HCMC beats target, posts 3 pct rise in 2021 budget revenue

According to the HCMC Statistics Office, the increase in the city’s budget revenue mainly came from the real estate, banking and securities industries.

The government’s policy of extending the tax payment period that took effect in April resulted in an increase in the city’s total budget revenues in the first six months and for the whole year, Tran Phuoc Tuong, deputy head of the office, told the press Wednesday.

The government had tasked HCMC with colleting VN365 trillion in budget revenues this year, roughly around VND1.5 trillion each day, counting just working days.

Last year, under Covid-19 impacts, the city had earned VND371 trillion after making almost VND410 trillion in 2019.

Explaining why the city recorded negative economic growth, at minus 6.78 percent, its lowest rate ever, but over-achieved budget collection, Tuong said the total budget revenue comprises direct and indirect revenues.

“For 2021, the city has earned more from securities activities and personal income tax, which are indirect revenues. Those revenues are not included in the city’s gross regional domestic product (GRDP), but in the budget collection,” he said.

HCMC was the epicenter of Vietnam’s latest Covid-19 wave.

The entire city was put under various levels of social distancing measures for four months between May and September.

In October, the Ministry of Finance announced that it was preparing a draft plan that would allow HCMC to retain 21 percent of its own budget collection each year instead of the 18 percent it has been allowed since 2017.

For years, the southern metropolis has been the locality making the biggest contribution to the state budget, at 25-27 percent of the total.