Directive 922/CT-TTg 2011 on the socio-economic development plan and state budget estimate for 2012

THE PRIME MINISTER

Directive No. 922/CT-TTg  dated June 15, 2011 of the Prime Minister on the elaboration of the socio-economic development plan and state budget estimate for 2012

The year 2012 is the second of materializing the objectives set out by the 11th Party National Congress, the 2011-2020 ten-year socio­economic development strategy and the 2011-2015 five-year socio-economic development plan.

In the context that the country's socio­economic situation sees many difficulties and the world economy experiences unforeseeable changes in 2011, the process of elaborating the socio-economic development plan and state budget estimate for 2012 will be affected.

In order to overcome difficulties and challenges to control inflation, stabilize the macro-economy and assure social security and sustainable development, the Prime Minister requests ministries, ministerial-level agencies, government-attached agencies, provinces, centrally run cities, and state-owned economic groups and corporations to concentrate on elaborating the socio-economic development plan and state budget estimate for 2012.

A. REQUIREMENTS ON THE ELABORATION OF THE SOCIO­ECONOMIC DEVELOPMENT PLAN AND THE STATE BUDGET ESTIMATE FOR 2012

1. Serious evaluation of the implementation of the 2011 socio-economic development plan and state budget estimate on the basis of fully evaluating the implementation of the resolutions of the Party, the National Assembly and the Government; attaching special importance to evaluating the Government's Resolution No. 02/NQ-CP of January 9, 2011, on major solutions for directing and administering the implementation of the 2011 socio-economic development plan and state budget estimate, and Resolution No. 11/NQ-CP of February 24, 2011, on major solutions for controlling inflation, stabilizing the macro economy and assuring social security.

2. Objective and honest evaluation of results achieved in 2011 compared to the objectives, tasks and targets of the 2011 socio-economic development plan and state budget estimate as well as the objectives and tasks set by administrations at all levels and sectors in the 2011-2015 five-year socio-economic development plan and the 2011-2020 ten-year socio-economic development strategy.

3. Identification of objectives and tasks of the 2012 plan based on the major objectives of the 2011-2015 five-year socio-economic development plan stated in the documents of the XIth Party National Congress and on the evaluation of the domestic and international situations in the past and development prospect in the coming time.

4. Elaboration of the socio-economic development plan for 2012 must be based on resource-balancing capabilities and implementa­tion abilities of administrations at all levels and sectors in order to ensure feasibility and effective use of resources, and increase socialization of resources for development investment.

5. In elaborating the state budget estimate for 2012, ministries, central agencies and localities shall closely follow the socio­economic development objectives and tasks set for 2012 and the 2011-2015 period as well as their respective key tasks and activities defined in the Law on the Slate Budget.

6. Elaboration of the socio-economic development plan and state budget estimate for 2012 must ensure synchrony, systematically and close coordination among agencies, units, sectors and administrations of all levels.

B. OBJECTIVES AND MAJOR TASKS OF THE 2012 PLAN

The general objectives of 2012 are to further stabilize the macro economy, control inflation, strive to achieve a growth rate higher than that of 2011 in association with renewing the growth model and restructuring the economy, increasing productivity, quality, effectiveness and competitiveness of the economy; to ensure social security and welfare and improve the people's living conditions; to preserve political stability, further strengthen national defense and assure security and social order and safety; and to raise the effectiveness of foreign relations and international integration.

I. ECONOMIC AND SOCIAL DEVELOPMENT TASKS

1. Stabilizing the macro economy and controlling inflation in 2012 must embrace the following basic contents:

a/ Continuing to implement tight, prudent and flexible monetary policies, harmoniously combining monetary and fiscal policies to control inflation, stabilize the value of Vietnam dong and incrementally increase foreign exchange reserves. To enhance management of operations of the banking system and the foreign exchange and gold markets, prevent risks, reduce bad debts and ensure liquidity and safety of the system of credit institutions; overcoming irrationalities in profit and income in monetary business and banking services; encouraging and attracting sources of money from overseas into the country;

b/ Continuing to implement tightened fiscal policies: closely controlling and making more transparent state budget expenditures and public investments, especially investments from the state budget and government bonds and investments of state enterprises; reducing state budget deficits and keeping government debts, public debts and foreign national debts at safe levels, ensuring national financial security;

c/ Continuing with the consistent implementation of the policy on administering prices according to the market mechanism; stepping up price control, ensuring the supply-demand balance and valorize the prices of essential goods; taking measures to help poor households and policy beneficiaries who are greatly affected when the State adjusts the prices of a number of commodities according to the market mechanism.

2. The 2012 economic development plan must clearly demonstrate the following principal contents:

a/ Concentrating on removing difficulties and problems to promote production and business activities; further mobilizing and effectively utilizing sources of investment capital. Striving to achieve an economic growth rate of around 6.5%;

b/ Reducing the ratio of public investment, increasing the ratio of investment of the non-state sector, further mobilizing resources for development investment. Arrangement of development investment funds for different sectors and fields must reflect the requirement of economic restructuring according to the objectives stated in the five-year 2011-2015 socio-economic development plan. Stepping up the development of industries toward higher quality, effectiveness and competitiveness. Developing industries with hi-tech content and large added value to create many export products. Attaching importance to developing supporting industries, renewable energies, high technologies and key mechanical industries. Applying technologies conserving materials, fuels, supplies and energy:

c/ Working out solutions for removing difficulties, supporting and encouraging agricultural production and rural development in association with developing farm produce processing industries. Stepping up export of farm produce of high quality and added value to create jobs and generate incomes for laborers while firmly assuring food security. Continuing with the implementation of policies to support agricultural and rural development together with appropriate mechanisms and policies to mobilize more social resources for agricultural and rural development, especially in poor districts under Resolution 30a and the program on building a new countryside;

d/ Introducing mechanisms and policies to develop service sectors with potential and advantages, intellectual and technological contents to bring about high added value;

e/ Encouraging and boosting exports, particularly commodities of high added value. Incrementally reducing the export of crude and preliminarily processed materials. Limiting the import of non-essential consumer goods, obsolete technological equipment and goods and supplies which can be made in the country. Actively and proactively expanding markets and multilateralizing and diversifying relations with various partners;

f/ Further stepping up reform of state enterprises and equitization of state-owned economic groups and corporations; reviewing and rearranging investment projects to concentrate resources on main production and business lines; raising production and business effectiveness; intensifying management of state capital and assets at these enterprises;

g/ Further attracting and effectively utilizing resources for developing infrastructure. Concentrating state capital for coordinated investment in building key works and projects, prioritizing important national ones, natural disaster prevention and control, hydropower, human resource development, hunger eradication and poverty reduction, building of a new countryside and works to be completed in 2012. Increasing examination, inspection, supervision and evaluation of the management and use of capital of state-funded investment projects;

h/ Improving the business environment, further reforming enterprises and increasing their competitiveness. Simplifying administrative procedures to be more favorable to enterprises.

3. Development of education and training, science and technology, culture and other social security fields in 2012 must embrace the following major contents:

a/ Continuing to improve the quality of education and training at all levels on the basis of implementing the education and training development strategy, the National Assembly's resolution on renovation of the financial mechanisms in the education and training sector during 2010-2015 and the Prime Minister's Directive on renovation of tertiary education administration during 2010-2012 toward standardization of Vietnam's education system. Effectively combining the expansion of the scale and improvement of the quality of vocational training in order to develop trained laborers in both quantity and quality. Developing forms of vocational training for rural labor under the Prime Minister-approved Scheme on vocational training for rural labor through 2020. Further socializing education and training and vocational training activities;

b/ Vigorously renewing mechanisms and policies on science and technology development, increasing the effectiveness of scientific and technological activities to serve socio-economic development. Prioritizing resources for implementing programs on development of national products, hi-tech development, technology renewal, science and technology market development, increase of productivity and product quality, development of intellectual assets, support of application and transfer of scientific and technological advances, and promotion of international integration in science and technology;

c/ Further developing the labor market: increasing supervision and regulation of labor supply-demand relations. Formulating the national target program on employment during 2011-2015. Attaching importance to creating jobs and increasing incomes for laborers. Further expanding labor export markets. Effectively implementing the scheme on support for poor districts to step up labor export, contributing to sustainable poverty reduction during 2009-2020. Increasing measures to ensure labor safety; implementing the national program on labor safety and labor sanitation during 2011-2015. Implementing the Government's Decree No. 80/NQ-CP of May 19, 2011, on orientations for sustainable poverty reduction during 2011-2020; continuing with the coordinated and effective implementation of poverty reduction programs and projects in order to ensure fast and sustainable poverty reduction. Formulating the national target program on sustainable poverty reduction during 2011-2015. Continuing with the fruitful implementation of the program on sustainable poverty reduction in poor districts:

d/ Improving the quality of medical examination and treatment and health care for the people. Expanding the application of the regime of rotation of health workers to work at lower levels. Renewing financial and management mechanisms in public health establishments. Further socializing health care activities. Proactively and actively earning out preventive medicine activities to prevent the outbreak of major epidemics; promoting the management, prevention and control of non-contagious diseases among the population; improving health and increasing life expectancy. Integrating people's health care, protection and improvement and population work objectives. Increasing the capacity of surveillance, identification and control of epidemics and diseases, particularly HIV/AIDS and new ones. Intensifying state management of the manufacture, import, circulation and supply of medicines; introducing mechanisms to closely control medicine prices; implementing measures to closely manage the quality of medical examination and treatment. Adopting mechanisms and policies to develop the pharmaceutical industry and raising domestic manufacturing capacity: stepping up research and manufacture of vaccines and medical biologicals; planning and developing pharmaceutical material zones. Strengthening the medicine circulation, distribution and supply networks in order to stabilize the medicine market;

e/ Continuing to build the Vietnamese culture along the line of bringing into full play the fine values and traditions of the national culture while selectively absorbing the world's cultural quintessence in order to step by step catch up with contemporary developments. Elaborating plans and programs on cultural development in association with developing tourism and economic activities. Continuing with the effective implementation of the movement "All people unite to build cultured life." Further socializing cultural, physical training and sports activities. Intensifying the management of festivals and cultural and sports activities, ensuring thriftiness, security and social order: mobilizing social resources and minimizing the use of budget funds for organizing festivals. Further raising the quality of information, press and publication activities: increasing the radio and television broadcasting in ethnic minority languages to remote, deep-lying and mountainous areas;

f/ Continuing with the implementation of child protection and development programs and projects; building a living environment safe and friendly to children: implementing the national program of action for children during 2011-2020. and the national child protection program during 2011-2015. Concentrating on implementing the national strategy on youth development during 2011-2020 with a view to building an environment for all-sided development of young people to meet the requirement of national socio-economic development in the period of deep integration into the global economy. Step by step ensuring gender equality in all political, economic, cultural and social aspects; narrowing the gender gap, gradually eliminating gender prejudices; implementing the national strategy on gender equality during 2011-2020 and the national program on gender equality during 2011-2015;

g/ Solving burning social issues such as assurance of traffic order and safety and tackling of traffic jams in major cities, and social evils. Effectively controlling and preventing crimes stemming from drug addiction and prostitution. Implementing the national strategy on drug prevention and combat during 2011-2015 and orientations toward 2020; organizing the drastic prevention of drug sources entering the country from abroad, especially in border and hot-spot provinces.

4. Natural resources, environment and sustainable development in the 2012 plan should focus on the following major tasks:

a/ Reviewing, amending, supplementing and further improving legal bases on natural resources management and environmental protection. Expeditiously promulgating documents guiding the implementation of the Mineral Law; finalizing the Water Resources Bill and the five-year 2011-2015 land use master plan: and completing the grant of land use right certificates. Elaborating technical standards for and enhancing the capacity of assuring socio-economic development linked with response to climate change; fully realizing international commitments on response to climate change which Vietnam has acceded to;

b/ Imposing more sanctions for violations of environmental protection regulations, preventing illegal and wasteful exploitation of natural resources, mitigating pollution, restoring the degraded environment and raising environmental quality, effectively stopping deforestation and forest fires, and resolutely handling seriously polluting establishments. Raising the capacity of forecasting and effectively responding to natural disasters;

c/ Further improving mechanisms and policies and increasing the effectiveness and effect of management work to ensure reasonable and effective utilization of land and natural resources and harmony between economic development and natural resource and environmental protection. Implementing the plan of action to respond to climate change and sea level rise.

5. In 2012, administrative reforms should focus on the following principal contents:

a/ Implementing the administrative reform program during 2011-2020, focusing on simplifying administrative procedures to be favorable to enterprises and citizens. Further socializing a number of public services associated with streamlining the state apparatus, concentrating resources on the most important fields of socio-economic development. Stepping up application of information technology lo operations of state agencies along with renovating the administration methods of the administrative system, creating publicity and transparency in state management work;

b/ Continuing to consolidate the governmental apparatus toward multi-sectoral management. Clearly distinguishing the tasks, powers and responsibilities of heads of state agencies from those of their state agencies at each level. Reviewing and adjusting the organizational structure, payrolls and operation regulations of the state administration apparatus to be neat and effective and to ensure centralized, unified, smooth and effective administration from the central government to local administrations and units;

c/ Further improving regulations on management of cadres and civil servants in the direction of clearly defining their obligations, responsibilities and interests. Raising the professional knowledge and skills and political quality of civil servants and public employees;

d/ Continuing to implement salary reforms and social insurance and grant allowances for people with meritorious services according to reasonable roadmaps suitable to the budget limit;

e/ Stepping up the prevention and combat of red tape, corruption and wastefulness, especially in land administration, construction investment and management of state capital and assets. Promptly and strictly handling violations.

6. National defense, security and foreign relations work should focus on performing the tasks of strengthening national defense to firmly defend national independence and sovereignty. Increasing the quality of the all-people defense and people's security in the new situation. Firmly maintaining independence, sovereignty, unity and territorial integrity; expanding foreign relations and raising the country's position in the international arena. Assuring political security and social order and safety, paying special attention to regions and areas key to political security. Properly implementing the foreign relation line, promoting international cooperation, creating a peaceful and stable environment, and making use of all external resources for national development.

7. In 2012, to increase, and improve the quality of, analyses and forecasts of the domestic and international situations, especially changes in the world economic and financial situation. To proactively elaborate plans on response to impacts of the world economic situation on the country's economy in any circumstances. To intensify information and propaganda work and increase official information in a public, transparent and timely manner on the situation and the Party's and State's policies.

II. TASKS OF ELABORATING THE STATE BUDGET ESTIMATE

1. A positive and practical stale budget revenue estimate must be elaborated for 2012 on the basis of precise forecasts about the investment in and development of production, business, trade, import and export activities in 2012; to assure correct, full and timely calculation of budget revenues according to current policies and regulations and those to take effect in 2012 (the Law on Environmental Protection Tax, the Law on Non-Agricultural Land Use Tax. etc.): at the same time, to fully estimate enterprise income tax amounts already rescheduled under the Prime Minister's Decision No. 21/2011/QD-TTg of April 6, 2011; to collect previous years' tax debts and revenues from investment projects which have passed their periods of preferential treatment, and revenues detected through inspection, examination and audit activities.

The 2012 state budget revenue estimate must ensure state budget revenues accounting for around 24% of GDP, with tax and charge revenues making up for around 23% of GDP. Estimates of domestic revenues (excluding revenues from crude oil and land use) will increase at least 16-18% on average over the figures estimated for 2011 (already excluding factors resulting from the tax rescheduling under the Prime Minister's Decision No. 21/ 2011/QD-TTg of April 6. 2011), depending on the conditions and characteristics of each locality. Estimates of revenues from import and export activities will increase at least 7% over the figures estimated for 2011.

2. The 2012 state budget expenditure estimate shall be elaborated in pursuance to current legal provisions on expenditure regimes and policies; on the basis of required funds for the implementation of important programs, tasks and projects while ensuring thrift and efficiency and combating wastefulness right from the stage of estimation.

Ministries, central agencies and localities shall take the initiative in identifying important and central tasks of agencies and units to be completed in 2012; on this basis they shall plan and assign tasks to their attached agencies and units for elaborating state budget expenditure estimates as appropriate.

When elaborating state budget expenditure estimates for 2012, agencies and units should arrange their tasks in a priority order based on their level of importance and capability to perform these tasks under programs and projects already approved for 2012 and subsequent years in order to promote proactive performance and ensure fulfillment of political tasks on the basis of allocated state budget resources.

In order to timely serve the elaboration of the state budget estimate for 2012, ministries and central agencies in charge of different sectors and fields shall:

- Review the system of policies and regimes in the sectors and fields under their management. On this basis, they shall cancel according to their competence or submit to competent authorities for cancellation or revision and supplementation regimes and policies which are no longer suitable to the practical situation and resource-allocating capability.

- Additionally propose necessary and urgent policies and regimes to be implemented in the coming time. When proposing, revising or adding policies and regimes, it is necessary to investigate and survey the number of target subjects and funding needs; integrate policies and regimes expected to be revised or introduced with current policies, and coordinate with finance agencies in calculating resources for their implementation before submitting them to competent authorities for decision so as to ensure feasible implementation.

State budget expenditure estimates for a number of specific fields and tasks in 2012 shall be elaborated as follows:

a/ Development investment expenditures:

Estimation of development investment expenditures must be based on the objectives and tasks of the 2012 socio-economic development plan in order to increase effectiveness and avoid wasteful use and loss of state budget investment funds, contributing to stabilizing the macro-economy, controlling inflation and boosting economic growth. Estimated development investment expenditures must be arranged in a priority order, giving priority to important national works and projects; and economic infrastructure, education, training, science and technology, people's health care, environmental protection, agricultural and rural development, security and defense works and projects.

Ministries, sectors and localities shall arrange estimated development investment for 2010 on the principle of assuring sufficient domestic capital for ODA-funded projects: concentrating capital for ongoing works and projects to be completed and put into use in 2012, and important projects with high investment effectiveness. To restrict to the utmost the arrangement of capital for new works and projects which are not really urgent and have not yet completed investment procedures as required, and encounter many obstacles in implementation. To balance capital to pay advanced amounts under the state budget capital plans and pay infrastructure construction debts.

b/ Regular expenditures:

Estimation of expenditures for development of education and training, health, science and technology, culture and information, environment, social assurance, defense, security, state administration, activities of the Party and mass organizations and price subsidies must ensure strictness and thrift on the basis of only assuring increases for current policies, regimes and norms and urgent tasks likely to arise in the 2012 and need funds; prioritizing human resource development, assuring state budget funds for education and training, science and technology, culture and information and environmental protection under the Party's and National Assembly's resolutions.

In the course of elaborating the state budget estimate for 2012, ministries, central agencies and localities shall restructure state budget spending tasks as appropriate on the basis of assigning autonomy and accountability for using payrolls and administrative management funds to slate agencies, while taking into account impacts of the renewal of operations of public non-business units and stepping up socialization of a number of public services.

3. Formulation of national target programs:

Ministries and agencies managing programs and national target programs shall identify the list, objectives, scope and funds for the implementation of national target programs during 2012-2015. prepare program documents and send them to the Ministry of Planning and Investment and the Ministry of Finance for summarization and submission to competent authorities for decision as a basis for arranging funds for these programs in 2012 in line with the schedule for elaboration, allocation, submission and assignment of the state budget estimate for 2012.

4. Mechanisms to create sources for salary reform:

In 2012. ministries, central agencies and localities shall continue with the proactive implementation of the mechanism of creating sources for salary reform as follows: 10% savings of regular expenditures, excluding salaries and payments of salary nature; a portion of revenues allowed to be retained according to regulations by administrative agencies and non-business units: 50% of increased local budget revenues, excluding increased revenues from land use; and unused funds (if any) for implementing salary reform left from the previous years.

5. For ODA-funded programs and projects, their fund estimates for 2012 shall be elaborated according to the order stipulated in the Law on the State Budget and guiding documents, the Government's decrees on management of investment and capital construction, management and use of ODA capital, clearly specifying ODA capital source and domestic capital by program or project and by source of capital: capital construction and non-business funds, and according to the 2012 disbursement schedule. To prioritize allocation of adequate domestic capital for ODA-funded projects according to their capital disbursement schedule.

6. Ministries, central agencies and localities assigned to implement government bond-funded projects shall take the initiative in evaluating the utilization of government bonds; make plans on investment from government bonds in 2012 for projects and works on the Prime Minister-decided or -instructed list of investment projects to be funded with government bonds. On this basis, ministries and central agencies assigned to manage government bond-funded investment programs shall send them to the Ministry of Planning and Investment and the Ministry of Finance for reporting to the Government for submission to the National Assembly.

7. The central budget and local budgets at all levels shall arrange reserve budget amounts in accordance with the Law on the State Budget for proactive response to natural disasters, floods and epidemics as well as for important and urgent tasks outside the estimate.

8. Elaboration of local budget estimates at all levels:

Local budget estimates for 2012 shall be elaborated to ensure sufficient resources for implementing promulgated regimes and policies in accordance with the Law on the State Budget, contributing together with the central government to controlling inflation, stabilizing the macro-economy and ensuring social security,

Local budget estimates at all levels for 20112 shall, in addition to ensuring the requirements at Points 1 and 2, Section II above, must meet the following requirements:

a/ Estimation of state budget revenues collected in localities:

Based on the objectives of the 2011-2015 socio-economic development plan, the possibility of realizing the 2011 socio-economic targets and slate budget, forecasts about economic growth and revenue sources for each sector and domain in 2012, economic establishments and newly arising revenue sources in each locality to accurately and fully calculate revenue sources in each sector and each revenue item according to regulations.

b/ Estimation of local budget expenditures:

Local budget sources shall be identified on the basis of local budget revenues left for localities according to decentralization, the percentage of division of revenues sources between the central and local budgets or additional allocations from the central budget to the local budget (if any) as stably assigned for the 2011-2105 period and additional support amounts according to the central budget's balancing capability under the Prime Minister's Decision No. 59/2010/QD-TTg of September 30,2010, promulgating quotas of allocation of estimated regular state budget expenditures for 2011. Within the limit of these local budget revenue sources, local budget expenditure estimates shall be elaborated for each field, particularly concentrating resources to ensure expenditures on education and training, health, science and technology, culture and information and environment under the Party's and National Assembly's resolutions; and ensure funds for regular expenditures on local planning work.

Estimation of targeted additional allocations from the central budget to local budgets: targeted additional allocation of investment capital identified on the basis of criteria and norms of support under Decision No. 60/2010/QD-TTg of September 30, 2010, promulgating principles, criteria and nonns of allocation of development investment funds from the state budget during 2011-2015; targeted additional allocations of non-business funds on the basis of approved regimes and policies to ensure sources for implementing these regimes and policies in 2012.

c/ Land use revenues:

Localities shall estimate land use revenues to be collected in 2012 suitable to their capability of implementing approved land use plans, plans and schedules for land use right auctions, land allocation and payment of land use levies; at the same time they shall draw up plans on arrangement of corresponding expenditures on capital construction investment for investment in socio economic infrastructure facilities, and relocation, resettlement and construction ground preparation projects; take the initiative in distributing and forming land development funds under the Government's Decree No. 69/2009/ND-CP of August 13, 2009; prioritize allocation of sufficient funds for speeding up measurement work and the building of databases on cadastral records and grant of land use right certificates under the Land Law and resolutions of the National Assembly.

d/ Revenues from construction lotteries shall be used according to the direction of the Prime Minister in Document No. 1085/VPCP-KTTH of February 22, 2010 (not included in the state budget balance);

e/ Localities shall take the initiative in calculating and earmarking sources for implementing the salary reform in 2012 according to this Directive and guidelines of the Ministry of Finance;

f/ Elaborating plans on borrowing and repayment of loans (both principal and interest) for development investment according to the Law on the Stale Budget and the Government's Decree No. 60/2003/ND-CP of June 6, 2003, detailing and guiding the implementation of the Law on the State Budget, ensuring outstanding debts (including those projected for the year) not exceeding 30% of capital construction investment estimates of provincial-level budgets (not exceeding 100% for Hanoi and Ho Chi Minh City);

g/ Based on the balancing capabilities of local budgets, the implementation of the estimates of targeted additional allocations from the central budget for local budgets in 2011, current policies and regimes, to estimate expenditures for important projects and tasks and targeted additional allocations from the central budget for 2012 according to Point b. Clause 2, Article 29 of the Government's Decree No. 60/2003/ND-CP of June 6, 2003, detailing and guiding the implementation of the Law on the -State Budget;

h/ Along with elaborating the state budget estimate for 2012, ministries, sectors, central agencies, localities and units funded by the slate budget shall take the initiative in evaluating and analyzing in detail achievements and weaknesses in the management and administration of state budget revenues and expenditures in 2011; evaluate the situation of settlement of capital of completed investment projects (those already completed but not yet having their settlement approved by June 2011 and expected to be settled within 2011). They shall concentrate on directing and organizing the settlement and examine and approve 2010 budget settlements according to the Law on the State Budget; publicize the state budget settlement of 2009; handle and resolve right at the stage of estimation in accordance with law problems and wrongdoings detected and recommended by inspection and audit agencies in the arrangement of budget estimates which are unsuitable to the practical situation and incompliant with the resolutions of the Party, National Assembly, Government and People's Councils.

C. ASSIGNMENT OF IMPLEMENTATION AND SCHEDULE OF ELABORATION OF THE PLAN

I. ASSIGNMENT OF IMPLEMENTATION

1. The Ministry of Planning and Investment shall:

a/ Assume the prime responsibility for, and coordinate with the Ministry of Finance in, calculating and identifying plans and major balances to guide ministries, sectors and localities in formulating the socio-economic development plan and state budget estimate for 2012;

b/ Guide the elaboration and summarization of the socio-economic development plan and estimates of development investment expenditures belonging to the state budget and government bonds under the 2012 plan;

c/ Assume the prime responsibility for, and coordinate with related ministries and agencies in. working with ministries, central agencies and provincial-level People's Committees (in accordance with the Law on the State Budget) on the 2012 socio-economic development plan and the estimate of development investment expenditures belonging to the state budget and government bonds planned for 2012;

d/ Assume the prime responsibility for, and coordinate with the Ministry of Finance in, drawing up plans on allocation of development investment expenditures from the central budget and government bonds to ministries, central agencies and localities;

e/ Assume the prime responsibility for, and coordinate with the Ministry of Finance, ministries and agencies in charge of national target programs and projects in, identifying the list, objectives, scope and funds for the implementation of the national target programs during 2012-2015, and prepare their documents and submit them to competent authorities for decision. Appraise and summarize plans on allocation of the expenditure estimate for these programs.

2. The Ministry of Finance shall: a/ Guide the ministries, branches and localities in evaluating the implementation of the 2011 stale budget revenue and expenditure estimates and elaborating the 2012 state budget estimate;

b/ Assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment in, drawing up plans on allocation of regular expenditures from the central budget for 2012, and projecting targeted additional regular expenditures for 2012 from the central budget to local ones;

c/ Assume the prime responsibility for. and coordinate with related ministries and agencies in, working with ministries, central agencies and provincial-level People's Committees (in accordance with the Law on the State Budget) on the 2012 state budget estimate;

d/ Assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment and related agencies in. elaborating and summarizing the 2012 state budget estimate, and plans on allocation of the central budget for 2012, and submit them to the Government for opinion before submission to the National Assembly for decision.

3. Ministries and agencies managing national target programs jointly implemented by different ministries, agencies, units and localities shall;

a/ Assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment and the Ministry of Finance in, guiding related ministries, agencies, units and localities in evaluating the implementation of the 2011 programs and projects, and elaborating the 2012 state budget estimate;

b/ Assume the prime responsibility for, and coordinate with related agencies in, projecting tasks and plans of allocation of the budget expenditure estimate (within the projected total amount notified by the Ministry of Planning and Investment and the Ministry of Finance) to each related ministry, agency and unit and locality, send them to the Ministry of Planning and Investment and the Ministry of Finance for appraisal, summarization and submission to the Government and the National Assembly for decision;

c/ Review the national target programs under their respective management and administration during 2006-2011 and proposing the list, objectives, scope and funds for the implementation of national target programs during 2012-2015 and in 2012 to the Ministry of Planning and Investment and the Ministry of Finance for submission to competent authorities for decision.

4. Ministries, ministerial-level agencies, government-attached agencies, other central agencies, localities, agencies, units and organizations using state budget funds shall:

a/ Assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment and the Ministry of Finance in, elaborating socio-economic development plans and state budget estimates for 2012 for the sectors and domains under their management and for their own agencies, units and organizations:

b/ Ministries and state agencies shall, according to their functions and after calculating resources they can utilize, formulate the socio-economic development objectives, targets and plans of sectors and domains under their management. They shall propose new solutions, mechanisms, policies and regimes or amendments and supplements to current regimes and policies to competent authorities for promulgation before elaborating the budget estimates (before July 20.2011), and send them to the Ministry of Planning and Investment, the Ministry of Finance and related ministries and agencies as the bases for elaborating the socio­economic development plan and state budget estimate for 2012.

5. The People's Committees of provinces and centrally run cities shall:

a/ Guide, organize and direct provincial-level Planning and Investment Departments and Finance Departments in closely working with other local departments and branches in elaborating local socio-economic development plans and state budget estimates;

b/ Conducting public consultations on draft socio-economic development plans and state budget estimates for 2012 in order to generate high consensus, and submit them to competent authorities for decision, and at the same time report them to central agencies according to regulations.

II. SCHEDULE OF ELABORATION OF THE PLAN

1. In June 2011, the Ministry of Planning and Investment and the Ministry of Finance shall guide the framework socio-economic development plan and the projected amounts of budget revenues and expenditures to be assigned for 2012.

2. After the Ministry of Planning and Investment and the Ministry of Finance guide the framework socio-economic development plan and the projected amounts of state budget revenues and expenditures to be assigned for 2012, ministries, ministerial-level agencies, government-attached agencies, other central agencies, localities and other agencies and units using state budget funds shall, on the basis of the situation of implementation in the first half of 2011, elaborate the socio-economic development plan and state budget estimate for 2012; and send reports to the Ministry of Planning and Investment, the Ministry of Finance and the State Office of Audit before July 20, 2011.

3. In August 2011, the Ministry of Planning and Investment and the Ministry of Finance shall summarize the socio-economic development plan and the state budget estimate for 2012, at the same time prepare options on allocation of plan and state budget targets for 2012.

4. In September 2011, the Ministry of Planning and Investment and the Ministry of Finance shall report the socio-economic development plan and the state budget estimate for 2012 to the Government for opinion, finalize them and submit them to the National Assembly in accordance with the Law on the State Budget.

5. Before November 20, 2011, the Prime Minister shall assign the socio-economic development plan and the state budget estimate for 2012 to ministries, ministerial-level agencies, government-attached agencies, localities and other agencies and units on the basis of the National Assembly's resolutions on the socio-economic development plan and the state budget estimate for 2012.

6. Before November 25, 2011, the Ministry of Planning and Investment and the Ministry of Finance shall provide detailed guidance for ministries, ministerial-level agencies, government-attached agencies, localities and other agencies, units and organizations using state budget funds in 2012.

7. Before December 10, 2011, ministries, ministerial-level agencies, government-attached agencies, other central and local agencies shall decide on plans on allocation of the plan and state budget estimate to their subordinate levels on the basis of the Prime Minister-assigned tasks and the guidance of the Ministry of Planning and Investment and the Ministry of Finance. Commune-level budget estimates must be decided before December 31. 2011.

8. Before December 31, 2011, budget-estimating units shall decide to allocate and assign budget revenue and expenditure estimates to each attached unit on the basis of tasks and estimates assigned and guided by competent authorities.

The Prime Minister requests ministers, heads of ministerial-level agencies, heads of government-attached agencies, other central agencies, chairpersons of provincial-level People's Committees, presidents of the boards of directors, general directors of state groups and corporations, heads of agencies, units and organizations using state budget funds shall organize the implementation of this Directive.-

 PRIME MINISTER
Nguyen Tan Dung