VINACHEM

The Ministry of Finance has developed different scenarios that consider future impacts of oil price slumps for a more flexible management of the state budget in 2016, said Minister Dinh Tien Dung on January 14.

A fuel price plunge would deliver a blow to the country’s state budget as the collection from crude oil, which contributes about 10% to the budget, would drop.

According to the minister, the move aims to actively balance the state budget amid fluctuations of oil prices, even if the price drops to below US$30 per barrel.

However, the slide in fuel prices also has positive impacts on economic development, creating more inputs into the state budget.

The ministry plans to improve its management in tax payments from domestic production and manufacturing, and exports, so as to make up for the losses from crude oil, Dung stated.

Public expenditure and debts will be under tighter control to eliminate waste, while financial transparency will also be enhanced, he added.

State budget collection totalled VND989 trillion, or US$44.1 billion, last year, up 14.6% from 2014. It surpassed the yearly target by 8.6%.