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MINISTRY OF FINANCE OF VIETNAM
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THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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No. 49/2024/TT-BTC
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Hanoi, July 16, 2024
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CIRCULAR
PROVIDING GUIDANCE ON FORMULATION OF STATE BUDGET ESTIMATE
FOR THE YEAR 2025 AND THREE-YEAR STATE BUDGET - FINANCIAL PLAN FOR THE 2025 -
2027 PERIOD
Pursuant to the Law on
State Budget dated June 25, 2015;
Pursuant to the Law on
Public Investment dated June 13, 2019;
Pursuant to the
Government's Decree No. 163/2016/ND-CP dated December 21, 2016 on elaboration
and provision of guidelines for implementation of the Law on State Budget;
Pursuant to the
Government's Decree No. 31/2017/ND-CP dated March 23, 2017 on promulgation of
Regulations on preparation, evaluation and approval of the local government’s
five-year financial plan, the local government’s five-year midterm public
investment plan, the three-year state budget - financial plan of the local
government, and estimation and allocation of the local government budget, and
approval of the annual financial statement of the local government;
Pursuant to the
Government's Decree No. 45/2017/ND-CP dated April 21, 2017 elaborating on the
five-year financial planning and the three-year state budget - financial plan;
Pursuant to the
Government’s Decree No. 14/2023/ND-CP dated April 20, 2023 on functions, tasks,
powers and organizational structure of the Ministry of Finance of Vietnam;
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At the request of the
Director of the State Budget Department;
The Minister of
Finance hereby issues Circular providing guidance on formulation of state
budget estimate for the year 2025 and three-year state budget - financial plan
for the 2025 - 2027 period
Chapter I
GENERAL PROVISIONS
Article 1. Scope
This Circular provides
guidance on some contents in review of performance of state budget tasks in
2024 and during the 2021 – 2024 period; and formulation of state budget
estimate for the year 2025 and three-year state budget - financial plan for the
2025 - 2027 period.
Article 2. Regulated
entities
1. Regulatory bodies,
political organizations and socio-political organizations.
2.
Socio-political-professional organizations, social organizations and
socio-professional organizations supported by the state budget for fulfillment
of tasks assigned by the State.
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4. Other organizations
and individuals related to state budget.
Chapter II
REVIEW OF PERFORMANCE OF STATE BUDGET
TASKS IN 2024 AND DURING THE 2021 – 2024 PERIOD
Article 3. Bases for
review
1. Resolutions of the
National Assembly, the Government and all-level People’s Councils, and
regulatory documents prepared by competent authorities on state budget estimate
for the year 2024:
a) Resolutions of the
National Assembly on five-year plan for the 2021-2025 period, including
Resolution No. 16/2021/QH15 dated July 27, 2021 on five-year socio-economic
development plan for the period of 2021 – 2025; Resolution No. 23/2021/QH15
dated July 28, 2021 on national financial, borrowing and public debt repayment
plan for 2021 – 2025 period; Resolution No. 29/2021/QH15 dated July 28, 2021 on
medium-term public investment plan for 2021 – 2025 period; and Resolution No.
31/2021/QH15 dated November 12, 2021 on economic restructuring plan for 2021 –
2025 period.
b) Resolutions of the
National Assembly, including Resolution No. 103/2023/QH15 dated November 09,
2023 on five-year socio-economic development plan for the year 2024; Resolution
No. 104/2023/QH15 dated November 10, 2023 on state budget estimate for the year
2024; Resolution No. 105/2023/QH15 dated November 10, 2023 on 2024 central
government budget allocation; and Resolution No. 142/2024/QH15 dated June 29,
2024 on 7th session of the 15th National Assembly.
c) Government's Resolution
No. 01/NQ-CP dated January 05, 2024 on key tasks and solutions to
implementation of socio-economic development plan and state budget estimate in
2024 (Resolution No. 01/NQ-CP) and other Resolutions issued in the Government’s
monthly regular meetings.
d) Decisions issued by
the Prime Minister and Chairpersons of People’s Committees at all levels on
allocation of state budget estimates, plans for state budget-sourced investment
capital and additional budget allocation during administration of state budget
in 2024 (if any).
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e) Circular No.
76/2023/TT-BTC dated December 29, 2023 of the Minister of Finance on
implementation of state budget estimate for the year 2024 (Circular No.
76/2023/TT-BTC).
2. Other documents:
a) Documents prepared by
competent authorities on regulations on collection, policies on extension,
exemption and reduction in taxes, fees and charges and solutions to removal of
obstacles to enterprises and people; regulations on reduction and saving on
recurrent expenditures affecting performance of state budget collection
–expenditure tasks in 2024.
b) Conclusions and
recommendations of authorities regarding inspection, audit, reform of administrative
procedures, management of use of public finance and property, resolution of
claims or complaints, thrift practice, anti-extravagance and corruption
prevention and control with respect to the state budget revenues and
expenditures.
Article 4. Review of
state budget revenue collection in 2024
1. Review principles:
Complying with
regulations of the Law on State Budget and its guiding documents, laws on
budget revenue collection and documents prepared by competent authorities on
administration of state budget; fully reviewing all taxes, fees and charges
collected and other state budget revenues; excluding the collected fees that
have been converted into services charges according to the Law on Fees and
Charges, deductibles of state regulatory authorities or withheld revenues
generated from services rendered by public service providers and organizations
assigned by state regulatory authorities from state budget balance.
Ministries and central
and local authorities shall review and assess factors affecting capability of
collecting state budget revenues for the first six months, and estimate
capability of collecting state budget revenues in the last six months with a
focus on clarification of advantages and difficulties; and propose solutions in
order to achieve the most of estimated state budget revenue target decided by
the National Assembly and People’s Councils at all levels and assigned by the
Prime Minister.
2. Contents to be
reviewed:
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- Factors affecting
production, business, provision of services, import and export by enterprises
and economic organizations in each field; production and consumption volume,
selling prices and profits of key goods and services available within their
operating areas; impacts of variations in prices of crude oil, raw materials
and supplies, and fluctuations in securities market and real estate market;
review and analysis of impacts of adjustments to roadmaps for increase in
prices of public services and goods whose prices managed by the State; projects
whose tax incentive periods have elapsed and capacity for carrying out
extension projects and new projects.
- Measurement of specific
factors causing any increase or decrease in state budget revenues due to
possible changes in the law affecting revenues in 2024; impacts of implementation
of policies included in socio-economic recovery and development programs;
implementation of roadmaps for tax reduction for fulfillment of commitments on
international economic integration.
b) Urge to collect and
settle tax debts in the first 6 months of 2024; expected results of collection
and settlement of tax debts in the last 6 months of 2024 (in comparison with
targets and plans assigned – if any) and total tax debts estimated by December
31, 2024. Results of implementation of recommendations of the State Audit, the
Inspectorate, and decisions on retrospective collection of tax issued by tax
authorities at all levels upon performance of the tasks of inspection of
compliance with tax laws.
c) VAT refund (except for
overpaid VAT refund) and the amount of VAT refund estimated in 2024 in
conformity with policies and reality; reports submitted to competent
authorities on the additional amount of VAT refund (if any) for expenditure on
VAT refund to payers in a manner that is sufficient, prompt and consistent with
regulations of law; supervision, inspection and audit carried out after
completion of VAT refund, prompt recovery of VAT refunds in contravention of
regulations; and recommendations (if any).
d) Assessment of refund
of tax, late payment interests, and fines overpaid by payers according to
regulations of law under criteria, including quantity of processed/granted
applications for refund and amounts refunded. At the same time, identification
of problems and difficulties and proposal for solutions to policies and
technologies for management and cooperation during implementation (if any).
dd) Collection of state
budget revenue from land (including collection of land use levies and land
rents) according to the law on land and the Resolution No. 132/2020/QH14 dated
November 17, 2020 of the National Assembly and the Government’s Decree No.
26/2021/ND-CP dated March 25, 2021;
e) Collection of state
budget revenues from disposition and handling of real property in accordance
with the Government's Decree No. 167/2017/ND-CP dated December 31, 2017 and the
Government’s Decree No. 67/2021/ND-CP dated July 15, 2021 and other regulations
of relevant laws;
g) Collection of budget
revenues from lease of rights to utilize or transfer of rights to utilize
infrastructure assets for specific terms, state budget revenues from assignment
of management and use of infrastructure assets invested and managed by the
State and not recorded as state capital in enterprises, and operation of land and
water surface resources (after related costs are taken away);
h) Review of collection
of revenues generated by transfer of ownership of enterprises and public
service providers, revenues generated by transfer of state capital and equity
amount that exceeds charter capital of enterprises according to regulations of
the Government's Decree No. 148/2021/ND-CP dated December 31, 2021; detailed
reports on amounts transferred to budget and additional amounts that have not
yet been transferred to budget (if any), and proposal for solutions to such
amounts and revenues (if any).
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k) Collection of fees and
charges according to regulations of the Law on Fees and Charges (review of fees
and charges collected according to regulations; and those remitted into the
state budget; collection of administrative fines, monetary penalties and other
confiscations, license plate auction price and other amounts remitted into the
state budget in 2024 according to regulations.
l) Collection of grants
or aids in the first 6 months and estimated grants or aids during 2024.
m) Review of collection
of, and problems and difficulties in estimation and assessment of collection of
the difference between revenues and expenses of the State Bank, recommendations
(if any).
Article 5. Review of
state budget revenue collection during the 2021-2024 period
On basis of the financial
statement in 2021, the financial statement in 2022, the state budget revenue
collection in 2023 and the estimation for the entire year 2024, reviewing state
budget revenue collection during the 2021-2024 period in comparison to
five-year plans and objectives during the 2021-2025 period according to
Resolutions of the National Assembly and People's Councils, specifying each
source of state budget revenue generated from collection of land use levies,
lottery proceeds, dividends and after-tax profits, and other domestic revenues
(exclusive of land use levies, lottery proceeds, dividends and after-tax
profits), income from import and export activities, grants or aids (if any);
clarifying results archived, limitations and objective and subjective causes
(including specific assessment of impacts of COVID-19, Russia-Ukraine Conflict
and adjustments to policies on collection of state budget revenues, etc.);
assessing experience and circumstances and recommending regulatory solutions to
administration of state budget revenues in the coming time
Article 6. Review of
performance of investment and development expenditure tasks in 2024
1. Review of development
and implementation of investment and development expenditure estimate in 2024
(excluding credit-related tasks and national target programs)
a) Regarding annual
investment and development expenditure estimates under the Law on Public
Investment
- Investment and
development expenditures on programs and projects
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+ Implementation of
investment and development expenditure estimates for programs and projects
financed by the state budget in 2024 (including the amounts carried forward
from the previous years to 2024 according to regulations; assessment, analysis
and clarification of causes of late disbursement – if any) with specific
categorization, to be specific:
Regarding public
investment projects and programs (each project of national importance, key
project, highway project, and project connecting regions and/or affecting
multiple regions, and promoting rapid and sustainable socio-economic
development), progress and capital disbursement by end of June 2024,
feasibility report by the end of January 31, 2025; specific sources of funding
(specific groups of project of each industry and sector for investment and
development expenditures of local government budgets; foreign-funded central
government budget funding, domestic capital); appendices containing specific
data about each project, including: total investment approved, accrued capital
disbursement at the end of 2023, capital plan of the previous years carried
forward to 2024, capital plan of 2024 (including additional capital),
adjustments and estimates of 2024 (including descriptions and
explanations).Regarding investment and development expenditures covered by
revenues from sale of land-attached property, transfer of land use rights and
land repurposing, review of collection and transfer of revenues to the budget
and implementation of estimates of investment and development expenditures
covered by such revenues in 2024.
Review of performance of
the 2024 assigned tasks of investment expenditures covered by increased
revenues and decreased expenditures during the 2021-2023 period and budget
reserves at all levels in 2024 (if any).
Review of all projects
already completed and transferred for use and yet to obtain the adequate amount
of allocated capital according to regulations, especially projects having their
final statements approved and projects whose final statement documents have
been submitted. Review of advanced capital recovery (advanced capital to be
recovered in 2024; the remaining advanced capital to be recovered in the
medium-term public investment plan for 2021-2025).
Review of investment and
development expenditure in the public-private partnership form, including
advantages, difficulties and problems and recommendations.
- Impacts of conversion
of investment projects from the public-private partnership form into the public
investment form on the state budget and other impacts on the state budget (if
any), additional estimates of investment and development expenditures covered
by the state budget in 2024 (if any).
- Finalization of public
investments in completed projects (specifying the number of projects whose
finalization of public investments in completed projects has been approved and
the amount of capital not allocated in comparison to finalization value of
completed projects approved by competent authorities; public investment capital
paid and exceeding finalization value approved by a competent authority but not
recovered and transferred to the state budget; the number of projects which use
public investment capital, and have already completed without completion of
full finalization according to regulations by the end of June 2014 and projects
expected to be executed by end of 2024; causes.
b) Review of development
and implementation of each investment and development expenditure estimate
under the Resolution No. 43/2022/QH15 and the Resolution No. 11/NQ-CP
(excluding credit tasks) according to each program/project/sector.
Allocation, assignment
and addition of estimates (if any), progress and disbursement of capital
provided for socio-economic development and recovery programs (including
sources of payment for tasks and projects included in socio-economic
development and recovery programs from projects under the medium-term public
investment plan for the 2021-2025 period according to Resolution No.
93/2023/QH15 dated June 22, 2023 of the National Assembly).
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Implementation of
preferential investment credit plans prepared by the State and credit policies
in the first 6 months and the implementation projection for the entire year
2024 (capital raise, issuance of government-guaranteed bonds; credit growth,
disbursement, collection of principal debts, loan outstanding balance; state
budget allocations for subsidies for offsetting costs incurred from the
application of interest rates and management fees, etc.); administrative reform
of loan approval procedures.
3. Allocation, assignment
and implementation of estimates in the first 6 months and expected performance
of tasks of investment and development expenditures covered by the state budget
in 2024 for the entire year 2024 not regulated by the Law on Public Investment
(investment expenditures under the Law on management and utilization of state
capital invested in production and business at enterprises, and tasks according
to decisions made by competent authorities); existing problems, difficulties,
causes and proposals (if any).
4. Review of
implementation of policies in the first 6 months of 2024 and projection in 2024
regarding total resource mobilized and structure of private sector resources
for investment by sectors and domains; number of establishments developed by
using private sector resources; results achieved; existing problems, causes and
solutions (if any)
Article 7. Review of performance
of investment and development expenditure tasks during the 2021-2024 period
On the basis of the
review of implementation of expenditure tasks during the whole year 2024, the
review of accumulation of the results of the implementation of tasks in 3 years
from 2021 to 2024 compared with the objectives and the five-year plan for the
2021 - 2025 period shall be made; to be specific:
1. With regard to annual
investment and development expenditure tasks under the Law on Public Investment
(excluding tasks according to the Resolution No. 43/2022/QH15 and the
Resolution No. 11/NQ-CP):
a) Cumulative allocation
of public investment estimates and allocation, implementation and disbursement
for the 2021-2024 period (including the amounts for which disbursement deadline
is extended to the next year) in comparison with the medium-term public
investment plan assigned by the competent authority for the 2021-2025 period,
details of foreign capital (including loans and aids); details of expenditures
from the local government budgets, foreign-funded central government budget
funding of each industry and sector (including loans and grant aids), domestic
capital(if any); capital provided for projects of national importance, key
projects, highway projects, and projects connecting regions and/or affecting
multiple regions, and promoting rapid and sustainable socio-economic
development; capital raised by increased revenues and decreased expenditures
and budget reserves at all levels for the 2021-2024 period (if any). Clarification
of public investment capital covered by local government budgets for the
2021-2024 period in comparison with the 20212-2025 plan assigned by the
competent authority, proposed additions to mid-term plans (if any)Investment
capital allocated and disbursed, capital whose allocation and disbursement
periods may be extended, and capital to be allocated for completion of the
mid-term public investment capital plan.
b) The number of
debt-incurring capital construction projects which has been consolidated and
given budget allocations in the medium-term public investment plan for the 2021
– 2025 period, budget allocations for the years from 2021 to 2024 for
settlement of capital construction debts, the proposed number of budget
allocations in 2025.
c) The accumulated amount
of advances to be recovered in the medium-term public investment plan for the
2021 – 2025 period, budget allocations for the 2021 – 2024 period for recovery
of advanced capital, the estimation of the remaining amount of budget allocations
expected to be recovered in 2025; the amount of advances arising till now which
have not been recovered in the medium-term public investment plan for the
2021-2025 period (central government budget, local government budgets).
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2. With regard to
investment expenditures on programs and projects under socio-economic
development and recovery programs
Report on cumulative
budget estimates assigned and allocation, implementation and disbursement until
the end of 2024 for programs and projects under socio-economic development and
recovery programs (including amounts reimbursed from programs and projects
under the mid-term public investment plan for the 2021-2025 period) in
comparison with objectives of the plans according to the Resolution No.
43/2022/QH15 and the Resolution No. 11/NQ-CP; achieved results during
socio-economic development and recovery.
Assessment of adjustments
to capital sources provided for tasks and projects using capital from the
mid-term public investment plan and tasks and projects using capital from the
socio-economic development and recovery program during development of the state
budget investment plan for the 2022-2024 period.
3. With regard to annual
credit tasks (excluding tasks according to the Resolution No. 43/2022/QH15 and
the Resolution No. 11/NQ-CP)
Implementation of
preferential investment credit plans prepared by the State and credit policies
for the 2021-2024 period (capital raise, issuance of government-guaranteed
bonds; credit growth, disbursement, collection of principal debts, loan
outstanding balance; state budget allocations for subsidies for offsetting
costs incurred from the application of interest rates and management
fees.
4. Performance of tasks in
investment and development expenditures covered by the state budget, not
regulated by the Law on Public Investment (investment expenditures under the
Law on management and utilization of state capital invested in production and
business at enterprises, and tasks according to decisions made by competent
authorities):
Review of performance of
tasks during the 2021-2024 period, including clarification of funding approved
by competent authorities; granted funding; used funding; and funding to be
granted in 2025.
5. Implementation of
mechanisms and policies for calling for private sector involvements for the
2021-2024 period compared to the assigned mid-term plan for the 2021-2025
period (total resource and structure of private sector resources by sectors and
domains; number of establishments developed by using private sector resources
by sectors and domains).
6. Specific reports on
achieved results, problems, causes and recommendations (if any) for each clause
1, 2, 3, 4, 5 of this Article. Inadequacies in institutions and organization of
public investment shall be specified:
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- Assessment and
clarification of difficulties, problems, shortcomings and limitations affecting
the allocation and disbursement with a focus on major groups of issues,
including policies and mechanisms, implementation organization and specific
problems (if any).
- Recommendations for
laws and performance of investment and development expenditure tasks.
Article 8. Review of
performance of recurrent expenditure tasks in 2024 and during the 2021-2024
period
1. Ministries, central
and local authorities shall focus on review of performance of recurrent
expenditure tasks in 2024, including the following contents:
a) Allocation, assignment
and implementation of recurrent expenditure estimates in the first 6 months and
for the whole year 2024, corresponding to specific assigned sectors. Regarding
mandatory investment-like expenditures (procurement, renovation, upgradation
and modernization), recurrent expenditures shall be used according to
regulations in the Decree No. 165/2016/ND-CP and the Decree No. 01/2021/ND-CP,
assessment of expenditure, report on characteristics of these expenditures,
total funding approved, expenditures planned until the end of 2024,
expenditures to be planned, advantages, difficulties and recommendations (if
any).
5% reduction of recurrent
expenditure according to point 2.b of the Directive No. 01/CT-TTg dated January
04 of the Prime Minister (regarding the Ministry of Public Security and the
Ministry of National Defense, reduction shall be approved by competent
authorities); reduction in estimated expenditures not allocated after June 30,
2024 according to the Government's Resolution No. 82/NQ-CP dated June 05, 2024.
Difficulties that arise during the reduction and proposals (if any).
b) Written assessments of
progress and capacity for fulfillment of conditions, completion of procedures
and implementation in 2024 made by agencies and units and submitted to the
Ministry of Finance (in case of additional estimates) with regard to tasks
expected to be assigned in 2024 (including proposed additional estimates for
outsourcing for information technology services according to the Government's
Resolution No. 82/2024/ND-CP dated July 10, 2024) but not allocated estimates according
to clause 10 Article 3 of the Resolution No. 105/2023/QH15 dated November 10,
2023 of the National Assembly.
c) Results of fulfillment
of objectives and tasks and implementation of major programs, schemes and
projects using recurrent expenditures covered by the state budget in the first
6 months, and for the whole year 2024; difficulties, problems and proposed
solutions to mechanisms and policies on fulfillment and implementation, to be
specific:
- Review and
identification of tasks and policies that are complete or expired; proposed
amendments, annulment or replacement of regimes and policies that are
inconsistent with regulations of law and reality.
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- Innovation in public
service providers: results of development and innovation in systems,
management, improvement of quality and efficiency in operations of public
service providers in the first 6 months, and for the whole year 2024 according
to the objectives and tasks in Resolution No. 19-NQ/TW dated October 25, 2017
of the 6th Central Conference of the Central Committee of the XIIth
National Assembly (Resolution No. 19-NQ/TW), Decree No. 60/2021/ND-CP dated
June 21, 2021 of the Government (Decree No. 60/2021/ND-CP) and Circular No.
56/2022/TT -BTC dated September 16, 2022 of the Minister of Finance (Circular
No. 56/2022/TT-BTC).
2. Ministries, central
and local authorities shall review performance of recurrent expenditure tasks
during the 2021-2024 period as follows:
a) On basis of the
financial statement in 2021, the financial statement in 2022, task performance
results in 2023 and the projection for the entire year 2024, cumulative review
of performance of tasks in recurrent expenditures covered by the state budget
for the 2021-2024 period compared to five-year plans and objectives for the
2021-2025 period according to Resolutions of the National Assembly and People's
Councils (if any); focus on specific objectives and tasks approved for
fulfillment in the 2021 - 2025 period or for many years - if any; main tasks of
industries, sectors and local authorities; results achieved; existing problems,
causes and recommendations, remedial measures (if any).
b) Cumulative review of
downsizing, improvement and restructuring of apparatus organization; results of
development and innovation in systems, management, improvement of quality and
efficiency in operations of public service providers for the 2021 - 2024 period
compared to the objectives set out in the Resolution and Conclusion of the
Central Committee and relevant legal documents; difficulties, problems, causes
and recommendations.
c) Review of fulfillment
of objectives of autonomy and reduction in expenditures covered by the state budget
after delegation of autonomy to public services providers from the time of
implementation of the Government's Decree No. 60/2021/ND-CP dated June 21, 2021
until now; difficulties, problems, causes and recommendations.
d) Review of
establishment of economic and technical norms that serve as a basis for
ordering and tendering related to public services provided by ministries,
central and local authorities and difficulties, problems, causes and
recommendations.
Article 9. Central
state administrative authorities and units to which special financial and
income mechanisms are applied according to Resolution No. 104/2023/QH15 and
Resolution No. 142/2024/QH15
1. Pursuant to Resolution
No. 104/2023/QH15, Resolution No. 142/2024/QH15, and Decisions on allocation of
financial estimates in 2024 of the Prime Minister, authorities and units shall
prepare reports on progress in review of their special financial and income
mechanisms and submit such reports to competent authorities.
2. Authorities and units
shall make detailed reports on collection, management and use of their lawful
revenues in 2024; management and use of their funds and balance of funds until
December 31, 2023, June 30, 2024 and December 31, 2024.
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3. Regarding payroll
expenditures, authorities and units shall report payroll under their regimes
according to general salary regulations applicable to officials and public
employees (expenditures on payment of salaries and salary equivalents,
salary-based contributions) and personal income-based expenditures according to
special mechanisms from June 30, 2024 and earlier and those applied from July
01, 2024 and approved by competent authorities.
4. Regarding expenditures
other than salaries and income:
a) Recurrent
expenditures:
- Review expenditures in
the first 6 months according to special financial and income mechanisms from
June 30, 2024 and earlier.
- Estimate expenditures
in the last 6 months of 2024 according to mechanisms specified by regulatory
bodies in the Resolution No. 01/2021/UBTVQH15, the Decision No. 30/2021/QD-TTg,
state management expenditures within set limits and general expenditures and
sector-specific expenditures, to be specific:
(i) Regarding
expenditures within set limits, review and estimate expenditures in the last 6
months (compared to those in the first 6 months of 2024)
(ii) Regarding special
expenditures other than those within set limits, review and classify such
expenditures into 02 groups: (i) general expenditures and (ii) sector-specific
expenditures according to expenditures specified in the Resolution No.
01/2021/UBTVQH15, the Decision No. 30/2021/QD-TTg, specify each expenditure,
approval decision, total expenditure approved, period of expenditure, and
report expenditures in the first 6 months, estimated expenditures in the last 6
months and expenditures to be allocated according to total expenditure
approved.
(iii) Regarding special
expenditures not regulated by the Resolution No. 01/2021/UBTVQH15, the Decision
No. 30/2021/QD-TTg, each authority/unit shall make a detailed report on each
expenditure, specifying necessity, approval procedures and decision, total expenditure
approved, period of expenditure, expenditures allocated in the first 6 months
of 2024 and cumulative expenditures allocated until the end of June 30, 2024;
send a plan and schedule of such expenditures to a competent authority
according to clause 1a Article 4 of the Resolution No. 01/2021/UBTVQH15 if any
(special non-recurrent expenditures arising and decided by the competent
authority) and estimate expenditures in the last 6 months; indicate
difficulties, problems and proposals (if any).
b) Regarding investment
expenditures:
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Estimate expenditures in
the last 6 months of 2024 according to mechanisms specified by regulatory
bodies (cooperate with the Ministry of Planning and Investment in review), and
make a detailed report each expenditure, specifying expenditure procedures,
approval decision, total expenditure, and expenditure sources approved, period
of expenditure, expenditures allocated in the first 6 months of 2024 and
cumulative expenditures allocated until the end of June 30, 2024, expenditures
to be allocated; indicate proposals and solutions for such expenditures.
5. If competent
authorities approve guidelines and mechanisms for application from July 01,
2024 and/or transition periods, authorities and units shall fully report
adjustments to mechanisms and policies and/or transition periods; impacts on
funds; expected implementation in the last 6 months.
Article 10. Review of
implementation of national reserve plans and national reserve expenditure
estimates in 2024 and during the 2021-2024 period
Ministries and sectoral
administrations in charge of national reserve commodities shall review
implementation of national reserve plans and national reserve expenditure
estimates approved by competent authorities in the first 06 months and for the
whole year 2024; advantages, difficulties and issues arising during
implementation of plans in 2024. On the basis of the projection of
implementation for the whole year of 2024, they shall review implementation of
national reserve plans for the 2021-2024 period compared to objectives of the
five-year plan for the 2021-2025 period.
Article 11. Review of
implementation of 03 national target programs, and other programs, projects and
schemes in 2024 and during the 2021-2024 period
1. Regarding 03 national
target programs
According to the Law on
State Budget, the Law on Public Investment, the Resolution of the National
Assembly, the Resolution No. 111/2024/QH15 dated January 18, 2024 of the
National Assembly, the Decree No. 27/2022/ND-CP dated April 19, 2022 of the
Government, the Decree No. 38/2023/ND-CP dated June 24 2023 of the Government;
the Prime Minister’s Decisions on approval for national target programs;
guiding documents issued authorities, ministries, central authorities, People's
Committees of provinces and central-affiliated cities and state
budget-estimating agencies and units, state budget-using units shall review
allocation and use of state budget estimates in 2024 (specifying estimates
transferred from the previous years to 2024 according to regulations for
implementation and estimates assigned in 2024 - if any), capacity for using and
disbursing estimates that have not yet been assigned in 2024 of national target
programs according to Resolution No. 105/2023/QH15 of the National Assembly;
indicate advantages, disadvantages and recommendations (if any).To be specific:
a) Host authorities of
programs shall preside over and cooperate the Ministry of Planning and
Investment, the Ministry of Finance, host authorities of projects, sub-projects
and component contents shall report promulgation/submission of amendments to
relevant mechanisms and policies (if any) for promulgation; review allocation
and use of the state budget in a detailed manner for projects, subprojects,
component contents, investment and expenditures, recurrent expenditures,
domestic capital, foreign capital (if any) and compliance with regulations on
balance and allocation of local counterpart funds.
b) Host authorities
(ministries, central authorities, People's Committees of provinces and
central-affiliated cities) shall review amendments to relevant mechanisms and
policies and submit them according to within their jurisdiction (if any);
allocation and use of the state budget (to be specific, local authorities shall
report central government budget-funded funding estimates, local counterpart
funds according to regulations), for projects, subprojects, component contents,
investment and development expenditures, recurrent expenditures, domestic
capital, foreign capital (if any).
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2. Regarding programs,
projects and tasks approved by competent authorities for the 2021-2025 period
or by 2030, authorities and units shall review completion of and amendments to
institutions (if any), allocation and implementation in 2024. In case of
programs, projects and tasks using foreign capital, they shall make reports on
allocation and disbursement of capital for each specific objective and task and
recommendations (if any). On the basis of the projection of implementation of
2024, authorities and units shall review cumulative budget estimates assigned,
allocation and use of the state budget until the end of 2024 in comparison to
total budget approved for the 2021-2025 period or by 2030; results achieved;
existing problems, causes, proposals and solutions (if any).
Article 12.
Foreign-funded objectives
1. Ministries, central
and local authorities shall review allocation and assignment of estimates of
2024, amendments to such estimates (if any) in terms of projects, sponsors and capital
sources, including loans (ODA loans and foreign concessional loans), aids (ODA
grants and grant aids not in the form of official development assistance);
financial mechanism; difficulties, problems and proposals (if any). Regarding
grant aids, they shall assess receipt of new aids not mentioned in estimates,
progress in procedures for supplementing estimates; review difficulties and
problems upon assignment of annual and midterm public investment capital
estimates if loans and aids are not separately recorded and propose solutions.
2. Reviewing disbursement
and results of disbursement of foreign capital in comparison with estimates
assigned; problems about procedures for disbursing ODA capital (if any);
clarifying causes of late disbursement, responsibilities of ministries, central
and local authorities that act as supervisory authorities in charge of
investment, project management boards, and relevant agencies and units; and
proposing solutions to remove difficulties during implementation of programs
and projects.
3. According to the
projection for provision of expenditures for 2024, it shall be necessary to
make an assessment of provision of expenditures for the 2021 – 2024 period
compared with the assigned midterm objectives and plan for the 2021 – 2025
period/the plan for provision for the 2021 - 2025 period in accordance with
signed agreements or arrangements (if any), difficulties, unresolved issues and
recommendations.
Article 13. Review of
creation of budget for pay reform in 2024
Ministries, central and
local authorities shall review implementation of mechanisms for creating budget
for pay reform in 2024 in association with reorganization of operational
apparatus, downsizing and increase in financial autonomy of public service providers
according to regulations.
Article 14. Review of
performance of state budget tasks of provinces and central-affiliated cities in
2024 and for the 2021 – 2024 period
In addition to
requirements specified in Articles 4 thru 13 of this Circular, local governments
over provinces and central-affiliated cities shall focus on:
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2. Review of implementation
of policies on exemption and reduction of contribution. In case of budget
deficit, local governments shall comply with regulations in point b clause 9
Article 3 of the Decision No. 1600/QD-TTg dated December 10, 2023 of the Prime
Minister, the Decision No. 1602/QD-TTg dated December 10, 2023 of the Prime
Minister and clause 6 Article 9 of the Circular No. 76/2023/TT-BTC of the
Minister of Finance.
3. Capacity for
implementing of investment and development expenditure estimates of 2024 by
each sector (including amendments to such estimates in 2024 according to
regulations), to be specific: local government budgets (fundamental
construction investment expenditures, investment expenditures covered by
revenues from land use levies and lottery sales, investment expenditures
covered by local government budget deficit); targeted additional funding from
central government budget to local government budget from domestic and foreign
sources (including loans and grant aids); to be specific:
a) With regard to annual
investment and development expenditure tasks under the Law on Public Investment
(excluding socio-economic development and recovery programs according to the
Resolution No. 43/2022/QH15):
- Allocation, assignment
of and addition to estimates (if any); settlement of outstanding capital
construction debts and recovery of advanced capital in 2024; remaining amounts
estimated by the end of 2024 (if any); and proposals.
- Performance of
expenditure tasks and disbursement of public investment capital covered by
local government budgets in the first 6 months and review thereof for the whole
year 2024.
- Allocation,
organization and disbursement of investment and development capital covered by
targeted additional funding from central government budget to local government
budget in the first 6 months and review thereof for the whole year 2024.
- Local government budget
deficit in 2024 and investment from local government budget deficit (if any).
- Increased revenues and
reduced expenditures covered by local government budgets (if any).
- Approval and allocation
of funding, organization and disbursement of investment capital raised by
retained revenues according to regimes, including revenues from collection of
fees, revenues from provision of public services and other lawful revenues with
detailed categorization.
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- Collection,
expenditure, management and use of revenues from lottery sales for investment
and development in provinces and cities in 2024.
b) With regard to
performance of investment and development expenditure tasks according to the
Resolution No. 43/2022/QH15 dated January 11, 2022 of the National Assembly
Performance of
expenditure tasks allocated additional estimates, distribution, organization,
assessment of capacity for disbursement by January 31, 2025 with regard to
programs, projects and tasks under the socio-economic development and recovery
program and supplementation of estimates, disbursement regarding programs,
projects and tasks that are not included in the socio-economic development and
recovery program and have to be sped up; advantages, difficulties, unsolved
issues and recommendations (if any).
c) Allocation and
assignment of estimates, disbursement of estimates for investment and
development expenditures in 2024 not regulated by the Law on Public Investment
(if any).
d) Compliance with
regulations on public investment, Directives and Official Telegrams of the
Prime Ministers on investment and development expenditures;
dd) Results expected to
be achieved, unresolved problems, causes and recommendations (if any).
4. Report on
implementation of social welfare policies issued by central authorities in
provinces and cities in 2024. Local authorities shall fully report
beneficiaries of policies (review and determine estimated number of
beneficiaries for the whole year 2024 on the basis of the report on
beneficiaries in the first 6 months), subsidies, period of each benefit, social
welfare expenditure policies according to regulations in order to clearly
identify the demand for the state budget expenditures on implementation of
social welfare policies issued by central authorities.
According to the Decision
No. 127/QD-TTg dated January 24, 2022 of the Prime Minister and funding
allocated and included in the local government budget expenditure estimate of
2024, determination of additional funding granted by the central government
budget to local government budgets.
(The detailed report
shall be made according to Form No. 01 enclosed with this Circular).
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a) Payroll, allowances
and benefits estimated in 2024.
b) Increased budget
demand for pay reform.
c) Use of local resources
for implementation of the pay reform, including10% of the saving on recurrent
expenditure (excluding salaries, allowances, salary-based contributions, salary
equivalents and other human-related costs) according to the 2024 estimate assigned
by the competent authority; 70% of the increase in local government budget
revenues in 2023 compared with the 2023 estimate assigned by the Prime Minister
and 50% of the increase in local government budget revenues of the 2024
estimate in comparison with the 2023 estimate assigned by the Prime Minister
(excluding revenues from land use levies, lottery sales, equitization and
divestment from state-own enterprises managed by local authorities and excluded
amounts according to clause 2 Article 3 of the Resolution No. 34/2021/QH15
dated November 13, 2021 of the National Assembly; the amount of revenues
retained according to regulatory regimes in 2024; a surplus amount of funding
for the pay reform transferred from 2023 (if any), and a surplus amount of funding
estimated for the pay reform until the end of 2024.
(The detailed report
shall be made according to Form No. 02a enclosed with this Circular).
6. Report on use of local
government budget provisions according to clause 2 Article 10 of the Law on
State Budget, including the budget estimate allocated in the beginning of the
year, used budget covered by local government budget provisions, financial
reserves (if any) until June 30, 2024, and budget expected to be used in the
last 6 months of 2024.
7. Borrowing and loan
repayment of the local government budget, to be specific:
a) Debt balance in the
beginning of the year, debt balance until June 30, 2024, debt balance estimated
until the end of December 31, 2024, classified by each debt balance source
(issuance of local government bonds, the Government’s on-lending of foreign
borrowed funds classified by specific sponsors, programs and projects;
borrowing of state-owned capital credit funds; and borrowing of other funds).
b) Raised capital until
June 30, 2024 and estimate capital for the whole year 2024, classified by
objectives (loans used for repaying principal and compensating for deficit
spending) and specific capital sources (ODA loans taken for on-lending,
issuance of local government bonds, other lawful financial sources).
c) repayment of debts
(including interest and fees) until June 30, 2024 and the projection of
repayment for the whole year 2024, specific repayment of interest and fees with
regard to domestic loans, the Government’s on-lending of foreign borrowed funds
according to each program and project.
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(The detailed report
shall be made according to Form No. 03 enclosed with this Circular).
8. Regarding provinces
and central-affiliated cities to which specific budget – financial mechanisms
and policies are issued by competent authorities, review of implementation of
such mechanisms and policies within such provinces and cities (including
mechanisms and policies issued by local authorities); assessment of impacts of
mechanisms and policies on state budget revenues and expenditures in these
provinces and cities.
9. Implementation of
conclusions and recommendations made by the State Audit Office and the
Inspectorate.
Article 15. Review of
implementation of financial plans of state off-budget financial funds in 2024
and during the 2021 – 2024 period
Ministries, central and
local authorities and units assigned to manage state off-budget financial funds
shall review efficiency in operations; report review, restructuring, merger,
termination of operations of or dissolution of funds that operate
ineffectively, for improper purposes, with overlapped objectives, tasks or
regulated entities, or are incapable of financial independence, and have
revenues and expenditures which overlap with those of the state budget; finally
review and assess the implementation of revenue - expenditure plans and tasks
assigned for 6 months and expected for the whole year 2024 associated with
efficiency in operations; assess accumulation of implementation until the end
of 2024 compared to objectives set for the 2021 - 2025 period (if any);
indicate difficulties and unsolved problems arising and propose solutions.
Article 16. Lawful
revenues retained and not included in state budget balance of regulatory bodies
and public service providers (regarding expenditures according to specific
mechanisms, Article 9 of this Circular shall be applied)
1. Authorities and units
shall report revenues earned by public service providers (not included in the
state budget), and on this basis, determine the autonomy level of each
provider; and assess retained revenues in 2024 and during the 2021-2024 period
according to regulations of law applicable to regulatory bodies and public
service providers.
2. Reporting results of
allocation of lawful revenues earned by regulatory bodies and public service
providers, retained and not included in the state budget balance in 2024,
specifying investment and development expenditure tasks according to
regulations (fees and public service revenues retained, fund for development of
provision of public services, loans and other legal sources), recurrent
expenditures with detailed categorization and accrued amount of 2021 – 2024.
3. Estimating the
remaining lawful revenues in the end of 2024; and the remaining expenditures (from
2025) on investment and recurrent tasks approved until now – if any.
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FORMULATION OF STATE BUDGET ESTIMATE FOR
THE YEAR 2025
Article 17.
Requirements
1. A state budget
estimate for the year 2025 shall be formulated according to the Law on State
Budget, its guiding documents and other relevant legal documents in conformity
with the 10-year socio-economic development strategy for the 2021 - 2030
period, 5-year plans for the 2021 - 2025 period, objectives under Resolutions
issued by the Central Committee; specific mechanisms and policies on the
development of some provinces and cities according to regulations and Directive
No. 17/CT-TTg dated May 22, 2024 of the Prime Minister, legal documents and
directions of relevant competent authorities. The state budget estimate shall
have full legal bases and grounds for calculation; conform to implementation
reviews of2024 and the 2021 – 2024 period, be appropriate to capacity for
implementation in 2025 and fulfill objectives of the 5-year plans for the 2021
– 2025 period to the maximum.
2. When formulating
estimates, Ministries and central authorities in charge of sectors and
industries shall consider reviewing mechanisms and policies (especially social
welfare policies) that overlap each other, repeat, or are ineffective for
integration and annulment; only propose new policies, projects and tasks for
promulgation if implementation resources are balanced; estimate and provide the
adequate state budget within their jurisdiction for implementation of new
policies, projects and tasks decided by competent authorities. They shall
allocate estimates in order to recover state budget advances to be recovered in
the year according to regulations in Article 50 of the Law on State Budget and
the Law on Public Investment and not allocate estimates for expenditures on
mechanisms and policies that have not yet been promulgated.
3. Focus on direction of
prompt resolution of existing problems and handling of violations against
regulations on management of finances and budget detected and recommended by
the State Audit Office and the Inspectorate according to regulations of laws
from the process of formulation of state budget estimates.
Article 18.
Formulation of state budget revenue estimate for the year 2025
1. General principles of
formulation of a state budget revenue estimate
a) Complying with
regulations of the Law on State Budget, the Law on Tax Administration, Laws on
Taxes, Fees and Charges and other relevant legal documents and the Directive
No. 17/CT-TTg dated May 22, 2024 of the Prime Minister, collecting state budget
revenues in full and accurate manner, being appropriate for previous years'
implementation and fulfilling objectives of state budget revenues for the
2021-2025 period to the maximum.
b) Closely following
socio-economic and financial situations in Vietnam and foreign countries, and
measuring specific factors causing any increase or decrease in and changes in
sources of state budget revenues due to possible changes in policies and laws
on collection of revenues, management of collection, especially policies on
exemption and reduction of taxes, fees and charges and extension of payment
deadline of taxes and land rents that have expired and implementation of
roadmaps for reduction in taxes and tax incentives for implementation of the
Government’s commitments during international economic integration with foreign
investors and compliance with global anti-base erosion rules.
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d) It shall be projected
that the national average domestic revenue (excluding revenues from land use
levies, lottery sales, sale of state capital invested in enterprises,
dividends, after-tax profits and difference between revenues and expenditures
of the State Bank) in 2025 will rise by the minimum rate of 5-7% compared to
that estimated in 2024 (exclusive of factors causing any increase or decrease
in revenues due to possible changes in policies); the rate of growth in state
budget revenues at each province/city shall be appropriate to the economic
growth and revenues rising in such province/city on the basis of consideration
of factors of management of revenues, prevention of revenue loss and collection
of tax debts. It shall be projected that the average revenue from import and
export in 2025 will rise by the rate of 4 - 6% compared to that estimated in
2024.
2. Formulation of
domestic revenue estimates:
a) In addition to
fulfillment of objectives and requirements specified in clause 1 of this
Article, local authorities formulating their domestic revenue estimates in 2025
shall adequately estimate state budget revenues rising in their
provinces/cities and exclude revenues not included in the state budget balance
from the state budget balance according to prescribed regimes on the basis of
practical review of previous years' implementation and the number of revenues
determined after the audit of the state budget revenue estimate in 2025 and
informed by competent authorities.
b) The state budget
revenue estimate for 20125 shall be formulated on the basis of the national
land and taxpayer data system; ensure accurate and sufficient determination of
specific revenues, taxes and collection sectors for each province/city, specify
revenues from projects newly put into operation that generate a large number of
revenues in accordance with applicable regulations on taxes, fees, charges and
other state budget revenues; clearly indicate revenues from fees and charges
according to regulations; and comply with regulations on policy adjustments
according to the specified schedule that may continue to affect state budget
revenues in 2024, and regulations expected to be amended, supplemented or
applied in 2025.
Estimates for land and
housing revenues shall be formulated in a manner that conforms to laws on
housing and land and strictly follow plannings and plans for transfer of use
land rights, auction of land use rights, rights to lease land at provinces and
cities, plans for reorganization and disposal of real property approved by
competent authorities; People's Committees of provinces and cities shall direct
local authorities to closely cooperate with tax authorities to formulate
estimates for revenues from land use levies within the capacity of local
sources of revenue, and avoid making impractical estimates for land-related
revenues rising in recent years in accordance with the direction in Resolution
No. 91/2023/QH15 dated June 19, 2023.
c) Revenues from
reorganization and disposal of real property and public assets specified in the
Decree No. 167/2017/ND-CP and the Decree No. 67/2021/ND-CP; revenues from lease
of rights to utilize or transfer of rights to utilize infrastructure assets for
specific terms, state budget revenues from assignment of management and use of infrastructure
assets invested and managed by the State and not recorded as state capital in
enterprises, and operation of land and water surface resources (after related
costs are taken away) shall be adequately estimated and transferred to the
state budget according to regulations of law. Estimates for revenues from
transfer of ownership of enterprises and public service providers, transfer of
state capital and equity amount that exceeds charter capital of enterprises
shall be formulated according to regulations of the Government's Decree No.
148/2021/ND-CP dated December 31, 2021;
With regard to revenues
from national defense and security land use levies for production and economic
development purposes, the Ministry of National Defense and the Ministry of
Public Security shall formulate estimates for such revenues according to the
land law and Article 201 and Article 260 of the 2024 Law on Land.
d) Estimates for revenues
from fees and charges (included in the list specified in the Law on Fees and
Charges), total revenue, revenues transferred to the budget, retained and
deducted revenues according to regulations of law, each type of fees/charges
and estimates made by agencies and units for retained budget expenditures by
sectors shall comply with regulations in clause 4 Article 11 of the Circular
No. 342/2016/TT-BTC of the Minister of Finance and Form No. 07 enclosed with
this Circular.
Estimates for
expenditures covered by retained revenues from fees appropriate to expenditures
serving collection shall be formulated according to regulations of the
Government's Decree No. 120/2016/ND-CP dated August 23, 2016 amended by the
Government's Decree No. 82/2023/ND-CP dated November 28, 2023. Do not exceed
the rate of revenues retained according to regulations in Circulars of the
Minister of Finance.
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dd) Estimates for
revenues from administrative fines, monetary penalties and other confiscations,
license plate auction price and other amounts remitted into the state budget in
2025 shall be formulated according to regulations.
e) With regard to
revenues not included in the state budget balance according to regulations
(revenues from fee collection, provision of public services, tuition fees,
medical service costs and other lawful revenues retained for use by authorities
and units according to regulations), authorities and units shall formulate
specific estimates for such revenues, explain calculation bases, make use plans
to be submitted to superior authorities, and send reports to financial
authorities of the same level according to regulations of law.
3. Formulation of
estimate for state budget revenues from export and import:
a) The estimate for state
budget revenues from export and import shall be formulated on the basis of the
forecast about the growth in dutiable commodity and service export and import
turnovers in the context of economic integration, enhancement of trade
promotion, and the shift in the commodity structure, especially traditional
commodities from which a large part of state budget revenues is obtained and
other ones from which state budget revenues have been obtained recently.
b) The estimate shall be
formulated by taking into consideration influencing factors, including the
forecast about any fluctuation in domestic and international market prices of
commodities generating a large amount of state budget revenues; fluctuation in
crude oil price in the world; the exchange rate between Vietnamese dong and
currencies of strategic trade partners; the reduction in revenues caused by
implementation of the roadmap for tariff cuts under free trade agreements which
have already been concluded and commitments entered into in 2025; the degree of
trade facilitation and effects of technical barriers to trade; the scale and
progress of implementation of key investment projects in which input materials
and equipment, etc. are imported; production plans prepared by domestic oil
refineries.
4. Formulation of
estimate for the amount of VAT refunds arising under regulations of the VAT
Law:
The estimate shall be
formulated on the basis of socio-economic situation and objectives for socio-economic
development in each province/city; production and business plans prepared by
exporters, total quantity of projects and investment capital newly licensed,
investment progress in investment projects that are being implemented and new
investment projects, investment projects that have been fully invested in and
put into operation in the province/city in order to ensure accurate, full and
timely determination of VAT refunds to be generated in 2025 according to
applicable policies and regulations, and those coming into effect recently. The
estimate for VAT refunds shall stick to requirements concerning strengthening
of management of tax refunds, supervision and inspection after payment of VAT
refunds so as to ensure accurate refunds practically rising and conform to
policies and regimes.
5. State budget revenue
estimates (including domestic revenues and revenues from import and export)
shall include refunded amounts of tax, late payment interests, and overpaid
fines that cause reduction in state budget revenues according to regulation of
law.
6. Formulation of
estimate of state budget revenues from grant aids:
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Regarding aids received
from 2024 and earlier and not included in the assigned estimates, ministries,
central and local authorities shall make and include such aids into their
estimates in 2025 to submit them to competent authorities for consideration and
decision, serving as a basis for accounting and finalization according to
regulations.
Article 19.
Formulation of state budget expenditure estimate for the year 2025
1. Principles
a) Comply with
regulations of the Law on State Budget, the Law on Public Investment and other
relevant laws; follow the Resolution of the National Assembly Standing
Committee and the Decision of the Prime Minister on principles, standards and
norms of allocation of the investment and development capital and the state
budget’s recurrent expenditures; meet requirements for budget restructuring,
adhere to guidelines for reorganization of operational apparatus and downsizing
in the political system, and conform to regulations on improvement of quality
and efficiency in operations of public services providers under Resolutions of
the Central Committee and the Politburo. Maintain resources for pay reform and
implementation of social insurance policies in association with promotion of
organization of operational apparatus and roadmap for downsizing according to
regulations.
b) Thoroughly follow
principles of openness and transparency and requirements for thorough thrift
and wastefulness prevention according to the Resolution No. 74/2022/QH15 dated
November 15, 2022 of the National Assembly right from the stage of
identification of tasks, thereby making sure that tasks are uniformly performed
from the stage of formulation of estimates to stages of allocation, management,
use and finalization of the state budget.
c) Maintain capacity for
implementation and resources and cancellation of estimates or transfer of
funding sources to the following year. On the basis of the implementation
assessment in 2024, ministries, central and local authorities shall review
tasks that overlap and are completely performed in 2024; tasks that continue to
be performed in 2025; arrange the order of priority given to new tasks approved
by competent authorities according to urgency and importance and immediately
perform these tasks when assigned funding and state budget estimates within
capacity for mobilizing and balancing resources (including other lawful sources
according to regulations).
2. Formulation of
investment and development expenditure estimates:
a) Estimates for
investment and development expenditures covered by the state budget, including
loans (ODA loans and foreign concessional loans), aids (ODA grants and grant
aids not in the form of official development assistance), lottery income,
revenues obtained from sale of state capital invested in certain enterprises
and land use levies shall be formulated according to regulations of law and
within the capacity for balancing the state budget in the year; in a manner
that is conformable with the five-year public investment plan for the 2021-2025
period, the National Assembly’s Resolutions on adjustments, investment and
development expenditure tasks according to regulations of the Law on State
Budget, and other relevant legal documents not regulated by the Law on Public
Investment.
The public investment
estimate for the year 2025 shall be formulated in a manner that conforms to
Article 51 of the Law on Public Investment and follows principles, standards
and norms of allocation of the capital and the order of priority specified in the
Law on Public Investment, the Resolution No. 29/2021/QH15 dated July 28, 2021
of the National Assembly, the Resolution No. 973/2020/UBTVQH14 dated July 08,
2020 of the National Assembly Standing Committee and the Decision No.
26/2020/QD-TTg dated September 14, 2020 of the Prime Minister. Funds shall be
provided for each task/project according to the mid-term public investment plan
for the 2021-2025 period and within capacity for implementation and
disbursement of each project until the end of January 31, 2026. The period of
implementation and disbursement shall not be extended to the following stage
according to regulations in Article 68 of the Law on Public Investment. The
funds shall be allocated and assigned in a detailed manner to each project
before December 31, 2024 according to regulations in clause 5 Article 61 of the
Law on Public Investment and Article 44 of the Law on State Budget.
Reimbursement funds shall be provided for tasks and projects under the
socio-economic development and recovery program from projects included in the
mid-term public investment plan funded by the socio-economic development and
recovery program according to Resolution No. 93/2023/QH15 dated June 22, 2023
of the National Assembly; projects allocated funds covered by annually
increased revenues shall continue to be allocated funds; all advanced funds to
be recovered in the mid-term public investment plan for the 2021-2025 period
shall be recovered; it is required to prioritize allocation of funds for
projects of national importance, programs and projects connecting regions
and/or affecting multiple regions and projects using ODA and concessional loans
granted by foreign donors (including counterpart funds); state capital invested
in projects in the PPP form; funds for PPP projects, investment preparation
tasks and provision of subsidies for offsetting costs incurred from the
application of interest rates and management fees according to the Resolution
No. 43/2022/QH15 and regulations of law, charter capital for policy banks and
state off-budget financial funds. The funds shall not be allocated in a
separate, fragmentary and ineffective manner.
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Complying with
regulations of the Law on State Budget in order to ensure that total amount of
the central budget’s annual subsidies granted as investment and develop
expenditures to the local government budget for implementation of certain major
and extremely important programs and projects that may have great effects on
socio-economic development of a local area will not exceed 30% of total amount
of the central budget’s basic construction investment expenditures according to
regulations.
b) The allocation of
foreign capital to each project shall be separately recorded by type (loans and
grants) and by sector; and consistent with the mid-term public investment plan
funded by the central government budget for the 2021-2025 period, contents of
the Agreement and commitment with the sponsor, financial mechanism of the
project and implementation progress of the program/project. Giving priority to
allocation of adequate funds to projects upon termination of agreements,
arrangements for loans, foreign aids in 2025 if such agreements and
arrangements are ineligible for extension.
The capital provided for
new agreements, arrangements and commitments (if any) shall not exceed 300
thousand billion VND of foreign capital for investment and development
according to the approved plan for 2021 – 2025.
c) According to
investment and development expenditures and revenues from management, use and
reorganization and disposal of state-owned real property that have not been
finalized; unused amounts transferred to the state budget in previous years and
estimates for state budget revenues from management, use and reorganization and
disposal of state-owned real property in 2025, ministries, central and local
authorities shall formulate estimates for investment and development
expenditures covered by these revenues according to regulations, specifying
completed projects for which payments have not been settled due to
unavailability of budget allocations; approved projects using revenues gained
by sale of land-attached property and transfer of land use rights that have
been transferred to the budget but have not been yet used and revenues rising
in 2025; include them into their investment and development expenditure
estimates and send such estimates to planning and investment, and finance
agencies of the same level that will consolidate state budget estimates and
submit them to competent authorities for decision.
(Detailed reports shall
be made according to Form No. 04 and Form No. 05 enclosed with this Circular).
In addition, ministries
and central authorities shall prepare reports to fully explain implementation
of plans for management, use and reorganization and disposal of real property,
collection and transfer of revenues to the budget and expenditures covered by
these revenues by 2024; set up projects on implementation of plans for
management, use and reorganization and disposal of real property in 2025, and
estimate revenues collected and transferred to the budget in 2025 and
expenditures covered by these revenues according to the above-mentioned
contents.
The Ministry of Public
Security and the Ministry of National Defense shall make detailed reports on
revenues and expenditures according to regulations in clause 4 Article 260 of
the 2024 Law on Land, including revenues transferred to the budget until the
end of 2024 without allocation of estimates for such revenues; revenues
expected to be generated during the 2025-2027 period from plans and schemes eligible
for transition and estimated expenditures, enclosed with written explanation
according to the Resolution No. 132/2020/QH14, guiding documents and laws on
state budget and public investment, and submit them to the Ministry of Finance,
the Ministry of Planning and Investment for consolidation and report to
competent authorities according to regulations.
d) Regarding estimates
for expenditures on provision of subsidies for offsetting costs incurred from
the application of preferential lending interest rates and management fees
Pursuant to regulations
of law on provision of offsetting costs incurred from the application of
interest rates and management fees and implementation of state credit policies
in 2024 and the prediction about changes in spending subjects, policies and
tasks, credit growth, outstanding loans, raised capital, deposit interest rates
and lending rates, etc. the state budget expenditure estimate shall be
formulated for the year 2025 according to regulations of the Law on State
Budget, the Law on Public Investment and guiding documents.
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e) Investment and
development expenditure estimates not regulated by the Law on Public Investment
(enclosed with specific explanations) that serve implementation of contents and
tasks shall be conformable with regulations in the Law on management and
utilization of state capital invested in the enterprise’s manufacturing and
business activities and the Government's Decree No. 148/2021/ND-CP. State
budget expenditure estimates shall be consistent with commitments between the
Government and foreign investors that have been approved by competent
authorities.
g) Estimates for
expenditures covered by lawful revenues earned by regulatory bodies and public
service providers for non-state-budget investment (except for tasks performed
under specific mechanisms annulled by the Resolution No. 104/2023/QH15 and the
Resolution No. 142/2024/QH15) shall be conformable to applicable regulations
(specifying revenues from fee collection, provision of public services, fund
for development of provision of public services, loans and other legal
sources); and submitted to superior authorities that will consolidate and
report such estimates to investment and finance agencies of the same level.
3. Formulation of
national reserve plans and estimates for expenditures on national reserve goods
for the year 2025:
Pursuant to regulations
of the Law on National Defense, the Law on State Budget and guiding documents,
ministries and central authorities assigned to manage national reserve goods
shall set up plans and estimates for expenditures on national reserve goods for
the year 2025 in conformity with objectives of developing national reserves and
plannings for national reserve warehouses and within capacity for balancing the
state budget. Clearly explain and analyze causes by each item and its
corresponding value; and prepare reports according to regulations in Article 4
of the Circular No. 145/2013/TT-BTC dated October 21, 2013 of the Minister of
Finance and Article 30 of this Circular.
4. Formulation of
recurrent expenditure estimates
a) On the basis of the
Law on State Budget, the Law on Management and Use of Public Property and
relevant guiding and legal documents; Resolutions of the Central Committee, the
Politburo and the National Assembly; principles, criteria and norms of
allocation of estimates for recurrent expenditures covered by the state budget
according to Resolution No. 01/2021/UBTVQH15 of the National Assembly Standing
Committee and the Decision No. 30/2021/QD-TTg of the Prime Minister and
policies, regimes, and norms of state budget expenditures; projects and tasks
approved by competent authorities; the Directive No. 17/CT-TTg dated May 22,
2024 of the Prime Minister; Check number of budget revenue and expenditure
estimates for 2025 and inspection of estimated budget revenues and expenditures
in 2025, ministries, central and local authorities shall formulate recurrent
expenditure estimates by each expenditure sector, fulfilling important
political tasks and strictly complying with policies and regulations issued by
the State, especially policies on human-related costs and social welfare
expenditures.
Estimates for funding for
provision of benefits for revolutionary contributors shall be formulated
according to regulations in the Government’s Decree No. 77/2024/ND-CP dated
July 1, 2024, the Government's Decree No. 75/2021/ND-CP dated July 24, 2021,
the Government’s Decree No. 55/2023/ND-CP dated July 21, 2023, and the
Government's Decree No. 131/2021/ND-CP dated December 31, 2021 of the
Government and documents on adjustments in 2024 (if any).
Estimates for funding
granted to pensioners and covered by the state budget shall be formulated
according to the Decree No. 75/2024/ND-CP dated June 30, 2024 (detailed
expenditures on social guarantees and healthcare
Estimates for funding for
regular repair, improvement and maintenance of facilities shall be formulated
according to the Circular No. 65/2021/TT-BTC dated July 29, 2021 of the
Minister of Finance; estimates for funding for lease of information technology
services shall be consistent with the Government’s Decree No. 82/2024/ND-CP
dated July 10, 2024.
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c) Estimates for state
budget expenditures on activities of public service providers shall be
formulated on the basis of objectives of improving public service providers
according to the Conclusion No. 62-KL/TW of the Politburo, the Resolution No.
01/2021/UBTVQH15, the Decree No. 60/2021/ND-CP, the Decision No. 30/2021/QD-TTg
and the Circular No. 56/2022/TT-BTC. To be specific:
- Do not formulate
estimates for state budget recurrent expenditures on support for public services
for which the pricing roadmap has been completed or is expected to be completed
in 2025.
- Public service
providers self-covering a part of recurrent expenditures of ministers and
central authorities shall formulate state budget expenditure estimates in 2025
in order to reduce at least 3% of direct state budget subsidies in comparison
with estimates in 2024 (excluding payroll and 5% cost reduction according to
the Directive No. 01/CT-TTg dated January 04, 2024 of the Prime Minister), and
dismiss employees earned from the state budget according to the Resolution No.
19-NQ/TW;
- Public service
providers whose recurrent expenditures covered by the state budget affiliated
to ministers and central authorities shall continue to reduce at least 2% of
direct state budget subsidies in comparison with estimates in 2024 (excluding
payroll and 5% cost reduction according to the Directive No. 01/CT-TTg dated
January 04, 2024 of the Prime Minister), except for basic and essential public
services covered by the state budget.
- State budget subsidies
on recurrent expenditures with regard to group-3 and group-4 public service
providers in 2025 include state budget subsidies provided for implementation of
policies and regimes on salaries and social insurance and social welfare
policies approved by competent authorities from July 01, 2024 after funding for
pay reform has been used according to regulations.
d) Regarding estimates
for recurrent expenditures covered by funding which the autonomy to use is not
delegated and other special non-recurrent expenditures arising in state budget
expenditure sectors, Ministries, central and local authorities shall instruct
their affiliates to formulate and consolidate such estimates according to
regulations of the law on state budget and other relevant laws.
dd) Regarding
expenditures on purchase of assets and equipment, repair, upgradation,
expansion and construction of work items under investment projects, and
application of information technology, estimates for such expenditures shall be
formulated according to the Decree No. 82/2024/ND-CP dated July 10, 2024,
Decrees on guidance on use of recurrent expenditures covered by the state
budget for purchases of assets and equipment, repair, upgradation, expansion
and construction of work items under investment projects (if promulgated) and
other relevant laws and enclosed with dossiers on detailed explanation about
legal bases and expenditure tasks assigned that have been approved by competent
authorities, regimes, policies and norms regulated by competent authorities and
other dossiers and procedures according to regulations. They shall be submitted
to finance agencies of the same level for consolidation and report to competent
authorities.
Regarding expenditures on
national defense and security, ministries, central and local authorities shall
formulate estimates for recurrent expenditures on purchase of assets and
equipment, repair, upgradation, expansion and construction of work items, and
application of information technology covered by the state budget according to
the Decree No. 165/2016/ND-CP and the Decree No. 01/2021/ND-CP, enclosed with
detailed explanations as prescribed (specifying specific nature; legal and
practical bases; total funding required and approved; approved sources of funding;
period; funding provided by 2024; funding proposed in 2025).
e) Expenditures on
economic affairs
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g) Expenditures on
operations of regulatory bodies, the Communist Party and mass organizations:
- Clarifying the number
of staff members in 2025 according to a Decision on allocation of payrolls
issued by a competent authority, the actual number of staff members available
until July 01, 2024 and the number of employees which have yet to be recruited
in comparison with the approved recruitment target set out in 2025. If the
2025’s recruitment target is not available, the 2025's estimate shall be
developed according to the 2026's recruitment target assigned by the Politburo
in the Decision No. 71-QD/TW dated July 18, 2022, the Decision No. 72-QD/TW
dated July 18, 2022, the Decision No. 73-QD/TW dated July 18, 2022, the
Decision No. 75-QD/TW dated July 18, 2022 of the Politburo, the Decision No.
76-QD/TW dated July 18, 2022 and a Decision of a relevant competent authority.
- Determining salary
budget, salary-based allowances and contributions according to enforceable
regulations on the basis of the 2025’s recruitment target assigned and
statutory pay rate according to the Government’s Decree No. 73/2024/ND-CP dated
June 30, 2024 (calculated for all 12 months), which shall be covered by the
State budget, including the amount of salaries paid to the actual number of
staff members on the payroll until July 01, 2024, which are calculated at the
rate of pay specific to ranks, grades and positions; salary-based allowances
and contributions according to enforceable regulations and the amount of
salaries paid to staff members on the payroll that have not yet been recruited
(within total payroll assigned), which are calculated according to the 2024’s
statutory pay rate and level- 1 salary coefficient of officials of type A1,
salary-based allowances and contributions according to regulations. In case
authorities and units have recruitment plans according to the Government’s
Decree No. 140/2017/ND-CP dated December 05, 2017 or recruit qualified
officials, public employees and experts according to schemes or plans approved,
they shall show increase in the salary budget for these people according to
regulations.
- Explaining bases for
formulation of estimates for specific expenditures in 2025 (legal bases,
assigned tasks, tasks approved by competent authorities, expenditures,
policies, regimes and norms according to regulations) under the Resolution No.
01/2021/UBTVQH15 and other relevant regulations in a spirit of thrift and
effectiveness.
- Ministries, central and
local authorities shall direct authorities and units under their management to
estimate funding for development and completion of laws, organization of
enforcement of laws and supervision of such enforcement according to
regulations (specifying that such funding is basic investment funding for legal
infrastructure according to the Decision No. 04/QD-TTg dated January 07, 2021
of the Prime Minister) and prioritize allocation of funding within the scope of
the assigned estimate for the above-mentioned tasks.
- Ministries, central and
local authorities, within their functions and tasks, shall propose estimates of
funding for organization of Communist Party Congresses at all levels, enclosed
with detailed explanations.
h) Authorities and units
shall formulate state budget estimates (enclosed with detailed explanations)
and include recurrent expenditures on settlement of public assets,
reorganization and disposal of real property, transfer of ownership of
enterprises and public service providers into such estimates according to
regulations (if any). Funding for recurrent expenditures on performance of
tasks specified in the Decree No. 148/2021/ND-CP and the Circular No.
57/2022/ TT-BTC dated September 16, 2022 of the Minister of Finance shall be
included into the estimate for expenditures on economic affairs covered by the
state budget.
i) Regarding recurrent
expenditures on programs and projects using loans (ODA loans and foreign
concessional loans), aids (ODA grants and grant aids not in the form of
official development assistance):
Pursuant to Agreements
and arrangements concluded and to be concluded with sponsors (in case of
Agreements to be concluded, only aids), progress in fulfillment of commitments
to projects or aids, financial mechanisms (if any) approved by competent
authorities, each ministry, central/local authority shall formulate an estimate
for every program/project/Agreement/counterpart funds (if any), specifying each
source of loan/foreign aid with specific categorization and disbursement
mechanisms (recording revenues and expenditures or implementing disbursement
according to domestic financial mechanisms); with regard to each province/city,
specially allocate funding covered by local government budget and targeted
additional funding from central government budget to local government budget.
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Regarding programs and
projects in which several ministries, central and local authorities participate
together, ministries, central and local authorities shall formulate estimates
of expenditures financed by foreign funding sources enclosed with explanatory
notes on bases for state budget allocations and submit them to the Ministry of
Finance, and the Ministry of Planning and Investment that will consolidate such
estimates and explanatory notes and send them to competent authorities for
decision, and at the same time these estimates and explanatory notes shall be
also submitted to host authorities of programs and projects for consolidation
and monitoring.
5. Formulation of
estimates of expenditures on aids provided for foreign countries
Pursuant to aid
commitments between the Government of Vietnam and Governments of foreign
countries during the 2021-2025 period (if any), annual aid commitments signed
with countries receiving aids, commitments to projects approved by competent
authorities, implementation of estimates and capacity for disbursing aids
granted to programs and projects in 2024, authorities assigned by the
Government to preside over making plans for aids shall formulate estimates for
expenditures on aids granted to separate programs and projects using aids,
investment and recurrent expenditures; and specify total estimated aid for each
partner receiving aids.
6. Regarding
socio-political-professional organizations, social organizations and socio-professional
organizations:
The provision of funding
for organizations shall comply with regulations in the Government’s Decree No.
45/2010/ND-CP and the Government’s Decree No. 33/2012/ND-CP and Documents
amending/replacing the Decree.
7. Ministries in charge
of sectors and industries shall, in addition to formulation of the state budget
estimate for the year 2025 (directly carried out by ministries), proactively
request ministries, central and local authorities to report implementation and
demands for implementation of mechanisms and policies promulgated by competent
authorities and effective in 2025, on this basis, make review, determine total
funding required and provide detailed explanations about bases for calculation.
Regarding expenditures on
science and technology and environmental protection, the Ministry of Science
and Technology and the Ministry of Natural Resources and Environment shall,
pursuant to legal documents, preside over and cooperate with ministries and
central authorities in reviewing and proposing plans for allocation of
estimates for recurrent expenditures under their management in order to ensure
that tasks, projects and schemes have adequate legal bases and documents, and
follow procedures, regimes, standards and norms of expenditures decided by
regulatory bodies and used for intended purposes of capital for
investment/recurrent expenditures according to regulations of law, not
exceeding the total inspected expenditure on science and technology and
environmental protection covered by central government budget announced (if
any); pursuant to Article 42 of the Law on State Budget, not proposing
objectives without completion of all procedures and funding for such
objectives; taking full responsibilities for proposed plans; and sending them
to the Ministry of Finance for inclusion in the plan to allocate central
government budget and submission of reports to competent authorities according
to regulations.
8. Formulation of
estimates for expenditures on implementation of national target programs in
2024 and other programs, projects and schemes:
a) Pursuant to the Law on
State Budget, the Law on Public Investment, Resolutions of the National
Assembly, and on the basis of the Prime Minister’s Decisions approved, guiding
documents issued by functional agencies, implementation of programs in the
2021-2024 period, mid-term public investment plans, the amount inspected and
announced, ministries and central authorities that are host authorities of
programs shall preside over and cooperate with authorities and units managing
programs, host authorities of projects, sub-projects and component contents in
formulating state budget expenditure estimates for the year 2025 relevant to
ministries, central and local authorities, specifying objectives, expenditures
and tasks approved by competent authorities, each project/sub-project/component
content, investment and development, and recurrent expenditure structure with
detailed categorization, central government budget, local government budgets,
funds included in other programs and projects and other lawful funds raised (if
any), make sure that there are adequate legal bases, documents, procedures and
decisions approved, regimes, standards and norms of expenditures regulated by
regulatory bodies, and send them enclosed with reports on state budget
estimates for the year 2025 to the Ministry of Finance and the Ministry of
Planning and Investment.
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On the basis of the funds
announced by the Ministry of Finance, ministries and central authorities (host
authorities of programs) shall propose pimples, standards, norms and plans for
allocation of funds relevant to ministries, central and local authorities in
2025, specific to expenditure objective, task and sector according to
regulations on management of state budget, and enclosed with detailed
explanations, ensure that there are adequate legal bases, documents and
procedures on the basis of tasks assigned and approved by competent
authorities, regimes, standards and norms regulated by regulatory bodies, and
send them to the Ministry of Finance according to the official dispatch on
funds issued by the Ministry of Finance.
c) Ministries and central
authorities that are host authorities of national target programs, projects and
schemes shall be entirely responsible for legal and practical bases, proposed
principles, standards, norms and plans for allocation relevant to ministries, central and local authorities according to
regulations and ensure that there are adequate documents and procedures,
approved decisions, regimes, standards and norms regulated by regulatory bodies
and funds for such target programs, projects and schemes are used for intended
purposes of funds for recurrent expenditures.
9. Estimates of funding
required for covering costs of pay reform, adjustment to retirement pensions,
social insurance allowances and monthly benefits (covered by the state budget),
and provision of benefits for revolutionary contributors in 2025in which
funding sources for covering these demands must be also indicated:
a) With regard to funding
provided for pay reform
Ministries, central and
local authorities shall formulate estimates of expenditures on funding for pay
reform according to regulations in the Resolution No. 27-NQ/TW, Resolutions of
the National Assembly, the Resolution No. 01/2021/UBTVQH15, the Resolution No.
60/2021/ND-CP, the Circular No. 56/2022/TT-BTC and relevant legal documents.
b) With regard to funding
required
Estimates of funding
required in 2025 shall be formulated on the basis of policies and regulations
on salaries and funding for adjustment to retirement pensions, social insurance
allowances and monthly benefits (covered by the state budget), and provision of
benefits for revolutionary contributors and social support according to the
Government’s Decree No. 73/2024/ND-CP, the Government’s Decree No.
75/2024/ND-CP, the Government’s Decree No. 76/2024/ND-CP, the Government’s
Decree No. 77/2024/ND-CP in 2024 after the use of funding provided by
authorities and units according to regulations.
10. Formulation of
estimates for funding for implementation of downsizing policies:
Estimates for funding for
implementation of downsizing policies in 2025 shall be formulated according to
regulations in the Conclusion No. 28-KL/TW, the Conclusion No. 40-KL/TW of the
Politburo, regulations issued by the Government and guiding documents.
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12. Based on the audited
amount of state budget revenues and expenditures, ministries, central and local
authorities shall formulate coherent and detailed estimates of expenditures according
to regulations in the Law on State Budget, its guiding documents and other
relevant legal documents; after working with the Ministry of Finance, the
Ministry of Planning and Investment, ministries, central authorities, and
authorities in provinces and central-affiliated cities shall promptly establish
plans for allocation of the estimated budget in 2025 of their own for
implementation after obtaining the decision from the National Assembly and
receiving the estimate assigned by the Prime Minister, and request competent
authorities to make their decisions on budget allocations relevant to specific
sectors, and assign the estimated budget to budgetary units ahead of December
31, 2018 in accordance with the Law on State Budget.
Article 20. Regarding authorities
and units which have annulled or are proposing annulment of special financial
and income mechanisms according to the Resolution No. 104/2023/QH15 and the
Resolution No. 142/2024/QH15
1. Reporting the number
of staff members approved in 2024 and the actual number of staff members
available on July 01, 2024; the number of employees working under labor
contracts (if any); the number of staff members approved or under the Project
in 2025.
2. Estimating payroll
according the Government’s Decree No. 73/2024/ND-CP in 2024 (specifying salary
budget, allowances, other incomes and contributions based on salaries)
3. Proposing a recurrent
expenditure estimate in 2025
Each authority/unit shall
formulate a recurrent expenditure estimate for the year 2025 that is similar to
the estimate made by a regulatory body. To be specific:
a) Calculate expenditures
according to norms on the basis of the number of staff members of 2025 and
expenditure norms in the Resolution No. 01/2021/UBTVQH15 and the Decision No.
30/2021/QD-TTg.
b) Measure the number of
staff members according to the 2025’s administrative employment target approved
by the competent authority. In case, the authority/unit has not yet been
assigned the official employment target in 2025, this number shall be
temporally measured according to the actual number of staff members available
on July 01, 2024 and not exceed the number of staff members reported by the
authority/unit to the Ministry of Home Affairs for submission to the competent
authority.
c) Review specific
expenditures on the basis of general expenditures and sector-specific
expenditures specified in the Resolution No. 01/2021/UBTVQH15, the Decision No.
30/2021/QD-TTg and clearly explain the approval decision issued by the
competent authority, total funding approved according to applicable policies,
regimes and norms; funding allocated by 2024; unallocated funding and funding
to be allocated in 2025.
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If specific expenditures
are being proposed, the authority/unit shall fully report grounds for meeting
such expenditures so far; urgency; procedures for approving and meeting each
expenditure so far; demands in 2025 and the following years (if any);
procedures for proposing expenditures to the competent authority at the time on
which the estimate is sent to the Ministry of Finance (enclosed with the document).
4. Regarding investment
and development expenditure estimate:
In case of new
expenditures, it is required to formulate an estimate for such expenditures
similar to the estimate made by the regulatory body.
With regard to projects
requiring more state budget funding for implementation and completion,
Ministries, central and local authorities are required to cooperate with the
Ministry of Planning and Investment to provide guidance on procedures for
allocating public investment capital according to regulations of law on public
investment.
5. Fully reporting
advantages, difficulties and existing problems during implementation and
proposal (if any).
Article 21.
Development of financial plans of state off-budget financial funds
On the basis of results
of review and assessment of state off-budget financial funds, ministries,
central and local authorities and units assigned to manage state off-budget
financial funds shall restructure, merge, terminate operations of or dissolve
funds that operate in a manner that is ineffective and contrary to regulations
of law in 2025; develop financial plans for revenues and expenditures in 2025
regarding funds that still operate under their management according to
regulations of the Law on State Budget and regulations of relevant laws, and
send such plans enclosed with reports on their state budget estimates in 2025
to finance agencies of the same level (including detailed explanations about
opening balance; revenues derived from the state budget; revenues raised,
revenues from sponsors, etc. in the year; expenditures; fluctuations in charter
capital and sources of funding for operations of such funds).
Article 22.
Formulation of local government budget estimate
In addition to
regulations on general guidelines for formulation of the state budget estimate
according to legislative documents applicable and this Circular, the
formulation of the local government budget estimate shall take into
consideration the followings:
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Each local authority
shall formulate an estimate on the basis of aggregation of all revenues from
taxes, charges, fees and other revenues within the province/city according to
regulations in Article 7 of the Law on State Budget and relevant laws.
The provincial People’s
Committee shall direct its subsidiary finance, taxation and customs agencies to
cooperate with relevant local agencies in strictly complying with regulatory
requirements concerning formulation of the state budget revenue estimate and
shall be held accountable to the Government and the Prime Minister for such
formulation.
The state budget revenue
estimate shall be active and practical and include all new revenues arising in
order to accurately and exactly calculate budget revenues and not to expect
local government budget to make up for shortages in revenues; clearly analyze
and assess impacts on the 2025’s state budget revenue estimate by each
province/city/sector, specific revenues and taxes with a focus on assessment of
impacts of epidemics and natural disasters on revenue sources, and effects on
the budget due to implementation of policies on extension, exemption and
reduction in taxes.
2. Regarding formulation
of an expenditure estimate for balance of local government budget, the People’s
Committee at each level shall proactively:
In 2025, continue to
maintain a stable ratio of revenues, expenditures and additional funding from
central government budget to local government budget. Formulate a local
government budget expenditure estimate on the basis of the local government
budget revenue estimate that it is granted within its jurisdiction, additional
funding from central government budget to local government budget determined by
the allocated funding in 2024, and additional funding from central government
budget to local government budget for pay reform in 2025 (if any). Based on
objectives defined in the socio-economic development plan for the period of
2021-2025 with a focus on objectives and tasks of local socio-economic
development in 2025, estimate revenues and expenditures covered by local
government budget in 2024 so as to formulate the local government budget
expenditure estimate with detailed categorization according to regulations of
the Law on State Budget and prioritize allocation of adequate funding estimated
for implementation of projects and tasks as committed and under policies that
have been issued.
And at the same time:
a) Allocate an estimate
for expenditures on pay reform according to the Resolution No. 27-NQ/TW and its
guiding documents according to regulations (if any).
b) Formulate an estimate
for investment and development expenditures covered by funding sources
allocated from the local government budget
- Pursuant to regulations
of the Law on State Budget; the Resolution No. 973/2020/UBTVQH14 of the
National Assembly Standing Committee, formulate the investment and development
expenditure estimate, clearly specifying funding sources allocated from the
local government budget (including expenditures on investment in concentrated
domestic capital development, investment expenditures covered by revenues from
land use levies, lottery sale and local government budget deficit (if any); and
estimated expenditures on projects using foreign capital (loans/aids).
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- Provide funds from
local government budget for Vietnam Bank for Social Policies under trust agreements
to support some activities under national target programs according to clause 6
Article 4 of the Resolution No. 111/2024/QH15 dated January 18, 2024 of the
National Assembly.
- Allocate an estimate
for investment and development expenditures covered by land use levies, with
priority given to investment in socio-economic infrastructure projects and
national target programs for building new rural areas.
- Regarding expenditures
covered by revenues from lottery sale: the local authority shall estimate these
revenues (including revenues distributed from computer-generated lottery) and
continue to use such revenues for investment and development, with priority
given to investment in education-training, vocational education (including
purchase of learning and teaching equipment serving the program for reforming
general education textbooks) and healthcare; the remaining revenues shall be
used for performance of important and urgent investment and development tasks
funded by the local government budget and the national target program for
building new rural areas.
- Regarding use of
revenues from entrance tickets at casino, the local authority permitted by the
competent authority to gamble at casino on a trial basis shall use revenues
from entrance tickets at casino for investment and development expenditures for
the purposes of social welfare, provision of services for the community and
maintaince of social order and security, and allocate at least 60% of the
revenues to education, training, vocational education and healthcare according
to clause 3 Article 5 of the Circular No. 102/2017/TT-BTC dated October 05,
2017 of the Minister of Finance.
c) Formulate an estimate
for expenditures on payment of outstanding interests, fees and other costs,
arranging these expenditures as a separate portion of expenditures in the local
government budget balance, thereby ensuring full and timely payment of
outstanding debts due; and provide explanation about payment amounts
corresponding to specific borrowed funds (if any), including foreign borrowed
funds that the Government on-lends to local authorities, capital credit loans
and local government bond issues.
d) Determine expenditures
on additional contribution to the local financial reserve fund according to the
allocated amount in the 2024’s estimate.
dd) Allocate an estimate
for expenditures on local government budget provisions according to regulations
of the Law on State Budget (2-4% of total expenditure on balancing local
government budget - excluding local government budget deficit).
e) Formulate an estimate
for recurrent expenditures covered by local government budget
After allocation of
estimates for expenditures on pay reform (if any); investment and development
expenditures covered by funding sources allocated from the local government
budget; expenditures on payment of outstanding interests, fees and other costs;
expenditures on additional contribution to the local financial reserve fund;
and expenditures on local government budget provisions, the remainder of local
government budget balance shall be used to cover recurrent expenditures. The
local authority shall the expenditure budget for each regulatory body/public
service provider on the basis of the tasks of downsizing, apparatus
reorganization and reform of public service providers in 2025 which are
determined based on implementation results accumulated by 2024, the objectives
of the Resolution No. 18-NQ/TW, the Resolution No. 19-NQ/TW and the Decree No.
60/2021/ND-CP. Particularly, the rate of public staff members subject to
downsizing is determined under the Decision on allocation of payrolls issued by
the competent authority (if any).
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Each local authority
shall formulate an estimate for targeted additional funding from central
government budget to local government budget for implementation of social welfare
policies issued by central authorities for the year 2025 as instructed in
clause 4 Article 14 of this Circular. Regarding each policy, it is required to
provide detailed explanations about grounds for determining beneficiaries and
funding required (budget users in 2025 shall be identified on the basis of the
number of beneficiaries estimated in 2024).
4. Regarding formulation
of an estimate for budget for pay reform
In 2025, the mechanism
for creating funds shall continue to be implemented in order to carry out pay
reform in accordance with regulations. To be specific: Each local authority
shall continue to implement the mechanism for cutting 10% of the amount of
recurrent expenditures (excluding salaries, allowances, salary equivalents and
other human-related costs); the increased amount of local government budget
revenues (except revenues from land use levies, lottery sales, equitization and
divestment from state-owned enterprises under its management; excluded amounts
according to clause 2 Article 3 of the Resolution No. 34/2021/QH15 dated
November 13, 2021 of the National Assembly, including 70% of the increase in
local government budget revenues in 2024 compared with the 2024 estimate and
50% of the increase in local government budget revenues of the 2025 estimate in
comparison with the 2023 estimate assigned by the Prime Minister; 50% of funds
remained from reduction of expenditures on supporting recurrent operations in
administrative sector and operations of public service providers according the
local plan proposed in the Directive No. 17/CT-TTg dated May 22, 2024 of the
Prime Minister; unused funds for pay reform in 2024; revenues retained
according to regulations in 2025.
(The detailed report
shall be made according to Form No. 02b enclosed with this Circular).
5. Estimates for local
government budget deficit/budget surplus, and plans for borrowing and repayment
of principal, interests and fees of the local government budget shall be
formulated according to regulations of the Law on State Budget and its guiding
documents.
Chapter IV
FORMULATION OF THREE-YEAR STATE BUDGET -
FINANCIAL PLAN FOR THE 2025 - 2027 PERIOD
Article 23. Bases and
requirements for formulation of three-year state budget - financial plan for
the 2025 - 2027 period
Pursuant to regulations
in the Law on State Budget, the Government’s Decree No. 45/2017/ND-CP, the
Circular No. 69/2017/TT-BTC dated July 07, 2017 of the Minister of Finance,
Laws on tax and tax administration, the Law on Fees and Charges, the Law on Public
Investment, the Law on Public Debt Management, The Law on Management of Public
Property, and relevant legal documents; the 10-year socio-economic development
strategy for the 2021-2030 period, 5-year plans during the 2021-2025 period;
Resolutions of the Central Committee of the XIIth National Assembly
on apparatus simplification, downsizing and reform of public service providers;
the Government’s Resolutions and Decrees No. 73/2024/ND-CP, No. 75/2024/ND-CP,
No. 75/2024/ND-CP, No. 76/2024/ND-CP and No. 77/2024/ND-CP; principles,
standards and norms of investment and development expenditures for the
2021-2025 period and principles, standards and norms of recurrent expenditures
for the year 2022; the three-year state budget - financial plan for the 2024 -
2026 period reviewed and updated on March 31, 2024; agreements and arrangements
for loans and foreign aids concluded and to be concluded and implemented during
the 2025-2027 period; regulations on budgetary stabilization period; spending
caps for the period of 2025 - 2027 which are updated and informed by regulatory
financial, planning and investment bodies and the budget estimate in 2025
formulated according to Chapter III of this Circular, policies, regimes,
programs, projects and tasks under the management for the 2021-2025 period that
will be completed from 2026, ministries, central and provincial authorities
shall formulate three-year state budget - financial plans for the 2025 - 2027
period according to regulations. To be specific:
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2. If there is a big
increase or decrease in expenditures of ministries, central and provincial
authorities during the 2025-2027 period compared to the 2025's estimate and
expenditures estimated in 2024 (including additional estimates in the year);
ministries, central and provincial authorities shall explain such
increase/decrease and take measures for mobilizing more off-budget financial
resources in order to ensure spending demands have to be met by equivalent
funding sources.
3. Expenditure estimates
for the 2025-2027 period shall be formulated according to regulations on
policies on salaries, social insurance and social welfare policies mentioned at
the Government’s Decree No. 73/2024/ND-CP, the Government’s Decree No.
75/2024/ND-CP, the Government’s Decree No. 76/2024/ND-CP and the Government’s
Decree No. 77/2024/ND-CP and the approved roadmap for the 2025-2027 period (if
any).
Article 24.
Formulation of three-year plan for collection of state budget
revenues for the 2025 - 2027 period
1. A three-year plan for collection
of state budget revenues for the 2025 - 2027 period shall be formulated
according to regulations in Article 23 of this Circular, and on the basis of:
a) Capability of
developing the country's economy, specific industries, economic sectors and local
areas during the 2025-2027 period in conformity with the 10-year socio-economic
development strategy for the 2021-2030 period, and 5-year plans for the
2021-2025 period; the 2025’s revenue estimate; factors causing changes in
investment capability, labor productivity, competitiveness, improvement of
business environment, support, development of production and business by
enterprises and commercial, export and import activities in each year;
influencing factors of the international integration and change in policies of
countries in the world, including global minimum tax regulations .
b) Factors that may
increase, decrease or change state budget revenues due to adjustments to
policies on collection of state budget revenues, supplementation and expansion
of taxation bases, strengthening of management of state budget revenues in
accordance with the Resolution No. 07-NQ/TW and the Resolution No.
23/2021/QH15; compliance with guiding documents on enforcement of the Law on
Tax Administration No. 38/2019/QH14; implementation of the roadmap for tariff
cuts under integration commitments; global minimum tax regulations; some
corporate income tax policies for support and development of enterprises;
encouragement from informal economic sectors.
c) Effects of collection
of state budget revenues from adjustments to public service prices and fees
made according to the plan for proportioning of a full amount of costs in
public service prices and fees according to regulations of law.
During the 2026-2027
period, the growth rate of domestic revenues (excluding revenues from land use
levies, lottery sales, sale of state capital invested in enterprises,
dividends, after-tax profits and difference between revenues and expenditures
of the State Bank) and revenues from export and import is not lower than the
growth rate of such revenues in 2025 according to point d, clause 1 Article 18
of this Circular. Depending on conditions and characteristics, local
jurisdictions may have different rates of growth in state budget revenues that
are appropriate to the economic growth rate of each.
2. Estimates for revenues
from fees and charges during the 2025-2027 period shall be active and detailed,
and specify each revenue from fees/charges (fees/charges collected and
transferred the state budget) and only fees/charges transferred the state
budget shall be included into the state budget revenue estimate.
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Article 25.
Formulation of three-year plans for state budget expenditures
for the period of 2025 - 2027 by ministries, central and provincial
authorities
1. Three-year plans for
state budget expenditures for the period of 2025 - 2027 by ministries, central
and provincial authorities shall be formulated according to Article 23 and the
2025’s estimate formulated under guidelines in Chapter III of this Circular;
such plans shall provide detailed explanations about objectives, tasks,
programs, projects, policies and regimes that have expired/are newly approved
by competent authorities with particular attention paid to implementation of
the Resolution No. 18-NQ/TW, the Conclusion No. 62-KL/TW of the Politburo dated
October 02, 2023, the Resolution No. 19-NQ/TW, the Conclusion No. 28-KL/TW, and
the Conclusion No. 4--KL/TW and creation of funds for pay reform according to
the Resolution No. 27-NQ/TW, the Decree No. 60/2021/ND-CP and the Circular No.
56/2022/TT-BTC, policies on salaries, pensions and benefits for revolutionary
contributors, and social warfare policies promulgated in 2024.
2. During the formulation
of state budget expenditure estimates for the year 2025, ministries, central
and provincial authorities shall concurrently detail grassroots-level and new
expenditures of their own in the budgetary year of according to Article 5
and Article 6 of the Circular No. 69/2017/TT-BTC of the Minister of Finance to
serve as a basis for determination of these expenditures, and integrate demands
for expenditures on investment and development, maintenance and operation into
the expenditure plan for the 2025-2027 period.
3. Ministries and central
authorities in charge of sectors and industries shall, in addition to
formulation of the plan for state budget revenues and expenditures in each year
of the period of 2025 – 2027 (with respect to the assignment directly carried out
by ministries and central authorities), accurately calculate and determine
total budget required for implementation of mechanisms, policies, programs,
projects and tasks that have been promulgated by competent authorities or have
expired in each year of the period of 2025 – 2027 nationwide (completion of
national target programs, programs, projects and tasks for the 2021-2025
period), and provide detailed explanations for calculation bases (the Ministry
of Planning and Investment shall propose investment funds covered by the state
budget for performance of tasks of the Fund for Investment Support).
Article 26. Formulation of three-year state budget - financial plans for the
2025 - 2027 period by local authorities in provinces and central-affiliated
cities
In addition to compliance
with requirements for formulation of state budget revenue and expenditure plans
for the three-year period of 2025 – 2027 under regulations of Article 24 and
Article 25 hereof, the formulation of three-year state budget - financial plans
for the 2025 - 2027 period by local authorities in provinces and
central-affiliated cities shall take into consideration the followings:
1. Provincial People's
Committees shall direct Departments of Planning and Investment to prepare
forecasts about socio-economic development within their provinces and cities
during the 2025-2027 period and submit these forecasts to Departments of
Finance to serve as a basis for formulation of three-year state budget -
financial plans for the 2025 - 2027 period.
2. Based on the required
amount of revenues, scope of collection of state budget revenues under the Law
on State Budget and guiding documents thereof, estimates for state budget
revenues in these provinces and cities in 2025, provincial People's Committees
shall direct Departments of Finance to preside over and cooperate with Taxation
Departments and Customs Departments and other relevant local agencies in
formulating plans for collection of state budget revenues for the 2025-2027
period. To be specific:
a) Make a detailed
analysis and assessment of effects causing increases, decreases or changes in
state budget revenues due to adjustments to policies on collection of state
budget revenues in line with socio-economic development and recovery
objectives; assess impacts of epidemics and natural disasters on revenues;
implement 5-year plans for the 2021-2025 period, guiding documents on the Law
on Tax Administration No. 38/2019/QH14; carry out the roadmap for tariff cuts
under integration commitments; and propose implementation of new policies for
collection of state budget revenues prescribed in the Resolution No. 07-NQ/TW;
meet requirements for fight against losses, recovery of tax arrears, prevention
of transfer pricing and tax fraud.
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3. On the basis of the
projection for sources of revenues within each province/city and local
government budget revenues which have been decentralized, estimated additional
funds from the central budget to the local government budget which are informed
by competent authorities during the period of 2025– 2027; provincial People's
Committees shall direct Departments of Finance to preside over and cooperate
with Departments of Planning and Investment, district-level People’s Committees
and other relevant local agencies in formulating local budget expenditure plans
for the period of 2025 – 2027, ensuring priority given to allocation of
sufficient funding for implementation of regimes, policies and tasks which have
already been issued and expenditure commitments (even including particular
policies decided by provincial People’s Councils); determining the demands for
targeted additional funding from the central budget for implementation of
centrally-adopted regimes and policies for each year of the period of 2025 -
2027; with respect to new expenditures in each year of the period of 2025 –
2027, allocating expenditures in order of priority to perform key local
socio-economic objectives and tasks within capacity for available resources of
each year of the period from 2025 to 2027.
4. Each local authority
shall budget for expenditures on pay reform according to clause 9 Article 19 of
this Circular.
5. Plans for budget
deficit/budget surplus, borrowing of funds and repayment of debts of the local
government budget in the period of 2024 - 2026 shall be formulated according to
the Law on State Budget, the Government's Decree
No. 45/2017/ND-CP and the Circular No. 69/2017/TT-BTC of the Minister
of Finance, shall ensure that total outstanding debt of each local jurisdiction
at the end of each year does not exceed the prescribed limit (specifying ODA
loans taken for on-lending, issuance of local government bonds, other lawful
financial sources).
Chapter V
IMPLEMENTATION
Article 27. Responsibilities
of relevant ministries, central and local authorities
Responsibilities of
ministries, central authorities and People’s Committees of central-affiliated
cities and provinces shall comply with regulations of the Law on State
Budget and its guiding documents, the Government’s Decree No. 45/2017/ND-CP
dated April 21, 2017 and the Directive No. 17/CT-TTg dated May 22, 2024.
Article 28. Forms used for formulation and report on the state budget
estimate in 2025 and the three-year state budget - financial plan for the 2025
- 2027 period
1. With respect to the
budget estimate in 2025, forms stipulated in the Circular No. 342/2016/TT-BTC
dated December 30, 2016 of the Minister of Finance (forms from 12.1 to 12.5
applicable to public service sectors) and forms No. 01, 02a, 02b and 03 issued
together with this Circular shall be applied.
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3. The three-year state
budget - financial plan for the period of 2025 – 2027 shall be formulated by
using the forms from 01 to 06 and forms from 13 to 19, issued together with the
Circular No. 69/2017/TT-BTC of the Ministry of Finance.
Article 29. Implementation
clauses
1. This Circular shall
enter into force from August 30, 2024 and be applied to formulation of the
state budget estimate for the year 2025 and the three-year state budget -
financial plan for the period of 2025 – 2027. Contents, procedures and period
of formulation of the state budget estimate in 2025 and the three-year state
budget - financial plan for the period of 2025 – 2027 shall comply with
regulations of the 2015 Law on State Budget and relevant guiding documents.
2. During formulation of
the state budget estimate in 2025 and the three-year state budget - financial
plan for the period of 2025 – 2027, if there is any difficulty that may arise
upon implementation, ministries, central authorities, economic corporations and
state general companies shall be advised to send their feedbacks to the
Ministry of Finance to seek immediate actions./.
PP. MINISTER
DEPUTY MINISTER
Vo Thanh Hung
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