Decree No. 60/2003/ND-CP dated June 06, 2003 of the Government detailing and guiding the implementation of the State Budget Law

DECREE

DETAILING AND GUIDING THE IMPLEMENTATION OF THE STATE BUDGET LAW

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to State Budget Law No .01/2002/QH11 of December 16, 2002;

At the proposal of the Finance Minister,

DECREES:

Chapter I

GENERAL PROVISIONS

Article 1.- This Decree details and guides the implementation of the State Budget Law regarding the estimation, implementation, accounting, auditing and settlement of State budget. The management and use of State budget and assets for a number of defense and security domains, and the particular financial- budgetary mechanisms for Hanoi capital and Ho Chi Minh city shall be governed by separate regulations of the Government.

Article 2.- The State budget revenue includes:

1. Taxes paid by organizations and individuals according to law provisions.

2. State budget remittance portions from charges and fees under the provisions of law.

3. Amounts collected from the State’s economic activities under the provisions of law, including:

a) Retrieved amounts of State capital at economic establishments;

b) Retrieved amounts of State loans (both principal and interest);

c) Income from the State capital contributed to economic establishments, including income from after-tax profits of economic organizations to which the State has contributed capital according to the Government’s regulations.

4. Budget remittance portions from non-business activities as provided for by law.

5. Land use levies; yields from public properties and public land.

6. Land rents, water surface rents.

7. Mobilizations from organizations and individuals as provided for by law.

8. Voluntary contributions of organizations and individuals inside and outside the country.

9. Capital mobilized for investment in the construction of infrastructural works as provided for at Clause 3, Article 8 of the State Budget Law.

10. State budget remittance portions of money earned from the sale or lease of State-owned assets as prescribed by law.

11. Non-refundable aids provided by foreign governments, organizations and/or individuals to the Vietnamese government and/or local State organizations as provided for in Article 50 of this Decree.

12. Revenues from the financial reserve funds as provided for in Article 58 of this Decree.

13. Revenues from budget remainder as provided for in Article 69 of this Decree.

14. Other revenues as prescribed by law, including:

a) Heritages enjoyed by the State;

b) Budget remittance portions of charges and fees as provided for by law;

c) State reserve recovery;

d) Price and/or surcharge differences;

e) Supplements from high-level budgets;

f) Budget sources transferred from the preceeding year;

g) Other revenues.

Article 3.- The State budget expenditure includes:

1. Development investment expenditures on:

a) Investment in the construction of socio-economic infrastructures with capital cannot be retrieved;

b) Investment in and support for enterprises, economic organizations and/or financial organizations of the State; contribution of equity capital or joint-venture capital to enterprises in domains requiring the State’s participation as provided for by law;

c) Supplements to the State reserves;

d) Development investment under national target programs, State projects;

e) Other development investment amounts as provided for by law.

2. Regular expenditures on:

a) Educational, training, medical, social, cultural and information, literary, artistic, physical training and sport, scientific and technological non-business activities, as well as other social non-business activities;

b) Economic non-business activities;

c) National defense, security as well as social order and safety;

d) Activities of State agencies;

e) Activities of the Communist Party of Vietnam;

f) Activities of the Vietnam Fatherland Front Committee, Vietnam Labor Confederation, Ho Chi Minh Communist Youth Union, Vietnam War Veterans’ Association, Vietnam Women’s Union, Vietnam Peasants’ Association;

g) Price subsidies under the State’s policies;

h) Regular expenditures under national target programs, State projects;

i) Support for the Social Insurance Fund;

j) Support for the social policy beneficiaries;

k) Support for political, socio-professional organizations, social organizations, socio-professional organizations;

l) Other regular expenditures as provided for by law.

3. Payment of principals and interests of amounts borrowed by the Government.

4. Central budget aid for foreign governments and organizations.

5. Loans provided by the central budget.

6. Payment of principals and interests of amounts mobilized for investment in the construction of infrastructures as provided for in Clause 3, Article 8 of the State Budget Law.

7. Supplements to the Financial Reserve Fund as provided for in Article 58 of this Decree.

8. Supplements from high-level budgets to low-level budgets.

9. Expenditures transferred from the previous year’s budget to the following year’s budget.

Article 4.-

1. State budget deficit means the central budget deficit determined as the negative difference between the central budget total expenditures and the central budget total revenues of the budget year. The local budgets shall be balanced with the total expenditures not exceeding the total revenues as provided for in Clause 3, Article 8 of the State Budget Law.

2. Sources making up for State budget deficits shall include:

a) Domestic borrowings from issuance of Government bonds and from other financial sources;

b) Amounts borrowed by the Government from foreign countries to balance the budget.

Article 5.-

1. The State budget is composed of the central budget and the local budgets. The local budgets include the budgets of administrative units at all levels including the People’s Councils and the People’s Committees according to the provisions of the Law on Organization of the People’s Councils and the People’s Committees and the current regulations, which are:

a) Budgets of the provinces and centrally-run cities (referred collectively to as the provincial budget), consisting of the provincial-level budget and budgets of rural districts, urban districts, provincial capitals and cities;

b) Budgets of rural districts, urban districts, provincial capitals and cities (referred collectively to as the district budget), consisting of the district-level budget and budgets of communes, wards and district townships;

c) Budgets of communes, wards and district townships (referred collectively to as the commune budget).

2. The relationships between budgets of various levels shall comply with the following principles:

a) To divide in percentage (%) the revenue amounts to be divided between different budget levels and make balance supplements from high-level budgets to low-level budgets in order to ensure fairness and balanced development among regions, localities. The supplementary amounts from high-level budgets are the revenues of low-level budgets;

b) The percentage of divided revenue amounts and the balance supplements from high-level budgets to low-level budgets as prescribed at Point a, Clause 2 of this Article, shall be kept stable for between 3 and 5 years (referred collectively to as the budget stability period). The Government shall submit to the National Assembly for decision the budget stability period between the central budget and the local budget. The provincial-level People’s Committees shall submit to the People’s Councils of the same level for decision the budget stability period between different budget levels in the localities;

c) The spending tasks of any budget level shall be ensured by the budget of such level. In case of necessity to promulgate new policies and regimes, thus increasing the budget expenditures after the estimates have already been decided by competent authorities, solutions must be worked out to ensure the financial sources suitable to the balance capability of each budget level;

d) During the budget stability period, the localities may use the sources of annual budget revenue increases (the portions to be enjoyed by the local budgets) for expenditures on tasks of socio-economic development in the localities; after each budget stability period, they must raise the self-balancing capability, develop the local budgets, gradually reduce the supplementary amounts from high-level budgets (for localities receiving supplements from high-level budgets) or raise the regulating percentages of revenue amounts to be remitted to the high-level budgets (for localities making remittances to high-level budgets);

e) Where the superior State management agencies authorize the subordinate State management agencies to perform their spending tasks, they must transfer fundings from the superior budget level to the subordinate budget level for the performance of such tasks;

f) Besides the revenue supplementation and the authorized performance of spending tasks as prescribed at Points a, b and e, Clause 2 of this Article, the budget of one level must not be used to perform the spending tasks of the budget of another level, except for cases prescribed at Point g, Clause 2 of this Article.

g) The People’s Committees at different levels may use budgets of their levels to support units managed by the superior levels and located in the localities in the following cases:

- When natural disasters and other emergency cases occur, which require the localities to quickly mobilize forces to stabilize the socio-economic situation;

- The units managed by the superiors perform their functions in combination with a number of tasks at the requests of the subordinate levels.

Article 6.- The decentralization of State budget management must ensure the principles:

1. Being in compatible with the State’s decentralization of socio-economic, defense and security management and the managerial capability of each level in the localities;

2. The central budget and local budgets are clearly defined with revenue sources and specific spending tasks:

a) The central budget plays the leading role, ensuring the performance of strategic and important tasks of the country such as investment projects on socio-economic infrastructure development affecting the whole countries or many localities, national programs and projects, important social policies regulating the macro-economic activities of the whole countries, ensuring defense, security, external relations and supporting localities which have not yet balanced their budget revenues and expenditures;

b) The local budgets are decentralized with revenue sources to take initiative in ensuring the performance of tasks of socio-economic development, defense, security as well as social order and safety within their respective management scopes.

3. The decentralization of revenue sources and spending tasks between the budgets of the local administration at different levels shall be decided by the provincial-level People’s Councils; the decentralization duration must conform to the budget stability period in localities; the commune level shall be reinforced with revenue sources, means and financial-monetary management officials in order to better and efficiently manage the decentralized financial resources in the localities.

4. At the end of each budget stability period, basing themselves on the possible revenue sources and spending tasks of each level, and according to the competence prescribed in Articles 15, 16 and 25 of the State Budget Law, the National Assembly and the People’s Councils shall adjust the level of balance supplements from the high-level budgets to the low-level budgets; the National Assembly Standing Committee and the provincial-level People’s Councils shall decide on the adjustment of the percentages (%) of revenues to be divided among different budget levels.

Article 7.- The estimates of the central budget and the budgets of the local administration at different levels shall include a reserve of between 2% and 5% of the total expenditure of each budget level for preventing, fighting, and overcoming the consequences of, natural disasters, fires, for important defense and security tasks as well as other urgent tasks arising beyond the estimates in the budget year.

Competence to decide on the use of budget reserves is prescribed as follows:

1. For the central budget reserve, the Finance Minister may decide the spending level of not more than VND one billion for each arising task, quarterly sum them up for report to the Prime Minister; for expenditures of over VND one billion, the Ministry of Planning and Investment shall assume the prime responsibility and consult with the Finance Ministry and submit them to the Prime Minister for decision the expenditures on capital construction investment, supplementation of national reserve, State credit support, contribution of equity capital, joint-venture capital; the Finance Ministry shall assume the prime responsibility and consult with the Ministry of Planning and Investment then submit to the Prime Minister for decision the remaining expenditures.

Regarding the use of central budget reserves for the implementation of new policies and regimes already decided by the Government or the Prime Minister, the Finance Minister shall be assigned to organize the implementation and report to the Government or the Prime Minister on the implementation results.

The Government shall quarterly report to the National Assembly Standing Committee on the use of the central budget reserve and report to the National Assembly at its nearest session.

2. The budget reserves of the local administration of all levels shall be submitted by the local finance bodies to the People’s Committees for decision.

The People’s Committees shall quarterly report to the Standing Boards of the People’s Councils on the use of local budget reserves and report to the People’s Councils at their nearest sessions. For the commune level, the People’s Committees shall quarterly report to the chairmen and vice-chairmen of the People’s Councils on the use of commune budget reserves and report to the People’s Councils at their nearest sessions.

Article 8.-

1. The ministries, the ministerial-level agencies, the agencies attached to the Government, other central agencies and the People’s Committees at all levels shall, within the scope of their tasks and powers, put forth necessary measures to well fulfill the assigned tasks of budget revenues and expenditures; the heads of the budget-using agencies, organizations and units shall have to organize the implementation of measures to combat corruption and wastefulness, to practice economy within the scope of their management, to organize the finance-budget management apparatuses strictly according to regulation, ensuring the criteria on qualifications, capability and quality of cadres in order to strictly and efficiently manage the budgets.

2. Organizations and individuals have the responsibility to well realize the assigned budget revenue and expenditure estimates, to pay fully and on time all tax, charge, fee and other payable amounts into the budget according to law provisions; to manage and use the capital and funding amounts allocated by the State for the right purposes, according to the right regimes, in a thrifty and efficient manner.

3. Besides the budget estimate-assigning agencies, not any organization and individual is allowed to alter the assigned budget tasks.

4. The finance bodies at all levels shall, within the scope of their tasks and powers, have to urge and inspect organizations and individuals, that are obliged to make budget remittances, to remit fully and on time all amounts to be remitted into the State budget; and to allocate expenditures within the estimate limits strictly according to regime, criteria and promptly according to the implementation tempo.

5. Organizations and individuals are strictly forbidden to set at their own will regimes and criteria of State budget revenues and expenditures in contravention of law provisions.

6. The ministries, ministerial-level agencies, agencies attached to the Government, other central agencies, localities and units shall have to organize the implementation of budget expenditure estimates within the assigned limits. The following cases are strictly prohibited:

a) Using budget to directly provide loans, except for cases of sub-lending sources borrowed from the central budget to enterprises according to the Government’s regulations;

b) Borrowing or appropriating capital of organizations and/or individuals in contravention of law provisions;

c) Using budget at variance with the regimes, policies and objectives prescribed by competent authorities.

Article 9.- The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government or other central agencies, the presidents of the People’s Committees of all levels shall have to perform the right tasks and exercise the right powers assigned to them in the finance-budget domains and be answerable for errors and violations committed by organizations, units and/or individuals under their respective management in performing the tasks of management, use and settlement of the finance, budget and assets of the State.

Article 10.- Competence to decide on allocation norms and regimes, criteria and norms of budget expenditures is prescribed as follows:

1. The Prime Minister shall decide on budget allocation norms for use as basis for estimation and allocation of budgets to the ministries, the ministerial-level agencies, the agencies attached to the Government, other central agencies and localities; before promulgating them, the Prime Minister shall report them to the National Assembly Standing Committee for its written comments.

2. Basing themselves on the budget allocation norms promulgated by the Prime Minister, the financial and budgetary capability as well as the practical situations of the localities, the provincial-level People’s Councils shall decide on the budget allocation norms for use as basis for budget estimation and allocation in the localities.

3. Basing itself on the undertakings and policies of the Party, the State and the National Assembly, the Government shall decide on important budget expenditure regimes with a large sphere of impact and related to the performance of the socio-economic tasks of the whole country such as wage regime, social allowance, regime for people with meritorious services to the revolution, the budget expenditure proportion for the performance of educational, training, scientific and technological tasks in the total State budget expenditure; before promulgating them, the Government shall report them to the National Assembly Standing Committee for its written comments.

4. The Government shall assign the Prime Minister to decide on the expenditure regimes, criteria and norms for uniform application throughout the country. For a number of expenditure regimes, criteria and norms, the Prime Minister shall prescribe the frames thereof and assign them to the provincial-level People’s Councils for specific decisions in order to suit the characteristics of the localities.

5. The Government shall assign the Finance Minister to decide on budget expenditure regimes, criteria and norms for branches and domains after reaching agreement with the ministries managing such branches or domains; in case of disagreement, the Finance Ministry shall submit them to the Prime Minister for consideration and comments before making decisions thereon.

6. In addition to the expenditure regimes, criteria and norms promulgated by the Government, the Prime Minister or the Finance Minister, for a number of spending tasks of particularly local nature for the performance of socio-economic development tasks, the maintenance of social security and order in localities and on the basis of supply from the local budget sources, the provincial-level People’s Councils may decide on the budget expenditure regimes suitable to the practical characteristics of the localities. Particularly for spending regimes of salary, wage or allowance nature, before deciding thereon, they must obtain the opinions of the branch- or domain-managing ministries.

The provincial-level People’s Committees shall report to the Finance Ministry on the promulgation of regimes of local budget expenditures for synthesis and supervision of the implementation thereof.

7. Basing themselves on the work requirements, contents and efficiency, the heads of the non-business units shall, within the limits of financial sources which can be used, may decide on the levels of managerial expenditures and non-business expenditures suitable to the practical requirements and financial capabilities of their units under the Government’s regulations on financial regimes for non-business units with revenues after obtaining the opinions of the superior State management agencies; these regimes must be sent to the finance agencies of the same level and the State treasuries where transactions are carried out for coordination in and supervision of the implementation. Where such spending levels are incompatible with the Government’s regulations, the finance agencies shall give its opinions for proper adjustment.

Article 11.-

1. Organizations and individuals, that are tasked to collect, pay and use the State budget, must organize the reporting thereon and the book-keeping accounting and settlement thereof strictly according to the State’s accounting regimes; fully, promptly and honestly settle the arising revenues and expenditures; and use revenue and expenditure invoices and vouchers according to the regulations of the Finance Minister.

2. Administrations at all levels, organizations and individuals are strictly forbidden to retain State budget revenues or use the allocated State budget sources to set up non-budget funds in contravention of law provisions.

Article 12.-

1. The administrations at all levels, the administrative agencies, non-business units, socio-political organizations, political, socio-professional organizations, social organizations and socio-professional organizations, which enjoy the State budget support, must publicize the budget estimates assigned by competent authorities, and the budget settlements approved by competent authorities; the budget auditing results shall be publicized by the audit agencies under the provisions of law.

2. The collecting agencies, the finance agencies and State treasuries must post up the process and procedures for collection, remittance, exemption and reduction of State budget revenues, allocate and settle budget at transaction places.

3. To assign the Prime Minister to specify the regime of publicity in the budget domain.

Article 13.- The Ministry of Finance, the Ministry of Planning and Investment, the other ministries, the ministerial-level agencies, other central agencies, the People’s Committees of the provinces and centrally-run cities as well as other agencies in localities shall have to report on, and supply documents related to, budget revenues and expenditures to the Economic and Budget Committee, the Nationalities Council and other Committees of the National Assembly, the People’s Councils and their Boards strictly according to the Regulation on estimation, verification and submission to the National Assembly for decision of the State budget estimates, the plans on allocation of the central budget, and for approval of the general settlement of the State budget, promulgated by the National Assembly Standing Committee, and the Regulation on consideration and decision on local budget estimation and allocation, verification and settlement, promulgated by the Government.

Article 14.-

1. The State budget revenues and expenditures are accounted in Vietnam dong.

2. The State budget revenues collected at foreign-based Vietnamese representations must be remitted into the budget funds according to the regulations of the Finance Ministry.

3. Where the State budget revenues are collected in kind or workdays, they must be converted into money at the local market prices for reflection thereof into the State budget.

4. Where State budget expenditures are required to be made in foreign currency(ies), the estimates and allocation thereof must be made in Vietnam dong for units to buy foreign currency(ies) from banks, except for a number of cases where expenditures can be made in foreign currency(ies) under the regulations of the Prime Minister.

Article 15.- To assign the Finance Minister to specify the management of commune-level budget revenues and expenditures, based on the provisions of the State Budget Law and the provisions of this Decree; to assign the local People’s Committees to arrange enough trained officials to manage the commune budget; and at the same time to regularly organize training and fostering of commune officials so that they are fully capable of managing the budget according to the provisions of the State Budget Law.

Article 16.-

1. The State budget shall ensure enough funding for the operations of the Communist Party of Vietnam and the socio-political organizations on the principle that the State budget shall cover the differences between the expenditure estimates approved according to the regimes, criteria and norms set by competent authorities and the revenue sources of the above-mentioned organizations according to the prescribed regimes (Youth Union fee, Trade Union fee, association fee; other revenue sources as provided for by law).

2. Organizations which are provided with enough funding by the State budget for their operations must make and implement the estimates and the settlement according to the prescribed regimes.

Article 17.- The political, socio-professional organizations, social organizations and socio-professional organizations shall ensure by themselves fundings for their operations. Where the above-mentioned organizations have activities associated with the tasks of the State, they shall be provided with support from the State budget; to assign the Prime Minister to prescribe in detail the State budget support for the above organizations.

Article 18.-

1. The funding of operations of the Communist Party of Vietnam and each socio-political organization prescribed in Clause 1, Article 16 of this Decree shall be incorporated into the estimates of various budget levels and submitted to the National Assembly or the People’s Councils for decision.

2. The total support funding for political, socio-professional organizations, social organizations and socio-professional organizations shall be synthesized in the estimates of various budget levels. After the budget estimates are decided by the National Assembly or the People’s Councils, the Prime Minister and the People’s Committees shall assign specific support level for each organization.

Article 19.- All assets with investment from the budget source, people’s contribution source, land and other assets under the State’s ownership must be strictly managed and used for the right purposes as provided for by law.

Chapter II

BUDGET MANAGEMENT DECENTRALIZATION AND THE RELATIONSHIP BETWEEN DIFFERENT BUDGET LEVELS

Article 20.- The central budget revenues include:

1. Revenues enjoyed 100% by the central budget;

a) Value added tax on import goods;

b) Export tax, import tax;

c) Special consumption tax on import goods;

d) Enterprise income tax of entire branch-accounting units (the Finance Minister shall announce in detail the entire branch-accounting units);

e) Tax amounts and other revenues from oil and gas exploring and exploiting activities, land surface rent, water surface rent;

f) Recovered central budget capital at economic establishments, recovered loans of the central budget (both principal and interest), revenue from the central financial reserve fund, revenues from contributed capital of the central budget;

g) Non-refundable aid provided to the Vietnamese Government by foreign Governments, organizations and/or individuals;

h) Amounts payable to the State budget, as prescribed by law, from charges and fees collected by central agencies and units, excluding petroleum charges and registration fees;

i) Amounts payable to the budget, as prescribed by law, from non-business revenues of units directly managed by central agencies;

j) Positive difference between revenue and expenditure of Vietnam State Bank;

k) Revenue from central budget remainder;

l) Revenue from transfer of central budget sources of the preceding year;

m) Fines, confiscation and other revenues from the central budget as provided for by law.

2. Revenues divided in percentages between the central budget and the local budgets:

a) The value added tax, excluding value added tax on import goods prescribed at Point a, Clause 1 of this Article and value added tax collected from construction lottery activities;

b) The enterprise income tax, excluding enterprise income tax of the entire branch- accounting units prescribed at Point d, Clause 1 of this Article and the enterprise income tax collected from construction lottery activities;

c) Income tax on high-income earners, not to mention taxes prescribed at Point e, Clause 1 of this Article;

d) Special consumption tax collected from domestic goods and services, excluding special consumption tax collected from construction lottery activities;

e) Petrol and oil charges.

Article 21.- The central budget expenditures include:

1. Development investment expenditures on:

a) Investment in the construction of centrally- managed socio-economic infrastructures with capital being unrecoverable;

b) Investment and support for enterprises, economic organizations, contribution of equity capital, joint-venture capital to enterprises in domains necessarily requiring the State’s participation as provided for by law;

c) Expenditures on financial support, capital supplement, export support and reward for enterprises and economic organizations according to law provisions;

d) Development investment portions in national target programs and State projects, which are implemented by central agencies;

e) Expenditures on support for the centrally-managed finance organizations of the State;

f) Expenditures on supplement to the State reserve;

g) Other development investment expenditures as provided for by law.

2. Regular expenditures on:

a) Educational, training, vocational training, medical, social, cultural-information, literary and artistic, physical training and sport, scientific and technological, environmental and other non-business activities managed by central agencies:

- General education boarding schools for ethnic minority pupils;

- Post-graduate, university, collegial, intermediate vocational and vocational training as well as other forms of training and fostering;

- Disease prevention and combat and other medical non-business activities;

- Sanatoriums for war-invalids, people with meritorious services to the revolution, social relief establishments, social-vice prevention and combat as well as other social activities;

- Conservation, museums, libraries, renovation of classified historical relics, literary and artistic creation activities as well as other cultural activities;

- Radio, television and other information activities;

- Fostering and training of coaches and athletes for national teams; national and international tournaments; management of physical training and sport competition facilities as well as other physical training and sport activities;

- Scientific research and technological development;

- Other non-business activities.

b) Economic non-business activities managed by central agencies:

- Communications non-business activities: maintenance and repair of bridges, roads and other traffic works, placing road signs and adopting measures to ensure traffic safety on various routes;

- Agricultural, irrigation, fishery and forestry non-business activities: maintenance and repair of dyke systems, irrigation works, agricultural, fishery or forestry farms and stations; forestry, agricultural and fishery promotion work; zoning off for aquaculture, forest protection, forest fire prevention and fighting, aquatic resource protection;

- Basic surveys;

- Administrative boundary delimitation;

- Map making;

- Border delimitation and border-marker placing;

- Cadastral measurement and mapping, cadastral dossier archival;

- Sedentary farming and settlement, new economic zones;

- Environmental non-business activities;

- Other economic non-business activities.

c) Defense, security, social security and order tasks financed by the central budget under the regulations of the Government;

d) Activities of the National Assembly, the State President, the ministries, the ministerial-level agencies, the Government-attached agencies, the systems of People’s Courts and People’s Procuracies;

e) Activities of the central agency of the Communist Party of Vietnam;

f) Activities of the central bodies of Vietnam Fatherland Front, Vietnam Labor Confederation, Vietnam War Veterans’ Association, Vietnam Women’s Union, Vietnam Peasants’ Association, Ho Chi Minh Communist Youth Union;

g) Price subsidies under the State’s policies;

h) Regular expenditure portions in the national programs and State projects, which are implemented by central agencies;

i) Implementation of regimes towards persons who retire or leave their jobs due to poor health conditions as prescribed in the Labor Code for subjects covered by the central budget; support for the Social Insurance Fund according to the Government’s regulations;

j) Realization of policies toward war-invalids, diseased army men, war martyrs and their relatives, families with meritorious services to the revolution and other social policy beneficiaries;

k) Support for centrally-managed political, socio-professional organizations, social organizations as provided for in Article 17 of this Decree;

l) Other regular expenditures as prescribed by law.

3. Payment of principals and interests for amounts borrowed by the Government.

4. Aid provided for foreign governments and/or organizations.

5. Loans provided under the provisions of law.

6. Supplements to the Central Financial Reserve Fund.

7. Supplements to local budgets.

8. Expenditures transferred from the previous year’s central budget source to the following year’s central budget source.

Article 22.- The local budget revenues include:

1. Revenues enjoyed 100% by the local budgets:

a) House and land tax;

b) Natural resource tax, excluding natural resource tax collected from oil and gas activities;

c) License tax;

d) Land use right transfer tax;

e) Agricultural land use tax;

f) Land use levies;

g) Land rent, water surface rent excluding water surface rent collected from oil and gas activities;

h) Land-related damage compensation;

i) Money earned from lease and sale of State-owned houses;

j) Registration fee;

k) Revenue from construction lottery activities;

l) Revenues from contributed capital of local budgets, retrieved money of the local budget capital at economic establishments, revenues from the provincial-level Financial Reserve Fund under the provisions in Article 58 of this Decree;

m) Non-refundable aid provided by foreign organizations or individuals directly for localities under the provisions of law;

n) Amounts payable to the budget, as provided for by law, from charges and fees collected by local agencies or units, excluding petrol and oil charges and registration fees;

o) Revenues from public land funds and yields from other public properties;

p) Amounts payable to the budget under the provisions of law from non-business revenues of units under the local management;

q) Mobilizations from organizations, individuals under the provisions of law;

r) Voluntary contributions of organizations and individuals inside and outside the country;

s) Revenues from mobilization for investment in the construction of infrastructure works as provided for at Clause 3, Article 8 of the State Budget Law;

t) Revenue from local budget remainder;

u) Fines, confiscations and other revenues of the local budgets under the provisions of law;

v) Supplements from high-level budgets;

x) Revenues transferred from the previous year’s local budget source to the following year’s local budget source.

2. Revenues divided in percentages between the central budget and local budgets according to the provisions in Clause 2, Article 20 of this Decree.

Article 23.- The provincial-level People’s Councils shall decide the decentralization of revenue sources for various budget levels of the local administrations according to the principle prescribed in Article 6 of this Decree, and at the same time to ensure the following requirements:

1. Combining the tasks and management capability of each level, restricting the supplements from high-level budgets to low-level budgets; encouraging all levels to enhance the management of revenues, to combat revenue losses; restricting the divisions of small revenue sources to many levels.

2. The commune/district town budgets are entitled to enjoy at least 70% of the following revenues:

a) Land use right transfer tax;

b) House and land tax;

c) License tax collected from business individuals and households;

d) Agricultural land use tax collected from family households;

e) House and land registration fees.

3. The provincial- capital/city budgets are entitled to enjoy at least 50% of the registration fees, excluding house and land registration fees.

Article 24.- The local budgets’ spending tasks include:

1. Development investment expenditures on:

a) Investment in the construction of socio-economic infrastructures with locally-managed capital being unable to be retrieved;

b) Investment in, and support for, enterprises, economic organizations and financial organizations of the State under the provisions of law;

c) Development investment portions in the national programs implemented by local agencies;

d) Other development investment expenditures as prescribed by law.

2. Regular expenditures on:

a) Educational, training, vocational training, medical, social, cultural-information-literary-artistic, physical training and sport, scientific and technological, environmental and other non-business activities managed by localities:

- General education, complementary education, creches, kindergartens, boarding general education schools for ethnic minority pupils and other educational activities;

- University, collegial, intermediate-education, vocational training, short-term training and other forms of training and fostering;

- Disease prevention and treatment and other medical activities;

- Social charity camps, social relief, hunger reduction, social vice prevention and combat and other social activities;

- Conservation, museums, libraries, art performances and other cultural activities;

- Radio, television and other information activities;

- Fostering and training of coaches and athletes for provincial teams; provincial tourneys; managing establishments for physical training and sport competitions as well as other physical training and sport activities;

- Scientific research, technological development;

- Other non-business activities managed by localities.

b) Economic non-business activities managed by localities:

- Non-business communications activities: consolidation, maintenance and repair of bridges, roads and other communications works; placing road signs and applying measures to ensure traffic safety on various routes;

- Agricultural, irrigation, fishery, salt-making and forestry non-business activities: consolidation and maintenance of dyke systems, irrigation works, agricultural, forestry and fishery farms and stations; forestry, agricultural and fishery promotion work; zoning off for aquaculture, forest protection, forest fire prevention and fighting, aquatic resource protection;

- Municipal administration non-business activities: consolidation and maintenance of public-lighting systems, street sidewalks, water supply and drainage systems, intra-municipal traffic, parks and other municipal administration non-business activities;

- Making cadastral measurement and maps and archiving cadastral dossiers, and other cadastral non-business activities;

- Basic surveys;

- Environment-related non-business activities;

- Other economic non-business activities.

c) Defense, security, social order and safety tasks financed by the local budgets under the Government’s regulations;

d) Activities of State bodies, agencies of the Communist Party of Vietnam in localities;

e) Activities of the local bodies of the Vietnam Fatherland Front Committee, Vietnam War Veterans’ Association, Vietnam Women’s Union, Vietnam Peasants’ Association, Ho Chi Minh Communist Youth Union;

f) Support for political, socio- professional organizations, social organizations and/or socio-professional organizations in localities as provided for by law;

g) Implementation of social policies towards subjects under the local management;

h) The regular expenditure portions in the national programs implemented by local agencies;

i) Price subsidies according to the State’s policies;

j) Other regular expenditures as prescribed by law.

3. Expenditures on payment of principals and interests for amounts mobilized for investment as provided for in Clause 3, Article 8 of the State Budget Law.

4. Expenditures on supplements to the provincial-level financial reserve funds.

5. Expenditures on supplements to low-level budgets.

6. Expenditures transferred from the preceding year’s local budget sources to the current year’s local budget sources.

7. Tasks prescribed at Point b of Clause 1, and Clauses 3 and 4 of this Article shall apply only to the provincial-level budget, not to the district-level and commune-level budgets.

Article 25.- The provincial-level People’s Councils shall decide on decentralization of spending tasks to various budget levels of the local administrations according to the principles prescribed in Article 6 of this Decree, and at the same time must ensure the following requirements:

1. Being compatible with the socio-economic, defense and security task decentralization for each domain and with the economic, geographical and population characteristics of each regions as well as the qualifications and capability of the contingent of cadres, ensuring the efficiency;

2. Having to decentralize task of expenditures on investment in construction of public general education schools at all levels, public lighting, water supply and drainage systems, urban traffic, urban sanitation and other public-welfare facilities for provincial capitals and cities;

Article 26.- The mobilization of capital for investment in the construction of infrastructural works covered by the provincial-level budget as prescribed in Clause 3, Article 8 of the State Budget Law is carried out as follows:

1. Upon the appearance of demand for mobilization of investment capital, the provincial-level People’s Committees shall draw up plans to be submitted to the People’s Councils of the same level for decision, with their contents clearly stating:

a) The five-year investment plans under the provincial-level budget, already approved by the provincial-level People’s Councils;

b) The investment projects proposed for capital mobilization, on the list of investment in the five-year investment plans already decided by the People’s Councils;

c) Investment decisions of the competent authorities regarding the investment projects proposed for capital mobilization;

d) Socio-economic efficiency of the projects;

e) The total investment capital to be mobilized and projected debt-repayment sources of the provincial-level budget;

f) Forms of capital mobilization; mobilization amount; mobilization interest rates and plans for debt repayment upon their mature;

g) The mobilized capital debit balance at the time of submitting the plans and the debit balance if the plans are approved must not exceed 30% of the annual domestic capital construction funding of the provincial-level budget, excluding investment capital supplemented according to objectives of non-regular stability nature from the central budget to the provincial-level budget;

h) The provincial-level budget balance in the reporting year and debt repayment capability of the budget in the subsequent years;

i) Other documents clearly explaining the mobilization plans.

2. After the capital mobilization plans are decided by the People’s Councils, the provincial-level People’s Committees shall report thereon to the Ministry of Planning and Investment and the Ministry of Finance for monitoring and supervising the implementation and making sum-up report to the Prime Minister.

3. Mobilization of capital of localities shall be carried out in forms of investment bond issuance under the Government’s regulations on issuance of Government bonds and mobilization from other lawful financial sources under the provisions of law.

4. The mobilized capital sources shall be accounted as revenues of the provincial-level budget in order to take initiative in paying up all debts upon their mature.

Article 27.-

1. The provincial-level People’s Councils shall decide on a number of regimes on charge collection and people’s contributions according to the provisions of law.

2. The provincial-level People’s Committees shall draw up plans for mobilization and use of revenue sources from people’s contributions according to law provisions, and report them to the People’s Councils for consideration and decision.

3. When there is a demand to mobilize the voluntary contributions of organizations and individuals for investment in the construction of infrastructural works of communes, district towns, provincial capitals and cities, the People’s Committees shall draw up plans and report them to the People’s Councils of the same level for decision.

4. Revenues from mobilized voluntary contributions shall be accounted as local budget revenues, which must be publicly managed, inspected, controlled and used for the right purposes, in accordance with the grassroots democracy Regulation and the guidance of the Finance Ministry.

Article 28.-

1. Basing itself on the National Assembly’s resolution on State budget estimates in the first year of the budget stability period and according to its competence prescribed in Article 16 of the State Budget Law, the National Assembly Standing Committee shall decide on specific percentages of revenues to be divided between the central budget and the budget of each province or centrally-run city.

2. Basing themselves on the division percentages of revenues decided by the National Assembly Standing Committee for each province and centrally-run city and the revenue sources divided among various budget levels of the local administrations, the provincial-level People’s Councils shall decide on the percentages of revenues to be divided between the provincial-level budget and the district-level budgets and between the district-level budgets and the commune-level budgets, ensuring the principles:

a) For revenues to be divided between the central budget and the local budgets, when sub-dividing them to the budgets of various local administration levels, the division percentage of revenues must not exceed the percentage decided by the National Assembly Standing Committee for each province or centrally-run city.

b) Ensuring the minimum division percentages for a number of revenues of the budgets of the communes, district towns, provincial capitals and cities according to the provisions in Clauses 2 and 3 of Article 23 of this Decree.

3. The revenue division percentages shall apply to all revenues to be divided between the central budget and the local budgets. The revenues to be divided between budgets of various local administration levels shall be decided in detail by the provincial-level People’s Councils.

4. The division percentages of the to be- divided revenues and the budget balance supplement amounts are determined according to the following principles:

a) The division percentages of the to be- divided revenues and the budget balance supplement amounts are determined on the basis of calculating the revenue sources and spending tasks of each budget level according to the criteria on population, natural conditions and socio-economic conditions of each region, paying attention to the deep-lying, remote areas, revolutionary bases, areas inhabited by ethnic minority people and other difficulty-hit regions;

b) The revenue division percentage between the central budget and the local budgets is determined with a view to ensuring that the local budget revenue sources are proportionate to the expenditure demands according to the assigned tasks. For provinces and centrally-run cities where 100% of the revenues divided between the central budget and the local budgets are left to the localities but their tasked expenditures still remain larger than the budget revenues enjoyed by the localities, the central budget shall provide balance supplements to the local budgets corresponding to the differences between their revenue sources and expenditure tasks.

5. Depending on the practical conditions in localities, the provincial-level People’s Councils may decentralize the regulatory revenue sources while also making balance supplements to rural districts, urban districts, provincial capitals and cities.

Article 29.-

1. The Government shall submit to the National Assembly for decision the supplementary levels from the central budget to every provincial and municipal budget. The People’s Committees shall submit to the People’s Councils for decision the supplementary levels from the budget of their level to the budgets of the immediate lower-level.

2. The supplements from high-level budgets to low-level budgets shall include:

a) The budget revenue-expenditure balance supplements aim to ensure that the low-level administrations balance their budget sources for the performance of assigned socio-economic, defense and security tasks;

b) The targeted supplements aims to support the low-level budgets in the performance of the following tasks:

- Support for the implementation of new policies and regimes promulgated by the superiors and not yet arranged in the budget estimates of the first year of the budget stability period, the specific support levels shall be determined on the basis of the balancing capability of the relevant budget levels;

- Support for the implementation of national programs, projects, which are assigned to local agencies for implementation; the specific support levels shall comply with the expenditure estimates assigned by the competent authorities;

- Support for the realization of objectives, works and projects of great significance for the socio-economic development requirements of the localities, which are included in the plannings and already approved by competent authorities strictly according to law provisions on investment and construction management, for which the low-level budgets have already arranged expenditures but the sources therefor are not adequate or the resources are needed to be concentrated for quick implementation thereof within a given period of time; and the support levels under planning approved by the competent authorities;

- Partial support for handling of unexpected difficulties: overcoming natural disasters, fires, accidents on a large scale with serious extent, and the demand cannot be satisfied after the low-level budgets have used the reserves and part of the local financial reserve funds;

- Support for the performance of a number of other necessary and urgent tasks; the supplementary levels shall be decided by competent authorities.

3. The targeted supplementary funding must be used for the prescribed targets.

Chapter III

STATE BUDGET ESTIMATION

Article 30.- Bases for estimation of annual State budgets:

1. The socio-economic development as well as defense and security maintenance tasks.

2. The specific tasks of the ministries, ministerial-level agencies, Government-attached agencies, other central and local agencies.

3. The decentralization of State budget revenue sources and expenditure tasks (for the estimate of the first year of the budget stability period); the revenue division percentages and the balance supplements from the high-level budgets to the low-level budgets as prescribed (for the estimate of the subsequent year of the budget stability period).

4. The budget revenue policies and regimes; budget allocation norms, regimes and criteria, budget expenditure norms.

5. The Prime Minister’s directives on elaboration of socio-economic development plans and the following year’s budget estimate; the Finance Ministry’s guiding circulars on budget estimation; the Planning and Investment Ministry’s guiding circulars on elaboration of socio-economic development plans, the plans on development investment capital belonging to the State budget and the guiding documents of the provincial-level People’s Committees.

6. The examination figures on State budget revenue and expenditure estimates notified by the Finance Ministry and the examination figures on development investment expenditures notified by the Ministry of Planning and Investment to the ministries, ministerial-level agencies, Government-attached agencies, other central agencies and the provincial/municipal People’s Committees, the superior People’s Committees shall notify the examination figures to their attached units and subordinate People’s Committees.

7. The situation of implementation of the previous years’ budgets.

Article 31.- Requirements on estimation of annual budgets:

1. The State budget estimates and the budget estimates of the administrations at all levels must be synthesized according to each revenue and expenditure domain and the structure between regular expenditure, development investment expenditure and debt repayment expenditure; when estimating the State budget, it must be ensured that the total tax, charge and fee collection must be larger than the regular expenditure.

2. The budget estimates of the estimating units at all levels must be elaborated strictly according to the contents, forms, time limits and must fully reflect all revenue and expenditure items according to the State Budget Index and the Finance Ministry’s guidance, in which:

a) The budget estimates of estimating units must be based on the economic growth rates, relevant indexes and law provisions on budget revenues;

b) The estimation of development investment expenditures must be based on the investment projects eligible to be provided with capital according to the provisions of the Regulation on management of construction investment capital and compatible with the five-year fiscal plan, the annual budget capability; at the same time priority must be given to adequate capital allocation according to implementation tempo of programs and projects already decided by competent authorities and left unfinished;

c) The regular expenditure estimation must comply with the policies, regimes, criteria and norms prescribed by competent State bodies.

The estimation of budgets of administrative agencies which follow the regime of package payrolls and administrative management funding and non-business units with revenues shall comply with separate regulations of the Government;

d) The estimates of budgets of all levels must include amounts for payment of due debts (including both principals and interests) strictly under the debt repayment obligations;

e) The estimation of borrowings to make up for central budget deficits must be based on the budget balance, capability of each borrowing source, debt repayment capability and the controlled budget deficit rates under the National Assembly’s resolutions.

3. Budget estimates must be enclosed with reports explaining clearly the calculation bases and grounds.

Article 32.- Guiding the budget estimation and notifying the annual examination figures:

1. Before May 31 every year, the Prime Minister shall issue a directive on elaboration of socio-economic development plan and budget estimates of the following year.

2. Basing itself on the Prime Minister’s directive, the Finance Ministry shall issue before June 10 a circular guiding the requirements, contents and time limits of State budget estimation and notifying the examination figures on budget estimates with the total amounts and each domain of budget revenues and expenditures for the ministries, ministerial-level agencies, Government-attached agencies and other central agencies, the total revenue and expenditure amounts and a number of important expenditure domains for the provinces and centrally-run cities; the Ministry of Planning and Investment shall issue a circular guiding the requirements, contents and time limits for elaboration of socio-economic development plans and development investment plans and coordinate with the Finance Ministry in notifying the examination figures on development investment capital belonging to the State budget and the investment credit capital.

3. Basing themselves on the Prime Minister’s directive, the guiding circulars and examination figures on budget estimates of the Ministry of Finance and the Ministry of Planning and Investment as well as on the specific requirements and tasks of agencies and localities, the ministries, the ministerial-level agencies, the agencies attached to the Government and other central agencies shall notify the examination figures on State budget estimates to their attached units; the provincial-level People’s Committees shall guide and notify the examination figures on State budget estimates to their attached units and the district-level People’s Committees; the district-level People’s Committees shall notify the examination figures on budget estimates to their attached units and the commune-level People’s Committees.

Article 33.- Enterprises shall base themselves on their production and business plans, tax laws and ordinances as well as State budget collection regimes to estimate and register the following year’s tax amounts and budget-payable amounts with the tax offices and the agencies assigned by the State to collect budget revenues.

Article 34.- Elaborating estimates of the estimating units and organizations enjoying budget support

1. Budget-using units shall estimate budget revenues and expenditures within the scope of their assigned tasks and send them to their immediate superior managing agencies. The immediate superior managing agencies (other than the level-I stimating units) shall consider and sum up the estimates of their subordinate units and send them to level-I estimating units.

2. Organizations enjoying State budget supports shall estimate budget revenues and expenditures within the scope of their assigned tasks and send them to the finance bodies and the planning and investment agencies of the same level.

3. The central and local State agencies (level I- estimating units) shall estimate budget revenues and expenditures within the scope of their direct management, consider the estimates made by their attached units; synthesize and estimate budget revenues and expenditures within the scope of their management and send them to the finance bodies and the planning and investment agencies of the same level. The central State agencies shall send their reports before July 20 of the preceding year. The time of sending reports of local State agencies shall be prescribed by the provincial-level People’s Committees.

The budget revenue and expenditure estimates must be enclosed with the detailed explanation of the bases for calculating each revenue or expenditure item.

Article 35.- Central and local branch- or domain-managing agencies shall coordinate with the finance bodies and the planning and investment agencies of the same levels in estimating budget revenues and expenditures according to branches or domains under the charge of their budget levels. Central or local agencies performing the State management over education and training or science and technology shall coordinate with the finance bodies and the planning and investment agencies of the same level in estimating budget revenues and expenditures according to the domains under their management nationwide or in each locality. The central State agencies shall send reports to the Finance Ministry and the Ministry of Planning and Investment before July 20 of the preceding year.

Article 36.-

1. The provincial/municipal Customs Departments shall estimate revenues from export tax, import tax, special consumption tax on import goods, value added tax on import goods and other receipts related to export and/or import activities within the scope of their management and according to provincial territory and send them to the General Department of Customs and the provincial-level People’s Committees, concurrently to the provincial/municipal Finance-Pricing Services, Planning and Investment Services.

2. The provincial/municipal Tax Departments shall estimate the State budget revenues in the localities under their respective management, the value added tax amounts to be reimbursed according to regime in the localities under their management and send them to the General Department of Tax, the provincial-level People’s Committees, the provincial/municipal Finance-Pricing Services and Planning and Investment Services.

The provincial/municipal Tax Departments shall guide their attached tax units to estimate State budget revenues in the localities and send them to the People’s Committees, the finance offices and the planning and investment agencies, ensuring the requirements, contents and time of local budget estimation.

Article 37.- Local budget estimation:

1. The provincial/municipal Finance-Pricing Services shall assume the prime responsibility and coordinate with the Planning and Investment Services in considering the budget estimates of the units under the provinces, the revenue estimates drawn up by tax and customs offices (if any), the budget revenue and expenditure estimates of districts; estimate the State budget revenues in the localities, the provincial budget revenue and expenditure estimates (including the budget estimates of the districts and the provincial budget estimates), the expenditure estimates for national target programs and estimate the authorized funding amounts and report them to the provincial-level People’s Committees for submission to the Standing Boards of the People’s Councils for consideration before July 20 of the preceding year.

2. After obtaining the opinions of the Standing Boards of the provincial-level People’s Councils, the provincial-level People’s Committees shall send reports on their local budget estimates to the Finance Ministry, the Planning and Investment Ministry and the national target program- managing agencies (the expenditure estimates for national target programs) on July 25 of the preceding year at the latest.

The provincial-level People’s Committees shall guide in detail the budget estimation in localities in conformity with the requirements, contents and time of estimating the provincial/municipal budgets.

Article 38.- Estimation of the State budget and the central budget:

The Finance Ministry shall assume the prime responsibility and coordinate with the Planning and Investment Ministry as well as the concerned ministries and agencies in synthesizing and estimating the State budget revenues and expenditures, drawing up central budget allocation plans for submission to the Government on the basis of the budget revenue and expenditure estimates reported by the ministries, the ministerial-level agencies, the Government-attached agencies and other central as well as provincial or municipal agencies; estimate the State budget expenditure estimates for various domains (for the education- training and science and technology domains), national target program expenditures reported by the national target program- managing agencies; the debt repayment demands and borrowing capability. Under the Government’s assignment, the Finance Ministry, authorized by the Prime Minister, shall report and explain to the National Assembly and the National Assembly’s agencies as provided for in the Regulation on elaboration, verification and submission to the National Assembly for decision of the State budget estimates, the central budget allocation plans, and for approval of the State budget settlement, which was promulgated by the National Assembly Standing Committee.

Article 39.- Tasks and powers of the People’s Committees of all levels and the State agencies in the process of elaborating, synthesizing and allocating budget estimates:

1. The People’s Committees:

a) To guide, organize and direct their attached units, subordinate administration to estimate budget revenues and expenditures within the scope of their management; coordinate with and direct the tax and customs (if any) offices in the localities in estimating the State budget revenues, estimating the value added tax amounts to be reimbursed according to regime;

b) To estimate the State budget revenues in the localities, the local budget revenue and expenditure estimates; report them to the Standing Boards of the People’s Councils or the chairmen, vice-chairmen of the People’s Councils (for the commune level) for consideration before reporting thereon to the superior State administrative bodies;

c) To base themselves on budget revenue and expenditure tasks assigned by the superiors to submit to the People’s Councils of the same level for decision the local budget estimates and plans on allocation of the budgets of their levels, report to the immediate superior State administrative agencies, finance bodies and planning and investment agencies on the local budget estimates and the results of allocation of the budgets of their levels, already decided by the People’s Councils of the same level;

d) To base themselves on the resolutions of the People’s Councils of the same level to assign budget revenue and expenditure tasks to each attached agency and unit, the revenue and expenditure tasks as well as the budget supplement levels to the subordinate levels;

e) To draw up plans on adjustment of local budget estimates and plans on allocation of budget revenues and expenditures at their respective levels and submit them to the People’s Councils of the same level for decision at the requests of the superior State administrative agencies in cases where the resolutions of the People’s Councils of the same level are not compatible with the budget revenue and expenditure tasks assigned by the superiors;

f) To examine the subordinate People’s Councils’ resolutions on budget estimates and request them to adjust the budget estimates in case of necessity;

2. The finance bodies of all levels:

a) For the first year of the budget stability period, to assume the prime responsibility and coordinate with the planning and investment agencies in organizing working sessions with the immediate low-level People’s Committee, agencies and units of the same level on budget estimates; to request rearrangement of revenue and/or expenditure items which fail to comply with the regime, criteria, and are irrational, non-economical and incompatible with the budget capability and the socio-economic development orientations. For the subsequent years of the budget stability period, to work with the low-level People’s Committees only when so requested by the latter.

In the course of working, making budget estimates and drawing up budget allocation plans, if there remain divergent opinions between the finance bodies and the agencies of the same level as well as the low-level administration, the finance agencies of all levels in the localities must report thereon to the People’s Committees of the same level for decision; the Finance Ministry must report thereon to the Prime Minister for decision;

b) To assume the prime responsibility and coordinate with the Planning and Investment agencies and the concerned agencies of the same level in synthesizing and making budget estimates according to domains at their level. For the education-training and science-technology domains, to synthesize and make estimates for various domains in the localities and throughout the country;

c) To assume the prime responsibility and coordinate with the concerned agencies and units in synthesizing and making budget estimates and plans on allocation of the budgets of their levels;

d) To coordinate with the planning and investment agencies of the same level in making development investment expenditure estimates of their budget level;

e) The Finance Ministry shall base itself on the total expenditure estimates for tasks prescribed at Point c, Clause 1, Article 21 of this Decree, assigned by the competent authorities, to organize the implementation according to the prescribed regimes;

f) The Finance Ministry shall synthesize the estimates and plans on allocation of national target program expenditure estimates (the regular expenditure estimates) elaborated by the national target program-managing agencies;

g) To propose plans for budget balance and measures to realize the policy of increasing budget revenues while economizing budget expenditures;

h) The Finance Ministry shall examine the provincial-level People’s Councils’ resolutions on budget estimates and propose the readjustment of the provincial-level budget estimates in case of necessity. The finance bodies of all levels in the localities shall examine the low-level People’s Councils’ resolutions on budget estimates and propose opinions to the People’s Committees of the same level, request the low-level People’s Councils to readjust the budget estimates in case of necessity.

3. The planning and investment agencies of all levels:

a) The Planning and Investment Ministry shall submit to the Government the national plans on socio-economic development and the major balances of the national economy, including the financial, monetary and capital construction funding balances, for use as basis for drawing up the financial and budgetary plans;

b) The planning and investment agencies shall coordinate with the finance bodies of the same level in synthesizing and making estimates of the budgets of their levels; assume the prime responsibility and coordinate with the finance bodies of the same level in estimating the development investment expenditures, making plans on allocation of capital construction investment expenditures, State reserve supplementary expenditures, State budget credit support expenditure and expenditures on contribution of equity or joint-venture capital according the current law provisions; at the central level, send them to the Finance Ministry before September 10 of the preceding year for it to synthesize and make the State budget estimates and plans on central budget allocation for submission to the Government according to provisions in Clause 3, Article 21 of the State Budget Law.

c) The Planning and Investment Ministry shall synthesize the estimates and plans on allocation of the national target program expenditures (the capital construction investment expenditures) made by the national target program-managing agencies and synthesize the general estimate and plans on allocation of the national target program expenditures and send them to the Finance Ministry before September 10 of the preceding year.

4. The central and local State agencies:

a) The ministries and branches shall coordinate with the Finance Ministry in working out State budget expenditure regimes, criteria and norms within the branches or domains under their management as provided for in Clause 5, Article 10 of this Decree;

b) The central and local State agencies shall organize the elaboration of budget revenue and expenditure estimates within the scope of their management and send them to the finance bodies and the planning and investment agencies of the same level; estimate the national target program expenditures and send them to the finance bodies, the planning and investment agencies and the national target program- managing agencies before July 20 of the preceding year; coordinate with the finance bodies of the same level in elaborating and allocating budget estimates according to the domains of their budget levels.

c) The national target program- managing agencies shall assume the prime responsibility and coordinate with the finance bodies, the planning and investment agencies in elaborating the national target program expenditure estimates and plans on the allocation thereof to their units and localities, and send them to the finance bodies and the planning and investment agencies of the same level before July 30 of the preceding year for synthesis into the budget estimates and the plans on the allocation thereof and submit them to the competent authorities for decision. Where the national target program-managing agencies disagree with the opinions of the Finance Ministry and the Planning and Investment Ministry, they shall report such to the Prime Minister for consideration and decision.

Article 40.- State budget estimate decision, distribution and assignment:

1. Basing itself on the National Assembly’s resolutions on State budget estimates and central budget distribution as well as the National Assembly Standing Committee’s resolutions on the percentages of revenues to be divided between the central budget and the local budgets, the Finance Ministry shall submit to the Prime Minister the assignment of budget revenue and expenditure tasks to the ministries, the ministerial-level agencies, the Government-attached agencies and other central agencies according to their respective domains; the revenue and expenditure tasks as well as the percentages of revenues to be divided between the central budget and the local budgets as well as the balance supplement levels and the targeted supplements from the central budget to provinces and centrally-run cities before November 20 of the preceding year.

2. On the basis of the Prime Minister’s decisions on assignment of budget revenue and expenditure tasks, the provincial-level People’s Committees shall submit to the People’s Councils of the same level for decision the local budget estimates, the plans on allocation of the provincial-level budget estimates and the supplement levels from the provincial-level budgets to the lower-level budgets before December 10 of the preceding year; and report to the Finance Ministry and the Planning and Investment Ministry the provincial-level budget estimates and results of provincial-level budget estimate allocation already decided by the provincial-level People’s Councils.

Basing themselves on the provincial-level People’s Councils’ resolutions, the provincial/municipal Finance-Pricing Services shall submit to the provincial-level People’s Committees for decision the assignment of budget revenue and expenditure tasks to agencies and units under the provinces; the revenue and expenditure tasks as well as the percentages of revenues to be divided between the central budget and the local budgets as well as among the budgets of various administration levels; the supplement levels from the provincial budgets to the rural districts, urban districts, provincial capitals and cities.

3. Upon the receipt of the superior People’s Committees’ decisions on assignment of budget revenue and expenditure tasks, the People’s Committees shall submit to the People’s Councils of the same level for decision the local budget estimates and the plans on allocation of the budgets of their respective level, ensuring that the commune-level budget estimates are decided before December 31 of the previous year. After the budget estimates are decided by the People’s Councils, the People’s Committees of the same level shall report to the immediate superior People’s Committees and finance bodies on the budget estimates already decided by the People’s Councils.

Article 41.-

1. The State budget estimates, the estimated allocation of the central budget, the percentages of revenues to be divided between the central budget and the local budget and the levels of supplement from the central budget to the provincial and municipal budgets, when submitted to the National Assembly, must be enclosed with necessary documents as provided for in Article 42 of the State Budget Law and the Regulation on estimation, verification and submission to the National Assembly for decision of the State budget estimates and the central budget allocation plans, and for approval of the State budget settlement, which was promulgated by the National Assembly Standing Committee.

2. The budget estimates and plans on allocation of budgets of various local administration levels, when submitted to the People’s Councils, must be enclosed with necessary documents as provided for in the Regulation on consideration of and decision on local budget estimates and allocation and approval of the local budget settlement, which was promulgated by the Government.

Article 42.-

1. Where the State budget estimates and the central budget allocation plans are yet decided by the National Assembly, the Government shall re-elaborate the State budget estimates and the central budget allocation plans and submit them to the National Assembly at the time decided by the National Assembly.

2. Where the local budget estimates are yet decided by the People’s Councils, the People’s Committees of the same level shall re-elaborate the budget estimates for submission to the People’s Councils of the same level at the time decided by the latter, which, however, must not be later than January 10 of the following year, for the provincial budget, January 20 of the following year, for the district budget, or January 30 of the following year, for the commune budget.

Article 43.- Adjustment of budget estimates

1. In case of big changes in the State budget as compared to the allocated estimates, requiring the overall adjustment, the Government shall make the estimated State budget adjustment and the central budget allocation plans and submit them to the National Assembly for decision at its nearest session.

2. In case of urgent defense and/or security needs or for objective reasons where the revenue and expenditure tasks of a number of agencies, units and/or localities should be adjusted but without causing big changes in the budget overall and structure, the Government shall report thereon to the National Assembly Standing Committee for decision and report to the National Assembly at its nearest session.

3. In case of big changes in the local budgets as compared with the allocated estimates, thus requiring the overall adjustment, the People’s Committees shall report thereon to the People’s Councils of the same level which shall decide on the adjustment of the local budget estimates.

4. In case of urgent defense and/or security needs or for objective reasons, where the revenue and expenditure tasks of a number of attached agencies or of lower-level budgets, but without causing big changes in the local budget overall, the People’s Committees shall submit to the People’s Councils of the same level for decision the adjustment of the local budget estimates.

The overall adjustment of the State budget and the local budget estimates under Clauses 1 and 3 of this Article shall comply with the process of elaborating, deciding on and allocating annual budget estimates.

5. The State agencies shall adjust the budget estimates of their attached units in the following cases:

a) When the Prime Minister or the People’s Committees decide to adjust the budget estimates of such agencies;

b) Budget should be reallocated to the attached units.

c) Points a and b, Clause 5 of this Article shall be implemented in accordance with the provisions on estimate assignment and adjustment prescribed in Article 44 of this Decree.

Chapter IV

STATE BUDGET EXECUTION

Article 44.-

1. After being assigned budget estimates by the Prime Minister or the People’s Committees, the central and local State agencies as well as level-I estimating units shall allocate and assign budget expenditure estimates to their attached budget-using units according to the following principles:

a) The total estimates assigned to the attached units must not exceed the estimates assigned by the competent authorities in both the total level and the details for various domains. For capital construction investment expenditure tasks, priority must be given to transitional important projects; for new projects, estimates shall be allocated or assigned only when they satisfy all conditions prescribed by the legislation on investment and construction management;

b) The estimates assigned to the budget-using units shall be detailed according to groups of major expenditure items of the State Budget Index. For expenditure items being of seasonal nature or arising only now and then such as capital construction investment, procurement, overhaul and other irregular expenditures, they must be phased according to quarterly implementation tempo.

2. The plans on allocation of budget estimates to budget-using units must be addressed to the finance bodies of the same level for verification. Where the allocation is incompatible with contents of the estimates assigned by competent agencies, incompliant with the policies, regimes, criteria and norms, the finance bodies shall request the budget-allocating agencies to make re-adjustment.

3. The budget estimate allocation and assignment to budget- using units must be completed before December 31 of the previous year, except where the State budget estimates are not yet decided by the National Assembly or the local budget estimates are not yet decided by the People’s Councils.

4. In the course of implementation of budget estimates, when necessary, the level-I estimating units may adjust budget estimates among their attached units, after reaching agreements with the finance bodies of the same level, which, however, must not change the total and detailed estimates already assigned to the level-I estimating units.

Article 45.-

1. In cases where at the beginning of the budget year, the budget estimates and budget allocation plans are yet decided by competent State bodies, the finance bodies and the State Treasuries shall temporarily allocate funding for the following spending tasks:

a) Expenditure on salaries and amounts of salary nature;

b) Expenditures on professional operations and public duties;

c) A number of other necessary expenditures to ensure the operation of the apparatus, excluding amounts for procurement and repair of equipment and facilities;

d) Expenses for transitional projects under national programs;

e) Expenses for balance supplements to lower-level budgets.

2. The maximum monthly temporary allocation level shall not exceed one month’s average expenditure of the preceding year.

Article 46.-

1. Organizations and individuals, including foreign organizations and individuals operating on the territory of the Socialist Republic of Vietnam, are obliged to pay taxes, charges, fees and other remittables into the State budget fully and on time according to the provisions of law.

2. Organizations and individuals may request the competent agencies prescribed in Clause 4 of this Article to permit the delayed payment thereof into the budget in the following cases:

a) Organizations and/or individuals meet with objective difficulties caused by natural calamities or fires;

b) Other cases of delayed payment shall comply with the provisions of law.

3. Where organizations and/or individuals delay their payment without permission, basing themselves on the proposals of the competent agencies prescribed in Clause 4 of this Article, the banks and State Treasuries where such organizations and/or individuals open their accounts must subtract money from their deposit accounts for payment into the State budget or apply other measures to collect money for the budget. At the same time, such organizations and/or individuals shall also be fined, disciplined, administratively sanctioned or examined for penal liability according to law provisions.

4. The following agencies are competent to request banks and State Treasuries to subtract money from the accounts of violating organizations and individuals prescribed in Clause 3 of this Article for remittance into the State budget:

a) Tax agencies, customs agencies for the delayed payment of taxes and other revenues assigned to them for management;

b) Finance bodies for the delayed payment of other amounts.

5. Where organizations and/or individuals deliberately refuse to make the payment, apart from having their accounts subtracted for payment into the budget, they shall also be handled according to law provisions.

Article 47.- The State budget revenues must be remitted directly into the State Treasuries. For a number of unfixed charge, fee and tax amounts collected from business households and budget revenues in communes, which are difficult to be remitted directly into State Treasuries, the collecting agencies may directly collect them but must remit them into the State Treasuries according to the regulations of the Finance Minister.

Article 48.-

1. Only the following agencies are entitled to organize the State budget collection:

a) The State tax agencies;

b) The customs agencies;

c) The finance bodies and other agencies permitted by the Government or authorized by the Finance Ministry.

2. The collecting agencies shall have the tasks and powers prescribed in Article 54 of the State Budget Law.

3. The collecting agencies must use vouchers prescribed by the Finance Ministry to effect the budget collection and remittance.

Article 49.-

1. Based on the borrowing purposes, the use of foreign loan capital shall comply with the principles:

a) For amounts borrowed for investment projects on construction of infrastructural works and socio-economic development projects to be financed by the State budget and arranged in the budget estimates decided by competent authorities, the Finance Ministry shall allocate capital according to the prescribed regimes;

b) For amounts borrowed for projects entitled to the State credit, the Finance Ministry shall make the sub-lending according to the Government’s regulations.

2. The Finance Minister shall specify the management of foreign loan receipt and allocation according to the above principles and in accordance with each agreement signed with a foreign country.

Article 50.- Non-refundable aid in cash or in kind provided by foreign governments, organizations and/or individuals for the Government, administration at different levels and/or State agencies and units must be fully accounted into the State budget according to the following regulations:

1. For aid volumes with using units having been already identified, the finance bodies shall carry out procedures for mutual ceasing of budgetary resources;

2. For aid volumes with using units having not yet been identified, the finance bodies shall have to manage them and effect the mutual ceasing of budgetary resources, and at the same time determine the plans on the use thereof strictly according to the commitments and objectives already agreed upon with the aid providers, submit them to the competent authorities for decision and distribute them to units for use and carry out the procedures for mutual ceasing of State budgetary resources.

Article 51.- State budget expenditures shall be effected only when the following conditions are fully met:

1. They have been included in the assigned State budget estimates, except for the following cases:

a) The budget estimates and budget estimate allocation are yet decided by competent agencies as provided for in Article 45 of this Decree;

b) Expenditures are from the increased revenue sources over the assigned estimates and from the budget reserve sources under the decisions of the competent authorities.

2. They are effected strictly according to the regimes, criteria and norms prescribed by competent authorities;

3. They have been decided by the heads of the budget-using units or the authorized persons;

4. Apart from the conditions prescribed in Clauses 1, 2 and 3 of this Article, the cases of using State budget capital and funding for capital construction investment, procurement of equipment and working facilities and other tasks, which are subject to bidding or price evaluation, must also be subject to the organization of bidding or price evaluation according to law provisions;

5. Expenditures of regular nature shall be distributed equally throughout the year for implementation; expenditures being of seasonable nature or only arising now and then such as capital construction investment, procurement, overhaul and other irregular expenditures must comply with the quarterly estimates assigned together with the annual estimates by level-I estimating units.

Article 52.- Responsibilities of agencies and individuals in the management of State budget expenditures are specified as follows:

1. The finance bodies:

a) To verify the budget estimate allocation to using units as provided for in Article 44 of this Decree;

b) To arrange sources to meet expenditure demands; where budget-using units spend beyond their capabilities of revenue and budget fund mobilization, the finance bodies shall have to take initiative in applying the provisional borrowing measures to ensure sources;

c) To inspect and supervise the expenditures and budget use in the budget-using agencies and units. In case of detecting expenditures in excess of the permitted sources or in contravention of policies and/or regimes, or non-compliance with the reporting regimes by units, to be entitled to request the State Treasuries to temporarily stop the payment. In case of detecting delayed or improper implementation of the estimates by budget-using units, thus affecting the task performance, to be entitled to request the State agencies and superior estimating units to find out timely solutions or to adjust the expenditure tasks and estimates of the attached agencies and units in order to ensure the budget implementation according to prescribed objectives and schedules.

2. The State Treasuries:

a) To effect the settlement, payment of State budget expenditures, based on the assigned estimates, the expenditure decisions of the heads of the budget-using units and the legality of other necessary documents prescribed in Article 51 of this Decree;

b) To be entitled to refuse the budget expenditures which fail to fully meet the conditions prescribed in Article 51 of this Decree or to temporarily stop the payment at the request of the finance bodies for cases prescribed at Point c, Clause 1 of this Article;

c) The heads of the State Treasuries take responsibility for the decisions to settle and pay budget expenditures or to refuse to settle and pay budget expenditures under the provisions at Points a and b, Clause 2 of this Article.

3. The central and local State agencies shall guide, monitor and inspect the use of budget in branches or domains under their respective management and their attached units; make periodical reports on the situation of budget revenue and expenditure implementation as well as other financial reports as provided for by law; take responsibility for errors committed by their attached units, organizations.

4. The heads of the budget-using units:

a) To decide on expenditures strictly according to regimes, criteria and norms and within the estimate limits assigned by competent authorities;

b) To manage, use State budget and assets strictly according to regimes, criteria and norms, for the right purposes and in a thrifty and efficient manner. In case of violation, depending on the nature and seriousness thereof, to be disciplined, administratively sanctioned or examined for penal liability according to law provisions.

5. Persons in charge of financial and accountancy work at the budget-using units have the tasks to strictly comply with the finance-budget management regimes, the State accounting regimes, the internal inspection regimes and have the responsibility to prevent, detect and the heads of finance units or agencies of the same level to handle cases of violation.

Article 53.-

1. The allocation of regular expenditures of administrative agencies and non-business units shall be effected as follows:

a) Basing themselves on the assigned State budget estimates, the tempo or work performance and the budget expenditure conditions, the heads of the budget-using units shall issue and send expenditure decisions to the State Treasuries where transactions are carried out, together with necessary documents according to the prescribed regimes;

b) The State Treasuries shall examine the legality of the documents sent by the budget-using units, make the payment when all the conditions prescribed in Article 51 of this Decree are met;

c) The payment of budget capital and funding shall be effected on the principle that it is made directly from the State Treasuries to wage earners, persons enjoying social allowances and goods or service providers;

d) For expenditure items which fail to satisfy the conditions for direct payment, the State Treasuries shall make advances to budget-using units so that the latter can take initiative in making expenditures according to assigned estimates, then make settlement with the State Treasuries strictly according to the contents and time limits prescribed by the Finance Minister;

e) The Finance Minister shall specify the above process to suit the practical situation in each period.

2. The allocation of capital construction funding shall be effected as follows:

a) Basing themselves on the assigned annual budget estimates, the value of completed work volume and the budget expenditure conditions, the investors shall compile and send the payment-requesting dossiers enclosed with necessary documents prescribed by law to capital-allocating agencies;

b) The agencies tasked to allocate capital shall examine the payment-requesting dossiers of the investors and make payments when the prescribed conditions are fully met;

c) The Finance Minister shall specify the methods and process of allocating and settling capital construction funding of the State budget sources strictly according to the Regulation on construction and investment management and the provisions in this Decree.

3. Allocating expenditures of foreign-based Vietnamese representations:

Basing themselves on quarterly expenditure estimates notified by the finance bodies, the units are entitled to withdraw money from the budget funds managed by the units under the Finance Ministry’s authorization to cover expenditures according to the assigned estimates under the prescribed regimes.

4. Allocating authorized funding:

In cases where the superior State management agencies authorize the subordinate State management agencies to perform their spending tasks, the authorizing finance bodies shall have to transfer funding to the authorized finance bodies for the performance of such tasks. The agencies receiving the authorized funding shall have to manage and use such funding strictly according to the State budget capital- allocating regimes, but have to account them separately and report thereon to the authorizing State agencies. The authorized funding which have not yet been used up by December 31 must be returned to the budget of the authorizing levels.

5. The Government shall work out separate regulations on budget expenditures in the fields of national defense and security.

6. The Finance Minister shall guide in detail the process of making budget expenditures for the following tasks: debt repayment, investment in and support for enterprises, supplementation from budget of higher levels to budget of lower levels, expenditures for agencies of the Communist Party of Vietnam and other State budget expenditures.

Article 54.- In the course of State budget implementation, if there appear any changes in revenues and/or expenditures, the Government and the People’s Committees at all levels shall effect them as follows:

1. If revenues increase over the assigned estimates, the increased revenue amounts, after being deducted for rewards to localities under the provisions in Clauses 1 and 5, Article 59 of the State Budget Law, and the saved expenditure amounts shall be used to reduce the overspending, increase the debt repayment, increase development investment expenditures, supplement financial reserve funds and increase the budget reserves. The Government shall work out plans on the use thereof for each spending task, and report them to the National Assembly Standing Committee for comments before the implementation thereof; the local People’s Committees shall draw up plans on the use thereof for each spending task and reach agreement with the Standing Boards of the People’s Councils before the implementation thereof; for the commune level, the People’s Committees shall consult with the chairmen and vice-chairmen of the People’s Councils before the implementation thereof. Periodically, the Government and the provincial-level People’s Committees shall report on the situation of implementing the provisions in Clauses 1,2 and 3 of Article 54 and Clause 5 of Article 56 of this Decree as provided for in Clause 6, Article 59 of the State Budget Law.

2. Where revenue amounts are below the estimates decided by the National Assembly or the People’s Councils, the Government shall report such to the National Assembly Standing Committee and the People’s Committees shall report such to the People’s Councils for adjustment by reducing a number of corresponding expenditures.

3. In case of unexpected expenditures beyond the estimates, which can not be delayed and cannot be fully covered by the budget reserves, the expenditures in the assigned estimates must be rearranged or the financial reserve funds must be used to have sources for meeting such unexpected expenditure demands.

The Prime Minister shall decide on the use of the central financial reserve fund and the People’s Committees shall decide on the use of their provincial financial reserve funds to satisfy the above-said expenditure demand under the provisions at Point f, Clause 2, Article 58 of this Decree.

Article 55.-

1. The budget-using units and organizations constantly supported by the State budget must open accounts at the State Treasuries and be subject to the inspection by finance bodies and State Treasuries in the course of settling and using fundings. Where they are allowed to open accounts at State-run commercial banks to gather a number of revenue items, they must manage and use them strictly according to law provisions.

2. The State Treasuries shall have to manage the State budget funds (the central budget fund and the local budget funds), uniformly manage, organize payment, regulate capital and cash belonging to the State budget in order to quickly and fully gather revenues; timely meet the State budget settlement and payment demands.

3. The State Treasuries shall open accounts at the State Bank and State-run commercial banks in order to concentrate revenues, allocate and pay State budget expenditures. The banks where State Treasuries open accounts shall have to ensure the full and timely payment, regulation of cash and foreign currency(ies) for the State Treasuries according to State budget revenue and expenditure tasks. The State Treasuries’ money deposited at banks shall be paid with interests like economic units and organizations; payments made by State Treasuries through banks must be subject to the payment charge.

Article 56.- The rewards for local budgets from central budget revenue increase over the estimates assigned by the Prime Minister, which are taken from the revenues to be divided between the central budget and the local budgets, shall be effected according to the following principles:

1. The rewarding percentages shall be determined annually for provinces and announced by the Prime Minister right at the beginning of the year, which must not exceed 30% of the revenue increase over the estimates enjoyed by the central budget from the revenues to be divided between the central budget and the local budgets.

2. The maximum rewarding amount must not exceed the revenue increase enjoyed by the central budget as compared with the previous year’s implemented level from the revenues to be divided between the central budget and the local budgets.

3. Rewards shall be considered and calculated on the total divided revenue amounts, not on separate items.

4. Basing itself on the rewarding percentages set by the Prime Minister and the revenue increase amounts, the Finance Ministry shall make reward to each province or centrally-run city.

5. Basing themselves on the rewarding levels, the provincial-level People’s Committees shall submit to the People’s Councils for decision the use thereof for each investment project on infrastructural construction, important tasks in the provincial budget tasks and make rewards to the lower-level budgets according to the principle of associating rewards with the achievements in revenue management in localities. The use of rewarding money at lower-level budgets shall be submitted by the People’s Committees to the People’s Councils of the same level for decision in order to supplement capital construction fundings and perform other important tasks.

6. The central budget shall account the expenditures on rewards for revenue increase to local budgets into the budget of the year when arise the revenue increases over the estimates, the local budgets shall account the revenue and expenditure of the rewards for revenue increase in the budget year when those rewards for revenue increase are used.

The Finance Minister shall guide in detail the accounting and settlement of the reward revenues and expenditures.

Article 57.- The use of budget reserves must comply with the conditions on budget expenditures prescribed in Article 51 and the budget expenditure process prescribed in Article 53 of this Decree.

Article 58.- The financial reserve funds:

1. Sources forming the central financial reserve fund include:

a) A part of the central budget revenue increase over the estimate; the specific level shall be decided by the Prime Minister after obtaining the opinions of the National Assembly Standing Committee;

b) Fifty percent (50%) of the central budget remainder;

c) A part in the annual expenditure estimate of the central budget; the specific level shall be submitted by the Government to the National Assembly for decision;

d) Other financial sources as prescribed by law.

2. Sources formulating the provincial-level financial reserve funds shall include:

a) A part of the central budget revenue increase over the estimate; the specific level shall be decided by the provincial-level People’s Committee after obtaining the opinions of the Standing Board of the People’s Council of the same level;

b) Fifty percent (50%) of the provincial-level budget remainder;

c) A part in the annual expenditure estimate of the provincial-level budget. The specific level shall be submitted by the provincial-level People’s Committee to the People’s Council for decision;

d) Other financial sources as prescribed by law.

3. Management and use of financial reserve funds:

a) The financial reserve funds shall be deposited at the State Treasuries and be given deposit interests at the interest rates paid to the State Treasuries by the State Bank; these interest amounts shall be supplemented to the Funds;

b) The Finance Minister shall act as the account holder of the central financial reserve fund. The presidents of the provincial-level People’s Committees shall act as account holders of the provincial-level financial reserve funds;

c) The deduction for setting up the financial reserve funds shall be carried out annually; the maximum level shall be 25% of the annual expenditure estimate of the budget of the corresponding level;

d) The financial reserve funds shall be used to make advances for expenditure demands when the revenue sources are not gathered in time while the payment must be made in the budget year, except for special cases prescribed at Point e, Clause 3 of this Article. The Finance Minister shall decide on the advances from the central financial reserve fund; the presidents of the provincial-level People’s Committees shall decide on the advances from the provincial-level financial reserve funds.

e) The Prime Minister (for the central budget) and the provincial-level People’s Committees (for local budgets) shall decide on the use of the financial reserve funds of their respective levels to balance the budgets in the following cases:

- Budget revenues or borrowings to offset overspending fail to reach the estimate levels already decided by the National Assembly or the People’s Councils, after rearranging the budget and using all reserves, the sources remain inadequate to meet the spending tasks;

- Performing tasks of preventing, combating and overcoming the consequences of, natural disasters, fires, serious and large-scale accidents, important defense and security tasks and other urgent tasks arising beyond the estimates, and after rearranging the budgets and using all budget reserves, sources remain inadequate to meet the spending tasks;

- The total expenditure level from the financial reserve funds (excluding advances) for the whole year shall not exceed 30% of the funds’ balances at the time beginning the budget year.

e) The provincial budgets can receive advances from the Central Financial Reserve Fund if the provincial financial reserve funds are used up. The district and commune budgets can receive advances from the provincial-level financial reserve funds.

Article 59.- The finance bodies and the State Treasuries shall have to make adequate and timely payments for expenditures according to the implementation tempo within the assigned annual budget estimates; may refuse expenditures which fail to satisfy the conditions prescribed in Article 51 of this Decree, but must notify such in time to the units and take responsibility for their decisions. If the units whose expenditures are rejected disagree with the decisions of the finance bodies and/or State Treasuries, they can lodge their complaints to the State administrative agencies of the same level and the higher-level finance bodies and State Treasuries.

Article 60.- Where the revenues and borrowings in the budget estimates are not yet effected in time according to the plan schedule, the finance bodies may use such lawful financial sources as the financial reserve funds, advances from the higher-level budget and other temporarily idle financial sources to make advances for expenditure demands and must recover them in the budget year.

For the central budget, if the above-said sources still fail to satisfy the expenditure demands, the Finance Minister may make advances from the Social Insurance Fund and the State financial funds or report such to the Prime Minister who shall decide on the advances of capital from the State Bank.

The advances from the State Bank must be refunded in the budget year, except for special cases which shall be decided by the National Assembly Standing Committee.

Article 61.-

1. The following cases shall be entitled to the advances from the budget estimate of the following year within the limit permitted by the budget funds:

a) National projects, works and capital construction works of Group A, which are fully qualified for implementation under the provisions of the Regulation on investment and construction management, are being implemented, and must be speeded up;

b) Important and urgent tasks determined as belonging to the following year’s estimate, but must be performed right in the current year while they are not included in the estimates and the reserve sources are not enough.

2. With regard to the advances from the central budget estimates for the tasks mentioned at Point a, Clause 1 of this Article, the Ministry of Planning and Investment shall reach agreement with the Finance Ministry and submit them to the Prime Minister for decision. The advances from the central budget estimates for the tasks mentioned at Point b, Clause 1 of this Article shall be decided by the Finance Minister.

The Finance Ministry shall have to recover the advances from the central budget estimates.

3. The advances from the local budgets of various levels shall be decided by the presidents of the People’s Committees, who shall have to recover such advances.

4. The advance of estimates must not affect the arrangement of the following year’s estimate. The total advance amount of the following year’s budget expenditure estimate for agencies and units must not exceed 20% of the assigned budget expenditure estimate according to each corresponding domain in the current year or the inspected budget expenditure estimate of the following year, already notified to such agencies and units. When allocating budget estimate to the following year, the budget estimate- allocating agencies must arrange estimates for works and tasks entitled to the advance of expenditure estimates to have enough sources for refunding of the advances according to the prescribed schedule.

Article 62.-

1. The State agencies, organizations and individuals are obliged to make payment into the budget; the budget-using units and organizations enjoying support from the budget shall have to periodically report on the implementation of the budget revenues and expenditures, make accounting, settlement and financial reports according to the legislation on accountancy and statistics and the reporting regimes prescribed by the Finance Ministry.

2. The finance bodies may request the State Treasuries to temporarily suspend the budget payment to organizations, individuals and/or units that fail to fully and timely observe the reporting regimes mentioned in Clause 1 of this Article, except the payment of wages, allowances, social support, scholarship and a number of urgent expenditures prescribed by the Finance Minister. The allocation and payment shall resume only when such organizations, individuals and/or units have fully observed the reporting regimes and committed not to relapse into violation.

When deciding to temporarily suspend the budget payment, the finance bodies shall notify such to the superior managing agencies of the organizations, units subject to the temporary suspension.

Chapter V

ACCOUNTING, AUDITING AND SETTLING STATE BUDGET

Article 63.-

1. Organizations and individuals, that are tasked to make budget collection and payment, to use State budget capital and funding and manage the financial revenues and expenditures, shall have to organize book-keeping accounting, make accounting reports and settle State budget revenues and expenditures as well as financial revenues and expenditures according to the provisions of legislation on accounting, statistics, the accounting regimes and the State Budget Index.

2. The finance bodies shall have to make reports on settlement of the budget of the administration of the same level.

Article 64.-

1. The State Treasuries shall organize the accounting of State budget revenues and expenditures; monthly, quarterly and annually report on the implementation of budget revenues and expenditures to the finance bodies of the same level; the district State Treasuries shall make reports on budget revenues and expenditures of each commune, ward and district township and send them to the commune/ward/ district township People’s Committees; observe the regime of regular or irregular reporting to the finance bodies according to the regulations of the Finance Minister.

2. The State Treasuries shall periodically report on the situation of implementing the budget revenue and expenditure estimates to the concerned agencies according to the regulations of the Finance Minister.

Article 65.- The budget accounting and settlement must be uniformly carried out according to the law provisions on:

1. The State budget revenue and expenditure vouchers.

2. The State Budget Index.

3. The system of accounts, books, reporting forms and tables.

4. The codes of tax payers and codes of budget- using subjects.

Article 66.- At the end of the accounting periods (month, quarter, year), the accounting units must close the accounting books. The year-end closure of the budget accounting books must ensure the following requirements:

1. Budget revenues of the previous years, if being remitted in the current year, must be accounted and settled into the budget revenue of the current year.

2. Budget expenditures belonging to the previous year’s estimate, if not yet implemented or fully implemented, must not be transferred to the current year for continued spending; in cases where the Finance Minister (for the central budget) or the People’s Committee presidents (for local budgets) decide to permit the continued spending, they shall be accounted and settled as follows:

a) If they are implemented in the period of adjusting the settlement, the previous year’s budget deposit shall be used for handling, accounting and settlement into the previous year’s budget expenditure;

b) If they are decided to be implemented in the current year, the finance bodies shall carry out the procedures for the transfer thereof to the current year for continued spending. Units shall account and settle them into the current year’s budget; the budgets at all levels shall settle the expenditures carried forwards from the previous year to the current year into the previous year’s budget expenditure.

3. The advanced funding amounts in the estimates for expenditures by the end of December 31, for which the procedures for payment have not yet been completed, can continue to be paid in the period of adjusting the settlement and be settled in the previous year’s budget. The advance of capital construction investment capital shall comply with the Finance Minister’s regulations.

Where the time for settlement adjustment has expired and the payment procedures have not yet been completed, such must be reported to the superior State management agencies for proposing the finance bodies of the same level to permit the transfer of the previous year’s advances to the current year’s advance; if it is not agreed upon by the finance bodies, the State Treasuries shall recover the advance amounts by way of subtracting them from the corresponding expenditures of the current year’s budget estimates of the units. If the current year’s estimate does not include such expenditures or does include such expenditures which are, however, smaller than the advance amounts to be recovered, the State Treasuries shall notify such to the finance bodies of the same level for handling.

4. Temporarily collected, withheld amounts must be specifically considered and handled as follows:

a) In cases where the handling decisions have already been issued by competent authorities, they must be handled immediately (remitted into the budget or returned to the subjects that have the temporarily collected or withheld amounts);

b) In cases where the handling decisions have not yet been issued by competent authorities, at the end of December 31, the balance on the custody account can be transferred to the subsequent year for further handling.

5. For assorted supplies and commodities left in stock and cash balance at the estimating units by the end of December 31, they shall be inventoried according to current regulations and handled as follows:

a) Commodities and supplies lying in stock shall be settled into the previous year’s budget expenditure; if they continue to be used in the current year, units shall organize the monitoring and use thereof and make separate report thereon. In cases where they shall not be further used in the current year, the units shall set up the sale liquidation councils and remit the proceeds therefrom into the State budget; for non-business units with revenues, they shall be used according to law provisions;

b) The units’ cash balances by December 31, which have been allocated by the State budget or advanced from the estimates for expenditure, but are not spent up, must be refunded to the State budget, except for expenditures on salaries and allowances of salary nature according to regime, which are, however, not yet spent.

6. The authorized fundings, which have not yet been implemented by the end of December 31, must not be further spent; if they have already been transferred into the deposit account of authorized fundings, the State Treasuries shall carry out the procedures for return thereof to the authorizing budgets and notify such to the finance bodies of the same level.

7. The budget-allocated deposit balance in accounts of the estimating units, which are opened at the State Treasuries by the end of December 31, must be refunded into the State budget, except for cases where they are allowed to be transferred to the subsequent year for continued spending under the regulations of the Finance Minister.

8. Administrative agencies implementing the regime of contractual payroll and administrative management funding, non-business units with revenues and agencies of the Communist Party of Vietnam may transfer the budget funding for regular operation which are not used up, the deposit account balance and cash balance to the subsequent year under the regulations of the Finance Minister.

Article 67.- The adjustment of budget settlement is stipulated as follows:

1. Contents to be realized in the period of settlement adjustment:

a) Further accounting of budget revenues and expenditures which have arisen by December 31, but the vouchers are being circulated;

b) Accounting as budget expenditures the advance amounts with complete payment procedures and expenditure amounts decided by competent authorities for continued spending as provided for in Clause 2, Article 66 of this Decree;

c) Making comparison and handling errors in the course of book-keeping accounting;

d) Expenditures transferred from the previous year under decisions of competent authorities.

2. The Finance Minister shall prescribe the time of settlement adjustment for each budget level.

Article 68.- Budget settlement and budget settlement reports must ensure the following principles:

1. The State budget settlement data:

a) The State budget revenue settlement figures are the revenues actually remitted or already accounted as State budget revenues through the State Treasuries;

b) The State budget expenditure settlement figures are the expenditures actually paid or already accounted as expenditures under the provisions in Article 62 of the State Budget Law and the expenditures transferred to the subsequent year for continued spending as provided for in Clause 2, Article 66 of this Decree;

2. Data in the budget settlement reports must be accurate, truthful and complete. The contents of the budget settlement reports must comply with the contents in the assigned estimates and with the State Budget Index; the heads of the budget-using units must bear responsibility before law for the accuracy, truthfulness and completeness of their units’ settlement reports and take responsibility for the revenues and expenditures accounted in contravention of the regimes.

3. The settlement reports of the estimating units and the budgets of local administrations at various levels must not be accounted with the expenditures being larger than the revenues.

4. Lower-level budgets must not account the authorized fundings of the higher-level budget into the reports on settlement of the budget of their level. At the end of the year, the authorized finance bodies shall make reports on settlement of authorized fundings according to regulations and send them to the authorizing finance bodies and the authorizing branch/domain- managing agencies.

5. The annual budget settlement reports addressed to the competent State agencies according to regulations must be enclosed with the explanation on the cause of rise or fall in budget revenue and expenditure indexes as compared to the estimates.

6. The State Treasuries at all levels shall have to sum up the settlement data and send them to the finance bodies of the same level for the latter to make the settlement reports. The State Treasuries certify the budget revenue and expenditure data in the reports on settlement of budgets of various levels and budget-using units.

Article 69.-

1. The central budget remainder is the positive difference between the total revenues plus borrowings to offset overspending and the total expenditures of the central budget; the local budget remainder is the positive difference between the total revenues and the total expenditures of the local budget. The budget expenditures also cover expenditures transferred from the previous year’s budget sources to the current year.

2. The budget remainder shall be handled as follows:

a) The remainders of the central budget and the provincial-level budgets shall be deducted 50% for transfer into the financial reserve funds and 50% into the subsequent year’s budget revenues. In cases where the financial reserve funds have already reached the prescribed limit prescribed at Point c, Clause 3, Article 58 of this Decree, such portion shall be transferred into the subsequent year’s budget revenues;

b) The remainders of the district budgets and the commune budgets shall be fully transferred into the subsequent year’s budget revenues.

Article 70.- Order of elaborating, forwarding, considering and approving and evaluating annual budget settlement of the estimating units is prescribed as follows:

1. The subordinate estimating units shall elaborate the annual budget settlement reports according to the prescribed regime and send them to the superior estimating units.

2. The superior estimating units shall consider and approve the settlement and notify the results to the attached subordinate units. The superior estimating units are level-I estimating units, which must sum up and make the annual settlement reports of their respective units and the settlement reports of the attached subordinate units and send them to the finance bodies of the same level.

3. The finance bodies of the same level shall evaluate the annual settlement reports of the level-I estimating units, handle according to their competence or propose the competent authorities to handle errors in the settlements of the level-I estimating units, issue notices on settlement evaluation and send them to the level-I estimating units. Where the level-I estimating units are concurrently the budget- using units, the finance bodies shall approve the settlement and notify the results thereof to the level-I estimating units.

Article 71.- Order of elaborating, forwarding and evaluating annual settlement of revenues and expenditures of the budgets of all levels is prescribed as follows:

1. The forms and tables for annual report on settlement of the State budget and budgets of all levels shall comply with the State accounting regime and guiding documents of the Finance Minister.

2. The commune finance boards shall make the commune budget revenue and expenditure settlements and submit them to the commune People’s Committees for consideration and forwarding to the district finance sections; and at the same time the commune People’s Committees shall submit them to the commune People’s Councils for ratification. After they are ratified by the commune People’s Councils, the commune People’s Committees shall make additional reports on budget settlement and send them to the district finance sections.

3. The district finance sections shall evaluate the commune budget revenue and expenditure settlement; elaborate the district budget revenue and expenditure settlement; sum up and make reports on settlement of budget revenues in the districts and settle the district budget revenues and expenditures (including the settlement of the district budget revenues and expenditures and the settlement of the commune budget revenues and expenditures) and submit them to the district-level People’s Committees for consideration and forwarding to the provincial-level Finance- Pricing Services; at the same time the district People’s Committees submit them to the district People’s Councils for ratification. After they are ratified by the district-level People’s Councils, the People’s Committees shall make additional reports on budget settlement and send them to the provincial-level Finance-Pricing Services.

4. The provincial-level Finance-Pricing Services shall evaluate the settlement of State budget revenues arising in districts, the settlement of district budget revenues and expenditures; elaborate the provincial-level budget revenue and expenditure settlement; sum up and make the settlement of State budget revenues in provinces and settle the local budget revenues and expenditures (including the provincial budget revenue and expenditure settlement, the district budget revenue and expenditure settlement and the commune budget revenue and expenditure settlement and submit them to the provincial-level People’s Committees for consideration and forwarding to the Finance Ministry; at the same time the provincial-level People’s Committees shall submit them to the provincial-level People’s Councils for ratification. After they are ratified by the provincial-level People’s Councils, the People’s Committees shall make additional reports on budget settlement and send them to the Finance Ministry.

5. The Finance Ministry shall evaluate the State budget settlement, the local budget revenue and expenditure settlement reports; elaborate the central budget revenue and expenditure settlement and sum up and elaborate the general settlement of the State budget revenues and expenditures (including the central budget revenue and expenditure settlement and the local budget revenue and expenditure settlement) and submit them to the Government for consideration and further submission to the National Assembly for ratification; and at the same time send them to the State Audit.

Article 72.-

1. For capital construction investment projects or works and the national programs or projects, the investors must effect the accounting, make accounting reports and elaborate settlements according to regulations on construction and investment management, the accounting regime and guiding documents of competent State management agencies.

2. For capital construction projects or works and national programs or projects, which have already been completed, the investors must make reports on the settlement of the entire capital sources, the settlement of the budget capital sources, enclosed with the explanation reports on the situation of capital use and send them to the agencies which allocate the capital construction funding and the agencies competent to consider and approve the reports on settlement of the capital construction works or national programs or projects according to the prescribed regime. If the capital construction works or national programs or projects are not yet completed, at the end of the budget year, the investors must report on the settlement of the used capital sources, the settlement of the budget capital sources, on the situation of capital use and the value of completed volume already settled in the year, and send them to the capital construction capital-allocating agencies, the investors’ superior bodies and the finance bodies of the same level.

3. For important national projects or works to be decided by the National Assembly, apart from effecting the accounting and settlement report prescribed in Clauses 1 and 2 of this Article, the investors shall also have to make the settlement reports and submit them to the Government for consideration and further submission to the National Assembly.

Article 73.-

1. The consideration and approval of annual settlement shall comply with the following principles:

a) Considering and approving every revenue and expenditure item arising at the units;

b) All revenue items must comply with tax laws and ordinance, charge and fee ordinance and other collection regimes of the State;

c) All expenditure items must satisfy the conditions prescribed in Article 51 of this Decree;

d) All revenues and expenditures must be accounted strictly according to the accounting regime, the State Budget Index, within the budget year;

e) The revenue and expenditure vouchers must be lawful. Books and settlement reports must be compatible with the vouchers and with the data of the State Treasuries.

2. The superior estimating units, when considering and approving the settlement of their attached subordinate estimating units, shall have the right to:

a) Request the State Audit or hire independent auditing units according to law provisions to audit reports on settlement of large-scale projects and target programs in order to acquire more grounds for consideration and approval;

b) Request units to explain or supply necessary information and data in order to consider and approve the settlement;

c) Request units to immediately remit all amounts payable into the State budget according to regulations and cancel expenditures made in contravention of the regimes or the approved estimates; handle according competence or propose competent agencies to handle the heads of units where expenditures are made in contravention of the regimes, causing State budget loss;

d) Correct errors or request subordinate units to re-make settlement reports if deeming it necessary.

3. Upon the completion of consideration and approval of annual settlement, the superior estimating units shall issue notices on consideration and approval of annual settlement and send them to the subordinate estimating units; for level-I estimating units, they shall send notices to the subordinate estimating units and the finance bodies of the same level.

4. The heads of the superior estimating units must be answerable for the results of settlement consideration and approval for the subordinate estimating units; if letting violations to occur and failing to detect them or having detected them but failing to handle them, they shall be handled according to law provisions.

Article 74.-

1. The finance bodies shall evaluate the annual settlements of level-I estimating units of the budgets of their levels and the affiliated subordinate budgets according to the following contents:

a) Checking the completeness and compatibility among settlement data according to regulations; ensuring the compatibility between the settlement data of the level-I estimating units and the settlement approval notices of attached agencies and units and certifying the data of the State Treasuries;

b) Considering and determining the accuracy and legality of settlement data of each increase and decrease as compared to the assigned estimates;

c) Remarks on annual settlement.

2. When evaluating settlements, the finance bodies shall have the right to:

a) Request the level-I estimating units or subordinate finance bodies to supplement information and data necessary for the settlement evaluation;

b) Request responsible bodies to cancel non-purpose expenditures, recover expenditures made in contravention of the regimes and order the immediate remittance of amounts payable into the State budget according to the prescribed regime;

c) Request the settlement- approving agencies to re-adjust the settlement data of the estimating units or propose the People’s Committees to submit to the People’s Councils of the same level for readjustment of the settlement of the subordinate budgets if errors are made;

d) Refund or request the competent authorities to refund amounts already remitted into the budget in contravention of law provisions.

3. Upon the completion of the annual settlement evaluation process, the finance bodies shall issue settlement evaluation notices enclosed with remarks and proposals, sending them to the level-I estimating units or the subordinate finance bodies as provided for. In case of detecting wrong-doings, they shall handle or propose the competent agencies to handle them according to the provisions of law.

Article 75.-

1. The time limits for submitting monthly and quarterly accounting reports and annual settlement reports are prescribed as follows:

a) The time limits for submitting monthly and quarterly accounting reports of estimating units at all levels and budget at different levels shall comply with the accounting regime issued by the Finance Minister;

b) The time limits for submitting annual settlements of level-II and level-III estimating units shall be prescribed by the level-I estimating units, but must ensure the time for the level-I estimating units to consider, approve, sum up, elaborate and send them to the finance bodies of the same level as provided for; for the level-I estimating units of the central budget, the settlements must be send before October 1 of the subsequent year; for the level-I estimating units of the budgets of local levels, the submission time limits shall be prescribed by the provincial People’s Committees.

c) The annual settlement of the budgets of various local administration levels shall be drawn up by the finance bodies and sent to the People’s Committees of the same level for consideration; for the provincial-level budget, it must be sent before October 1 of the following year; the provincial-level People’s Committees shall specify the time limits for submitting reports on settlement of subordinate budget levels;

d) The Finance Ministry shall sum up and elaborate the general settlement of the State budget revenues and expenditures and send it to the Economic and Budget Committee of the National Assembly within 14 months after the end of the budget year.

2. The sending of annual settlements of the ministries, the ministerial-level agencies, the Government-attached agencies, other central agencies and localities to the State Audit shall comply with law provisions.

3. In cases where the level-I estimating units and attached subordinate budget levels fail to send their annual settlements within the time limits prescribed in Clauses 1 and 2 of this Article, the finance bodies are entitled to temporarily suspend or request the State Treasuries to temporarily suspend the allocation of budgetary funding until the annual settlements are received, except for wage, wage allowances, subsidies, scholarships and a number of urgent expenditures prescribed by the Finance Minister.

Article 76.- The time limits for consideration, approval, evaluation and verification of annual budget settlements are prescribed as follows:

1. The time limits for consideration and approval of the annual settlements of the level-II and level-III estimating units shall be prescribed by the level-I estimating units, but must ensure the time limit for consideration and approval of the annual settlements of the level-I estimating units as provided for; the consideration and approval of the annual settlements of the level-I estimating units of the central budget must be completed before September 1 of the following year; the time limits for the level-I estimating units of the various local budget levels shall be specified by the provincial-level People’s Committees.

2. The evaluation of the annual settlement by the finance bodies of the same levels for the attached level-I estimating units must be completed within the prescribed time limits; for the level-I estimating units of the central budget, it must be completed before December 31 of the following year.

The provincial-level People’s Committees shall decide on the time for the finance bodies to evaluate the annual local budget settlement, which must be completed before August 1 of the following year for the provincial level.

3. The time limits for ratification of the annual settlement by the National Assembly and the People’s Councils at different levels shall comply with the provisions in Article 67 of the State Budget Law.

4. Within 5 days after the People’s Councils ratify the local budget settlement, the People’s Committees shall send the local budget settlement to the superior finance bodies.

Article 77.- In case of dissolution or merger of units, the heads and the accountants of the units shall have to settle all revenues and expenditures and make reports on settlement thereof up to the time of dissolution or merger according to regulations. The heads and accountants of the units must complete the settlement reports before they can be transferred to other jobs and be answerable to law for wrong-doings (if any) in their units while they perform their tasks.

Article 78.- The audit of annual settlements of estimating units and budget at different levels shall be performed by the State Audit under the provisions in Article 66 of the State Budget Law.

Chapter VI

EXAMINATION, INSPECTION AND HANDLING OF VIOLATIONS

Article 79.- The ministries, ministerial-level agencies, Government-attached agencies, other central agencies, localities and superior estimating units shall be responsible for examining the observance of the regimes of budget revenue, expenditure and management, State property management by their attached units and guiding these units in carrying out examination within their units.

Article 80.-

1. The finance inspectors shall have the tasks to inspect the observance of the regime of budget revenue, expenditure and management as well as State property management by organizations and individuals according to law provisions.

2. When performing their tasks, the finance inspectors shall have the right to:

a) Request the inspected organizations and individuals to produce dossiers and enclosed documents;

b) Request the concerned agencies to coordinate in the inspection;

c) Depending on the nature and seriousness of violations, the finance inspectors shall handle according to their competence or propose the competent agencies to handle violations according to law provisions;

d) When receiving recommendations of the finance inspection bodies, the competent agencies shall have to handle them and notify the handling results to the finance inspection bodies.

3. The finance inspectors shall have to bear responsibility for their inspection conclusions.

4. The tasks, powers and responsibilities of the finance inspectors in inspecting the management and use of State budget and property shall be prescribed in a separate document of the Government.

Article 81.- Organizations and individuals that record achievements in budget collection strictly according to law and in excess of estimates, in thrifty budget spending but still ensuring the performance of assigned tasks with quality; in leading and directing localities to increase budget revenues and save budget expenditure, after each budget stability period, gradually reducing the supplements from high-level budget levels or increasing the percentage of remittance to the high-level budget levels shall be commended and/or rewarded according to law provisions.

Article 82.- The following acts are considered acts of violating the budget legislation:

1. Failing to declare or falsely declaring turnover, income, costs, prices and bases for calculation of amounts payable to the budget; delaying, failing to fully remit or to perform the obligation to remit into the State budget, except for cases of delayed remittance to be decided by the competent agencies.

2. Exempting, reducing or permitting the delayed remittance of amounts payable to the State budget in contravention of competence and/or prescribed contents; retaining budget revenues in contravention of regimes, using the retained revenue sources for wrong purposes, in excess of the prescribed criteria, regimes and norms.

3. Abusing positions and/or powers to appropriate budget revenue sources.

4. Making wrong division of revenue sources between budgets of different levels.

5. Collecting revenues in contravention of law provisions.

6. Making expenditures in contravention of regime, for wrong purposes and/or not according to assigned budget estimates.

7. Approving settlement in contravention of law provisions.

8. Accounting in contravention of the State’s accounting regime and the State Budget Index, causing damage to the budget.

9. Organizations and/or individuals that are allowed to declare and pay tax by themselves falsely declare taxes and pay them in contravention of the prescribed regimes, causing damage to the budget.

10. Managing invoices and vouchers in contravention of the prescribed regimes; trading in, modifying or counterfeiting invoices and payment vouchers; using unlawful invoices, vouchers;

11. Delaying the budget expenditures when the expenditure conditions prescribed in Article 51 of this Decree are fully met; making budget settlement later than the prescribed deadline.

12. Acts contrary to the provisions of the State Budget Law, this Decree and other legal documents in the budgetary field.

Article 83.- Organizations and individuals committing acts of violating budget legislation as provided for in Article 82 of this Decree may, depending on the nature and seriousness of their violations, be disciplined, administratively sanctioned or examined for penal liability; if causing damage to the public fund, they must make compensation therefor according to law provisions.

Article 84.- Organizations may lodge complaints about or initiate lawsuits against, individuals may lodge complaints about, initiate lawsuit against or denounce, acts of violating the budget legislation. The complaints, lawsuits, denunciation and the settlement thereof shall comply with law provisions.

Chapter VII

IMPLEMENTATION PROVISIONS

Article 85.- This Decree takes effect as from the 2004 budget year. To annul the Government’s Decree No.87/CP of December 19, 1996 detailing the decentralization of management, elaboration, implementation and settlement of State budget and the Government’s Decree No.51/1999/ND-CP of July 18, 1998 amending and supplementing a number of articles of the Government’s Decree No.87/CP of December 19, 1996.

The previous regulations of the Government, the ministries, the ministerial-level agencies or the Government-attached agencies, which are contrary to the contents of this Decree, are all hereby annulled.

The Finance Minister guides and organizes the implementation of this Decree.

Article 86.- The ministers, the heads of the ministerial-level agencies, the Government-attached agencies, other central agencies and the presidents of the provincial/municipal People’s Committees shall have to implement this Decree.