Vietnam Budget Income to Hit US$23 Bln, Spending US$29 Bln This Year

The government of Vietnam has set targets of achieving budget income of VND389.3 trillion this year, which will account for 21.5 per cent of the country's GDP value and up 15.5 per cent on year while spending VND491.3 trillion, up 23.1 per cent on year, the Finance Ministry said in a statement on its Website January 15.

 

Deputy Minister of Finance Tran Van Hieu told state media that these tasks are heavy for Vietnam amid the global economic slowdown.

 

The government has said that it will accept the coffer to be slashed VND10 trillion worth of tax concession and tax arrears to support small and medium enterprises of registered capital of less than VND10 billion this year.

 

The government has just approved a US$1 billion from the country’s forex reserve, part of the US$6 billion economic-stimulus package to subsidize as much as 4 per cent of credit interest rates for local businesses to support them to overcome difficulties of economic slowdown.

 

It will use VND44.5 trillion worth of g-bonds into key investment projects approved for this year and next, the state-run Saigon Liberation newspaper said.

 

The MOF said that last year Vietnam's economy grew 6.23 per cent, budget income was up 26.3 per cent on year based on tax incomes contributed by crude oil sector jumping 49.4 per cent, by exporters and importers up 41 per cent while coffer spending surged 22.3 per cent on year, budget deficit widened to 5 per cent of the country's GDP value.

 

This year, Vietnam has set a target of GDP growth of 6.5 per cent. (www.mof.gov.vn , Saigon Liberation)