Directive 25/CT-TTg on superintending to perform financial tasks – Budget 2014

THE PRIME MINISTER

Directive No. 25/CT-TTg dated August 13, 2014 of the Prime Minister on superintending to perform financial tasks – Budget 2014

In the first seven months of 2014, ministries, sectors and localities have actively implemented the Resolutions of the Party, National Assembly and Government on superintending to perform the socioeconomic development plan and estimation for state budget 2014. With these efforts, the socioeconomic status has achieved positive results in most fields. However, our economy still faces many difficulties and challenges. The recovery of business production is slow. Enterprises face many difficulties; the number of bankruptcy enterprises is high; the enterprises also find hard to be access to credit capital; the growth of credit capital is low; natural disasters, epidemics, climate change happen seriously. Especially, China’s illegal installation of the oil rig HD 981 in Viet Nam s exclusive economic zone and continental shelf in recent times violated the international laws, breaks the declaration on conduct of parties in the South China Sea (DOC) and agreements between senior leaders of the two countries and causes bad influences on Vietnam economy, including revenue and expenditure of state budget. Besides, correction of existing weakness in managing the state budget (distribution, allocation, waste, inefficiency…) has achieved some positive results, but it is still slow.

In order to deal with these difficulties and challenges and contribute to fulfill the financial – budget tasks 2014, actively meet urgent requirements, tasks on national defense, security and protection of the East Sea, 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 Resolutions of the National Assembly, the Government, directions of the Prime Minister, 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 conduct the synchronous and effective implementation of fiscal and monetary policies to support for business production, restrain inflation, stabilize the macro-economy and ensure the social security. Being active in understanding the situation and make predictions about bad influences on the plan on the development of the socioeconomic status, revenues, and expenditures of the state budget in the long run; preparing measures to deal with arising problems. Striving to achieve the target of economic growth and state budget estimation 2014 that is about 8 – 10%;

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

- Implement measures to remove difficulties and recommendations of the enterprises; focus on supporting the enterprises to recover damages and be ready for production; decreasing the number of bankruptcy enterprises.

- Urgently implement Resolutions of the Government on some policies on developing the aquaculture sector; implement timely and effectively policies on the offshore fishing (credit, insurance, training…) to encourage the development of the aquaculture sector.

- Strengthen the administrative procedures, especially on the field of market entrance, export, import, capital access, credit, tax and customs, land, real estate, investment, construction, environmental resources, labor… to create conditions for enterprises.

b) The State Bank shall assume the prime responsibility for and coordinate with ministries, central agencies and localities to implement measures to manage credit in accordance with the macro-economic situation, the target of restraining inflation and economic growth, speeding up to the handling of bad debts; directing credit institutions to be active to work with the enterprises to make consultations on loans, effective production measures; encourage the application of credit assessment methods for unsecured loan, restructure the loans with high interest.

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

- Promptly complete the guidelines on preferences, exemption, reduction of enterprise income tax as stipulated by the law amending, supplementing a number of articles of the law on enterprises income tax; building measures for tax support or compensatory payment mechanism for enterprises that meet difficulties in capital due to inventory, haven’t been paid, reducing the rate for late tax payment.

- Enhance the simplicity and modernization in administrative procedures in the field of tax and customs to create favorable conditions for tax-payers in fulfilling their rights and obligations towards the state.

- Supervise the fluctuation of price, and promptly propose the suitable measures to intervene the market with a view to stabilizing price, restraining inflation in each locality and nationwide, especially on Tet, holidays. To continue to adjust the price of some necessary goods (petrol, electricity, coal, power milk for under 6 year old children…) according to the market mechanism. To speed up activities to fight against smuggle and the commercial fraud, pricing transfer.

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; 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;

b) Manage the timely collection of tax items and budget items extended in 2013 that are due to submit to state budget. To implement timely and effectively collection items to the conclusions and recommendations of the State Audit, Inspection agencies and other legal protection agencies. To manage strictly the tax refund, ensure the right subject and in accordance with the regulated regime. To detect and promptly handle with violations;

c) Frequently perform the tax inspection and cooperate closely with collection agencies, financial agencies and performing forces in the management of collection, and preventing the loss and handling bad debts. To speed up the fighting against the commercial fraud, pricing transfer, import price fraud and smuggle through border.

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

Ministries, agencies, localities under the assigned tasks shall:

- Revoke to supplement the contingency of the central budget and local budget for investment capital under the plan 2014 that are allocated in the state budget estimation of Ministries, Central agencies and local agencies but until June 30, 2014 they are not still allocated for projects or allocated but not in accordance with the regulations on management of investment capital in basic construction; constant expenditures are allocated for agencies but until June 30, 2014 they still remain (except for some items are allowed to retain for next allocation as stipulated).

- 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; Continuing to speed up the handling of 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 and Directive No. 14/CT-TTg dated August 26, 2013 on enhancing the investment management and handling of unsolved debts of basic construction from state budget, Government bonds. Of which,

- Avoid lengthening the time of implementing investment capital under the plan 2014, advances of state budget and government bonds the plan 2014 to the plan 2015 (except some cases permitted by competent agencies).

- Avoid the prepayment of capital from state budget for works, projects except for cases that are really necessary and urgent to ensure the national defense, security, territory protection and must balance and allocate the source to refund the prepayment.

b) Review and examine the implementation of policies and regimes that are promulgated on social security, security in ethnic minorities and mountainous areas to ensure the source for payment as stipulated.

c) Implement the saving and avoid waste in management of constant payment; actively review and arrange to cut down on or put off the implementation of payment tasks that are not really necessary and urgent, of which:

- Actively cut down on or put off the implementation of payment tasks for purchasing equipment, cars… that are out of date but still be usable. After October 31, 2014, expenditures for purchasing and repairing that are allocated in the estimation of units shall be stopped and cancelled but at that time, the estimation has not been approved yet, and the auction is not held yet.

- Avoid organizing festivals, ceremonies, grand opening; cut down on the organization of conferences, meetings that are unnecessary. To combine contents, issues, works that need to be solved and combine meetings, organize online meetings in directing and handling related works… to reduce expenses for electricity, water, telephone,  stationery, petrol, domestic business trips; stop unnecessary business trip abroad using the state budget;

Avoid supplementing the scheme, promulgating new policies or increasing the level to increase the payment rate for state budget without determining the secured source.

d) Review, perform tight management of brought forward expenditures, expenditures for bring forward when necessary in accordance with the law. To avoid bring forward for late implementation of agencies, organizations using state budget.

4. To manage the state budget positively and actively, ensuring the balance of budget among levels:

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;

Central contingency focused on meeting urgent tasks on national defense, security, sea territories. Localities should actively use the contingency to handle in case of emergency such as prevention against natural disasters, flood and urgent demands. The central budget only considers and support if mentioned arising payment exceeds the locality’s ability.

b) Based on the budget’s collection, being active to arrange and manage payment and apply suitable measures to ensure the balance of budget of all levels.

In case the balance of budget reduces compared with the estimation, payment tasks should be reviewed and arranged in order of priority; cut down on or stretch the time of performance when it’s not really necessary, of which it must ensure payment source for expenses for salary and allowances, current expenditures to ensure the normal operation of agencies, expenses for social security, expenses for basic construction of important works; actively use financial resources of localities to compensate for losses of remaining balance (including expenses for basic construction); the capital mobilization to invest in urgent and important infrastructure shall be followed in accordance with Clause 3 Article 8 of the law on State Budget and must ensure the payment source in the annual local budget estimation.

c) Enhance the supervision, inspection for expenditures in the scope of its management and under the assigned tasks; ensure that the budget is used in accordance with purposes, regime.

d) Strengthening the saving at agencies, units and localities. To promptly promulgate and implement documents that detail the implementation of the law amending, supplementing a number of articles of the law on thrift practice and waste combat to put it into use soon.

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 2014 state budget at the levels. At the same time, it shall review responsibility and seriously handle with violations as stipulated for violated organizations, individuals under its management

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 result of implementation; report to the Government on the situation of using state budget at monthly Government sessions./.

For the Government

The Prime Minister

Nguyen Tan Dung