Vietnam’s eight-month budget deficit widens to $5.13 billion

Thien Thanh Sanitaryware joint company

Vietnam’s eight-month budget deficit widens to $5.13 billion

Vietnam posted a budget deficit of more than VND115 trillion (US$5.13 billion) in the year to August, up 10.17 percent from the same period last year, the Ministry of Finance said on Wednesday. The eight-month figure was also 14.2 percent higher than the VND100.7 trillion ($4.63 billion) deficit recorded in the Jan-July period.

State budget revenue in the year to August topped VND618 trillion ($27.59 billion), whereas government expenditures stood at VND733 trillion ($32.72 billion).

The budget deficit in the first eight months of last year was VND104.38 trillion ($4.66 billion).

Vietnam’s budget revenue in the eight-month period rose seven percent year on year, largely driven by higher taxes in the fields of natural resources and environmental protection.

Revenue from crude oil exports, however, only stood at VND47.1 trillion ($2.1 billion), 49.3 percent lower than estimated thanks to the global oil price collapse.

Vietnam had calculated crude oil revenue estimates based on an average price of over $100 a barrel, whereas the real rate is only nearly $60 a barrel.

In the meantime, the government spending in all fields was at least five percent higher than estimated, which led to the massive budget deficit.

Expenditure for investment and development rose seven percent from the January-August period last year to VND110.9 trillion ($4.95 billion), while the sum earmarked for repaying foreign debts and aid soared to VND104.55 trillion ($4.67 billion), up 15.3 percent.