So far, total amount of deferrals of tax payment and land rental fees under the government’s support programs stood at VND37 trillion (US$1.58 billion) as of May.
In the first five months of 2020, Vietnam’s state budget revenue decreased 9.2% year-on-year to VND577 trillion (US$24.69 billion), or 38.2% of the year's estimate, according to the Ministry of Finance (MoF).
Vietnam state budget revenue declines nearly 10% in Jan-May. |
Upon breaking down, domestic revenue declined by 5.9%, revenue from import-export tariffs down 23.4% and that from crude oil down 17.8%.
Among economic groups, budget revenue collection from the state sector dropped 15%, followed by foreign invested firms (-2.6%) and the non-state sector (-16.1%).
Revenues of most of tax revenues declined in May, including value-added tax with a plunge of nearly 49% year-on-year, followed by excise tax (-38%), and corporate tax (-40.3%).
In May, the index of industrial production increased 11.2% month-on-month, but declined 3.1% year-on-year, resulting in a 1% year-on-year increase in the five month period, significantly lower compared to an expansion of 9.5% in the same period last year.
Meanwhile, Vietnam’s exports and imports in the January – May period also fell 1.7% and 3.8% year-on-year, respectively.
In addition to the impacts of Covid-19 pandemic, the implementation of the government’s relief packages, including delay in tax payment and land rental fees, have also contributed to a decline in state budget revenue, said the MoF.
So far, the total of deferrals of tax payment and land rental fees reached VND37 trillion (US$1.58 billion) as of May.
In the five-month period, state budget expenditures totaled VND603.4 trillion (US$25.84 billion), or 34.5% of the year's estimate, of which, capital expenditure was equivalent to 26% of the estimate, higher than the disbursed amount of the same period last year, but was lower than expected.
In the year to May 25, the MoF issued nearly VND58.82 trillion (US$2.51 billion) worth of government bonds.
At a government meeting in early April, Minister of Finance Dinh Tien Dung said in case the pandemic ends within this quarter, the country's GDP growth would come in at 5.3% and if oil prices average at US$35 per barrel, the state budget may lose VND140 – 150 trillion (US$6 – 6.43 billion). The losses would be bigger if GDP grows by less than 5%.
The Ministry of Finance estimated fiscal deficit could increase to 5–5.1% of GDP, significantly higher than the target of 3.4% (excluding debt principal repayments) set in December 2019.
Other News
- Finance ministry clears bottlenecks to pave way for stock market upgrade
- Over 60% of Vietnamese use QR codes to pay
- Casinos contribute US$370 million to state budget over 5 years
- Standard Chartered and IATA partner to launch IATA Pay in Vietnam
- Vietnam’s capital market shows positive signs: Finance Ministry
- Prime Minister urges banks to cut lending rates further
- Potential upgrade to emerging status may pull US$25 billion into Vietnam’s stock market
- Vietnam to finalize legal framework for digital assets in May
- VCCI hosts 14 international investors to study Vietnam's potential
- Enhanced local trade finance in Vietnam: A potential US$55 billion annual trade boost
Trending
-
World Bank looks forward to stronger ties with Vietnam: country director
-
Vietnam urges respect for international law in East Sea
-
Hanoi kicks off communication contest on Dien Bien Phu victory
-
French education group Odyssey keen on strengthening cooperation with Hanoi
-
Hanoi, Shanghai strengthen investment cooperation
-
UOB Painting of the Year Award opens doors to the world for Vietnamese artists
-
Grapefruit blossom perfume Hanoi's air
-
MICE tourism: Vietnam's lucrative “golden market” unveiled
-
Vietnam: Sleep Tourism on the rise