in their privatisation and divestment processes.

The National Assembly's Committee for Finance and Budget has recently approved the government's proposal to sell international bonds worth $3 billion to restructure domestic debts due during 2015 and 2016.

The committee also agreed with the government's suggestion to use about VND10 trillion ($444 million) from SOEs, which have divested from non-core lines of business, to compensate for the national budget overspending.

In October, the State Bank of Viet Nam lent the ministry VND30 trillion ($1.3 billion) to help ease the tension related to the budget issue. — VNS

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