The Viet Nam National Oil and Gas Group or PetroVietnam , one of the leading contributors to the State Budget, announced that it paid a total tax of VND18.6 trillion in the first quarter of this year. — VNA/VNS Photo

HA NOI (Biz Hub) — Total budget revenue in the first quarter of this year reached VND230.5 trillion (US$10.3 billion), equalling 22.7 per cent of this year's target revenue, an increase of 0.3 per cent over last year said the Ministry of Finance (MoF)'s office manager Ngo Chi Tung.

Tung announced the news in a press conference held by the ministry in Ha Noi yesterday.

Of the total revenue for Q1, the domestic revenues totalled roughly VND194 trillion ($8.7 billion), equivalent to 24.7 per cent of annual estimated revenues and 10 per cent higher than the same period last year. But the MoF said budget revenues from crude oil exports, originally estimated at roughly VND9 trillion, met only 16.4 per cent of estimates, less than half of revenues for the same period in 2015.

Tung said that import-export activities contributed VND54.6 trillion to the State budget: totaling 11.5 per cent less than during the same period last year, and equalling 20.2 per cent of projected revenues.

"The results of Q1's domestic revenue were due to close and effective co-ordination between central bodies and local authorities, who strengthened budget collection measures early this year and collected taxes throughout the year to prevent outstanding tax debts in the middle and end of the year," said Tung.

The MoF also said Q1 budget spending totalled VND277.5 trillion: equalling 22 per cent of this year's planned spending target, an increase of 5.4 per cent compared to the same period last year.

Overspending stood at around VND47 trillion, equivalent to 18.5 per cent of the estimated total.

In terms of capital mobilisation for the State budget, as of March 25 the MoF issued VND70 trillion worth of government bonds to offset excessive budget spending and to cover investment and development expenditures.

PVN's contribution

The Viet Nam National Oil and Gas Group or PetroVietnam (PVN), one of the leading contributors to the State Budget, announced that it paid a total tax of VND18.6 trillion in the first quarter of this year.

According to PVN, continuing low oil prices have negatively affected the company's production and business efficiency in Q1.

For example, the average price of crude oil in March was only $39.5 per barrel and the average price of crude oil in Q1 stood at $34.6 per barrel — equivalent to just 57.7 per cent of PVN's projected selling price of $60 per barrel. So by the end of Q1, PVN's total revenue equalled only 74 per cent of PVN's target revenue for Q1.

While oil prices continue to show no signs of recovery, PVN will increase production capacity in other fields - such as petroleum, gas, fertiliser, and electricity - to offset revenue decline in Q1 and to meet 2016 target revenues, said PVN leaders. — VNS