The Ministry of Finance has developed models for different scenarios that consider the future consequences of oil price slumps to more flexibly manage the State budget in 2016, officials said.

A fuel price plunge would deliver a blow to the country's state budget as the collection from crude oil, which contributes some 10 per cent to the budget, would drop.

Finance Minister Dinh Tien Dung said the models were created to actively balance the State budget amidst fluctuations in oil prices, even if the price drops below US$30 per barrel.

However, the slide in fuel prices can also have a positive impact on economic development, creating more sources of income for the state budget.

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

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

The State budget collection totalled VND989 trillion ($44.1 billion) last year, up 14.6 per cent from 2014. It surpassed the yearly target by 8.6 per cent.

The minister said they also supported the Ministry of Industry and Trade's proposal to adjust petrol retail prices daily instead of every fortnight.

"The petrol retail price has closely followed the market and has been controlled transparently," he said.

He added that if the price was to be adjusted daily, the price stabilisation fund should be removed to allow the market to decide the price.

Oil prices have tumbled some 35 per cent in the past year, on the back of an unabating glut of supply, amidst muted global demand led by the economic slowdown in China.

VNS