State budget deficit decreased sharply

The sharp decrease in the State budget deficit was due to the recovery of crude oil revenue and revenue from import-export activities.

According to the report of the National Financial Supervisory Commission, as of August 15, the State Budget deficit was estimated at VND40,350 billion, down 63.8%, equal to 22.6% of the estimate.

Specifically, state budget revenue as of August 15 reached nearly 707,000 billion VND, up more than 17% over the same period last year, equal to 58.3% of the estimate. State budget expenditure was more than 747,000 billion VND, up 4.5%, equal to 53.7% of the estimate. State budget deficit was estimated at 40,350 billion VND, down 63.8%, equal to 22.6% of the estimate.

The reason for the sharp decrease in the state budget deficit is the recovery of crude oil revenue and revenue from import-export activities (increased by 13.8% and 34.3% respectively; in the same period of 2016, they decreased by 45.1% and 11.1%).

Budget revenue and expenditure increased in 8 months but the deficit level decreased. Illustration: KT

In addition, the disbursement of capital for basic construction investment was slow, only 127,460 billion VND, equal to 36.2% of the estimate (the same period in 2016 was equal to 42.1% of the estimate) and principal repayment was not included in the state budget deficit from fiscal year 2016.

It is expected that in the remaining months of the year, state budget revenue will continue to be stable, and disbursement of capital for basic construction investment will change more positively.

Also according to the report of the National Financial Supervision Commission, government bond mobilization in August was less favorable with the winning bid rate reaching the lowest level since the beginning of the year.

The sharp decline in demand has left the government bond market gloomy, with the winning bid rate reaching the lowest level of the year. The main reason for this phenomenon is that the government has raised its credit growth target, causing banks to tend to retain resources for lending instead of investing in government bonds./.

According to VOV