Vietnam fiscal deficit widens to US$4.3 billion in 7 months on Covid-19
As of July 15, budget revenue collection reached VND697.5 trillion (US$30.17 billion), equivalent to 46.1% of the year's estimate.
As of July 15, budget revenue collection reached VND697.5 trillion (US$30.17 billion), equivalent to 46.1% of the year's estimate.
For this year and early 2021, the PM expects fiscal deficit and public debt could widen by an additional 3–4 percentages of GDP to provide more support for enterprises.
In a worse scenario where GDP would expand 3.6% this year, Vietnam's fiscal deficit is forecast at 5.02% of GDP and public debt at 56.4%.
Greater attention should be on the potential impact of the rapid monetary expansion on inflation and the deepening of the fiscal deficit caused by under-performing tax collection.
As of May 15, budget revenue collection reached VND529.6 trillion (US$22.7 billion), equivalent to 35% of the year's estimate.
Vietnam continues to restructure the state budget and public debt management to ensure national financial security and sustainability .
Fitch Solutions has revised its forecast for Vietnam to record a fiscal deficit of 3.8% of GDP (excluding debt principal repayments) in 2020, versus 3.4% previously.
Vietnam is capable of repaying debts, as the annual debt repayment accounts for 15 – 16% of total state budget, below the ceiling limit and international practice of 25%.