HCM City (VNA) – Ho Chi Minh City witnessed a sharpfall in the State budget revenue but a surge in spending during the first halfof 2020 due to COVID-19 impact, according to the municipal Statistics Office.

During the six months, about 163.173 trillionVND (7 billion USD) was collected for the State budget in the city, thecountry’s biggest economic hub, equivalent to 40.2 percent of this year’starget and down 14.4 percent year on year.

Meanwhile, budget spending was estimated at29,672 trillion VND, up 22.2 percent.

Director of the Statistics Office Huynh Van Hungsaid this is the first time the State budget revenue of the city plummetedwhile spending soared in the first half of a year.

He attributed this phenomenon to the fact that amajority of local businesses and economic activities were affected by COVID-19while many policies like tax reduction and tax payment deadline extension havebeen carried out to assist enterprises.

Besides, foreign tourist arrivals, newbusinesses and investment in HCM City fell sharply, and the number of firmssuspending operations increased by 40.6 percent year on year.

According to the city’s Customs Department, the10 import commodities contributing most to the budget, including completely-builtautomobiles, motorbikes, steel and petrol, also experienced sharp declines intheir turnover, by 15-50 percent from a year earlier.

Meanwhile, items with increased export turnoverlike computers, electronic devices, agro-aquatic products, pharmaceutical andchemicals are entitled to low tariffs under free trade agreements, making themunable to compensate for the decline in import tariff revenue.

To achieve this year’s budget revenue target,the HCM City People’s Committee is reportedly taking actions to supportbusinesses, promote economic growth, and step up the divestment of Statecapital from State-owned enterprises./.