Directive 09/CT-TTg on the enhancement of superintendence to perform financial tasks – Budget 2013

THE PRIME MINISTER

Directive No. 09/CT-TTg dated May 24, 2013 of the Prime Minister on the enhancement of superintendence to perform financial tasks – Budget 2013

In the first months of 2013, ministries, sectors and localities have actively implemented the measures to stabilize the macro – economy, removing difficulties for the business production, supporting market and handling bad debts according to the Resolution No. 01/ND-CP, the Resolution No. 02/NQ-CP dated January 07, 2013 of the Government. With the effort of the political system, enterprise community and people, Vietnam economy achieved some positive results, especially in restraining the inflation and stabilizing the macro-economy. However, the business production still meets many difficulties, the purchasing power decreases, and consumption is slow. Besides, the enterprises also find hard to be access to credit capital; the collection of state budget in the first months of years is low and is slower in comparison with the same period of last year. Meanwhile, the demand on the sources to pay for important expenses such as expenses for national defense and security, social security or expenses for overcoming consequences of natural disasters, diseases.... are increasing.

To strive to achieve the highest results on the management and use of fund from 2013 state budget estimation approved by the National Assembly, the Prime Minister requests ministers, heads of ministerial-level agencies, governmental agencies, other agencies at the Central (hereinafter referred as ministries, agencies), the chairpersons of the People’s Committee in municipal cities and provinces, under assigned functions, tasks, on initiative, follow closely the contents stated under the Resolution No. 01/NQ-CP, No. 02/NQ-CP of the Government, be active in directing for synchronous, drastic and effective implementation of mentioned tasks, solutions, of which, concentrating on carrying out the main contents as follows:

1. To implement the synchronous and effective implementation of solutions to remove the difficulties for business production, handling of bad debts, expanding markets for consumption; striving to achieve the target of economic growth and state budget estimation.

a) Ministries, agencies, localities under assigned functions, tasks shall:

- Focus on removing difficulties for the enterprises, settling the inventories, handling bad debts, expanding market for goods consumption. Organize the preliminary conference to judge the implementation in the first six months of 2013 and recommend the measures in directing and managing in the last six months of 2013, send to the Ministry of Planning and Investment before June 10, 2013 to summarize and report to the Prime Minister.

- To complete the submission of the Scheme for restructuring state-owned corporations, enterprises for approval before June 30, 2013; To organize the implementation of the approved measures promptly and effectively.

b) The State Bank of Vietnam shall assume the prime responsibility for, and coordinate with ministries, agencies and localities in directing monetary tools flexibly to control the inflation, stabilizing the macro-economy and supporting the reasonable growth; to continue to reduce the interest rate and strive to achieve the credit growth at 12% for the whole year of 2013, of which, loan capital is focused on priority fields; to implement drastically the Scheme of restructuring the credit organizations; to speed up the handling of bad debts.

c) The Ministry of Industry and Trade shall assume the prime responsibility for, and coordinate with ministries, agencies and localities in settling inventories, expanding the market for consumption, supporting and bringing goods to the remote and rural areas, promoting the export, especially the service export andon-spot export; it shall assume the prime responsibility for, and coordinate with the Ministry of Finance to review and adjust the management policies of export products which are suitable with the actual situations, creating the chances to attract the investment, developing the business production; Implementing the measures to examine, control and inspect the import goods to ensure that they meet the hygienic standard for food, environmental protection standard and are suitable with the international commitments; to build the Scheme of renovating the distribution system according to the market mechanism and submit it to the Prime Minister before September 30, 2013.

d) The Ministry of Finance shall assume the prime responsibility for, and coordinate with Ministries, agencies and localities:

- To promptly implement the exemption, reduction and extension of the time limit of tax payment and items of state budget revenue applicable to some subjects of enterprises, households and individuals according to the Resolution No. 02/ NQ-CP of the Government; to ensure the disclosure and transparency.

- To continue to review and complete the collection mechanism and policy in the direction of both encouraging the domestic investment and business production and protecting the natural resources and encouraging the rationalization of revenue source; To continue to review and adjust the export tax rate; To coordinate with the Ministry of Industry and Trade and the Ministry of Construction to enhance the strict management on some commodities of export minerals; To review and adjust to increase the import tax rate in accordance with the commitment to international integration for some goods that could be produced domestically.

- To review and adjust some charge items remained for the units in the direction of ensuring the funding source to implement the assigned tasks; enhancing the effective management and use and avoid the large backlog of fund.

- To continue to adjust the price of petrol, electricity, coal sold for electricity production according to the market mechanism with the reasonable roadmap, ensuring the benefits of consumers, enterprises and state budget; To disclose the information on the price and petroleum stabilization fund.

2) To promote the management of collecting, preventing the tax loss and handling the tax arrears

The Ministry of Finance, Ministries, agencies, localities under the assigned tasks shall:

a) To review the subjects, funding source in the area, striving to collect in many fields, sectors to make up for the loss due to the exemption, reduction or extension of tax payment; To enhance the tax inspection and supervision and combine with the inspection and supervision on price; To control the tax declaration, tax finalization of the enterprises, organizations, individuals to ensure to the timely collection of tax items, charge and fee amount and other items to submit to state budget; To implement fully and collect timely the collection items according to the conclusions and recommendations of the State Audit, Inspection agencies and other legal protection agencies.

b) To manage strictly the tax refund, ensure the right subject and in accordance with the regulated regime and ensure the disclosure and transparency.

c) To cooperate closely with collection agencies, financial agencies and performing forces in the management of collection, and preventing the loss and handling bad debts, fighting against the commercial fraud, smuggle, pricing transfer.

3) To promote the management and use of fund from the state budget

Ministries, agencies, localities under the assigned tasks shall:

a) Cut down on the payment tasks, revoke to supplement the contingency of the central budget and local contingency budget for: investment capital and constant expenditures are allocated in state budget estimation 2013 of Ministries, Central agencies and local agencies but until June 30, 2012 they are not still allocated for projects or allocated but not in accordance with the regulations; investment capital under the plan 2013 that are allocated for projects but until June 30, 2013, they are not implemented yet and capital, expenditures that agencies use the fund not in accordance with the regulations.

b) Focus on speeding up the schedule and disburse the investment capital, especially the investment capital from the state budget, government bonds, national target programs, and ODA. Of which:

- Avoid lengthening the time of implementing capital from the state budget; government bonds the plan 2013 to the plan 2014.

- Avoid the prepayment of investment capital for projects (even capital from state budget and government bonds). The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with the Ministry of Finance to reach an agreement on principles, criteria; based on this, setting up the list of projects that are allowed to be paid before the capital plan 2014 (including capital of state budget and government bonds) in the direction:

+ For projects using capital from Government bonds: only projects that are necessary and fully disbursed the capital plan 2013 but they need capital to speed up the schedule to put into use shall be paid in advance, the remaining capital from  Government bonds belongs to the plan in the period of 2014- 2015.

+ For projects using state budget: review carefully and select projects that are really necessary, and fully disbursed the capital plan 2013; determining the rate that is supported from central budget on the basis of ensuring balance the refund capital and be suitable with the ability to balance the state budget.

- The Ministry of Planning and Investment , the Ministry of Finance revoke the prepayment capital items from state budget, government bonds in accordance with the decision assigned in the plan 2013 (except the case there are other guidance of the Prime Minister).

- Continuing to speed up the handling the unsolved debts of basic construction according to the Directive No. 27/CT-TTg dated October 10, 2012 of the Government on the key solution to overcome the unsolved basic construction debts at the local level.

c) Review and rearrange the constant payment task:

- Implement the saving of 10% remaining constant payment estimation of the last months (not including: payment for salary, allowances, payment for people according to the regime; save 10% of constant payment to create the salary reform as the estimation in the beginning of year and save 10 % of increasing constant payment retained at levels).

Cut down on or put off the implementation of payment tasks that are not really necessary and urgent, expenses for purchasing equipment, cars; restrict the organization of national meeting, conference, ground breaking ceremony; save at least 20% of electricity, water, telephone,  stationery, petrol expenses; save at least 30% of fund estimation allocated for payment tasks such as organizing the festivals, conferences, meeting, business trip…

Based on this to determine the additional saving amount 10% of constant estimation in the last months and report to the Prime Minister within June, 2013; The Ministry of Finance retains the additional saving mount 10% of constant estimation at the State Treasury system; Until quarter IV, 2013, based on the situation of collecting and paying the state budget, report to the Prime Minister for consideration and making decision on using this saving amount.

- To remove the waste and inefficiency in the implementation and allocation of the funding for projects, tasks; not supplementing the scheme, programs and promulgating the new policies or increasing the level that causes the increase of payment in the state budget when not determining the certain source.

- To ensure the source to implement the regimes, policies promulgated and social security.

4) To manage the state budget positively and actively, ensuring the balance of budget among levels and keep State budget deficit in the target decided by the National Assembly.

The Ministry of Finance, the People’s Committee in municipal cities and provinces focus on directing:

a) Tight management of contingency as allocated according to the estimation at each level; focusing on managing to use at 50% of allocated contingency according to the estimation to handle in case of emergency such as: prevention against natural disasters and recover the consequences of natural disasters, diseases, nation defense and security...; the remaining contingency will be used in case of the state budget revenues reduce dramatically.

b) In the process of directing, actively arrange and adjust the payment tasks in an appropriate way; inspecting and supervising closely the changes in the fund of each level, ensuring the solvency capacity and payment of the state budget.

c) To strive to balance the local budget, in case, the state budget is reduced compared with the estimation, must actively use the local financial source to make up for, at the same time, review and rearrange the payment tasks in the priority order, cut down on the payment tasks that are not necessary, of which, must give the priority on the payment source of salary, constant expenses to ensure the normal operation of agencies, units, expenses for social security, expenses for basic construction of important works.

In case the revenue from the land use fee reduces compared with the estimation, it shall cut down on or rescheduled the progress of works, projects that are allocated from this source of revenue.

5. Organization for implementation:

a) Based on this Directive, Ministers, Heads of ministerial-level agencies, Heads of Governmental agencies, the Presidents of People’s Committees of municipal cities and provinces shall, under functions and tasks assigned, guide, organize implementation and inspect and supervise the implementation at lower level to strive to complete the task of collecting and paying 2013 state budget at the levels.

b) The Ministry of Finance shall assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment and ministries, agencies, localities to inspect, supervise the implementation; and quarterly report to the Government on situation, result of implementation at monthly Government sessions./.

For the Government

The Prime Minister

Nguyen Tan Dung