Jan-Aug State budget revenue drops 8.8%

HCMC – Vietnam’s State budget revenue in the January-August period declined by 8.8% over the same period last year, according to the Ministry of Finance.

The total state budget revenue in the first eight months amounted to a little more than VND1.12 quadrillion, equivalent to 69.4% of the 2023 estimate.

Among the country’s 63 centrally-run provinces and cities, only nine reported revenue growth, while the remaining 54 posted lower revenue.

The central Government achieved around 72.8% of its projected budget, while local budget revenues were lower than expected, meeting only 65.5% of their projections.

This analysis excludes revenues from land use fees, lottery sale revenues, capital recovery, dividends, after-tax profits, and the difference between revenues and expenditures at the State Bank of Vietnam.

Mai Xuan Thanh, head of the General Department of Taxation, reported that August tax revenue amounted to nearly VND85.9 trillion, contributing to a cumulative total of VND973 trillion for the first eight months, or 70.9% of the target.

“While tax collection appears to be on track, concerns linger,” he said.

However, excluding one-off revenues, tax collections have exhibited a noticeable downward trend. Tax revenue was VND94 trillion in January 2023 but dropped to just VND75 trillion by August 2023.

The General Department of Vietnam Customs faced similar challenges, with a 12% reduction in import and export turnover in January-August leading to an 18% decrease in customs revenue compared to the same period last year, according to Nguyen Van Can, head of the General Department of Vietnam Customs.

In contrast, Government spending has surged. Total State budget expenditures in the first eight months of 2023 totaled VND1.08 quadrillion, equivalent to 52.1% of the budget estimate. This represents a 13% increase versus the same period in 2022

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