According to the latest report of HCM City People’s Committee on budget revenue and expenditure in 2022-2023, the total receipt in 2022 was VND457.500 trillion, or 118.35 percent of estimates, an increase of 17.05 percent over the previous year. 

Earnings from domestic sources was VND294.5 trillion, from crude oil VND25 trillion and from import-export activities VND138 trillion. The total budget revenue in 2023 is estimated at VND469.682 trillion, 2.66 percent up over 2022. 

Regarding revenue structure, revenue from domestic sources and import-export activities will increase by 4.44 percent and 5.56 percent, respectively, compared with 2022. Revenue from crude oil is estimated to be VND16 trillion, down 36 percent over 2022 (VDN25 trillion).

The HCM City authorities have set seven economic goals that need to be implemented in 2023, including: 1/ GRDP 7.5-8 percent 2/ 100 percent fulfilling the budget collection plan 3/ maintaining the ratio of over 60 percent of the service sector in GRDP 4/ the disbursement rate of public investment capital is 90 percent or higher 5/ spending on science and technology is 1 percent/GRDP or higher 6/ average productivity growth rate is 7 percent per annum and 7/ total revenue from tourism is VND130-140 trillion and the number of foreign travelers to the city will be 4.5-5 million.

The HCM City Finance Department said budget revenue estimates are built on the basis of estimated revenue in 2022. However, there were unexpected receipts in 2022, including earnings from enterprises’ property reassessment and real estate transfer resulting in the increase in revenue from corporate income tax and VAT. Global petrol prices increase sharply, while demand and sales also increase. As sales are high, revenue from oil increases. In addition, financial investments in early months of the year were good, which led to high revenue from personal income tax.

The estimated expenditures of VND115.572 trillion in 2023 has been approved by municipal authorities, up by 19.15 percent over 2022 estimates. From July 2023, the city will have to implement the plan on raising the base salary from VND1.49 million to VND1.8 million.

HCM City Institute for Development Studies (HIDS) has designed three economic growth rate scenarios for HCM City. In the base scenario, the GRDP would be 7.5 percent.

Tran Chung