Decision 30/2021/QD-TTg promulgating principles, criteria and norms of allocation of state budget current expenditure estimates in 2022

DECISION

Promulgating principles, criteria and norms of allocation of state budget current expenditure estimates in 2022^[1]

Pursuant to the June 19, 2015 Law on Organization of the Government; and the November 22, 2019 Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration;

Pursuant to the June 25, 2015 Law on the State Budget;

Pursuant to the XIV^th National Assembly’s Resolution No. 88/2019/QH14 of November 18, 2019, approving the general scheme on socio-economic development of ethnic minority and mountainous regions for the 2021-2030 period;

Pursuant to the National Assembly Standing Committee’s Resolution No. 01/2021/UBTVQH15 of September 1, 2021, providing principles, criteria and norms of allocation of state budget current expenditure estimates in 2022;

At the proposal of the Minister of Finance;

The Prime Minister promulgates the Decision on principles, criteria and norms of allocation of state budget current expenditure estimates in 2022.

Article 1. To promulgate together with this Decision principles, criteria and norms of allocation of state budget current expenditure estimates in 2022.

Article 2. Scope of regulation and subjects of application

1. Scope of regulation:

a/ This Decision provides in detail norms of allocation of state budget current expenditure estimates for each criterion, point of time and data-providing agency to serve as a basis for determining state budget current expenditure estimates in 2022 and the years in the new budget stabilization period in accordance with the Law on the State Budget and the National Assembly’s resolutions;

b/ For the years in the new budget stabilization period, the Law on the State Budget, the National Assembly Standing Committee’s Resolution No. 01/2021/UBTVQH15 of September 1, 2021, and regulations applicable to the budget stabilization period referred to in this Decision must be complied with.

2. Subjects of application:

a/ Ministries, ministerial-level agencies, government-attached agencies, other central agencies, provinces and centrally run cities (below referred to as ministries, central agencies and localities);

b/ Agencies, organizations and individuals involved in the formulation, allocation and execution of state budget current expenditure estimates.

Article 3. Principles and criteria of allocation of state budget current expenditure estimates

1. The formulation of a system of norms of allocation of state budget current expenditures must contribute to achieving objectives and fulfilling tasks of socio-economic development plans, and maintaining national defense and security; priority must be given to the allocation of funds for important fields and ethnic minority and mountainous regions with extremely difficult or difficult conditions, border areas and islands.

2. To ensure conformity with the state budget balancing capacity in 2022, the 2022-2024 financial-state budget plan, and the 2021 - 2025 national financial plan. To reserve resources first of all for salary reform under Resolution No. 27-NQ/TW of the Party Central Committee and resolutions of the National Assembly. To gradually improve the efficiency of the state budget, striving to reduce the proportion of current expenditures, contributing to the restructuring of the state budget, rearranging the administrative management apparatus, public non-business units and administrative units at district and commune levels, downsizing state payrolls and carrying out salary and social insurance reforms under guidelines of the Party and the State, and requirements on performance of political tasks by ministries, central agencies and localities.

3. To practice thrift and combat waste; to continue administrative reforms in order to improve the quality of public services and effectively use the state budget; to contribute to renovating financial management for the public non-business sector so as to reduce the level of direct support for public non-business units, increase sources for implementation of policies to help the poor and policy beneficiaries access public non-business services, encourage mobilization of all social resources for socio-economic development.

4. To promote the initiative spirit of units in association with their functions and tasks, state budget expenditure regimes and policies.

5. Criteria of budget allocation must be clear, simple and easy to understand, implement, inspect and supervise, ensuring fairness, publicity and transparency and eventual conformity with international practices.

6. To include as many as possible current expenditures in administrative management expenditure norms of ministries and central agencies to meet the highest thrift requirement; reduce expenses for holding conferences and seminars and sending delegations on working trips abroad; to prioritize the allocation of budget funds to judicial bodies, the State Audit, and the Government Inspectorate.

7. Norms of allocation of current expenditure estimates for provinces and centrally run cities must also comply with the following principles and criteria:

a/ Population is the main criterion applicable to the four regions and combined with additional criteria suitable to the reality and particular characteristics of each locality. The principle of population zoning is specified in Clause 2, Article 4 of this Decision;

b/ The norm of allocation of local budgets shall be formulated for the expenditure items specified in the Law on the State Budget, ensuring the payment of salaries, allowances and compulsory contributions based on the basic salary level of VND 1,490,000/month, and operations of state administrative management agencies, public non-business units and funds for implementation of regimes and policies promulgated by the State by the time the National Assembly Standing Committee promulgates relevant resolutions (excluding additionally required funds for implementation of policies according to multi-dimensional poverty criteria for the 2021-2025 period and funds for implementation of a number of policies to encourage and support fishing and aquaculture and fishing services in offshore maritime zones). From the 2022 budget year, the promulgation and implementation of any new regime that might increase state budget expenditures must comply with Clause 4, Article 9 of the Law on the State Budget. The central budget shall support localities that have used sources of increased revenues, saved expenditures and other local lawful financial sources under regulations but remained unable to have sufficient resources for implementation. If affected by natural disasters, epidemics or serious incidents, localities shall take the initiative in using local budget estimates, including their budget contingency amounts, financial reserve funds and other lawful financial sources under regulations, for remediation; in case the remediation of such disasters, epidemics or incidents requires funds beyond the balancing capacity of local budgets, the central budget will provide support to local budgets;

c/ In case expenditure estimates for domestic capital construction investment (excluding development investment expenditures covered by revenues from land use levy and construction lottery) and local budget current expenditure estimates calculated based on the principles, criteria and norms for 2022 are lower than the 2021 estimates as decided by the National Assembly and assigned by the Prime Minister within the scope specified at Point b, Clause 7 of this Article, localities will receive support to ensure that the 2022 estimates are not lower than the 2021 ones. For support amounts for balancing local budget expenditures, provincial-level People’s Councils may take the initiative in arranging the structure of local budget expenditures in 2022 on the principle of saving to the utmost current expenditures in order to reserve resources for increasing development investment expenditures.

Article 4. Organization of implementation

1. Based on the norms of allocation of state budget current expenditure estimates promulgated together with this Decision, ministers and heads of central agencies shall promulgate norms of allocation of budget current expenditure estimates for subordinate  units to serve as a basis for organization of implementation, ensuring consistency in terms of total level, suitability with actual characteristics and revenue sources of subordinate units, publicity, transparency and compliance with law; and concurrently send them to the Ministry of Finance for summarization and reporting to the Prime Minister.

2. The norms of allocation of local budget current expenditures in 2022 under the National Assembly Standing Committee’s Resolution No. 01/2021/UBTVQH15 of September 1, 2021, and regulations promulgated together with this Decision are used only for determination of the total current expenditures, specifying the fields of education-training and vocational training, science and technology for the National Assembly to decide. Based on their financial and budgetary capacity and characteristics of local conditions, provincial-level People’s Committees shall submit to provincial-level People’s Councils for promulgation principles, criteria and norms of allocation of local budget expenditures as appropriate for each level of local administration and actual state of each expenditure item and compliant with the Law on the State Budget for use as a basis for local budget estimation and allocation in 2022, the first year of the new budget stabilization period; and concurrently send them to the Ministry of Finance for summarization and reporting to the Prime Minister.

3. Based on total local budget current expenditures in 2022 calculated on the basis of allocation norms, localities shall formulate norms of allocation of local budget expenditures, in which the allocation of expenditures to public non-business units must comply with the Government’s Decree No. 60/2021/ND-CP of June 21, 2021, providing the financial autonomy mechanism applicable to public non-business units.

4. In the course of allocation, management and use of state budget funds, ministers, heads of central agencies and local administrations shall thoroughly grasp the guidelines of thrift practice and waste combat, and carry out administrative reform; publicize and ensure transparency of budgets under regulations; clearly define responsibilities of agencies, units and heads in the management and use of the state budget.

Article 5. Effect

This Decision takes effect on the date of its signing.

Article 6. Implementation responsibility

The Finance Minister, ministers, heads of ministerial-level agencies, heads of government-attached agencies, and chairpersons of provincial-level People’s Committees shall implement this Decision.-

For the Prime Minister
Deputy Prime Minister
LE MINH KHAI

* Principles, criteria and norms of allocation of state budget current expenditure estimates in 2022 promulgated together with this Decision are not translated.