Vietnam Announces State Budget Estimates for 2006

The Minister of Finance Nguyen Sinh Hung has signed a decision to make public an announcement of State Budget estimates for 2006.

 

Accordingly, the state budget revenues this year will increase by 13 per cent on-year to VND VND237.9 trillion (US$15 billion), including VND132 trillion from domestic tax revenues, VND63.4 trillion from crude oil exports, VND40 trillion from import-export taxes and VND2.5 trillion from non-refundable assistance.

 

In addition, the remaining VND8 trillion from the budget of 2005 will be transferred to this year’s budget.

 

Of the domestic revenues, the State-owned companies are expected to pay VND42.24 trillion, foreign-invested firms VND27.8 trillion and the remaining will come from other kinds of taxes.

 

In 2006, the State coffer expenditure will be VND294.4 trillion (US$18.6 billion), an increase of 28 per cent from 2005.

 

Of the spending, Vietnam will spend VND81.58 trillion on investment in economic development, VND131.47 trillion on national defense, security, administration, and other socio-economic problems, VND29.2 trillion on salary reform policies, and about VND40.8 trillion on debt payment.

 

Some VND11.35 trillion will be added to the national reserves and financial provisions.

 

The over-expenditure is calculated at VND48.5 trillion, an increase of 19 per cent from last year and accounts for 5 per cent of the GDP.

 

To balance the budget, the Ministry of Finance plans to mobilize VND36 trillion from domestic loans and VND12.5 trillion from international credits.

 

The ministry also estimates that the budget revenue will reach a record of VND1,600 trillion (US$101 billion) in the 2006-2010 period, contributed mainly by exports of crude oil, taxes from import-export, FDI companies and domestic firms. Meanwhile, the budget expenditure in the period will reach VND1,900 trillion (US$120 billion) and over-expenditure VND300 trillion (US$18.9 billion).

 

Last year, Vietnam collected VND183 trillion to the state budget and spent VND229.75 trillion, creating a overspending of VND40.75 trillion. (US$1 = VND15,800).