Crude oil exports back up state budget
Crude oil exports back up state budget
Despite a likely deficit this year, the state budget picture is expected to enjoy wider-than-expected takings this year thanks to increases in revenue of almost all sectors in the economy.
The government last week reported to the National Assembly (NA) that based on positive budget revenue in the first nine months of 2022, the economy may see an on-year rise in budget revenue worth billions of US dollars, reflecting its significant recovery from the aftermath of the health crisis sabotaging businesses’ performance.
Specifically, the 9-month revenue is estimated to reach $57.7 billion, equivalent to 94 per cent of initial estimates. It is expected that the figure for the whole year will be $70.18 billion – exceeding by $8.8 billion or 14.3 per cent as compared to the target set in November last year by the NA, also up 2.9 per cent against the figure realised last year.
“Revenues for the whole of 2022 will be sufficient for all spending tasks that have been set out, creating a bigger space for the monitoring of the fiscal policy and implementation of other pro-growth policies – helping stabilise and improve people’s lives,” said the government report.
Revenues from all economic sectors are set to increase on-year. Specifically, domestic revenues are estimated to be $56.18 billion, up 9.8 per cent on-year or $5.02 billion as compared to the initial estimates. This accounts for 80.1 per cent of total budget revenues. In addition, revenues from export-import turnover in 2022 are predicted to reach $18.26 billion, up 23.6 per cent as compared to the initial estimates – responsible for 15.2 per cent of the total state budget revenues.
It is also expected that revenues from crude oil exports for this year will be $2.96 billion, up 141.1 per cent as compared to the initial estimates and holding 4.2 per cent of total budget revenues. This is thanks to a hike in crude oil prices, averaging at $107 per barrel.
Revenue from crude oil exports in September is estimated to sit at $304.35 million – helping to create a 9-month figure of about $2.61 billion – doubling the annual estimates and up 103.5 per cent as compared to the corresponding period last year.
PetroVietnam last week reported that its total revenue is estimated to hit $30.36 billion, exceeding by 25 per cent of this year’s plan and up 56 per cent against the same period last year. The group’s 9-month contribution to the state budget is about $4.47 billion, exceeding by 59 per cent of the whole year’s plan and up 51 per cent on-year. It is expected that such a contribution to the state coffers will be about $6 billion for the entire year.
In the first nine months of 2022, PetroVietnam’s export turnover totalled over $2.17 billion, up 54 per cent as compared to the same period last year. Its 9-month inventory also saw an on-year reduction, including liquefied petroleum gas (79 per cent), assorted fuel (48 per cent), and polypropylene (50 per cent).
Binh Son Refining and Petrochemical JSC (BSR), a member unit of PetroVietnam, reported that its 9-month revenue reached $5.43 billion, with $608.7 million contributed to the state budget. BSR is responsible for receiving, managing and operating Dung Quat Oil Refinery in south-central Quang Ngai province.
In addition, Vinacomin is also reported to contribute billions of US dollars to the state budget since early this year. Its 9-month revenue is estimated to stand at $5.28 billion, up 22.2 per cent as compared to the corresponding period last year. Such an increase was seen in all types of revenues such as from coal (24 per cent), minerals (44.8 per cent), mechanics (23 per cent), and industrial explosive materials (27.5 per cent), among others.
Latest figures from the Ministry of Finance (MoF) showed that in the first nine months of this year, the Vietnamese economy enjoyed a budget surplus of $10.47 billion, especially given domestic production bouncing back with the economy climbing by an impressive rate of 8.83 per cent on-year. In September, the state budget revenue is estimated to be $4.12 billion, raising the 9-month total to about $57.7 billion, up 22 per cent as compared to the same period last year. All the revenues for the state budget have increased significantly, reflecting the economy bouncing back in a relatively comprehensive manner, said the MoF.
Meanwhile, in September the state budget saw a total spending sum of an estimated $5.77 billion, lifting the 9-month expenditure total to about $47.23 billion – up 5.4 per cent on-year. It is estimated that the total budget deficit for the whole year will be about $15.3 billion or 3.75 per cent of GDP.
One year ago, the government set out a budget deficit for the entire year of $16.21 billion or 4 per cent of GDP. However, concerned over the economy continuing to face more difficulties that will hurt enterprises and people, the NA in February adopted a scheme on raising state budget deficit within 2022 and 2023 by an annual average rate of 1-1.2 per cent of GDP, with a maximum permitted sum of $10.43 billion.
