Vietnam spends $2.3 billion to pay back foreign debts during Jan-Apr

By    May 13, 2016 | 06:47 pm GMT+7

Vietnam's government spent $2.3 billion to pay back foreign debts in the first four months of this year, a report by the Finance Ministry showed.

Vietnam ran a budget deficit of VND53.5 trillion ($2.4 billion) from January through April, the Vietnamese government’s online portal quoted the Finance Ministry as saying.

Budget revenues in the first four months of this year edged up 1.2 percent to VND317 trillion from the same period last year.

Slumping crude oil prices have cut budget revenue considerably. Government statistics show that crude-related revenue, which made up 30 percent of the nation’s budget in 2005, fell to 20 percent in 2010 and accounted for about 10 percent in 2015.

Revenue from oil in the first four months of this year fell sharply by 48.1 percent from the same period last year.

Vietnam has spent VND52 trillion so far this year to pay back foreign debts, VND57 trillion on development projects and VND262 trillion on national defense and administrative governance.

The government has managed to mitigate the budget deficit by raising revenues from taxes and the privatization of state-owned firms. Tax authorities have so far reclaimed VND2.3 trillion in corporate taxes.

The government also plans to make adjustments to eight tax policies that will help prevent an expected VND45 trillion budget shortfall this year.

 
 
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