Domestic revenues in May reached VND70 trillion (US$3 billion), VND25 trillion (US$1.1 billion) lower than the previous month, accumulating a total of VND442.7 trillion (US$19.45 billion) in five months, equivalent to 40.3% of the year's estimate and up 14.1% year-on-year.
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In May, state budget expenditure was posted at VND116.9 trillion (US$5.13 billion), totaling VND526.6 trillion (US$23.14 billion) in five months, equivalent to 34.6% of the yearly estimate and up 9.2% year-on-year.
Of the total, expenditure for investment reached VND94.1 trillion (US$4.13 billion), or 23.5% of the year's estimate and up 23.4% year-on-year, while payments for debts were seen at VND50.7 trillion (US$2.22 billion), or 45.1% of the year's estimate and up 12.9% year-on-year.
Additionally, regular expenditures were posted at VND379 trillion (US$16.65 billion), equivalent to 40.3% of the year's estimate and up 5.3% year-on-year.
Vietnam's state budget revenue is estimated to reduce by some VND30.15 trillion (US$1.32 billion) this year as the country has to remove multiple tariffs under signed free trade agreements (FTAs), according to the Vietnam Customs.
This year is considered as an important transitional year, following the elimination of tariff barriers for commodities imported from ASEAN countries, of which over 90% of the goods under the ASEAN trade agreement (ATIGA) will bear 0% tariff. Large amount of tax reduction is applied to items with high tax revenues such as cars (from 30% to 0%), components and spare parts (from 5% and 20% to 0%), steel (5% to 0%), among others.
