Vietnam’s spending deficit sees sharp fall in eight months

Wednesday, 2017-09-06 12:32:59
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Improved oil revenues help bring down Vietnam's spending deficit.
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NDO - Vietnam’s 2017 spending deficit as of August 15 fell by 63.8% from the same period of 2016, which the National Financial Supervisory Commission (NFSC) attributed to improved revenues from oil and export activities.

Official data showed that the government revenues reached almost VND707 trillion (US$ 31.1 billion), up 17%, while spending was estimated at VND747 trillion (US$32.9 billion).

The NFSC forecast that in the remaining months of the year revenue collection would remain stable, ensuring that spending deficit for the whole of 2017 would not exceed 3.5% of GDP.

According to the NFSC, the economy’s aggregate supply continued to grow in the past eight months thanks to improved industrial production, while aggregate demand also remained positive as a result of rising consumption and strong export-import growth.

The commission stated that inflation rebounded in August, after months of falling, but if increases in public services are excluded, the consumer price index increased by just 0.52% from a year ago and remained flat compared with the beginning of the year.

In addition, credit growth in the first eight months was positive with the banking system showing strong liquidity.