Positive budget figures ensuring economic balance heading into 2023

The General Statistics Office noted that the total state budget in the first 11 months of this year was marked a surplus of $12.26 billion, with expenditure estimated to be over $59 billion – up 3.4 per cent on-year. Meanwhile, the state budget revenue is estimated to hit $71.26 billion, equal to 116.1 per cent of the year’s estimates and up 17.4 per cent on-year. All kinds of revenues have increased on-year, reflecting recovery in almost all sectors in the economy.

Positive budget figures ensuring economic balance heading into 2023, Illustrative image (Photo: VNA)

Specifically, domestic revenues reached $56.55 billion, tantamount to 110.5 per cent of the year’s estimates, and up 13.5 per cent on-year.

Revenues from crude oil stood at $3 billion, equivalent to 244.6 per cent of the year’s estimate and up 77.6 per cent on-year. It is also expected that revenues from crude oil exports for this year will sit at $2.96 billion, up 141.1 per cent as compared to the initial estimates and accounting for 4.2 per cent of total budget revenues. This thanks to a hike in crude oil prices, averaged at $107.05 per barrel.

In addition, revenues from export-import activities in the first 11 months of this year sat at $11.45 billion, equal to 132.4 per cent of the year’s estimates and up 25.1 per cent as compared to the corresponding period last year.

Total 11-month export-import turnover is estimated to be in $673.82 billion – up 11.8 per cent on-year. In which the export turnover stood at $342.21 billion – up 13.4 per cent, and the import turnover sat at $331.61 per cent – up 10.1 per cent. It is estimated that the revenues from export-import activities for the whole 2022 will be about $18.26 billion, up 23.6 per cent as compared to the initial estimates – responsible for 15.2 per cent of the total state budget revenues.

The central and local budget revenues for the entire year are estimated to exceed by $3.47 billion and $5.65 billion, respectively.

State-owned PetroVietnam reported that it has already accomplished its plan this year on exploiting oil and gas. Its total revenue goal for 2022 was also reached in August. By October, revenues hit $34 billion, exceeding by 40 per cent of the whole year’s plan and up 56 per cent as compared to the corresponding period last year. The group’s general director Le Manh Hung said PetroVietnam also accomplished its plan for the entire year on contributions to the state budget six months in advance.

In the first 10 months of 2022, PetroVietnam contributed $4.89 billion to the state, exceeding by 74 per cent of this year’s plan and tantamount to the realised figure of 2021. This also means that PetroVietnam has occupied about 7.7 per cent of the whole economy’s total budget revenues. The group’s 10-month contributions to state coffers from crude oil stood at $2.84 billion, up 95 per cent on-year and exceeding by 2.3 times as compared to the year’s estimates.

Deputy Minister of Finance Cao Anh Tuan said, “Thanks to positive budget revenues, we can ensure major balances for the economy, and can earmark more money for raising salaries and for investing into ensuring social welfare and national defence and security.”

The government has reported to the National Assembly (NA) that the total state budget revenue for this year is estimated to be $70.18 billion – exceeding by $8.8 billion or 14.3 per cent as compared to the target set in November 2021 by the NA, also up 2.9 per cent against the figure realised last year. Revenues from all economic sectors are set to see an on-year increase.

Specifically, domestic revenues are estimated to be $56.18 billion, up 9.8 per cent on-year or $5.02 billion as compared to the initial estimates. This accounts for 80.1 per cent of total budget revenues. It is also estimated that the budget deficit this year will be 4.5 per cent of GDP, which will still stay within the NA’s permissible limits of a maximum level of 5-5.1 per cent of GDP.

The government expected that the economy’s GDP will be about $403.2-405.3 billion this year – thus the total budget deficit for 2022 will be about $18.14-18.23 billion.

State budget pressures persist in spite of revenue momentum The first nine months of the year have seen a gigantic surplus in state coffers, showing a gradual recovery of domestic production and business activities, but a budget deficit is still expected for the whole year due to expenditures outnumbering revenues.

Budget resolutions set plan for 2023 Vietnam’s state budget performance is expected to see a deficit of billions of US dollars this year, with such a landscape fixed for next year – with warnings sounded about punishing violations in budget management and usage.