The State Audit of Vietnam (SAV) has uncovered VND11,928 billion (US$722.9 million) worth of financial wrongdoings in the 2007 from the state budget, more than doubling those of the previous year, state media reported on July 2.
The figure was released at a press briefing in Hanoi July 1, where the Head of the General Department of the SAV Vu Van Hoa announced audit results of the 2007 State budget.
Hoa proposed increasing state coffers by VND2,764 billion, including VND794 billion of internal taxes and VND848 billion of land use fees, and reducing state budget sping by VND1,244 billion.
According to the results, most localities&rsquo collection fulfilled or even surpassed budget estimates, and in 30 localities&rsquo collection was 10 per cent above target.
Regarding sping for investment development, 7 out of 29 audited provinces and cities did not fulfill their targets due to slow land clearance, and scattered capital allocation.
Land clearance for most audited projects was implemented slowly and investors and management boards lacked effective measures to direct and organize the implementation, causing losses for the State budget.
A report by the Ministry of Finance showed that total liabilities in capital construction by December 31, 2006 was VND336,780 billion (US$20.41 billion), equaling to 34.6 per cent of GDP and including VND220,865 billion (US$13.385 billion) foreign currency-based outstanding debts of the government.
Last year, the SAV audited 225 out of 385 member enterprises of 19 State-owned corporations, and 202 enterprises of which had made profit and only 23 had losses.
Investments by state-owned corporations into their non-core businesses (real estate and securities market), however, have not yet been reflected in the audit results of the 2007 State budget.
Le Minh Khai, deputy director of the SAV, explained for the situation by saying that such investments have just emerged from late last year.
Khai added that the state auditors had helped reduce the state budget sping on subsidizing petroleum prices by VND41.4 billion.
The SAV has proposed the National Assembly to approve the balance of the State Budget for 2006 with total state budget oversping valued up to VND48,613 billion. (VnExpress, VNA)
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