State budget revenues rise compared to previous year

State budget revenues rise compared to previous year, Illustrative image (Photo: VNA)

The Ministry of Finance (MoF) last week reported that in 2024, the total state budget recorded a surplus of $8.62 billion, which is in stark contrast to a figure of about $15 billion as targeted earlier. The big gap means accurate forecasts and planning remain problematic.

In 2024, total budget expenditure is estimated to have come in at $76.28 billion – equivalent to 86.4 per cent of the year’s estimates and up 5.7 per cent against the previous year. This has ensured expenditures for all demands for socioeconomic development; national defence and security; state management; and payment for debts that have become due, the MoF stated.

Meanwhile, the total state budget revenues are estimated to have sat at $84.9 billion, tantamount to 119.8 per cent of the year’s estimates and representing a rise of 16.2 per cent as compared to 2023.

In which domestic revenues are estimated to come at $71.1 billion, up 16 per cent on-year, and accounting for 83.7 per cent of the total state budget revenue – this means domestic production activities have been performing positively.

Under the MoF’s calculation method, domestic revenues include many kinds of revenues, such as from taxes, fees, charges, capital withdrawal by the state from economic organisations, capital from enterprises containing the state’s capital contributions, and money from leasing land and water surface, and also from selling the state’s assets.

This has been backed by the government’s strong support. Figures from the MoF showed that in 2024, total financial assistance value from exemption, reduction, and extension of payment of assorted taxes, fees, and charges, as well as land rental for enterprises and the public is estimated to have stood at $8.22 billion – including policies implemented since 2023, with exemption and reduction worth about $4.1 billion and extension of $4.12 billion.

Many big economic groups are reported to have performed well in 2024, with considerable contributions to the state coffers. For example, PetroVietnam’s contributions to the budget was estimated to have reached nearly $6.9 billion. Its revenue hit more than $41.6 billion, up 36 per cent from the pre-pandemic period and accounting for about 8.73 per cent of the country’s GDP in 2024.

PetroVietnam has also completed the financial targets of the five-year plan 2021-2025 after only four years, with total accumulated revenue reaching $145.83 billion, exceeding the initial plan by 6 per cent, and contributed to the state budget $25 billion, surpassing the initial plan by 30 per cent.

Vietnam Electricity (EVN) was also reported to have contributed $1.04 billion to the state coffers in 2024 – up by 101 per cent against 2023. Last year, its consolidated revenue is estimated at $23.96 billion, up 13.7 per cent compared to 2023, of which the revenue of the parent company EVN is estimated to have reached over $20 billion.

EVN has completed many production and business targets. Specifically, the total output of domestically produced and imported electricity in the entire system in 2024 hit 308.73 billion kWh, an increase of 9.9 per cent compared to 2023; while the total commercial electricity output reached 276.4 billion kWh, up 9.24 per cent over the previous year.

In another case, Vietnam National Coal and Mineral Industries Group also reported that in 2024, its total revenue is estimated at $7 billion, with $1.04 billion contributed to the state budget.

Last year, the group produced 38.96 million tonnes of coal, up by 102.6 per cent as compared to the initial target. It also churned out 1.4 million tonnes of alumina – of which 1.39 million tonnes have been consumed.

According to the GSO, Vietnam’s state budget last year was also swollen thanks to revenues from export and import activities, driven by domestic production bouncing back.

Export and import revenues are estimated to have touched $11.3 billion, up by 133 per cent of initial estimates and 24.1 per cent on-year.

In 2024, total trade turnover is estimated at a record of $786.29 billion, up 15.4 per cent on-year, with $405.53 billion for exports, and $380.76 billion for imports. Total trade surplus hit $24.77 billion.

Last November, the National Assembly adopted a resolution on the state budget estimates for 2025, the total state budget revenues are set to be $81.95 billion, and the total state budget spending are set to come in at $106.2 billion.

The total state budget deficit for 2025 will be $24.25 billion, equivalent to 3.8 per cent of GDP.