State revenue reaches 13% of estimate in the first month of 2022

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The increase in import and export turnover in the first month of the year resulted in growth in revenue.

Total revenue is estimated at VND183.5 billion

The Ministry of Finance issued Circular 112/2021/TT-BTC dated December 24, 2021 regulating the implementation of the State budget for 2022 and completing the notification of public revenue and expenditures to the central and local ministries and government agencies. Local and central ministries and government agencies have allocated and assigned the State budget to budget users.

At the end of January, the total revenue is estimated at VND183.5 trillion, equal to 13% of the estimate and 96.8% compared with the same period in 2021. The domestic revenue is estimated at VND151.3 trillion or 12.9% of the estimate and down 8.1% compared to the same period in 2021. The revenue from personal income tax reached 12.7% of the estimate, rising 0.2%; fees and charges recorded 11.4% of the estimate, up 0.1%; housing and land fees reached 13.3% of the estimate, up 25.1% compared with a year ago.

The revenue from crude oil in January is estimated to rise 44.6% year-on-year to VND3.9 trillion due to the increase in prices and output of crude oil. Accordingly, the average price of Vietnam’s oil in the period increased 48.9% year-on-year to US$75.6/barrel, US$15.6/barrel higher than the estimate. The volume of oil saw year-on-year growth of 12.67% to 800,000 tons or 11.4% of the plan. The output of crude oil in January hit 710,000 tons, meeting 8.9% of the plan.

The revenue from imports and exports in January saw a surge. The total revenue is estimated to increase 29.7% compared with the same period 2021 to VND40.3 trillion, or 11.4% of the estimate. The total trade this month is expected to rise 9.3% year-on-year.

Of which, the import turnover of petroleum products, iron and steel, computers, electronic products and components grew 16.9%, 17.7% and 23.7%, respectively, leading to the increase in revenue of these items.

After refunding VAT, the revenue from imports and exports rose 31.5% to VND28.3 trillion compared with the same period of the previous year.

“Although the State revenue was good compared to the estimate, the revenue in January was lower than the same period in 2021 due to the slow recovery of the economy in the fourth quarter of 2021, and the low growth or decrease in some industries such as metal ore mining dropped by 20%; beer production decreased by 3.6%; electrical equipment production down 5.5%; automobile production decreased by 9.4%,” said the Ministry of Finance.

Ensuring budget balance

Regarding revenue collection, the Ministry of Finance said the total State expenditure in January reached VND113.9 trillion or 6.4% of the estimate, meeting the recurrent expenditure needs to implement socio-economic development, national defense and security, state management, social security, and ensuring funds for salaries and pensions, social subsidies for beneficiaries; ensuring full and timely payment of due interest on debts (accounting for 13.7% of total state budget expenditures).

In addition, the Ministry of Finance provided 13,620 tons of national reserve rice for people during the Lunar New Year and at the beginning of 2022.

Regarding expenditure for development investment, the progress of spending in January was low (about 2.5% of the estimate) as ministries and localities focused on completing documents, procedures and capital payment for projects under the 2021 plan; and allocating and announcing the capital plan in 2022 to investors.

According to the Ministry, the balance between the central budget and local budgets in January was ensured. The Ministry issued about VND23.08 trillion of Government bonds with an average term of 15.81 years, and an average interest rate of 2.36%/year.

On January 11, 2022, the National Assembly issued Resolution 43/2022/QH15 on fiscal and monetary policies to support socio-economic recovery and development.

Following the direction of the Prime Minister, the Ministry of Finance coordinated with the Ministry of Planning and Investment and relevant ministries and government agencies to implement Resolution 43/2022/QH15, such as finalizing the Government's Decree guiding the tax exemption and reduction policy in 2022 under shortened order and procedures to apply from February 2022; working with the Ministry of Planning and Investment in developing fiscal policies in the Government's Resolution.

The Ministry also coordinated with relevant agencies to provide solutions for mobilizing and using resources for the implementation of the program, ensuring funding for the expenditure of the State budget and the program, serving as a basis for ministries, government and localities to implement and soon apply policies to people and businesses, contributing to promoting production and business development.