A press release issued by the Ministry of Transport on Thursday stated categorically that only 8.9 per cent of the funding for its new modernisation and industrialisation expansion project will come from the State budget. The new modernisation expansion plan is to build a new high-tech ministry headquarters building, increase ship and aircraft fleets, and spend on more human resource development. The bulk of the money, estimated at VND223 trillion (US$10.6 billion), will be mobilised from other sources other than the State. Of this amount, about VND12,174 billion ($580 million) will be used for construction of the ministry's new headquarters and other office buildings. Construction of the new headquarters building is expected to be complete by 2030, in accordance to a Government plan for Hanoi envisioned until 2050. With the Government's plan in mind to establish the city's administrative base around Tay Ho Tay and Me Tri areas, the new headquarters building will be built … [Read more...] about State budget to provide only 8.9 percent of for controversial expansion project of Transport Ministry
State budget
PetroVietnam causes $874 mln state budget loss
The state-run Vietnam National Oil and Gas Group, or PetroVietnam (PVN), has made several wrongdoings in capital and asset management, as well as investing in non-core businesses, which cost the state budget a huge sum of VND18.2 trillion, or $873.6 million, the Vietnam State Inspectorate (VSI) told a press briefing yesterday. For illustration purposes only >> Wrongdoings at Song Da Corp cost state $512 mln The total capital of PVN at the end of 2010 was some VND466 trillion, and revenues it reaped in the 2006 – 2010 period topped nearly VND689.5 trillion, VSI said, citing figures from PVN’s audited financial report. “With such a massive sum of capital and asset in hands, PVN has made a lot of mistaken investments and capital allocations,” said a VSI representative, while petitioning that VND18.2 trillion be returned to the state budget. PVN has defied the laws to earmark more than VND15.6 trillion from the profits earned from selling oil and gas for … [Read more...] about PetroVietnam causes $874 mln state budget loss
State budget to gain hefty revenue from land
The State budget will gain US$4-5 billion from the land fund every year in the period from 2011 to 2020, said the Ministry of Finance. In particular, the total State budget revenue from land use fees, land rentals, non-agricultural land taxes and land use right transfer taxes will average out at over VND81.6 trillion a year. In case land prices marked up 20%, the figure would surge to above VND98.6 trillion per year. The main reason for this hefty revenue is the expansion of land used for several purposes from now to 2020. Specifically, land for industrial parks will rise by 128,000 hectares, urban land by 68,000 hectares and land for other purposes than farming by 210,000 hectares. In fact, the revenue may be higher as land use fees and land rentals are gradually approaching the market prices, and land auction will likely replace land allocation and leasing. To realize such revenue, the finance ministry will continue to reform the financial policy for the land fund. Meanwhile, the … [Read more...] about State budget to gain hefty revenue from land
State budget set at US$43 billion for 2012
More than 90 percent of lawmakers voted on November 10 to adopt the Resolution on State budget estimates for 2012 which targets a total spending of more than VND903 trillion (US$43.3 billion). Of the amount, expenditure for development investment is expected to be VND180 trillion (US$8.6 billion), and for socio-economic development, national defence, security and administrative management, be VND542 trillion (US$26 billion). The total State budget revenue is expected to be VND740.5 trillion (US$35.5 billion). Under the resolution, minimum wage levels for public servants will increase to VND1.05 million (US$49 USD) from May next year from the current VND830,000 (US$39). An estimated VND45 trillion (US$2.1 billion) worth of Government bonds will be issued in 2012 for investment in important traffic, irrigation, health care and education projects permitted by the National Assembly. The NA entrusted the Government to continue tightened monetary policy, restructure State budget … [Read more...] about State budget set at US$43 billion for 2012
State budget at the crossroads
State budget allocation is hot on the National Assembly's agenda. National Assembly Economic Committee deputy chairman Mai Xuan Hung sheds some light on the issue. The government showed strong determination towards reforming budget allocation, linking it closely to economic restructuring with priority given to key and focal projects. Is this reflected in 2012's state budget plan? In my view, 2012 budget allocation plan the government has submitted the National Assembly for approval envisages some improvements. First, assignment relative to government bond capital is set on medium-term but not on annual basis and programme-based as previously. Second, the government told the National Assembly it would concentrate investment into key projects which can be finalised within 2012 and at most 2013. In doing that state budget is being distributed in a way with retrenching public investment. Notwithstanding, though public investment is being curtailed, it is impossible to reduce the … [Read more...] about State budget at the crossroads