Nghị định 163/2016/ND-CP

DECREE

ON GUIDELINES FOR THE LAW ON STATE BUDGET

Pursuant to the Law on Government organization dated June 19, 2015;

Pursuant to the Law on State budget dated June 25, 2015;

At the request of the Minister of Finance;

The Government promulgates a Decree on guidelines for the Law on State budget.

Chapter I

GENERAL PROVISIONS

Article 1. Scope and regulated entities

1. Scope:

a) This Decree provides guidelines for the Law on State budget in terms of making estimates; collecting revenues; controlling budget expenditures; state budget management according to achievement of objectives; budget statement; rules, conditions, and competence to recover advances, expenditures carried over to the next year’s budget, using budget reserve; using financial reserve fund; publishing of state budget, supervision of state budget by the public and other contents as prescribed in the Law on State budget;

b) 5-year financial plans, 3-year state budget-finance plans; management and use of budget for some fields related to national defense and security, diplomacy; some special budget-finance policies applied to some provinces and central-affiliated cities; state fund management; regulation on consideration and decision of estimate and allocation of local government budgets, and approving local government budgets as prescribed by the Government.

2. Regulated entities:

a) Regulatory agencies, political organizations, and socio-political organizations;

b) Socio-political-professional organizations, social organizations, socio-professional organizations supported by the state budget under tasks given by the State;

c) Public service agencies;

d) Other organizations or individuals relevant to state budget.

Article 2. State budget revenues

1. Taxes paid by organizations and individuals as prescribed in laws on taxation.

2. Fees paid by organizations and individuals as prescribed by law.

3. Collected charges for services provided by central regulatory agencies; if the fixed operating expenditures are determined, the charges may be deducted.

4. Collected charges for services provided by central public service agencies and state-owned enterprises after being deducted to cover expenditures as prescribed by law.

5. Amounts payable to State budget from economic activities of the State, including:

a) Profits distributed to home country and other revenues from petroleum exploration and extraction;

b) Recovery of investment by the State in business entities;

c) Revenues from distributed dividends and profits of joint-stock companies, multi-member limited liability companies that have state capital;

d) Revenues from post-tax profit that remains after making contributions to various funds of state-owned enterprises;

dd) Positive difference between revenue and expenditure of the State bank of Vietnam;

e) Recovery of loans of State (including principal and interest), other than foreign loans of the Government.

6. Contributions by other organizations and individuals as prescribed by law.

7. Revenues from selling state-owned property, including revenues from transfer of land use right, change of purpose of land use under the management of the State.

8. Land levies; land rents, water surface rents; sea-area use levies; rents and proceeds from the sale of state-owned houses.

9. Revenues from property under the State ownership; revenues from issuance of mining right or issuance of the right to exploit water resources.

10. Fines for administrative violations and other fines, confiscations as prescribed by law.

11. Voluntary contribution of domestic and foreign organizations and individuals.

12. Grant aid provided by governments of other countries, overseas organizations and individuals for Vietnam’s State, Vietnam’s government and local governments of Vietnam.

13. Revenues from financial reserve fund as prescribed in Article 11 of the Law on State budget.

14. Other revenues prescribed by law.

Article 3. State budget expenditures

1. Capital expenditure includes:

a) Capital expenditure on projects of the fields mentioned in Clause 3 of this Article;

b) Investment in and support of capital for enterprises providing public services and products ordered by the State; business organizations and central and local financial institutions; investment of state capital in enterprises prescribed by law;

c) Other capital expenditures prescribed by law.

2. Expenditure on national reserve.

3. Recurrent expenditures in the following fields:

a) Defense;

b) Social safety, security, and order;

c) Education and vocational training;

d) Science and technology;

dd) Healthcare, population, and families;

e) Culture and information;

g) Radio, television, and the press;

h) Sports;

i) Environmental protection;

k) Economic activities;

l) Operation of regulatory agencies, the Communist Party of Vietnam and socio-political organizations, including: Committee of Vietnamese Fatherland Front, Confederation of Labor of Vietnam, Communist Youth Union of Ho Chi Minh City, Vietnam Veterans Association, Vietnam Women's Union, Vietnam Farmers' Union; support for operation of socio-political-professional organizations, social organizations, socio-professional organizations as prescribed by law;

m) Expenditures on social security, including expenditures on support for implementation of social policies as prescribed by law;

n) Other recurrent expenditures prescribed by law.

4. Payment of interests, charges and other expenses associated with the loans taken by the Government or government of provinces.

5. Aid granted from central budget to overseas Governments and organizations.

6. Grant of loans prescribed by law.

7. Provision of additional funding for financial reserve fund.

8. Expenditures carried over to next year’s budget.

9. Provision of additional funding for budget balancing, provision of dedicated additional funding for inferior budgets from the superior budget.

Article 4. State budget deficit

1. The State budget deficit includes deficit of the central government budget and deficit of provincial budgets:

a) Central government budget deficit is the positive difference between total central government budget expenditure and total central government budget revenue in a budget year;

b) Provincial budget deficit is total deficit of budget of each central-affiliated city or province, which is the positive difference between total budget expenditure and total budget revenue of every province in a budget year.

2. Central government budget deficit shall be covered by the following sources:

a) Domestic loans from issuance of Government bonds and other domestic loans prescribed by law;

b) Foreign loans granted by Official Development Assistance, concessional loans granted by governments of other countries, financial institutions of other countries and international organizations; issuance of Government bonds to international market, not including on-lend loans.

3. Local government budget deficit shall be covered by the following sources:

a) Domestic loans from issuance of municipal bonds and other domestic loans prescribed by law;

b) On-lend loans from the Government.

4. Loans to cover budget deficit prescribed in Clause 2 and Clause 3 of this Article do not include borrowing amounts to repay principal.

5. Provincial budget deficit of each province is permitted only when it meets all the regulations and conditions as follows:

a) Only provincial budget deficit because of investment in projects under midterm public investment plans decided by the People’s Council of the province is permitted as prescribed in Point a Clause 5 Article 7 of the Law on State budget;

b) Annual provincial budget deficit shall not exceed the annual budget deficit decided by the National Assembly for such province as prescribed in Point c Clause 5 Article 7 of the Law on State budget;

c) Within 90 days from the end of the budget year preceding the year in which the estimates are made, no overdue outstanding debt arising from the loans payable in the budget year preceding the year in which the estimates are made. In exceptional circumstances, the Ministry of Finance shall request the Government to:

d) Take loans to cover local government budget deficit primarily mobilized from midterm and long-term loans. Annually, according to capital market development, the Ministry of Finance shall propose minimum rate of midterm and long-term loans to cover local government budget deficit;

dd) Loan balance of local government budget, inclusive of loans to cover budget deficit according to the estimate shall not exceed the loan balance prescribed in Clause 6 hereof.

6. Loan balance of local government budgets:

a) Loan balance of budgets of Hanoi and Ho Chi Minh City must not exceed 60% of the local government budget revenue they may retain;

b) In the administrative divisions permitted to retain an amount of revenue higher than Recurrent expenditure of the local government budgets, loan balance must not exceed 30% of the amount retained;

c) In the administrative divisions permitted to retain an amount of revenue not exceeding recurrent expenditure of the local government budgets, loan balance must not exceed 20% of the amount retained;

d) The revenue higher than or exceeding recurrent expenditure of the local government budgets prescribed in Point b and Point c of this Clause shall be determined according to the revenue and expenditure estimates of the local government budgets decided by the National Assembly of the year in which budget estimates are made, and the revenue of the local government budgets to be retained shall be determined in accordance with Clause 1 and Clause 2 Article 15 of this Decree, not including residual revenues of local government budget.

7. Assign the Ministry of Finance to provide guidelines for loans and repayment of local governments.

Article 5. Payment of principal of loans

1. Sources of repayment of loans’ principal include:

a) Borrowing amounts to repay principal decided annually by the National Assembly or People’s Council of province;

b) Budget surplus of central government budget and local government budgets;

Central government budget surplus is the positive difference between total central government budget revenue and total central government budget expenditure in a budget year. Provincial budget surplus is total deficit of budget of each central-affiliated city or province, which is the positive difference between total budget revenue and total budget expenditure of every province in a budget year;

c) Surplus of central government budget and provincial government budgets prescribed in Clause 1 Article 72 of the Law on State budget;

d) Revenue increase and expenditure decrease compared with the estimates in the process of enactment of state budget prescribed in Clause 2 Article 59 of the Law on State budget.

2. Mature principal debts must be repaid sufficiently and on schedule according to the signed commitment and contract.

3. Principal payment must be managed and recorded via State Treasury.

Article 6. State budget system and relation between various levels of state budget

1. State budget consists of central government budget and local government budgets.

2. A local government budget consists of budgets of local authorities at various levels, in which:

a) Budgets of provinces and central-affiliated cities (hereinafter referred to as provincial budgets) include provincial budget and budgets of districts, district-level towns, provincial-affiliated cities, cities affiliated to central-affiliated cities;

b) Budgets of districts, district-level towns, provincial-affiliated cities, cities affiliated to central-affiliated cities (hereinafter referred to as district budgets) include district budget and budgets of communes, wards, and commune-level towns;

c) Budgets of communes, wards, and commune-level towns (hereinafter referred to as commune budgets).

3. Rules for management of sources of revenue, obligatory expenditures, and relation between various levels of state budget shall be consistent with Article 9 of the Law on State budget.

Article 7. State budget reserve

1. In expenditure estimate of central government budget and expenditure estimate of local government budgets, the reserve of 2% - 4% of total budget expenditure at each level shall be built up.

2. State budget reserve is used for expenditures prescribed in Clause 2 Article 10 of the Law on State budget.

3. The power to decide the use of central government budget reserve:

a) With regard to expenditures of greater than VND 3 billion associated with a specific objective, the Ministry of Planning and Investment shall take charge and cooperate with the Ministry of Finance and relevant agencies in requesting the Prime Minister to decide capital expenditures and expenditures under management of the Ministry of Planning and Investment. The Ministry of Finance shall take charge and cooperate with relevant agencies in requesting the Prime Minister to decide remaining expenditures.

The Minister of Finance shall decide expenditures not exceeding VND 3 billion associated with a specific objective and send quarterly reports to the Prime Minister;

b) According to policies funded by expenditures from central government budget reserve, the Minister of Finance shall decide to provide for expenditures, other than expenditures prescribed in Point a of this Clause and consolidate and send reports on implementation results to the Prime Minister;

c) Quarterly, the Ministry of Finance shall send a report on using central government budget reserve to the Government as prescribed in Point a and Point b of this Clause; the Government shall report it to the Standing Committee of National Assembly or the National Assembly at the nearest meeting.

4. During the enactment of budget, when an objective associated with expenditures of central government budget reserve prescribed in Clause 2 of this Article arises, Ministries, central and local authorities shall make budget estimates and detailed presentation and send them to the Ministry of Finance, the Ministry of Planning and Investment for consideration within their competence, or request the Prime Minister to consider providing additional funding for Ministries, central and local authorities.

5. The power to decide the use of budget reserve at localities shall be consistent with Point b Clause 3 of Article 10 of the Law on State budget.

Article 8. Financial reserve funds

1. Financial reserve fund is a fund of the State established in central government and provincial government.

2. A financial reserve fund is established from the following sources:

a) Annual budget expenditure estimate;

b) Budget surplus prescribed in Clause 1 Article 72 of the Law on State budget;

c) Revenue increase prescribed in Clause 2 Article 59 of the Law on State budget;

d) Interests of deposits of financial reserve fund;

dd) Other financial sources as prescribed by law.

3. The balance of the financial reserve fund at each level must not exceed 25% the annual budget expenditure estimate that the same level, not including expenditures from dedicated additional funding from superior budget.

4. Financial reserve funds are used in the following cases:

a) Advance funding to cover necessary expenditures according to the budget expenditure estimate before aggregating enough revenue. Such amount must be returned within the budget year;

b) In case state budget revenues or loans taken to cover budget deficit fail to reach the estimate decided by the National Assembly or the People’s Council, budget reserve is used up but still not sufficient for disaster recovery, response to widespread and serious epidemics, performance of tasks related to national defense and security, and other urgent tasks that are unplanned, the financial reserve fund may be used. However, the amount used in the year must not exceed 70% of the opening balance of the fund.

5. The power to use financial reserve funds:

a) With regard to central financial reserve fund, the Minister of Finance shall decide advances of financial reserve funds to cover expenditures prescribed in Point a Clause 4 of this Article; the Prime Minister shall decide to use financial reserve funds for the cases prescribed in Point b Clause 4 of this Article;

b) With regard to provincial financial reserve funds, People's Committees of provinces shall decide to use them in the cases prescribed in Clause 4 of this Article.

6. The Minister of Finance shall be the account holder of central financial reserve funds. Presidents of People’s Committees of provinces or Director of Service of Finance, in case of authorization, shall be the account holders of provincial financial reserve funds.

7. The financial reserve fund in the cases prescribed in Point b Clause 4 of this Article shall be transferred to the State budget revenues to pay obligatory expenditures which are decided.

8. The financial reserve fund shall be deposited at the State Treasury and the State Treasury shall pay interests according to interest rates prescribed in law on state fund management.

9. The provincial budget may be advanced from central financial reserve fund, the district budget and commune budget may be advanced from provincial financial reserve fund and refund advances within the budget year.

Article 9. Operating costs of Communist Party of Vietnam and socio-political organizations

1. Operating costs of Communist Party of Vietnam and socio-political organizations, including: Committee of Vietnamese Fatherland Front, Confederation of Labor of Vietnam, Communist Youth Union of Ho Chi Minh City, Vietnam Veterans Association, Vietnam Women's Union, Vietnam Farmers' Union shall be covered by State budget according to the rule that the State budget covers the difference between the expenditure estimate determined according to policies and standards prescribed by competent authorities in terms of revenue sources according to charters of these organizations.

2. The making of budget estimates, enactment of estimates, and statement of budget prescribed in Clause 1 of this Article shall be carried out in accordance with the Law on State budget, this Decree and relevant law provisions.

3. Assign the Ministry of Finance to provide guidelines for management and use of State budget applicable to Communist Party of Vietnam.

Article 10. Operating costs of socio-political-professional organizations, social organizations, socio-professional organizations

1. Socio-political-professional organizations, social organizations, and socio-professional organizations shall cover their own operating costs. If socio-political-professional organizations, social organizations, socio-professional organizations are assigned to perform certain objectives by competent authorities, their relevant operating costs shall be covered by the State budget.

2. Supportive budget for socio-political-professional organizations, social organizations, and socio-professional organizations is included in the budget estimate of each budget level which is submitted to the National Assembly or People’s Council for decision.

3. The making of budget estimates, enactment of estimates, and statement of supportive budget shall be carried out in accordance with the Law on State budget, this Decree and relevant law provisions.

4. The Government shall provide guidelines for support of government budget to organizations prescribed in Clause 1 of this Article.

Article 11. State budget management according to achievement of objectives

1. State budget management according to achievement of objectives means the making, allocation, enactment, and statement of government budget according to determination of budget associated with objectives, services to be completed with quantity, number, and quality, technical standards as prescribed.

2. Entities subject to state budget management according to achievement of objectives are budget-using units must satisfy the following conditions:

a) Determine quantity, number, quality, completion time;

b) There are bases to make and allocate budget estimates according to technical-economic limits, limits on budget expenditures or value of objectives, services, equivalent products provided in similar conditions (including taxes, fees and charges payable as prescribed by law);

c) There are criteria and mechanism for supervision and assessment of performance;

d) There is a written agreement between the authority that assigns objectives and the authority that receives objectives in terms of management of budget according to achievement of objectives.

3. Scope of application is objectives, services, and products that it is unable to determine requirements for quantity, number, quality, technical standards of objectives, services, and products that are completed and the need of budget according to the technical-economic limits, criteria, expenditure limits decided by competent authorities.

4. Rules of application:

a) Enhance power together with intensify personal responsibility and take legal self-responsibility imposed on the head of the service provider;

b) Simplify procedures for state budget management in the stage of expenditure control or statement of State budget;

c) Quantity, number, quality, technical standards, provision time, expenditure estimate of objectives, services, and products must equal to or higher than the method of state budget management according to input factors;

d) Assign the Ministry of Finance to provide guidelines for state budget management according to achievement of objectives.

Article 12. Off-budget financial fund

1. Off-budget financial fund is a fund established as prescribed in Clause 19 Article 4 of the Law on State budget.

2. State budget does not cover operating costs of off-budget financial funds.

3. According to state budget’s capacity, an off-budget financial fund only has its charter capital supported by state budget only when the conditions are satisfied:

a) It is established and operating in accordance with law;

b) It is financially independent;

c) Its sources of revenue and obligatory expenditures do not coincide with those of state budget.

4. Off-budget financial funds and fund management agencies must comply with the Law on State budget and regulations of this Decree in terms of making, enactment, statement, and auditing of state budget regarding the amounts supported by state budget.

5. Annually, fund management agencies under management of the central government shall send reports on implementation of the current financial plan, the next-year financial plan and statement of receipts and expenditures to the Ministry of Finance for consolidating and sending them to the Government; the Government shall report those reports in conjunction with estimate reports and statements of State budget thereafter; fund management agencies under management of the local governments shall send reports on implementation of the current financial plan, the next-year financial plan and statement of receipts and expenditures to the Service of Finance for consolidating and sending them to the People’s Committee; the People’s Committee shall report those reports in conjunction with estimate reports and statements of local government budget.

6. Fund management agencies of off-budget financial funds at the central government shall take charge and cooperate with the Ministry of Finance in providing reports for the Government; the Government shall give explanation to the National Assembly upon request thereafter; fund management agencies of off-budget financial funds at the local government shall take charge and cooperate with the Service of Finance in providing reports for the People’s Committee of province; ; the People’s Committee of province shall give explanation to the People’s Council upon request thereafter.

Chapter II

BUDGET MANAGEMENT DECENTRALIZATION AND RELATION BETWEEN VARIOUS LEVELS OF STATE BUDGET

Article 13. Sources of revenue of central government budget

1. The following revenues are wholly retained by central government budget:

a) VAT on imported goods;

b) Export and import duties;

c) Special excise tax on imported goods, including special excise tax on imported goods continuously sold in domestic market by the import business entity;

d) Environmental protection tax on imported goods;

dd) Severance tax, corporate income tax, value-added tax, profits distributed to home country, charges, water surface rents, taxes, charges and other revenues from petroleum exploration and extraction;

e) Grant aid provided by the government of other countries, international organizations, other overseas organizations and individuals for Vietnam’s government;

g) Collected charges for services provided by central regulatory agencies, if the competent authority permits the fixed operating costs, collected charges may be deducted. Collected charges for services provided by central public service agencies and state-owned enterprises under management of central regulatory agencies may be partly or wholly retained to cover expenses as prescribed by law;

h) Fees collected by regulatory agencies, except for license fees prescribed in Point g and registration fees prescribed in Point h Clause 1 Article 15 of this Decree;

i) Fines for administrative violations and other fines, confiscations collected by central regulatory agencies;

k) Revenues from selling state-owned property, including revenues from transfer of land use rights associated with property on land, change of purpose of land use under the management of regulatory agencies, political organizations, socio-political organizations, public service providers, single-member limited liability companies whose owner is the State or enterprises whose stakes are partly held by central government before their equitization, restructuring and other organizations under management of central government,

l) Revenues from property under the State ownership under the management of central organizations and units, excluding costs as prescribed by law;

m) Recovery of investment by central government budget in business organizations (including principal and interests); revenues from distributed dividends and profits of joint-stock companies, multi-member limited liability companies that have state capital and ownership of which is represented by a Ministry, ministerial agency, Governmental agency, or another central regulatory agency; revenues from post-tax profit that remains after making contributions to various funds of state-owned enterprises whose ownership is represented by a Ministry, ministerial agency, Governmental agency, or another central regulatory agency; p

n) Revenues from charges for granting mineral extraction right, granting right to exploit water resources which central government budget may retain as prescribed by law;

o) Charges for use of sea areas within competence of central government;

p) Positive difference between revenue and expenditure of the State bank of Vietnam;

q) Revenues from central financial reserve fund;

r) Revenues from surplus of central government budget;

s) Revenues carried over from last year’s budget of central government budget;

t) Other revenues prescribed by law.

2. Revenues distributed between central government budget and local government budgets (%):

a) Value-added tax, including value-added tax of sub-contractor arising from services for exploration and extraction of oil and gas; excluding value-added tax prescribed in Point a and Point dd Clause 1 of this Article;

b) Corporate income tax, including corporate income tax of sub-contractors arising from services for exploration and extraction of oil and gas; excluding corporate income tax prescribed in Point dd Clause 1 of this Article.

c) Personal income tax;

d) Special excise tax, except for that mentioned in Point c Clause 1 of this Article;

dd) Environmental protection tax, except for that mentioned in Point d Clause 1 of this Article. With regard to environment protection tax on domestically produced oil and gas, the revenues shall be determined according to the production sold on the market by the central enterprise and density of total domestic oil production and total imported production. The Ministry of Finance is assigned to provide guidance on this regulation.

Article 14. Obligatory expenditures of central government budget

1. Capital expenditure:

a) Investment in capital construction for programs and projects of other Ministries, ministerial agencies, Governmental agencies, and other central regulatory agencies of the fields prescribed in Clause 3 of this Article;

b) Investment in and support of capital for enterprises providing public services and products ordered by the State; business organizations and financial institutions under management of central regulatory agencies; investment of state capital in enterprises prescribed by law;

c) Other capital expenditures prescribed by law.

2. Expenditure on national reserve.

3. Recurrent expenditures of Ministries, ministerial agencies, Governmental agencies, and other central regulatory agencies are classified into the following fields:

a) Defense;

b) Social security, order and safety;

c) Education and vocational training;

d) Science and technology;

dd) Healthcare, population, and families;

e) Culture and information;

g) Radio, television, and the press;

h) Sports;

i) Environmental protection;

k) Economic activities in the fields of: Agriculture, forestry, irrigation, aquaculture; transportation; resources; border demarcation; commerce and tourism planning; expenditures on import, export, storage, protection, insurance of national reserves goods by the State; other economic activities;

l) Operation of regulatory agencies, Communist Party of Vietnam; the Central Committee of Vietnamese Fatherland Front, Vietnam General Confederation of Labor, Central Committee of Communist Youth Union of Ho Chi Minh City, Central Committee of Communist Youth Union of Ho Chi Minh City, Central Committee of Vietnam Veterans Association, Central Committee of Vietnam Women's Union, Central Committee of Vietnam Farmers' Union;

m) Support for operation of socio-political-professional organizations, social organizations, socio-professional organizations in the central government as prescribed by law;

n) Expenditures on social security, including expenditures on support for implementation of social policies as prescribed by law;

o) Other recurrent expenditures prescribed by law.

4. Payment of interests, charges and other expenses associated with the loans taken by the Government.

5. Provision of aid.

6. Grant of loans prescribed by law.

7. Provision of additional funding for central financial reserve fund.

8. Expenditures of central government budget carried over to next year’s budget.

9. Provision of additional funding for budget balancing, provision of dedicated additional funding for local government budgets.

Article 15. Sources of revenue of local government budgets

1. The following revenues are wholly retained by local government budgets:

a) Resource royalty, except for that on petroleum exploration and extraction;

b) Levies on agricultural land;

c) Levies on non-agricultural land;

d) Land levies;

dd) Land rents, water surfaces rents, except for those on petroleum exploration and extraction;

e) Revenue from lease and sale of state-owned housing;

g) License fees;

h) Registration fees;

i) Revenues from lottery, including electronic lottery;

k) Recovery of investment by local government budgets in business organizations (including principal and interests); revenues from distributed dividends and profits of joint-stock companies, multi-member limited liability companies that have state capital and ownership of which is represented by the People’s Committee of the province and central-affiliated city (hereinafter referred to as province); revenues from post-tax profit that remains after making contributions to various funds of state-owned enterprises whose ownership is represented by the People’s Committee of the province;

l) Revenues from selling state-owned property, including revenues from transfer of land use rights associated with property on land, change of purpose of land use under the management of regulatory agencies, political organizations, socio-political organizations, public service providers, single-member limited liability companies whose owner is the State or enterprises whose stakes are partly held by local government budget before their equitization, restructuring and other organizations under management of local government;

m) Grant aid provided by international organizations, other organizations, overseas individuals to local governments;

n) Collected charges for services provided by local regulatory agencies, if the competent authority permits the fixed operating costs, collected charges may be deducted. Collected charges for services provided by local public service agencies and state-owned enterprises under management of local regulatory agencies may be partly or wholly retained to cover expenses as prescribed by law;

o) Fees collected by local regulatory agencies;

p) Fines for administrative violations and other fines, confiscations collected by local regulatory agencies;

q) Revenues from property under the State ownership under the management of local organizations and units, excluding costs as prescribed by law;

r) Revenues from charges for granting mineral extraction right, granting right to exploit water resources which local government budget may retain as prescribed by law;

s) Charges for use of sea areas within competence of local government;

t) Revenue from public land and other public benefits;

u) Contributions by other organizations and individuals as prescribed by law.

v) Revenues from local financial reserve funds;

x) Surplus of local government budgets;

y) Other revenues prescribed by law.

2. Revenues distributed between central government budget and local government budgets (%) are specified in Clause 2 Article 13 of this Decree.

3. Provision of additional funding for budget balancing, provision of dedicated additional funding by central government budget.

4. Revenues carried over from last year’s budgets local governments.

Article 16. Obligatory expenditures of local government budget

1. Capital expenditure:

a) Investment in capital construction for projects/programs under the management of local governments of the fields mentioned in Clause 2 of this Article;

b) Investment in and support of capital for enterprises providing public services and products ordered by the State; business organizations and local financial institutions; investment of state capital in enterprises prescribed by law;

c) Other capital expenditures prescribed by law.

2. Recurrent expenditures of local organizations and units are classified into the following fields:

a) Education and vocational training;

b) Science and technology;

c) Social safety, security, and order under the management of local governments;

d) Healthcare, population, and families;

dd) Culture and information;

e) Radio, television, and the press;

g) Sports;

h) Environmental protection;

i) Economic activities: Agriculture, forestry, irrigation, aquaculture; transportation; resources; planning; commerce and tourism; urban reconstruction activities; other economic activities;

k) Operation of regulatory agencies, Communist Party of Vietnam; the Central Committee of Vietnamese Fatherland Front, Communist Youth Union of Ho Chi Minh City, Vietnam Veterans Association, Vietnam Women's Union, Vietnam Farmers' Union in local governments;

l) Support for operation of socio-political-professional organizations, social organizations, socio-professional organizations in the local government as prescribed by law;

m) Expenditures on social security, including expenditures on support for implementation of social policies as prescribed by law;

n) Other recurrent expenditures prescribed by law.

3. Payment of interests, charges and other expenses associated with the loans taken by government of provinces.

4. Provision of additional funding for local financial reserve funds.

5. Amounts carried over to next year’s budget of the local government.

6. Provision of additional funding for budget balancing, provision of dedicated additional funding for inferior budgets.

Article 17. Rules for classifying sources of revenues and obligatory expenditures between various levels of local government budgets

1. In consideration of the sources of revenue and obligatory expenditures of local government budget prescribed in Article 15 and Article 16 of this Decree, the People’s Council of the province shall decide specific distribution of sources of revenue and obligatory expenditures between various levels of local government budgets as follows:

a) The distribution must suit the socio-economic and national defense of objectives with regard to each field, economic, geographical characteristics, population, and managerial capacity of each area;

b) Budgets of communes are funded from levies on non-agricultural land; license tax paid by business households and individuals; levies on agriculture land paid by households; registration fees on land and housing; levies on non-agricultural land; license tax paid by household businesses and individuals; levies on agriculture land paid by households; registration fees on land and housing;

c) Expenditures on science research and technology are not obligations of budgets of districts and communes. Expenditures on technology application and transfers are obligations of budgets of districts and communes;

d) Obligatory expenditures of budgets of towns and cities of province must include investment in public schools, lighting electricity, water supply and drainage, urban transport, urban hygiene, and other public facilities.

2. Depending on the ratio of revenues distributed by the National Assembly or the Prime Minister revenues wholly retained by local government budgets, the People’s Council of the province shall decide the ratio of revenues distributed between various levels of local government budgets. Regarding revenues distributed between central government budget and local government budgets, the ratio of revenues distributed between various levels of local government budgets shall not exceed the ratio decided by the National Assembly or the Prime Minister in each province.

3. The Ministry of Finance is assigned to provide guidelines for budget management and other financial activities of communes, wards, and district-level towns.

Article 18. Rules for determining ratio of distribution of revenues and additional funding from superior budget to balance their budgets

1. Ratio of distribution of revenues between central government budget and local government budgets is determined to ensure that the revenue sources of local government budget is balanced with obligatory expenditures. If a province that may wholly retain revenues distributed between central government budget and local government budgets, but obligatory expenditures as prescribed are greater than the retained local budget revenues, the central government budget shall provide additional funding in proportion to the deficit between revenue sources and obligatory expenditures.

2. Ratio of distribution of revenues between various levels of local government budgets is determined to ensure that the revenue sources is balanced with obligatory expenditures. According to the actual condition of a province, the People’s Council of province shall both classify distributed revenues and provide additional funding for budgets of districts, district-level towns, provincial-affiliated cities, and cities affiliated to central-affiliated cities.

3. Ratio of distribution of revenues and additional funding are determined in consideration of calculation of revenue sources and obligatory expenditures of each level of budget according to criteria for population, natural conditions, socio-economic conditions of each areas, especially remote areas, areas having military bases, areas of ethnic minorities, disadvantaged areas and extremely disadvantaged areas; areas with large-scale paddy production; areas of protection forests, specialized forests; key economic areas;

4. Ratio of distribution of revenues generally applies to all revenues distributed between central government budget and local government budgets. Revenues distributed between various levels of local government budgets shall be decided by the People’s Council of province.

Article 19. Additional funding from superior budget

1. The Government shall request the National Assembly to decide additional funding from central government budget to each province’s budget. The People’s Committee shall request the People's Council at the same administrative level to decide additional funding from provincial budget to inferior budget.

2. Additional funding for balancing budget is provided for inferior budget to enable inferior government to assure achievement of socio-economic, national defense and security objectives. In years of the stability period, in consideration of the capacity of the superior budget, the competent authority may decide increase in additional funding for balancing budget from the superior budget to inferior budgets compared to the first year of the stability period.

3. Dedicated additional funding is provided to enable an inferior budget to:

a) Implement new policies established by superior agencies that is included in the budget estimate of the beginning year of the budget stability period; specific additional funding is determined according to expenditures and capacity of balancing of relevant budget levels;

b) Execute National target programs and other programs/projects of the superior government, parts of programs/projects assigned to the inferior government; specific additional funding shall be consistent with expenditure estimate assigned by the competent authority;

c) Recover from expansive epidemics and disasters beyond the capacity of the inferior budget although budget reserve and financial reserve fund are used as prescribed;

d) Execute some major and particularly important programs/projects that have tremendous impact of local socio-economic development. The level of support varies according to each program/project. The total level of supportive capital for annual investment in development from central government budget to local government budgets mentioned in this must not exceed 30% of total expenditure on investment in fundamental construction of the central government budget.

Article 20. The Ministry of Finance’s power to promulgate policies, standards, and limits on budget expenditures nationwide

1. Promulgate budget expenditures regarding policies, standards, and limits decided by the Government or the Prime Minister without specific amounts.

2. Promulgate the policies, standards, limits on budget expenditures on various fields and sectors after reaching a consensus with corresponding Ministries; if a consensus is not achieved, the Ministry of Finance shall request the Prime Minister to consider and offer opinions as prescribed in Clause 3 Article 26 of the Law on State budget.

3. Promulgate policies, standards, limits on budget expenditures as assigned by the Government or the Prime Minister.

Article 21. People’s Councils of provinces’ power to promulgate policies, standards, and limits on budget expenditures nationwide

1. According to rules, criteria, and limits on budget appropriation in local government promulgated by the Standing Committee of National Assembly, local government budget capacity and actual condition of a province, the People’s Council of province shall decide rules, criteria, and limits on budget appropriation in local government as the basis for making of local budget estimates.

2. Decide policies, standards, and limits on budget expenditures according to framework regulations of the Government.

3. Decide policies on special obligatory expenditures of their areas apart from the policies, standards, and limits imposed by the Government, the Prime Minister, and the Minister of Finance in order to achieve socio-economic development objectives, ensure social safety and order locally in a way that suits capacity of local government budgets, central government budget. Expenditures associated with salaries, wages, allowances must be consulted with the Ministry of Finance, Ministry of Home Affairs, the Ministry of Labor, War Invalids and Social Affairs, and relevant managing Ministries before decision.

Within 10 working days, from the date on which a decision is promulgated by the People’s Council of province, the People's Committee of province shall send its regulations on budget expenditures to the Ministry of Finance and relevant Ministries and agencies for consolidation and supervision.

Chapter III

MAKING OF STATE BUDGET ESTIMATES

Article 22. Time for providing instructions on making, aggregating, deciding, and giving state budget estimates

1. Before May 15, the Prime Minister shall promulgate regulations on making socio-economic development plans and state budget estimates of the next year.

2. Before June 1, the Ministry of Planning and Investment shall:

a) Promulgate Circular(s) on guidelines for formulation on socio-economic development plan, development investment plan of the next year;

b) Communicate checked estimate of expenditure on development investment of State budget in the next year to each of Ministries, ministerial-level agencies, Governmental agencies, other agencies of central government and provinces;

c) Communicate checked estimate of expenditure on development investment of State budget of the next year on execution of national target programs, target programs to each of Ministries, and agencies in charge of national target programs or target programs.

3. Before June 1, the Ministry of Finance shall:

a) Promulgate Circular(s) on guidelines for making of state budget estimates of the next year;

b) Communicate checked estimate of state budget with the whole revenue and each revenue, expenditure on national reserve, recurrent expenditure for the next year to each of Ministries, ministerial-level agencies, Governmental agencies, and other agencies of central government;

c) Communicate checked estimate of particular recurrent expenditures according to each field in the next year on execution of national target programs, target programs to each of Ministries, and agencies in charge of national target programs or target programs;

d) Communicate checked estimate of total State budget revenue in administrative divisions, total State budget expenditures and some important expenditures to each of provinces and central-affiliated cities (hereinafter referred to as provinces).

4. Before June 15:

a) Ministries, ministerial-level agencies, Governmental agencies, and other agencies of central government shall provide guidelines for budget estimates in the next year within their scope of management; communicate checked estimate of state budget revenue and expenditure in the next year to each of their affiliated entities;

b) People’s Committees of provinces shall provide guidelines for budget estimates in the next year in provinces in conformity with requirements, contents, and time of making state budget estimates of provinces; communicate checked estimate of budget revenue and expenditure in the next year to each of their affiliated entities and People’s Committees of districts; People’s Committees of districts shall communicate estimate of budget revenue and expenditure in the next year to each of their affiliated entities and People’s Committees of communes.

5. Before July 20:

a) Ministries, ministerial-level agencies, Governmental agencies, and other agencies of central government shall make estimates of budget expenditure and revenue, allocation of budget estimates in the next year within specific amounts in sorted fields and specific budget-using units, and send them to the Ministry of Finance, the Ministry of Planning and Investment, agencies in charge of the national target programs or target program (with regard to expenditure on the national target program or target program);

b) People’s Committees of provinces shall make and consolidate estimates of local government budget in the next year and send them to the Ministry of Finance, the Ministry of Planning and Investment, agencies in charge of the national target program or target program (regard to expenditure on the national target program or target program);

6. Before August 15, Ministries, agencies in charge of national target programs or target programs shall take charge of making estimates of budget expenditure and allocation of budget estimates in the next year of the national target program or target program and send them to the Ministry of Finance and the Ministry of Planning and Investment.

7. Before August 31, the Ministry of Planning and Investment shall send a plan for allocation of capital expenditures of central government budget in the next year to the Ministry of Finance for consolidation.

8. The Ministry of Finance shall take charge, consolidate, and make estimates of budget expenditure and revenue and allocation of budget estimates in the next year which are reported to the Government; the Government shall submit them to the Standing Committee of National Assembly for opinions before September 20 as prescribed in Clause 2 Article 44 of the Law on State budget.

9. According to opinions of agencies the National Assembly, the Ministry of Finance shall complete the report on assessment of enactment of current year’s state budget, state budget estimates, and allocation of central government budget in the next year and send them to the Government; the Government shall forward them to National Assembly deputies within 20 days before the opening date of year-end meeting of the National Assembly.

10. Before November 20, after the National Assembly decides state budget estimates and allocation of central government budget, the Prime Minister shall give estimates of budget revenue and expenditure in the next year to each of the Ministries, ministerial agencies, Governmental agencies, other central regulatory agencies, and provincial governments.

11. Before December 10, the People’s Councils of provinces shall decide their budget estimates and allocation of provincial budget of the next year. The People’s Councils at inferior levels shall decide their local government budget estimates and budget allocation of the next year within 10 days from the day on which the People’s Council at the superior level decides the estimate and budget allocation.

12. Within 05 working days from the day on which the People’s Council decides budget estimate, the People’s Committee at the same level shall give the budget estimate of revenue and expenditure in the next year to each of its affiliated agencies and units; send a report to the People’s Committee and finance authority that the superior level. The People’s Committees of provinces shall send reports on budget estimates decided by the People’s Councils of provinces to the Ministry of Finance.

13. Before December 31, Ministries, ministerial agencies, Governmental agencies, other central regulatory agencies, and the People’s Committees must finish giving budget estimates to their affiliated agencies, units and the People’s Committees at inferior levels, except for the cases prescribed in Article 27 of this Decree.

Article 23. Making state budget estimates at budget estimate unit and organizations funded by budget

1. Budget-using units and investors shall make estimates of budget revenue and expenditure within their assigned objectives and send them to their superior agencies.

2. Budget-using units which are assigned to manage budget according to achievement of objectives shall make a separate budget for each of objectives, services and specific products. The budget estimates for each of objectives, services and specific products shall be made according to requirements for specific results, technical standards, completion time for each of objectives, services and specific products; technical-economic limits, limits on budget expenditures according to applicable regulations or value of objectives, services, equivalent products provided in similar conditions.

3. The superior agencies (other than budget estimate units level I) shall consider and consolidate estimates of their inferior units and send them to budget estimate units level I.

4. Organizations funded by State budget shall make estimates of budget revenue and expenditure within their assigned objectives and send them to finance authorities and planning and investment authorities at the same administrative level.

5. Budget estimate units level I shall consider estimates made by their inferior units, consolidate and make estimates of budget revenue and expenditure within their scope of management and send them to finance authorities and planning and investment authorities at the same administrative level.

6. The estimates of budget revenue and expenditure must satisfy requirements for making of state budget estimates prescribed in Article 42 of the Law on State budget.

Article 24. Making state budget estimates at collecting authorities

1. Each Department of Taxation shall:

a) Make estimates of state budget revenues in provinces and refundable value-added tax within their management, and send them to General Department of Taxation, the People's Committee of province, the Service of Finance, and the Service of Planning and Investment;

b) Instruct affiliated tax authorities to make estimates of state budget revenues in the province and send them to the People’s Committee, the finance authority and the planning and investment authority in conformity with requirements, contents, and time of making local budget estimates.

2. Each Department of Customs shall make estimates of revenues on export and import duty; special excise tax, value-added tax, environment protection tax on imported goods, and other revenues in connection with export and/or import operation within its scope of management and according to administrative divisions of each province, and send them to the General Department of Customs, the People's Committee of province, the Service of Finance, and the Service of Planning and Investment.

3. Other agencies assigned to collect state budget revenues from fees and charges shall make estimates of revenues from those fees and charges, and send them to a tax authority and finance authority at the same administrative level.

Article 25. Making estimates of local government budgets

1. Each Service of Finance shall take charge and cooperate with the Service of Planning and Investment in considering estimates of state budget revenue and expenditure in the province made by collecting authorities regarding budget estimate units level I within their scope of management and estimates of state budget revenue and expenditure of district; and making estimates of state budget revenues in the province, estimates of state budget revenues of local government budget and send a report to the People’s Committee of province. The People’s Committee of province shall forward it to the Standing board of People’s Council of province for consideration.

2. After receiving opinions of the Standing board of People’s Council of province, the People’s Committee of province shall send estimates of local government budget to the Ministry of Finance, the Ministry of Planning and Investment, agencies in charge of national target programs, target programs (regard to expenditure on national target program, target program).

Article 26. Making of state budget estimate and plan for allocation of central government budget

1. The Ministry of Finance shall take charge and cooperate with the Ministry of Planning and Investment and Ministries, relevant agencies in consolidating and making estimates of budget revenue and expenditure and a plan for allocation of central government budget, and send documents prescribed in Clause 1 Article 47 of the Law on State budget to the Government.

2. According to assignment of the Government or authorization of the Prime Minister, the Minister of Finance shall, on behalf of the Government, report and account for making of estimates of budget revenue and expenditure and the plan for allocation of central government budget to the National Assembly and the National Assembly agencies as prescribed by law.

Article 27. Remaking state budget estimate

1. The remaking of state budget estimates or plan for allocation of central government budget; estimates of local government budget or plan for allocation of local government budgets shall be consistent with Article 48 of the Law on State budget.

2. Time for remaking of state budget estimates and central government budget allocation plan shall be subject to the National Assembly’s decision.

3. Time for remaking of local government budget estimates:

a) With regard to state budget estimates or central government budget allocation which is/are ratified by the National Assembly or assigned by the Prime Minister, the People's Committee of province shall request People’s Council at the same administrative level to decide estimates of local government budget and provincial budget allocation before December 10. In a case where the People’s Council of province requests the People's Committee of province to remake local budget estimates or provincial budget allocation plan, it shall be submitted to the People’s Council of province within a certain time decided by the People’s Council of province but not later than December 20 of the previous year;

b) With regard to the making of estimates of a local government budget or a plan for budget allocation prescribed in Clause 2 of this Article, the People’s Committee shall submit them to the People’s Council for decision within 15 days from the date on which the Prime Minister assigns estimates to local government budget;

c) The People’s Committee of province shall decide the specific time for making of budget estimates in districts and communes, provided that the People’s Councils at inferior levels shall decide their local government budget estimates and budget allocation within 10 days from the day on which the People’s Council at the superior level decides the estimate and budget allocation.

Article 28. Responsibilities of agencies in making state budget estimates and plans for allocation of budget estimates

1. Each People’s Committee shall:

a) Instruct and direct affiliated entities, inferior government to make estimates of budget revenue and expenditure within its scope of management; cooperate and tax authorities and customs authorities in the province to make estimates of budget revenue and refundable value-added tax as prescribed;

b) Make estimates of budget revenue in the province, estimates of local budget revenue and expenditure; send reports to the Standing board of People’s Council before send them superior State administrative agencies;

c) According to estimates of budget revenue and expenditure assigned by a superior authority, request People’s Council at the same administrative level to decide its estimates of local government budget and budget allocation plan, then send reports on estimates of local government budget and budget allocation plan which are decided by the People’s Council to the superior State administrative agency, finance authority, and planning and investment authority.

d) According to a Resolution of People’s Council at the same administrative level, assign estimates of budget revenue and expenditure to its affiliated entities, estimates of budget revenue and expenditure and additional funding for its inferior budgets;

dd) Make plan for adjusting local budget estimate and plan for allocation of its estimates of budget revenue and expenditure, submit them to People’s Council at the same administrative level for decision at the request of superior state administrative agencies if the Resolution of People’s Council at the same administrative level is not consistent with estimates of budget revenue and expenditure assigned by the superior authority;

e) Request an inferior People’s Council to adjust its budget estimates in exceptional circumstances.

2. Each finance authority shall:

a) Take charge and cooperate with planning and investment authorities to discuss about annual budget estimates of agencies at the same administrative level. In the beginning year of the budget stability period, the finance authority shall take charge and cooperate with planning and investment authorities, tax authorities and relevant agencies to discuss with inferior People’s Committees to determine estimates of budget revenue and expenditure, ratio of revenue distribution between superior budgets and inferior ones, additional funding for balancing budget from superior budgets to inferior ones. In the next years of the budget stability period, the superior finance authority shall discuss with the People’s Committees at inferior levels at their request.

During the discussion about budget estimates and budget allocation plans, if there are revenues and/or expenditures that are not conformable with law, not consistent with the policies and standards, not reasonable or frugal, not suitable for the budget capacity and socio-economic development orientation, finance authorities shall request adjustment. If there are contrary opinions between finance authorities, other agencies and units at the same level, and the People’s Committees at inferior levels, each local finance authority shall submit a report to the People’s Committee at the same level for decision; the Ministry of Finance shall submit a report to the Prime Minister for decision.

b) Take charge and cooperate with planning and investment authorities and relevant agencies at the same administrative level in consolidating and making state budget estimates and budget allocation plan according to each field of its budget level. In capital expenditures and recurrent expenditures, each finance authority shall consolidate and make estimates of specific expenditures on education, vocational training, science and technology in the province and nationwide;

c) Take charge and cooperate with planning and investment authorities and relevant agencies at the same administrative level in consolidating and making state budget estimates and budget allocation plan of its budget level;

d) Cooperate with planning and investment authorities at the same administrative level in making of budget estimates of capital expenditures of its budget level;

dd) The Ministry of Finance shall assess national target programs or target program in terms of recurrent expenditures made by agencies in charge of the national target program or target program and consolidate estimates and the plan for allocation of expenditures on the national target program or target program sent by the Ministry of Planning and Investment and submit them to the Government;

e) Take charge and cooperate with relevant agencies in proposing plans for balancing budget and measures for implementing the revenue increase and expenditure decrease policy;

g) The Ministry of Finance shall inspect Resolution on budget estimates of People’s Councils of provinces and request adjustments to budget estimates in exceptional circumstances. Each of local finance authorities shall inspect the Resolution on budget estimates of inferior People’s Council so as to request People’s Committee at the same administrative level or inferior People’s Council to adjust the budget estimates in exceptional circumstances.

3. Planning and investment authorities:

a) The Ministry of Planning and Investment shall submit a national socio-economic development plan to the Government and essential balance of national economy, in which balance of finance, currency, investment capital shall be based to make budget estimates;

b) Each planning and investment authority shall cooperate with finance authority at the same administrative level in consolidating and making its budget estimates; take charge and cooperate with finance authority at the same administrative level in making estimates of capital expenditures and plan for allocation of capital expenditures; and send them to finance authority at the same administrative level to consolidating and making state budget estimates and budget allocation plan;

c) The Ministry of Planning and Investment shall assess national target programs or target program in terms of capital expenditures made by agencies in charge of the national target program or target program and consolidate estimates; consolidate and send estimates and plan for allocation of expenditures on the national target program or target program to the Ministry of Finance.

4. Central and local regulatory agencies:

a) Ministries, ministerial-level agencies, Governmental agencies, and other agencies of central government shall cooperate with the Ministry of Finance in formulating policies, standards, expenditure limits in their assigned fields;

b) Each of central and local regulatory agencies shall make estimates of budget revenue and expenditure within their scope of management and send them to a finance authority and planning and investment authority at the same administrative level; make estimates of budget expenditure on national target programs or target program and send them to the finance authority, planning and investment authority, and the agency in charge of the national target programs or target programs; cooperate with the finance authority at the same administrative level in making and allocating budget estimates according to the fields of its budget level;

c) Each of agency in charge of the national target programs or target programs shall take charge and cooperate with the finance authority and planning and investment authority in making estimates and plan for allocation of expenditures on national target programs or target program to units and localities, and send them to the finance authority and planning and investment authority at the same administrative level for including in the budget estimates and plan for allocation of budget estimates which are submitted to competent authority for decision. If there are contrary opinions between the agency in charge of the national target program or target program and the Ministry of Finance or the Ministry of Planning and Investment, the agency in charge of the national target program or target program shall request the Prime Minister to consider.

Article 29. Deciding and giving state budget statement

1. According to the Resolution of the National Assembly on budget estimates, the Prime Minister shall giving estimates of budget revenue and expenditure to each of Ministries, ministerial-level agencies, Governmental agencies, and other agencies of central government by each field; estimates of revenue and expenditure, total loan to cover deficit and repay debt principal of each locality, ratio of revenue distribution between central government budget and local government budget and additional funding for budget balancing, dedicated additional funding from central government budget to each local government budget before November 20 of the previous year.

2. According to the decision of the Prime Minister on giving budget estimates, the People's Committee of province shall request People’s Council at the same administrative level to decide estimates of local budget and plan for allocation of provincial budget estimates from provincial budget to inferior budget to and ratio of revenue distribution between local government budgets before December 10 of the previous year; send a report on local budget estimates and allocation of provincial budget estimates decided by the People’s Council of province to the Ministry of Finance and the Ministry of Planning and Investment.

3. According to the Resolution of the People’s Council of province, the People's Committee of province shall give estimates of budget revenue and expenditure to each provincial-affiliated entity; estimates of budget revenue and expenditure, and ratio of revenue distribution between local government budgets; additional funding from provincial budget to budgets of districts, district-level towns, provincial-affiliated cities, cities affiliated to central-affiliated cities.

4. After receiving the decision on giving budget estimates from the superior People’s Committee, the People’s Committee shall request the People’s Council at the same administrative level to decide its local government budget estimates and budget allocation plan, provided that budget estimates of communes are decided before December 31 of previous year. After People’s Council decides the budget estimates, the People’s Committee at the same administrative level shall send reports to the superior People’s Committee and finance authority.

Article 30. Forms of making of state budget estimates

The Ministry of Finance shall provide guidelines for system of forms of making and consolidating state budget estimates, plan for allocation of central government budget; local government budget estimates, plan for allocation of local government budget.

Chapter IV

ENACTMENT OF STATE BUDGET

Article 31. Allocating and giving state budget estimates of budget estimate units

1. After being given budget estimates by the Prime Minister or the People’s Committee, budget estimate units level I shall allocate and give budget estimates to affiliated budget-using units and units of inferior budgets in accordance with procedures, requirements and deadline prescribed in Article 49 and Article 50 of the Law on State budget.

2. Estimates given to budget-using units shall be specific in sorted fields, obligatory expenditures. If there are obligatory expenditures for managing the budget according to achievement of objectives, estimates must be specific in each of objectives, services, or products

3. The superior regulatory agency that authorizes an inferior regulatory agency to make obligatory expenditures on its behalf must give a budget estimate to such inferior agency. The agency that receives the funding must submit a statement of the use of such funding to the authorizing agency.

4. Finance authorities of the same level shall inspect the budget estimates given by budget estimate units level I to their budget-using units within 10 working days from the day on which budget allocation report made by the budget estimate unit is received. If the allocation is found incorrect in terms of total amount, fields, objectives, or policies, the budget estimate unit level I shall be requested to make correction.

5. The Ministry of Finance shall provide guidance on forms of giving estimates to agencies, organizations and units.

Article 32. Organizing collection of state budget revenues

1. Organizing management and collection of taxes, fees, charges, and other receivables paid to State Treasuries. The amounts collected via a third party must be transferred in full and on schedule to State Treasuries as prescribed by the Ministry of Finance.

2. Grant aid in cash must be collected promptly to State budget, if an international agreement or granting agreement specifies direct disbursement to a program/ project, such grant aid shall be included sufficiently in State budget as prescribed by the Ministry of Finance.

3. State Treasuries may open accounts at the State bank of Vietnam and commercial banks to concentrate state budget revenues as prescribed in Article 40 hereof; transfer them to the state budget, regulate and distribute the revenues among various levels of state budget as prescribed.

4. The Ministry of Finance shall provide guidelines for collecting and accounting of amounts receivable and grant aid to State Treasuries.

Article 33. Management, accounting of State budget’s loans

1. State budget’s loans shall be managed and accounted on accounts of each budget level. If an international agreement or granting agreement specifies that external borrowings shall be directly disbursed to a program/ project, such external borrowing shall be included sufficiently in State budget as prescribed by the Ministry of Finance.

2. The Ministry of Finance shall provide guidance on management and accounting of State budget’s loans.

Article 34. Organizing state budget expenditure

1. Finance authorities, State Treasuries shall inspect, control and make payment sufficiently, promptly on schedule of obligatory expenditures within the given budget estimate. Heads of finance agencies, State Treasuries may refuse expenditures unsatisfactory with requirements prescribed in Clause 2 Article 12 of the Law on State budget, and take responsibility for their own decisions as prescribed by law and promptly inform relevant agencies, organizations and units. If an agency, organization or unit receiving the refusal disagrees with the decision of the finance authority or State Treasury, it may send a report to the agency that gives estimate directly and superior finance agency or State Treasury for consideration.

2. Finance authorities are entitled to suspend budgets, other than expenditures on wage, allowances, social subsidies, scholarships, and other urgent expenditures as prescribed by the Ministry of Finance, of agencies, organizations and units at the same level that fail to adhere to regulations on accounting, statement, or other financial statement, and take responsibility for their decision. The finance authority shall notify managing agency of the agency, organization, or unit subject to the suspension of the decision on suspension of budget.

3. Capital and fund shall be advanced as prescribed in Clause 2 and Clause 3 Article 56 of the Law on State budget and the amount of advanced capital shall be recovered immediately when the conditions for expenditures are satisfied as prescribed.

4. Obligatory expenditures which are made recurrently must be divided equally during a year; obligatory expenditures on capital expenditure, procurement, major repair and other non-recurrent expenditures shall be covered by certain sources on schedule and within the given budget estimate.

5. State budget’s expenditures shall be made in the form of direct payments from State Treasuries to person receiving wages, allowances, subsidies and providers of goods and services. With regard to expenditures unsatisfactory with conditions for direct payments from State Treasuries, the budget-using unit shall make advances of funding to pay these expenditures according to the given budget estimate, and then make payments with State Treasuries as prescribed by the Ministry of Finance.

With regard to expenditures funded by external borrowings of the Government, grant aid specified in granting agreement which stipulates direct disbursement through corporate banking to programs and projects, those expenditures shall be controlled in accordance with instructions of the Ministry of Finance and included in State budget regularly as prescribed in Clause 2 Article 32 and Clause 1 Article 33 of this Decree.

6. Capital expenditures:

a) An investor shall, according to the estimate of facilities or work items decided by the competent authority and the given budget estimate, finished quantity value and conditions for budget expenditures, submit an application for payment or application for advance to the State Treasury if the conditions are satisfied as prescribed respectively in Clause 2 Article 12 or Clause 2 Article 56 of the Law on State budget;

b) The State Treasury shall inspect the estimate balance and legitimacy of documents submitted by the investor and conditions prescribed in Clause 2 Article 12 or applications for advances as prescribed in Clause 2 Article 56 of the Law on State budget, and then disburse and record budget expenditures as prescribed.

7. Expenditures on management according to achievement of objectives:

a) According to the given budget estimate, contract, schedule, quantity, and quality of the achievement of objectives, services, products, the head of budget-using unit shall make a decision on expenditure and take responsibility for his/her decision, and submit an application for payment or advance to the State Treasury where the payment or advance is made as prescribed;

b) The State Treasury shall inspect the estimate balance and the legitimacy of the application, disburse and record the expenditure or advance as prescribed.

8. Recurrent expenditures:

a) According to the conditions for budget expenditure and progress of work, the head of budget-using unit shall make decision on expenditure, and submit an application for payment or advance to the State Treasury where the payment or advance is made as prescribed;

b) The State Treasury shall inspect the estimate balance and legitimacy of application and conditions prescribed in Clause 2 Article 12, and then disburse and record budget expenditure or advance as prescribed.

9. Additional funding provided from superior budgets to inferior ones shall be made at State Treasuries.

10. Expenditures on authorization:

a) Expenditures on authorization shall be paid by the authorized entity as prescribed in Clauses 6, 7, and 8 of this Article;

b) The State Treasury and the authorizing entity shall do accounting and make a separate report on expenditures on authorization.

11. Expenditures on payment of interests, charges and other expenses associated with State budget’s loans shall be consistent with Article 35 of this Decree.

12. The Ministry of Finance shall provide guidelines for procedures, accounting, and control of recurrent expenditures, capital expenditures, expenditures on debt repayment, enterprise subsidies and obligatory expenditures with particular characteristics of State budget, provision of additional funding from superior budgets to inferior ones.

Article 35. Management, accounting, and repayment of State budget’s loans

1. Outstanding interests, charges, and other expenses associated with State budget’s loans shall be paid according to their occurrence and within the given budget estimate.

2. Principal of due loans shall be paid on due date as specified in the commitment, concluded contract and within the given budget estimate decided by the competent authority as prescribed in Clause 1 Article 5 of this Decree.

3. Accounting of expenditures on debt repayment:

a) Expenditures on payment of interests, charges, and expenses associated with loans shall be included in State budget’s expenditure;

b) Expenditures on principal repayment shall be recorded as a decrease in debt balance of State budget, not included in the State budget’s expenditure;

c) The Ministry of Finance shall provide guidelines for accounting of principal repayment; payment of interests, charges and other expenses associated with State budget’s loans.

Article 36. Organizing state budget management

1. Finance authorities have the responsibility to maintain sources for making expenditures according to budge estimates. Temporary deficit in government budgets:

a) In case of temporary deficit in central government budget: The Ministry of Finance shall provide an advance funding from the central financial reserve fund and other legitimate financial sources, including issuance of State Treasury bills and such advance funding must be returned within the budget year. If the financial reserve fund and other sources cannot cover the deficit, the Ministry of Finance shall provide advance funding from the State Bank of Vietnam under a decision of the Prime Minister as prescribed in Clause 1 Article 58 of the Law on State budget;

b) In case of temporary deficit in a provincial budget: The People’s Committee of province shall provide an advance funding from provincial financial reserve fund and other legitimate financial sources and such advance funding must be returned within the budget year. If the financial reserve fund and other sources cannot cover the deficit, the People’s Committee of province shall send a report to the Ministry of Finance to provide advance funding from central financial reserve fund or central government budget advance, and such funding must be returned within the budget year;

c) In case of temporary deficit in a district budget: The People’s Committee of province shall, according to a request of the People’s Committee of district, provide an advance funding from provincial financial reserve fund and other legitimate financial sources and such advance funding must be returned within the budget year;

d) In case of temporary deficit in a commune budget: The People’s Committee of district shall, according to a request of the People’s Committee of commune, provide an advance funding from district financial reserve fund and such advance funding must be returned within the budget year. If the district budget cannot cover the deficit, the People’s Committee of district shall request the People's Committee of province to provide advance funding from provincial financial reserve fund or central government budget advance, and such funding must be returned within the budget year.

2. During the enactment of state budget, if the revenue is expected to be lower than the estimated revenue decided by the National Assembly or People's Council, the Government shall request Standing Committee of the National Assembly to decide adjustments to some expenditures, and then submit a report to the National Assembly at the nearest meeting; the People’s Committee shall request Standing Committee of the People’s Council at the same level to decide adjustments to local government budget estimate and submit a report to the People’s Council at the nearest meeting as prescribed in Point a Clause 2 and Point a Clause 3 Article 52 of the Law on State budget.

3. The budget estimates given to budget-using units shall be adjusted as prescribed in Article 53 of the Law on State budget.

4. Regarding expenditures on programs/projects funded by ODA and concessional loans that do not have budget estimates or exceed the budget estimates, the Ministry of Planning and Investment shall take charge and request the Government to send a report to Standing Committee of the National Assembly before enactment and submit a report to the National Assembly at the nearest meeting.

5. Financial reserve funds are used to cover State budget’s expenditures in accordance with Point c Clause 2 Article 11 of the Law on State budget and Article 8 of this Decree.

6. At the end of the budget year, in case of revenue increase and expenditure decrease, the Ministry of Finance shall send a report to the Government, then the Government shall forward it to the Standing Committee of National Assembly, local finance authority shall send a report to the People’s Committee, the People’s Committee shall forward it to the Standing board of People’s Council at the same administrative level to decide the amount of additional estimate and revenue increase; allocate and use revenue increase and expenditure decrease as prescribed in Clause 2 Article 59 of the Law on State budget.

7. Bonus for excess revenues distributed between central government budget and local government budgets shall be given as prescribed in Point a Clause 4 Article 59 of the Law on State budget and the following rules must be satisfied:

a) Total revenue of central government budget is greater than the estimate decided by the National Assembly;

b) Bonus rate does not exceed 30% of revenue increase which central government budget may retain. Nevertheless, the bonus must not exceed the last year’s revenue increase. Bonus given to each locality shall be given according to total revenues distributed in the locality, not each revenue separately.

8. According to the level of bonus decided by Standing Committee of the National Assembly, the People’s Committee of the province shall request the People’s Council at the same level to use the bonus to make investment in infrastructure projects, performance of important tasks, and giving bonus to inferior budgets.

Article 37. Rules, criteria, conditions and power to decide advance funding from next year’s budget

1. Rules for advancing next year’s funding:

a) When allocating the next year’s budget estimate, the advance funding must be recovered in full. Otherwise, next year’s advance funding is not permitted;

b) The advance funding of next year’s budget estimate must not exceed 20% of the estimated capital expenditure of the plan for midterm investment of state budget that is approved.;

2. Criteria for advance funding from next year’s budget:

a) Projects of national importance;

b) Urgent projects and facilities of capital construction of central and local governments.

3. Conditions for advancing next year’s funding:

a) Ensure the balance of budget funding of each level;

b) Projects and facilities of capital construction must satisfy conditions as prescribed by law on public investment and construction of the plan for midterm investment of state budget that is approved and accelerate progress;

c) There is no balance of advance funding;

d) An investor of a project or facility of capital construction eligible for advance funding from next year’s budget must provide documents on necessity of advance funding.

4. Power to decide advance funding from next year’s budget:

a) According to assignment of the Government and requests of Ministries, ministerial-level agencies, Governmental agencies, other agencies of central government and the People’s Committees of provinces and central-affiliated cities, the Ministry of Finance and the Ministry of Planning and Investment shall request the Government to decide advance funding from next year’s budget; and submit biannual reports to the Standing Committee of National Assembly, and reports to the National Assembly at the nearest session.

b) The People’s Committees of provinces and district shall decide its advance funding from next year’s budget; submit biannual reports to Standing Committee of the People’s Council and to the People’s Council at the nearest meeting.

Article 38. Management and use of budget by budget-using units

1. Ministries, ministerial-level agencies, Governmental agencies, other agencies of central and local government shall provide guidelines, inspect, and monitor the enactment of budget within the fields under their management and the enactment of budget of affiliated entities; submit periodic reports on receipts and expenditures and other financial statement as prescribed by law.

2. Heads of budget-using units are responsible for management and use of their budgets according to given estimates, ensure efficiency, frugality, adherence to policies, standards, and limits on budget expenditures; send periodic reports on enactment of the given budget estimate to their superior authorities.

3. The person in charge of finance – accounting of the budget-using unit has the responsibility to adhere to regulations on budget – finance management, state accounting, internal inspection, prevent, discover violations and request the head of the unit or a finance authority at the same level to take punitive actions.

4. Heads of agencies, units, organizations and persons in charge of finance and/or accounting at budget-using units prescribed in Clauses 1, 2, and 3 of this Article shall adhere to their duties and entitlements to state budget – finance and take responsibility for misconducts within their competence.

Article 39. Opening accounts at State Treasuries

1. Budget-using units and organizations funded by state budget regularly must open accounts at State Treasuries and be subject to the inspection and control of finance authorities and State Treasuries during the payment and funding use progress. If a budget-using unit or an organization funded by state budget regularly is permitted to open an account at a bank for the purpose of concentrating revenues, they must be managed and used as prescribed by law.

2. Assign the Ministry of Finance to provide guidelines for opening accounts at State Treasuries.

Article 40. Opening accounts of State Treasuries at banks

1. State Treasury shall open accounts at the State Bank of Vietnam and commercial banks for the purpose of concentrating revenues and expenditures of state budget.

2. A bank at which the State Treasury opens its account shall ensure the payment, regulate cash and foreign currencies adequately and promptly according to obligatory revenues and expenditures of state budget.

3. The bank shall pay interests on deposits of the State Treasury at the bank similarly to business entities; payments of State Treasury made through the State Treasury shall incur charges as prescribed by law.

Article 41. Report on enactment of state budget

1. Agencies, organizations and units shall submit reports on enactment of state budget as prescribed in Article 60 of the Law on State budget.

2. Forms and deadlines for reports prescribed in Clauses 1, 2, 3, 4, 5, 6, and 7 Article 60 of the Law on State budget shall be prescribed by the Ministry of Finance.

3. Forms and deadlines for reports prescribed in Clause 8 Article 60 of the Law on State budget shall be prescribed in a resolution of the Standing Committee of National Assembly on promulgation of regulations on making, assessment, and submission of state budget estimates, plan for allocation of central government budget to National Assembly for decision and ratification of statement of state budget.

Chapter V

ACCOUNTING, AUDIT, AND STATEMENT OF STATE BUDGET

Article 42. Closing accounting books and settlement of state budget revenues and expenditures at year’s end

1. At the end of the budget year, agencies, organizations, and units related to budget revenue and expenditure shall close accounting books and make state budget statement according to the given budget estimates and State budget entries. The Ministry of Finance is assigned to stipulate the system of State budget entries.

2. The accounting books shall be closed meeting the following requirements:

a) Revenues of budgets of previous years which are paid from January 1 of the next year shall be recorded in the next year’s revenues, other than revenues prescribed in Clause 4 hereof;

b) When the deadline for adjusting state budget statement expires, estimated expenditures, including additional expenditures in the year that are not enacted or completely enacted, except for the expenditures which are permitted to be carried over to the next year shall be enacted as prescribed in Article 43 of this Decree;

c) Advances in the budget estimate shall be paid until the deadline for adjusting state budget statement; if the conditions for payment are not satisfies when the deadline for adjusting state budget statement expires, the procedures below shall be followed:

The advances, if being permitted as prescribed in Article 43 of this Decree, shall be carried over to the next year;

The advances, if not being permitted as prescribed in Article 43 of this Decree, shall be paid to state budget before February 15 of the next year. If the unit fails to pay to state budget, the State Treasury shall recover the advances by deducting expenditures in sorted fields in next year’s budget estimates, if the next year’s budget estimate fails to provide such expenditures or provide but less than the amounts recoverable, the State Treasury shall notify the finance agency at the same level;

d) Temporarily collected/withheld accounts shall be settled as prescribed by competent authorities. Until the end of December 31, if the balances of temporarily collected/withheld accounts are not settled by the competent authorities, they shall be carried over to the next year for monitoring and settlement as prescribed by law;

dd) Until the end of December, materials and goods in stock at budget estimate units shall be subject to stocktaking as prescribed in according to applicable regulations and processed as follows: The value of materials and goods in stock shall be recorded in the previous year’s budget expenditures. If they are kept using for the next year, they shall be monitored closely with separate reports. If they are not kept using for the next year, a council shall be established to sell those materials and goods and make payments to state budget; those of public service providers shall be used as prescribed;

e) The balance of deposit account funded by budgets in budget estimate units opened at the State Treasury until the end of December 31 shall be kept paying as prescribed in the period of adjusting statement. Upon expiry of deadline for adjusting statement, the remaining balance must be repaid to State budget, except that it is carried over to the next year as prescribed in Article 43 of this Decree. The balance of deposit accounts not funded by state budget shall be carried over to the next year as prescribed by law.

3. The deadline for adjusting state budget statement is January 31 of the next year.

4. During the period of adjusting statements, agencies, units, organizations and budget levels shall follow the regulations below:

a) Do accounting of revenues and expenditures arising from December 31 or earlier whose documents are circulated;

b) Do accounting of advances which satisfy conditions for spending, payments for works and quantity made from December 31 or earlier given in the budget estimates;

c) Adjust nonconformities during the accounting.

Article 43. Expenditures carried over to next year’s budget

1. The estimated expenditures that are not enacted or completely enacted, advances in estimates or balance of deposit accounts that are not enacted or completely used, upon expiry of deadline for adjusting statements, shall be carried over to the next year include:

a) Capital expenditure carried over to the next year’s budget according to the Law on Public Investment. In exceptional circumstances, the Prime Minister shall decide the permission for carrying expenditure over to the year succeeding the next year, provided not exceeding expiry of disbursement of the project in the plan for midterm public investment;

b) Expenditures on equipment purchase that have adequate documents and purchase contracts signed before December 31 of the enactment year; expenditures on additional or covering purchase of national reserves goods;

c) Sources of implementation of policies on wage, allowances, subsidy, and amounts determined according to base salary, or social protection;

d) Autonomous budgets of public service agencies and regulatory agencies; grant aid specified in obligatory expenditures;

dd) Estimates added by competent authorities after September 30 of the enactment year, excluding additional amounts provided for inferior budget estimate units by superior budget estimate units upon the adjustment of statement;

e) Funding for scientific research which is provided for subjects scientific research projects decided by competent authorities during the enactment period.

2. The usable revenue increases and expenditure decreases prescribed in Clause 2 Article 59 of this Law may be carried over to next year's budget if permitted by a competent authority.

Article 44. Requirements and procedures applied to state budget statement

1. The making of state budget statement must meet requirements prescribed in Article 65 of the Law on State budget.

2. With regard to a budget-using unit that enact state budget management according to achievement of objectives, the actual expenditure for the purpose of achievement of objectives shall be accounted for in the budget.

3. Procedures for making, examination, and assessment of budget statement of a budget estimate unit:

a) The budget-using unit shall make a budget statement as prescribed and submit it to its superior budget estimate unit. In a case where the inferior agency receives authorized funding from a superior agency, it must submit a statement of the use of such funding to the authorizing agency;

b) The superior budget estimate unit shall examine the budget statement of the inferior budget estimate unit and provide it with results; then submit a consolidated budget statement under its scope of management to its superior budget estimate unit;

c) The budget estimate unit level I shall consider the budget statement of the inferior budget estimate unit and provide it with results; then submit a consolidated budget statement under its scope of management to the finance authority at the same level;

d) The finance authority shall assess the budget statement submitted by inferior budget estimate units level I and provide assessed units with results. If the budget estimate unit level is also a budget-using unit, the finance authority shall consider the statement and provide the assessed unit with results.

4. Procedures for making and assessment of budget statement applied to capital construction projects/programs, projects of national importance, scientific research programs/projects/subjects and national target programs:

a) At the end of the budget year: investors of capital construction projects/programs, projects of national importance, scientific research programs/projects/subjects and national target programs shall make statements of the capital sources, state budget capital, use of capital, amount of works completed and paid for in the year; send it to the provider of capital construction, supervisory agency of the investor, and the finance authority at the same level. When the capital construction program/project or project of national importance is finished: make a statement of capital sources and state capital enclosed with explanation of use of capital; send it to the provider of capital construction and the agency competent to examine the budget statement of capital construction projects/programs, projects of national importance, scientific research programs/projects/subjects as prescribed;

b) Agencies, organizations, and units provided with expenditure estimate of national target programs shall make a statement of the given budget estimate as prescribed, and submit it the superior agency for prepare a consolidate report for the agency in charge of management of the national target programs;

c) With regard to national target programs and projects of national importance the investment contents of which are decided by the National Assembly, the budget statement must be submitted to the Government for consideration and submission to the National Assembly apart from the regulations in Point a and Point b of this Clause.

5. Procedures for statement of commune budgets:

a) The People’s Committee of commune shall make a statement of state budget revenue in the given administrative division and statement of revenues and expenditures of commune budgets and send them to the socio-economic board of People's Council of commune for assessment and the finance authority of district;

b) The People’s Committee of commune shall submit the budget statement to the Standing board of People’s Council of commune for consultation. Upon receipt of consultation of the Standing board of People’s Council of commune, the People’s Committee of commune shall submit the budget statement to the People’s Council of communes for ratification;

c) Within 05 working days, from the date on which the budget statement of commune is ratified, the People’s Committee of commune shall send it to People’s Committee of district and finance authority of district.

6. Procedures for statement of district budgets:

a) The finance authority of district shall assess the statement of receipts and expenditures of the commune budget ratified by People’s Council of commune; assess and examine the budget statements of inferior budget estimate units level I; submit a consolidate statement of state budget revenues in the district and statement of receipts and expenditures of the district budget to the People’s Committee of district, then send them to the socio-economic board of the People’s Council of district for assessment and to the Service of Finance;

b) The People’s Committee of district shall submit the budget statement to the Standing board of People’s Council of district for consultation. Upon receipt of consultation of the Standing board of People’s Council of district, the People’s Committee of district shall submit the budget statement to the People’s Council of district for ratification;

c) Within 05 working days, from the date on which the budget statement of district is ratified, the People’s Committee of district shall send it to People’s Committee of province and the Service of Finance.

7. Procedures for statement of provincial budget:

a) The Service of Finance shall assess the statement of the district budget ratified by People’s Council of district; assess and examine the budget statements of inferior budget estimate units level I; submit a consolidate statement of state budget revenues in the province and statement of revenues and expenditures of the province budget to the People’s Committee of province, then send them to the socio-economic board of the People’s Council of province for assessment and to the Ministry of Finance, State Audit Office;

b) The People’s Committee of province shall submit the budget statement to the Standing board of People’s Council of province for consultation. Upon receipt of consultation of the Standing board of People’s Council of province, the People’s Committee of province shall submit the budget statement to the People’s Council of province for ratification;

c) Within 05 working days, from the date on which the budget statement of province is ratified, the People’s Committee of province shall send it to the Ministry of Finance and State Audit Office.

8. Procedures for statement of state budget:

a) Budget estimate units level I of central government budget shall make budget statements within their competence and send them to the Ministry of Finance and State Audit Office of Vietnam before October 01 of the next year;

b) The People’s Committee of each province shall submit its provincial budget statement to the Ministry of Finance and State Audit Office of Vietnam before October 01 of the next year;

c) The Ministry of Finance shall assess and examine statement of revenues and expenditures of budget estimate units level I of the central government budget;

d) Based on the result of verification of budget statements of budget estimate units level I of central government budget, and local government budget statements ratified by the People’s Councils of provinces, the Ministry of Finance shall make a statement of central government budget, submit it to government and State Audit Office of Vietnam within 14 months after the end of the budget year;

dd) Procedures for assessment of agencies of the National Assembly related to state budget statement shall be prescribed in a resolution of the Standing Committee of National Assembly on promulgation of regulations on making, assessment, and submission of state budget estimates, plan for allocation of central government budget to National Assembly for decision and ratification of statement of state budget;

e) The National Assembly shall consider approving the statement of central government budget within 18 months form the end of the budget year.

Article 45. Forms of state budget statement

1. Forms of state budget statement of agencies of the Government which are submitted to the National Assembly shall be prescribed in a resolution of the Standing Committee of National Assembly on promulgation of regulations on making, assessment, and submission of state budget estimates, plan for allocation of central government budget to National Assembly for decision and ratification of statement of state budget.

2. The Ministry of Finance is assigned to provide guidelines for forms of state budget statements.

Chapter VI

PUBLISHING OF STATE BUDGET, SUPERVISION OF STATE BUDGET BY THE PUBLIC

Article 46. Entities and scope of publishing of state budget

1. Entities required to publish budget include:

a) State budget levels,

b) Budget estimate units;

c) Organizations funded by state budget;

d) Capital construction programs/projects funded by state budget.

2. Collecting authorities, finance authorities, and State Treasuries shall publish state budget procedures.

Article 47. State budget contents to be published

1. Contents of state budget and central government budget to be published:

a) data and description of state budget estimates submitted to the National Assembly; state budget estimates decided by the National Assembly; state budget statements ratified by the National Assembly, including:

Balance of revenues and expenditures of state budget;

State budget revenues in sorted fields and according to types of taxes;

State budget expenditures, including development investment expenditures, recurrent expenditures, expenditure on loan interests and aid, additional contribution to financial reserve funds, and budget reserve;

State budget deficit; total loan of state budget, including loans for covering state budget deficit and loans for repayment of principal of state budget;

Central government budget expenditures according to specific fields; total amount and specific amounts in sorted fields for each of Ministries, ministerial-level agencies, Governmental agencies, other agencies of central government; central government budget expenditures on national target programs;

State budget revenues in administrative divisions, local government budget expenditures, additional funding for balancing budget, provision of dedicated additional funding from central government budget to budgets of each province and central-affiliated city; ratio of distribution of revenues between central government budgets and budgets of each province and central-affiliated city;

b) Publish data and description of enactment of estimates of budget revenue and expenditure, including balance of revenues and expenditures, state budget revenues in sorted fields, state budget expenditures by development investment expenditures and recurrent expenditures.

2. Contents of local government budgets to be published:

a) data and description of state budget estimates submitted to the People’s Council; state budget estimates decided by the People’s Council; state budget statements ratified by the People’s Council, including:

State budget revenues in sorted fields and according to types of taxes;

Balance of revenues and expenditures of local government budgets;

Local budget revenues permitted to retain;

Local budget expenditures, including development investment expenditures, recurrent expenditures, expenditure on loan interests and aid, additional contribution to provincial budgets, and budget reserve;

Budget expenditures according in sorted fields; total amount and specific amounts in sorted fields for each of inferior agencies and units, capital construction expenditures in their budgets for each of projects and works; expenditures on national target programs;

State budget revenues in administrative divisions of each inferior local governments, expenditures provided for inferior budgets, additional funding for budget balancing and provision of dedicated additional funding to inferior budgets;

Ratio of distribution of revenues between levels of local government budgets to each of budget levels in the budget stability period;

b) Publish data and description of enactment of budget revenue estimates in the administrative divisions, local budget revenue estimates, local budget expenditure estimates.

3. Data and description of budgets in the fields of national defense and security and national reserve shall be consistent with Point a Clause 1 Article 15 of the Law on State budget.

4. Contents of publishing state budget procedures shall be consistent with Point b Clause 2 Article 15 of the Law on State budget.

Article 48. Contents of budgets to be published by budget estimate units, organizations funded by state budget, capital construction programs and projects funded by state budget

1. Regarding budget estimate units:

a) Estimates of budget revenue and expenditure given by competent authorities, enactment of budget estimates and budget statement approved by competent authorities;

b) Estimates of budget revenue and expenditure provided for inferior budget estimate units; publishing of budget statements of inferior budget estimate units that are approved or assessed.

2. Organizations funded by state budget shall publish data of estimates of budget revenue and expenditure given by competent authority, enactment and statement of revenues and expenditures, contribution of organizations and individuals; basis for determining funded subsidy levels and amounts.

3. Publish budget related to capital construction programs/projects funded by state budget as prescribed in the Law on public investment and relevant law provisions.

Article 49. Deadline for publishing budget

1. Every state budget estimate must be published within 05 working days from the day on which it is sent by the government to members of the National Assembly or by the People’s Committee to the People’s Council.

2. Reports on state budget estimates approved by competent authorities, state budget statements approved by competent authorities must be published within 30 days from the day on which they are issued.

3. Quarterly and biannual reports on state budget enactment must be published within 15 days from the ending day of the quarter or half-year period.

4. Annual reports on state budget enactment must be published upon the submission to the National Assembly or People's Council respectively by the Government or the People’s Committee.

5. Publish estimates of budget estimate units and organizations funded by state budget within 15 days, from the date on which the competent authority give such estimates; publish the budget enactment of the year of budget estimate units within 5 working days from the date on which they send reports to their superior budget estimate units; publish budget statement of budget estimate unit within 15 days, from the date on which it is approved or assessed by competent authority.

6. Publish government budget procedures within 5 working days from the date on which the competent authority promulgates relevant regulations.

Article 50. Publish result of processing proposals of State Audit Office

1. Contents to be published:

a) Contents completed according to the proposals of State Audit Office;

b) Contents uncompleted according to the proposals of State Audit Office and explanation thereof.

2. Publish result of processing proposals of State Audit Office within 30 days from the date on which a document is promulgated.

Article 51. Manners, criteria and forms of publishing budget

1. State budget shall be published in one or some of the following manners: announcement at meetings; posting at offices; issued in publications; written notifications to relevant organizations and individuals; posting on websites; announcement through the media. Any organization having a website shall publish the budget on its website.

2. The Ministry of Finance shall provide guidelines for criteria, forms and manners of publishing budget applied to entities subject to budget publishing.

Article 52. Supervision of state budget by the public

1. Vietnamese Fatherland Front shall take charge and cooperate with members in organizing supervision of state budget by the public.

2. Vietnamese Fatherland Front, directly or authorize members to, receive information and requests for supervision; take charge of formulating plan and implementation of the supervision of state budget in accordance with the plan and regulations of law.

3. The supervision contents shall be consistent with Points a, b, and c Clause 1 Article 16 of the Law on State budget.

4. Supervision manners:

a) Study and examine documents of competent authorities in respect of state budget in connection with legitimate rights and interests of the people;

b) Organize supervision delegations;

c) Cooperate with competent authorities in supervision;

dd) Supervise through operation of people's inspection boards established at commune level, investment supervision board of the community.

5. Supervised agencies, units, and organizations and relevant agencies shall:

a) Provide information and documents according to supervision contents to Vietnamese Fatherland Front at various levels;

b) Provide explanation and process requests of the people sent to Vietnamese Fatherland Front at various levels and send reports on issues beyond their competence to competent authorities;

c) Publish result and explanation for requests of the people, proposals of Vietnamese Fatherland Front at various levels in terms of supervisory activities.

Chapter VII

IMPLEMENTATION

Article 53. Transitional clause

1. Budget statements of 2015 and 2016 shall apply regulations on the Law on State budget No. 01/2002/QH11 and the Government's Decree No. 60/2003/ND-CP dated June 6, 2003 on guidelines for the Law on State budget.

2. The budget stability period of 2011 and 2015 shall last until the end of 2016. The following budget stability period shall begin from 2017 to 2020.

3. Any province having mobilized debit balance, until December 31, 2016, exceed the loan balance limit prescribed in the Law on State budget, in the budget estimates of 2017and following years, the source of local budget revenues which may retain according to decentralization, decrease planned expenditures on midterm public investment to increase expenditures on principal payment and ensure that the loan balance does not exceed the loan balance prescribed in the Law on State budget.

Article 54. Effect

1. This Decree comes into force from January 1, 2017 and applies from budget year 2017.

2. The Government's Decree No. 60/2003/NĐ-CP dated June 6, 2003 on guidelines for the Law on State budget shall be annulled.

Article 55. Implementation

1. The Minister of Finance shall provide guidelines for implementation of this Decree.

2. Ministers, Heads of ministerial-level agencies, Governmental agencies, other agencies of central government and the Presidents of the People’s Committees of provinces and central-affiliated cities shall implement this Decree./.