Vietnam says 2020 budget deficit seen widening to over $10bln from $8.7bln on virus

Luu Van Dat Friday | 05/15/2020 13:29

2020 budget deficit might widen by 1.5-1.6 percent of GDP to 5-5.1 percent GDP. Photo: bizlive.vn

2020 budget deficit of Vietnam could widen to over $10 billion from $8.7 billion deficit in 2019 as the economy was badly hit by the coronavirus outbreak, the government reported to legislators.

It is estimated that Vietnam could see a total budget revenue at more than VND1,510 trillion ($65 billion) while expenditure at more than VND1,740 trillion ($74.9 billion), the report said. The budget deficit could reach 3.44% of the economy’s gross domestic product this year.

2019 budget deficit was reported at VND203 trillion ($8.7 billion), marking a VND19 trillion ($819 million) decrease from a year earlier, government officials told the Standing Committee of the National Assembly.

Total budget revenue in 2019 reached more than VND1,550 trillion ($66.7 billion), exceeding the target by nearly VND140 trillion ($6 billion). The budget revenue is equivalent to about 25.7% of the country’s gross domestic product.

Budget expenditure is nearly VND1.750 trillion ($75 billion), exceeding approximately VND115,000 billion ($4.9 billion). The 2019 budget deficit was equal to 3.36% of GDP.

As of end-2019, public debt accounts for about 54.7% of GDP, said Finance Minister Dinh Tien Dung, adding the progress of disbursement of public investment from the state budget is still slow, only 71% of the yearly estimate.

Even before the impact of Covid-19, several businesses had to narrow their production and business activities due to difficulties in the market, interrupting the supply of raw materials, input materials, goods demand, Dung said.

State budget revenue in Jan. – April was estimated at VND491.38 trillion ($21.18 billion), down 5.9 percent against the same period last year since the government offered tax relief to support those affected by the COVID-19 pandemic, Viet Nam News cited data from the Ministry of Finance.

In April, domestic collection to the State budget decreased by nearly 25 percent over March to VNĐ72.5 trillion, equivalent to just 65 percent of the figure of the same period last year.

The ministry estimated that the budget deficit might widen by 1.5-1.6 percent of GDP to 5-5.1 percent GDP this year.

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