Law on the State Budget, Law No. 83/2015/QH13

Order

On the promulgation of law[1]

THE PRESIDENT OF THE SOCIALIST REPUBLIC OF
VIETNAM

Pursuant to Articles 88 and 91 of the Constitution of the Socialist Republic of Vietnam;

Pursuant to Article 91 of the Law on Organization of the National Assembly;

Pursuant to Article 57 of the Law on Promulgation of Legal Documents,

PROMULGATES:

The Law on the State Budget,

which was passed on June 25, 2015, by the XIII^thNational Assembly of the Socialist Republic of Vietnam at its 9^thsession.

President of the Socialist Republic of Vietnam
TRUONG TAN SANG

Law

on the State Budget[2]

Pursuant to the Constitution of the Socialist Republic of Vietnam;

The National Assembly promulgates the Law on the State Budget.

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation

This Law prescribes the formulation, implementation, audit, account finalization and oversight of the state budget; tasks and powers of related agencies, organizations, units and individuals in the field of state budget.

Article 2.Subjects of application

1. State agencies, political organizations and socio-political organizations.

2. Socio-politico-professional organizations, social organizations and socio-professional organizations receiving support from the state budget for state-assigned tasks.

3. Public non-business units.

4. Other organizations and individuals related to the state budget.

Article 3.Application of law

1. The formulation, implementation, audit, account finalization and oversight of the state budget must comply with this Law and other relevant laws.

2. In case a treaty to which the Socialist Republic of Vietnam is a contracting party contains provisions different from those of this Law, such treaty prevails.

Article 4.Interpretation of terms

In this Law, the terms below are construed as follows:

1.State budget deficitincludes deficit of the central budget and deficit of provincial-level budgets. Deficit of the central budget is the positive difference between total expenditure of the central budget, exclusive of expenditure for principal payment, and total revenue of the central budget. Deficit of provincial-level local budgets is the aggregation of provincial-level budget deficits of all localities, with the provincial-level budget deficit of each locality being the positive difference between the total provincial-level budget expenditure, exclusive of expenditure for principal payment, and the total provincial-level budget revenue of such locality.

2.Commitment to arrangingstate budget expenditure estimatesmeans a competent state agency’s approval in accordance with law to arrange expenditure estimates of the subsequent year(s) for a program, project or task.

3.National reserve expendituremeans the state budget’s spending to purchase reserve goods in accordance with the law on the national reserves.

4.Development investment expendituremeans the state budget’s spending to perform capital construction investment and some other investment tasks in accordance with law.

5.Capital construction investment expendituremeans the state budget’s spending to implement socio-economic infrastructure investment programs and projects and programs and projects serving socio-economic development.

6.Current expendituremeans the state budget’s spending to ensure the operation of the state apparatus, political organizations and socio-political organizations, support the operation of other organizations, and perform regular socio-economic development and national defense and security assurance tasks of the State.

7.Debt payment expendituremeans the state budget’s spending to pay due debts, including principal, interest, charge and other expenses arising from the borrowing.

8.State budget contingencymeans an unallocated item in the budget expenditure estimate at the budget of each level which has been decided by a competent state agency.

9.Level-I budget-estimating unitmeans a budget-estimating unit which is assigned by the Prime Minister or a People’s Committee to make budget estimates.

10.Budget-estimating unitmeans an agency, organization or unit which is assigned by a competent authority to make budget estimates.

11.Budget-using unitmeans a budget-estimating unit which is assigned to directly manage and use budgets.

12.Budget remaindermeans the positive difference between total budget revenue and total budget expenditure of the budget of each level at the end of a budget year.

13.Local budgetincludes state budget revenues that localities are assigned to receive, transfers from the central budget, and state budget expenditures within the local budget’s spending tasks.

14.State budgetincludes all revenues and expenditures of the State which are estimated and implemented within a certain period of time as decided by competent state agencies in order to ensure the performance of functions and tasks of the State.

15.Central budgetincludes state budget revenues that the central administration is assigned to receive and state budget expenditures within the spending tasks of the central administration.

16.Budget management assignmentmeans the determination of the scope, responsibilities and powers of administrations of various levels and budget-estimating units in the state budget management in conformity with the socio-economic management assignment.

17.Financial reserve fundmeans a state-owned fund which is formed from the state budget and other financial sources in accordance with law.

18.State budget fundmeans all money amounts of the State, including also borrowings available on state budget accounts of various levels, at a certain time.

19.Stateextrabudgetary financial fundmeans a fund which is established by a competent agency, operates independently from the state budget, and has its own revenues and expenditures to perform its tasks in accordance with law.

20.Budget-balancing transfermeans an amount additionally allocated from a higher-level budget to a lower-level budget to help subordinate administrations balance their budgets for performance of their assigned tasks.

21.Targeted transfermeans an amount additionally allocated from a higher-level budget to a lower-level budget to support the implementation of a specific program, project or task.

22.Figures for budget revenue and expenditure estimate examinationmeans the state budget revenue and expenditure figures which are notified by competent agencies to the budgets of various levels, agencies, organizations and units for use as a basis for formulation of annual state budget estimates and three-year finance-state budget plans.

23.Local budget stabilization periodmeans a five-year period during which the percentage (%) of revenue sharing among budgets of various levels and levels of budget-balancing transfers shall be kept unchanged. Local budget stability periods must coincide with five-year socio-economic development planning periods or shall be decided by the National Assembly.

24.Percentage(%) of revenue sharing among budgets of various levelsmeans the percentage (%) of the amount the budget of each level is permitted to retain to the total amount of revenues shareable among budgets of various levels.

Article 5.Scope of the state budget

1. State budget revenues include:

a/ All revenues from taxes and fees;

b/ All charges collected for services provided by state agencies; for those which have to pay their operating expenses at a pre-fixed level, such charges may be deducted; and charges collected for services provided by public non-business units and state enterprises which are required by law to be paid to the state budget.

c/ Grants provided by foreign governments and overseas organizations and individuals to the Vietnamese Government and local administrations;

d/ Other revenues in accordance with law.

2. State budget expenditures include:

a/ Development investment expenditure;

b/ National reserve expenditure;

c/ Current expenditure;

d/ Interest payment expenditure;

dd/ Expenditure for aid provision;

e/ Other expenditures in accordance with law.

3. State budget deficit.

4. Total state budget borrowings, including borrowings to offset the state budget deficit and borrowings to pay principal debts of the state budget.

Article 6.The state budget system

1. The state budget comprises the central budget and local budgets.

2. Local budgets comprise budgets of local administrations of various levels.

Article 7.Principles of balancing the state budget

1. Revenues from taxes, charges and fees and other revenues prescribed by law shall be fully included in the state budget balance and not attached to any specific spending task. For any revenue item which needs to be attached to a specific spending task as prescribed by law, such revenue item may be arranged in the budget expenditure estimate for performance of such spending task. The promulgation of budget collection policies must abide by the principle of balancing the budget over  medium and long terms and ensure implementation of international integration commitments.

2. The state budget shall be balanced on the principle that the total revenue from taxes, charges and fees must be higher than the total current expenditure with incrementally increased savings for development investment;  deficit, if any, must be lower than development investment expenditure, thus striving to achieve a balanced budget; special cases, if any, shall be submitted by the Government to the National Assembly for consideration and decision. Budget surplus, if any, shall be used to pay principal debts of the state budget and interests thereon.

3. Borrowings to offset state budget deficit shall be used only for development investment, but not for current spending.

4. Central budget deficit shall be offset with the following sources:

a/ Domestic borrowings through issuance of government bonds, national construction bonds and other domestic borrowings in accordance with law;

b/ Foreign borrowings, including borrowings from foreign governments and international organizations and proceeds from the issuance of government bonds on the international market, excluding on-lending loans.

5. Local budget deficit:

a/ Only provincial-level budgets may incur deficit; local budget deficit shall be used only for investment in projects that are included in medium-term public investment plans already decided by provincial-level People’s Councils;

b/ Local budget deficit shall be offset with domestic borrowings, including local administration bonds, on-lending loans provided by the Government, and other domestic borrowings as prescribed by law;

c/ Local budget deficit shall be included in the state budget deficit and decided by the National Assembly. The Government shall prescribe in detail cases in which local budget deficit is permitted so as to ensure debt repayment capacity of localities and suit the total deficit of the state budget.

6. Limits of local budget borrowings:

a/ For Hanoi and Ho Chi Minh City, it must not exceed 60% of the revenue of the local budget as assigned;

b/ For a locality with its assigned budget revenue higher than its current expenditure, it must not exceed 30% of its assigned budget revenue;

c/ For a locality with its assigned budget revenue lower than or equal to current expenditure, it must not exceed 20% of its assigned budget revenue.

Article 8.Principles of state budget management

1. The state budget shall be managed in a unified, centralized, democratic, effective, thrifty, transparent and fair manner; such management shall be assigned and decentralized; and powers of state management agencies of various levels shall be linked with their responsibilities.

2. All budget revenues and expenditures shall be estimated and fully included in the state budget.

3. Budget revenues must comply with the tax laws and collection regimes prescribed by law.

4. Budget expenditures shall be made only after their estimates are assigned by competent authorities and must comply with spending regimes, criteria and norms prescribed by competent state agencies. Budgets of various levels, budget-estimating units, and budget-using units may not be used for spending tasks when there are no financial sources and budget expenditure estimates, thus leading to shortage of funds to pay for performed capital construction volumes and current expenditures.

5. To prioritize budget funds for the implementation of the Party’s and State’s policies on economic development; hunger eradication and poverty reduction; ethnic minority work; achievement of gender equality targets; agricultural and rural development, education, training, health, science and technology development; and other important policies in each period.

6. To arrange budget funds for the performance of socio-economic development; national defense, security and foreign policy tasks and for the operation of the state apparatus.

7. The state budget shall allocate funds for the operation of political organizations and socio-political organizations.

8. Socio-politico-professional organizations, social organizations and socio-professional organizations shall self-finance their operation and be provided with state budget support only for state-assigned tasks according to regulations of the Government.

9. To ensure funds for payment of interests due on debts within the spending tasks of the state budget.

10. The decision to invest state budget funds and use of such funds in programs and projects must comply with the Law on Public Investment and relevant laws.

11. The state budget shall not support funds for the operation of state extrabudgetary financial funds. The provision of state budget funds to support charter capital of a state extrabudgetary financial fund must suit the capacity of the state budget and may be effected only when the following conditions are fully met: the fund is established and operates in accordance with law; has independent financial capacity; and has revenue sources and spending tasks different from those of the state budget.

Article 9.Principles of assignment of the management of revenue sources and spending tasks and relationships between budgets of various levels

1. The central budget and budgets of local administrations at each level shall be assigned with specific revenue sources and spending tasks.

2. The central budget shall play a key role, ensuring the performance of national spending tasks, supporting localities that are unable to balance their budgets, and providing support to localities according to Clause 3, Article 40 of this Law.

3. Local budgets shall be assigned with revenue sources so as to take the initiative in performing their assigned spending tasks. Provincial-level People’s Councils shall decide on the assignment of revenue sources and spending tasks among local budgets of various levels in conformity with local socio-economic, national defense and security management assignment and managerial levels of local administration at each level.

4. The budget of a level shall ensure its assigned spending tasks; if the promulgation and implementation of a new policy or regime result in an increase in budget expenditure, solutions shall be worked out to guarantee financial sources suitable to the balancing capacity of the budget at each level; the decision to invest budget funds in programs and projects must suit the limits of the assigned budgets.

5. In case a state management agency of a higher-level budget authorizes a state management agency of a lower-level budget to perform one of its spending task, the authorizing agency shall allocate and assign a budget estimate to the authorized agency for performing such spending task. The authorized agency shall make account finalization for such amount with the authorizing agency.

6. Revenues to be shared by a percentage (%) among budgets of various levels and transfers from higher-level budgets to lower-level budgets must ensure fairness and balanced development among regions and localities.

7. During a budget stabilization period:

a/ The percentage (%) of revenue sharing among budgets of various levels shall be kept unchanged;

b/ Annually, based on the balancing capacity of higher-level budgets, competent agencies shall decide to increase budget-balancing transfers from higher-level budgets to lower-level budgets already decided in the first year of the period;

c/ Targeted transfers from higher-level budgets to lower-level budgets shall be determined based on the budget allocation principles, criteria and norms, budget spending regime, criteria and norms; capacity of higher-level budgets and budget-balancing capacity of each lower-level locality;

d/ Localities may use annual increases in the revenues which are assigned to local budgets to increase expenditures on socio-economic development and national defense and security maintenance. Increased amounts over revenue estimates shall be used in accordance with Clause 2, Article 59 of this Law.

In special cases where there arises a new source of revenue from a new project which is put to operation during the budget stability period, resulting in a great increase in local budget revenues, the increased amount shall be paid to the higher-level budget. The Government shall propose the National Assembly or the provincial-level People’s Committee shall propose the People’s Council of the same level to decide to collect the increased amount and allocate part of it as targeted transfer to the lower-level budget in accordance with Point d, Clause 3, Article 40 of this Law to support investment in local infrastructure under a project approved by competent authorities;

dd/ When local budget revenues are undercollected against estimates for objective reasons, these cases must comply with Clause 3, Article 59 of this Law.

8. After each budget stability period, localities shall improve their budget self-balancing and development capacity, gradually reduce the ratio of budget-balancing transfers from higher-level budgets to the total local budget expenditure or increase the rate (%) of payment to higher-level budgets for revenues shared among budgets of various levels so as to increase resources for higher-level budgets to perform national spending tasks and ensure harmonious development among localities.

9. It is not permitted to use the budget of a certain level to pay for spending tasks of another level and the budget of a locality to pay for spending tasks of another locality, except the following cases:

a/ Lower-level budgets provide support to their superior management units located in the locality when it is urgent to mobilize higher-level forces to deal with natural disasters, catastrophes, epidemics or other emergencies so as to stabilize the socio-economic situation, security and social order and safety in the locality;

b/ Superior management units located in the locality performs their functions together with some tasks at the request of their subordinate units;

c/ Budget contingency of a locality is used to assist other localities in remedying consequences of serious natural disasters or catastrophes.

10. In case the implementation of a treaty results in a decrease in the central budget revenues, the Government shall propose the National Assembly to adjust the revenue sharing between the central budget and local budgets so as to ensure the key role of the central budget.

Article 10.State budget contingency

1. At the budget of each level, contingency shall be kept at 2%-4% of the total expenditure.

2. Contingency at the budget of each level may be spent on:

a/ Prevention, control and remediation of consequences of natural disasters, catastrophes and epidemics, and hunger relief; important tasks of national defense and security and other necessary tasks within the spending tasks of the budget but not yet included in the budget estimate;

b/ Provision of support to lower-level budgets for the performance of the tasks specified at Point a of this Clause in case the contingency of lower-level budgets has been used up but still fails to meet demand;

c/ Provision of support to other localities as prescribed at Point c, Clause 9, Article 9 of this Law.

3. Competence to decide to use state budget contingency

a/ The Government shall prescribe the competence to decide to use the central budget contingency and periodically report on the use of the central budget contingency to the National Assembly Standing Committee and report to the National Assembly at the next session;

b/ The People’s Committees of various levels shall decide to use the use of contingency of budgets of the same level and periodically report thereon to the Standing Bodies of the People’s Councils and report to the People’s Councils of the same level at their next session.

Article 11.Financial reserve funds

1. The Government and People’s Committees of provinces and centrally run cities (below referred to as the provincial level) shall set up financial reserve funds from the sources of increased revenues, budget remainders, allocations to this effect in annual budget expenditure estimates, and other financial sources in accordance with law. The balance of the financial reserve fund at a level must not exceed 25% of the annual budget expenditure estimate at such level.

2. Financial reserve funds shall be used:

a/ To make advance payment to the budget to meet spending needs according to the budget expenditure estimate in case revenues are not yet gathered up; advanced amounts shall be reimbursed right in the budget year;

b/ In case state budget revenues or borrowings to offset deficit fail to reach the estimated level decided by the National Assembly or People’s Councils and funds for the prevention, control and remediation of consequences of widespread and serious natural disasters, catastrophes or epidemics or performance of national defense and security or other urgent tasks outside the estimates remain insufficient after budget sources have been re-arranged and budget contingency has been used up,  financial reserve funds may be used to meet these spending needs at the maximum rate of 70% of the funds’ balance at the beginning of the year.

3. The Government shall prescribe the competence to decide to use financial reserve funds.

Article 12.Conditions for collection of state budget revenues and payment of state budget expenditures

1. State budget revenues shall be collected in accordance with this Law, tax laws and other regulations on state budget revenues.

2. State budget expenditures may be paid only after they are included in the assigned budget estimates, except the cases prescribed in Article 51 of this Law; are approved by heads of budget-using units, project owners or authorized persons, and meet the conditions prescribed for each specific case below:

a/ The conditions prescribed by the laws on public investment and construction, for capital construction expenditures;

b/ Complying with budget spending regimes, criteria and norms prescribed by competent state agencies; for current expenditures; complying with internal spending regulations and conforming to the assigned budget estimates, for agencies and units permitted by competent authorities to enjoy autonomy and accountability for their payrolls and funds;

c/ The conditions prescribed by the law on national reserves, for national reserve expenditures;

d/ Bidding shall be organized in accordance with the bidding law, for bidding packages within the tasks, programs or projects for which bidding shall be organized to select contractors to provide consultancy services, supply goods or carry out construction and installation activities;

dd/ Complying with regulations on prices or charges and fees promulgated by competent agencies, for expenditures for work performed under orders placed or plans assigned by the State.

Article 13.Accounting and account finalization of state budget revenues and expenditures

1. State budget revenues and expenditures shall be accounted in Vietnam dong. State budget revenues and expenditures in foreign currencies shall be converted into Vietnam dong according to the exchange rates used for accounting state budget revenues and expenditures prescribed by competent agencies applicable at the time such revenues or expenditures arise.

2. State budget revenues and expenditures shall be fully, promptly and properly  accounted and finalized.

3. The accounting and account finalization of the state budget shall be conducted uniformly according to the state accounting regime, state budget index and this Law.

4. State budget collection and payment documents shall be issued, used and managed in accordance with law.

Article 14.Budget year

The budget year starts on January 1, and ends on December 31 of the calendar year.

Article 15.Disclosure of the state budget

1. State budget estimates submitted to the National Assembly or People’s Councils; state budget estimates already decided by competent authorities; state budget implementation reports; final state budget accounts already approved by the National Assembly or People’s Councils; information about the estimation, implementation and final accounts of budgets of budget-estimating units, organizations receiving state budget support, and capital construction programs and projects funded with the state budget shall be disclosed according to the following regulations:

a/ To-be-disclosed contents include: data of and explanatory reports on state budget estimates submitted to the National Assembly or People’s Councils, estimates already decided by competent authorities, information on state budget implementation and final accounts; results of implementation of recommendations of the State Audit Office of Vietnam, except detailed data and explanatory reports in the fields of national defense, security, and national reserves;

b/ The state budget disclosure shall be carried out in one or several of the following forms: disclosure at meetings, posting up at working offices of agencies, organizations and units; issuance of publications; issuance of written notices to related agencies, organizations, units and individuals; publishing on websites; and reporting in the mass media;

c/ A state budget estimate report shall be disclosed within 5 working days after it is sent by the Government to National Assembly deputies or by a People’s Committee to People’s Council deputies.

Reports on state budget estimates already decided by competent authorities and statements of final state budget accounts already approved by competent authorities, and reports on state budget audit results or results of implementation of recommendations of the State Audit Office of Vietnam shall be disclosed within 30 days after their date of issuance.

Quarterly and biannual reports on state budget implementation shall be disclosed within 15 days from the end of each quarter and six-month period.

Annual reports on state budget implementation shall be disclosed when they are submitted by the Government to the National Assembly at the mid-year session of the following year.

2. Disclosure of state budget-related procedures:

a/ Revenue-collecting agencies, finance agencies and the State Treasury shall disclose state budget-related procedures;

b/ To-be-disclosed contents include: regulations on processes and procedures for declaration, collection, payment, exemption, reduction, payment extension and refund of revenues; advance payment, allocation and payment of the state budget fund;

c/ The disclosure shall be carried out in the form of posting up at places of transaction and publishing on the websites of the agencies.

3. Disclosed information must be complete according to items and forms prescribed by the Ministry of Finance.

4. Responsible agencies shall disclose information according to Clauses 1 and 2 of this Article; if failing to disclose information in a complete and timely manner, they shall be handled in accordance with law.

5. The Government shall prescribe in detail the state budget disclosure.

Article 16.Public oversight of the state budget

1. The state budget shall be overseen by the public. Vietnam Fatherland Front Committees of various levels shall take charge of organizing public oversight of the state budget. Public oversight of the state budget covers:

a/ Observance of regulations on management and use of the state budget;

b/ Implementation of annual state budget estimates;

c/ Disclosure of the state budget according to Article 15 of this Law.

2. The Government shall prescribe in detail public oversight of the state budget.

Article 17.Five-year finance plans

1. Five-year finance plan means the finance plan drawn up for a five-year period together with the five-year socio-economic development plan. A five-year finance plan must specify overall and specific finance-state budget objectives; major finance-state budget orientations; levels and structures of domestic revenue, revenue from crude oil, and import and export revenue; levels and structures of development investment expenditure, debt payment expenditure and current expenditure; orientations on budget deficit; limits of national foreign debts, public debts and government debts; and major solutions for implementation.

2. A five-year finance plan shall be used as a basis for:

a/ Implementing national, sectoral and local socio-economic development objectives; balancing and effectively using public financial resources and the state budget over the medium term; and promoting the publicity and transparency of the state budget;

b/ Competent authorities to consider and decide on plans on medium-term investment with state budget funds;

c/ Setting orientations for the formulation of annual state budget estimates and three-year finance-state budget plans.

3. Five-year finance plans include national five-year finance plans and five-year finance plans of provinces and centrally run cities.

4. The Ministry of Finance shall assume the prime responsibility for formulating and submitting national five-year finance plans to the Government for reporting to the National Assembly; provincial-level Finance Departments shall formulate and submit five-year finance plans of their localities to provincial-level People’s Committees for reporting at the same time with submitting the budget estimates of the first year of the plan period to provincial-level People’s Councils for consideration and decision.

5. The Government shall prescribe in detail the formulation of five-year finance plans.

Article 18.Prohibited acts in the field of state budget

1. Abusing positions and powers to appropriate, or lacking responsibility, thus causing losses to, state budget revenue sources.

2. Collecting state budget revenues in violation of the tax laws and other regulations on budget collection; sharing revenue sources among budgets of various levels in contravention of prescribed regimes; retaining state budget revenues in contravention of prescribed regimes; imposing unlawful revenues.

3. Spending without estimates, except the case prescribed in Article 51 of this Law; spending at variance with assigned budget estimates; spending at variance with spending regimes, criteria and norms or for improper purposes; creating unlawful expenditures.

4. Deciding to invest budget funds in programs and projectsultra viresor without identifying funding sources for implementation.

5. Unlawfully borrowing loans; borrowing loans beyond the balancing capacity of budgets.

6. Using state budget funds to unlawfully lend, advance or contribute capital.

7. Delaying the payment of budget expenditures although all spending conditions prescribed by law are fully met.

8. Making accounting at variance with the state accounting regimes and state budget index.

9. Formulating and submitting state budget estimates and final accounts later than prescribed.

10. Illegally ratifying or approving final state budget accounts.

11. Disbursing state budget funds at state treasuries to pay for expenditures not yet included in any budget estimates decided by competent agencies, except cases of temporary allocation and advance payment from budget estimates of the subsequent year as prescribed in Articles 51 and 57 of this Law.

12. Other prohibited acts in the field of state budget as prescribed by relevant laws.

Chapter II

STATE BUDGET-RELATED TASKS AND POWERS OF STATE AGENCIES AND RESPONSIBILITIES AND OBLIGATIONS OF ORGANIZATIONS AND INDIVIDUALS

Article 19.Tasks and powers of the National Assembly

1. To make and amend laws on finance-budget.

2. To decide on fundamental policies on finance-state budget; to impose, amend or abolish taxes; to decide on the safety limits of national debts, public debts and government debts.

3. To decide on five-year finance plans.

4. To decide on state budget estimates:

a/ Total state budget revenue, including domestic revenue, revenue from crude oil, import and export revenue, and grants;

b/ Total state budget expenditure, including central budget expenditure and local budget expenditure broken down into development investment expenditure, national reserve expenditure, current expenditure, interest payment expenditure, transfer to the financial reserve fund, and budget contingency. Particularly, levels of development investment expenditure and current expenditure shall be specified for education, training and vocational training, and science and technology;

c/ State budget deficit, including the central budget deficit and local budget deficit of each locality; and sources to offset state budget deficit;

d/ Total budget borrowings, including borrowings to offset budget deficit and borrowings for payment of principal debts of the state budget.

5. To decide on allocation of the central budget:

a/ The total allocated central budget expenditure; development investment expenditure for each field; current expenditure for each field; national reserve expenditure, interest payment expenditure, expenditure for aid provision, transfer to the financial reserve fund; and budget contingency;

b/ Estimates of development investment expenditure, current expenditure, national reserves expenditure and expenditure for aid provision of each ministry, ministerial-level agency, government-attached agency and other central agency in each  field;

c/ Transfers from the central budget to each local budget, including budget-balancing transfers and targeted transfers.

6. To decide on the percentage (%) sharing between the central budget and each local budget for each revenue specified in Clause 2, Article 35 of this Law.

7. To decide on investment policy on national target programs and national important projects funded with the state budget.

8. To decide to adjust state budget estimates when necessary.

9. To ratify final state budget accounts.

10. To oversee the implementation of the state budget, fundamental national financial-budgetary policies, and resolutions of the National Assembly on the state budget.

11. To annul documents on finance-budget of the President, the Standing Committee of the National Assembly, the Government, the Prime Minister, the Supreme People’s Court, and the Supreme People’s Procuracy which contravene the Constitution, laws or resolutions of the National Assembly.

Article 20.Tasks and powers of the Standing Committee of the National Assembly

1. To promulgate ordinances and resolutions on finance-budget in accordance with law.

2. To give opinion on draft laws, reports and other projects on finance-budget which are submitted by the Government to the National Assembly.

3. To promulgate the Regulation on formulation and verification of and decision on state budget estimates and central budget allocation plans, and ratification of final state budget accounts.

4. To give opinions on important budget spending regimes which have a great sphere of influence and are related to the performance of national socio-economic tasks, which are submitted by the Government.

5. To decide on:

a/ State budget allocation principles, criteria and norms;

b/ Inclusion of increased state budget revenues in the budget estimates; allocation and use of increased revenues and saved expenditures of the central budget for reporting to the National Assembly at its next session.

6. To oversee the implementation of laws and resolutions of the National Assembly; and ordinances and resolutions of the Standing Committee of the National Assembly on finance-budget.

7. To suspend the implementation of the Government’s or the Prime Minister’s legal documents on finance-budget which contravene the Constitution, laws and resolutions of the National Assembly, or ordinances and resolutions of the Standing Committee of the National Assembly, and report such to the National Assembly at its next session to decide to annul these documents.

8. To annul the Government’s and the Prime Minister’s legal documents on finance-budget which contravene ordinances and resolutions of the Standing Committee of the National Assembly.

9. To annul provincial-level People’s Councils’ resolutions on finance-budget which contravene the Constitution, laws and resolutions of the National Assembly, or ordinances and resolutions of the Standing Committee of the National Assembly.

Article 21.Tasks and powers of the National Assembly’s Finance and Budget Committee

1. To verify draft laws, ordinances, reports and other projects on finance-budget as assigned by the National Assembly or the Standing Committee of the National Assembly.

2. To assume the prime responsibility for verifying state budget estimates, central budget allocation plans, state budget estimate adjustment plans, state budget implementation reports, final state budget accounts, state budget allocation principles, criteria and norms, and plans on use of increased revenues and saved expenditures of the central budget, which are submitted by the Government to the National Assembly or the Standing Committee of the National Assembly.

3. To verify important budget spending regimes having a great sphere of influence and related to the performance of national socio-economic tasks, which are submitted by the Government to the Standing Committee of the National Assembly.

4. To oversee the implementation of laws and resolutions of the National Assembly and ordinances and resolutions of the Standing Committee of the National Assembly on finance-budget; to oversee the implementation of the state budget and financial-budgetary policies.

5. To oversee legal documents of the Government, Prime Minister, ministers, and heads of ministerial-level agencies, and joint legal documents of competent central agencies on finance-budget.

6. To make recommendations on financial-budgetary issues.

Article 22.Tasks and powers of the Ethnic Council and other Committees of the National Assembly

1. Within the ambit of their respective tasks and powers, to coordinate with the National Assembly’s Finance and Budget Committee and related agencies of the Government in verifying draft laws, ordinances, state budget estimates, central budget allocation plans, state budget implementation reports, statements of final state budget accounts, and other reports and projects on finance-budget, which are submitted by the Government to the National Assembly or the Standing Committee of the National Assembly.

2. To oversee the implementation of laws and resolutions of the National Assembly and ordinances and resolutions of the Standing Committee of the National Assembly on finance-budget; to oversee the implementation of the state budget and financial-budgetary policies in the fields under their management.

3. To make recommendations on financial-budgetary issues in the fields under their management.

Article 23.Tasks and powers of the State Audit Office of Vietnam

1. To audit the state budget and report audit results to the National Assembly and the Standing Committee of the National Assembly; to send audit reports to the President, Government, Prime Minister, Ethnic Council, Committees of the National Assembly, and other related agencies in accordance with the Law on State Audit.

2. To submit reports on the audit of final state budget accounts to the National Assembly for consideration and ratification of final state budget accounts.

3. To join the Finance and Budget Committee and other agencies of the National Assembly, and the Government in considering and verifying state budget estimate reports, central budget allocation plans, and plans on adjustment of state budget estimates.

Article 24.Tasks and powers of the President

1. To promulgate laws and ordinances on finance-budget.

2. To perform the tasks and exercise the powers prescribed by the Constitution and laws in the negotiation, conclusion and ratification of treaties on finance-budget, or submission thereof to the National Assembly for ratification.

3. To request the Government to discuss financial-budgetary activities of the State when necessary.

Article 25.Tasks and powers of the Government

1. To submit to the National Assembly and the Standing Committee of the National Assembly draft laws, ordinances and other reports and projects on finance-budget; to promulgate legal documents on finance-budget according to its competence.

2. To formulate and submit to the National Assembly five-year finance plans and three-year finance-state budget plans.

3. To formulate and submit to the National Assembly annual state budget estimates and central budget allocation plans; to adjust state budget estimates when necessary.

4. Pursuant to the National Assembly’s resolutions on state budget estimates and central budget allocation plans, to assign budget revenues and expenditures to each ministry, ministerial-level agency, government-attached agencies and other central agencies according to Point b, Clause 5, Article 19 of this Law; to decide on budget revenue, expenditure and deficit of each locality, percentage (%) of revenue sharing between the central budget and each local budget for each shareable revenue, the level of transfers from the central budget to each province or centrally run city according to Points a, b, c and d, Clause 4; Point c, Clause 5; and Clause 6, Article 19 of this Law.

5. To perform the unified management of the state budget, ensuring close coordination among sectoral and local management agencies in state budget implementation.

6. To decide on measures and organize and administer the state budget implementation as decided by the National Assembly; to inspect the state budget implementation; to report to the National Assembly and the Standing Committee of the National Assembly on the implementation of the state budget, national target programs and national important projects on which investment policy is decided by the National Assembly.

7. To report on the National Assembly and the Standing Committee of the National Assembly on financial-budgetary issues when so requested.

8. To establish processes and procedures for budget estimation, collection of budget revenues, control and payment of budget expenditures and finalization of budget accounts; advance payment from the budget estimates of the subsequent year; use of budget contingency; use of the financial reserve fund and other financial funds of the State in accordance with this Law and other relevant laws.

9. To decide on important budget spending regimes which have a great sphere of influence and are related to the performance of national socio-economic tasks after consulting the Standing Committee of the National Assembly.

10. To decide on spending regimes, criteria and norms for uniform application nationwide; for some expenditure items, to prescribe general spending regimes, criteria and norms and assign provincial-level People’s Councils to decide on specific ones to suit local characteristics.

11. To establish budget allocation principles, criteria and norms and submit them to the Standing Committee of the National Assembly for decision for use as a basis for formulation and allocation of budget estimates to ministries, ministerial-level agencies, government-attached agencies, other central agencies, and localities.

12. To guide and inspect People’s Councils in implementing documents of superior state agencies; to check the lawfulness of resolutions of People’s Councils.

13. To formulate and submit to the National Assembly final accounts of the state budget and final accounts of national important programs and projects in which investment policy is decided by the National Assembly.

14. To promulgate a Regulation on decision on and allocation of local budget estimates and approval of final accounts of local budgets.

15. To prescribe the performance-based budget management.

Article 26.Tasks and powers of the Ministry of Finance

1. To draft laws, ordinances, five-year finance plans, three-year finance-state budget plans and other finance-budget projects for submission to the Government; to promulgate legal documents on finance-budget according to its competence.

2. To establish principles, criteria and norms of allocation of current expenditures of the state budget; state budget spending regimes, criteria and norms,  finance-state budget management mechanisms, state budget accounting, payment and account finalization regimes, state budget index, and finance-state budget reporting and disclosure regimes, and submit them to the Government for promulgation or promulgate them as decentralized by the Government for uniform implementation nationwide.

3. To decide to promulgate budget spending regimes, criteria and norms applicable to sectors and fields after reaching agreement with ministries in charge of these sectors and fields; if failing to reach such agreement, to report thereon to the Prime Minister for consideration and opinion before making decision.

4. To formulate and submit to the Government state budget estimates, central budget allocation plans, and adjusted state budget estimates when necessary. To organize the implementation of the state budget; to uniformly manage and direct the collection of taxes, charges, fees, borrowings, other budget revenues, and international grants; to make budget expenditures according to assigned estimates. To summarize and make final accounts of the state budget for submission to the Government.

5. To assume the prime responsibility for developing, and submitting to competent authorities for approval, objectives and orientations for fundraising, use of raised funds and management of public debts in each five-year period; medium-term debt management programs; systems of indicators for monitoring government debts, public debts and national foreign debts; and the Government’s annual plans on borrowing and repayment of debts.

6. To inspect finance-budget regulations of ministries, ministerial-level agencies, provincial-level People’s Councils, People’s Committees and People’s Committee chairpersons. If detecting a document containing provisions which contravene the Constitution, laws and resolutions of the National Assembly, ordinances and resolution of the Standing Committee of the National Assembly and documents of superior state agencies:

a/ To propose the minister or the ministerial-level agency head to suspend the implementation of the document or annul it, for documents of ministries or ministerial-level agencies;

b/ To propose the Prime Minister to suspend the implementation of the document, for resolutions of provincial-level People’s Councils;

c/ To propose the Prime Minister to annul the document in accordance with law, for regulations of provincial-level People’s Committees or People’s Committee chairpersons.

7. To inspect and examine financial-budgetary issues, handle or propose competent authorities to handle in accordance with law violations of financial-budgetary management regimes committed by ministries, ministerial-level agencies, government agencies, other central agencies, localities, economic organizations, administrative units, public non-business units and other entities which are obliged to pay to the state budget or use state budget funds.

8. To manage state budget funds, state reserve funds and other state funds in accordance with law.

9. To assess the efficiency of state budget expenditures.

10. To disclose the state budget according to Article 15 of this Law.

Article 27.Tasks and powers of the Ministry of Planning and Investment

1. To establish principles, criteria and norms of state budget allocation for development investment and submit them to the Government; to formulate plans on allocation of development investment expenditures of the central budget.

2. To coordinate with the Ministry of Finance and related ministries and agencies in formulating five-year finance plans, annual state budget estimates, and three-year finance-state budget plans.

Article 28.Tasks and powers of the State Bank of Vietnam

1. To coordinate with the Ministry of Finance in formulating and implementing plans on borrowing to offset state budget deficit.

2. To make advance payment to the state budget to deal with the temporary shortage of the state budget fund according to decisions of the Prime Minister.

Article 29.Tasks and powers of ministries, ministerial-level agencies, government-attached agencies and other central agencies

1. To formulate their annual budget estimates and three-year finance-state budget plans.

2. To coordinate with the Ministry of Finance and related ministries and agencies in summarizing annual state budget estimates and central budget allocation plans, three-year finance-state budget plans and annual budget final accounts of the sectors and fields under their management.

3. To inspect and supervise the budget implementation in the sectors and fields under their management.

4. To report on the budget implementation and budget use results and efficiency in the sectors and fields under their management.

5. To promulgate techno-economic norms to serve as a basis for performance-based budget management in the sectors and fields under their management.

6. To coordinate with the Ministry of Finance in developing budget spending regimes, criteria and norms applicable to the sectors and fields under their management.

7. To manage, organize the implementation, and conduct account finalization of, and disclose, their assigned budgets; to ensure use efficiency of the state budget.

8. Ministers and heads of ministerial-level agencies, government-attached agencies and other central agencies shall perform their assigned tasks and exercise their assigned powers in the field of finance-budget and be held responsible for violations under their management in accordance with law.

Article 30.Tasks and powers of People’s Councils of various levels

1. Based on budget collection and spending tasks assigned by superior authorities and on local realities, to decide on:

a/ Estimates of state budget revenues collected in their localities, including domestic revenue, revenue from crude oil, import and export revenue and grants, which must not be lower than the state budget revenue estimates assigned by superior authorities;

b/ Local budget revenue estimates, including revenues to be wholly retained in localities, revenues to be shared by a percentage (%) between local budgets and the central budget, and transfers from higher-level budgets;

c/ Local budget expenditure estimates, including expenditures of budgets of the same level and lower levels, which are broken down into development investment expenditure, current expenditure, interest payment expenditure, transfer to financial reserve funds, and budget contingency. In development investment expenditure and current expenditure, specific levels shall be determined for education, training and vocational training, and science and technology;

d/ Total borrowings of local budgets, including borrowings to offset local budget deficits and borrowings to pay principal debts of local budgets.

2. To decide on the allocation of budgets of the same level:

a/ Total budget estimates; development investment expenditure and current expenditure for each sector; transfers to local financial reserve funds; and budget contingency;

b/ Development investment expenditure and current expenditure estimates by sector of each and unit of the same level;

c/ Transfers to the budgets of each immediate subordinate locality, including budget-balancing transfers and targeted transfers.

3. To approve final accounts of local budgets.

4. To decide on policies and measures for implementing local budgets.

5. To adjust local budget estimates when necessary.

6. To oversee the implementation of budgets already decided by People’s Councils.

7. To annul legal documents on finance-budget of People’s Committees and chairpersons of People’s Committees of the same level and People’s Councils of the immediate subordinate level, which contravene the Constitution, laws and resolutions of the National Assembly, ordinances and resolutions of the Standing Committee of the National Assembly, and documents of superior state agencies.

8. To decide on the list of programs and projects within medium-term investment plans funded with the state budget of the same level; to decide on local important programs and investment projects funded with the state budget.

9. In addition to the tasks and powers specified in Clauses 1, 2, 3, 4, 5, 6, 7 and 8 of this Article, provincial-level People’s Councils have the following tasks and powers:

a/ To decide on five-year finance plans specifying overall and specific objectives; collection of state budget revenues in their localities; local budget revenues and expenditures, local budget deficit and local budget borrowing limits; and major solutions for plan implementation;

b/ To decide on local budget deficit and sources of funds to offset annual local budget deficit;

c/ To decide on the assignment of revenues sources and spending tasks to each level of the local budget according to Clause 3, Article 9 of this Law;

d/ To decide on the percentage (%) of sharing among budgets of local administrations of various levels of revenue amounts to be retained at local budgets prescribed in Clause 2, Article 37 of this Law, and of revenues to be shared among local budgets of various levels.

dd/ To decide on the collection of charges, fees and people’s contributions in accordance with law.

e/ To decide on local budget allocation principles, criteria and norms;

g/ To specify the spending regimes, criteria and norms for some expenditure items according to general regulations of the Government;

h/ In addition to budget spending regimes, criteria and norms promulgated by the Government or the Minister of Finance, to decide on budget spending regimes for a number of particular spending tasks of their localities so as to serve the performance of socio-economic development tasks and ensure social order and safety in their localities and balancing capacity of the local budget.

The Government shall detail this Point.

Article 31.Tasks and powers of People’s Committees of various levels

1. To formulate local budget estimates and plans on allocation of the local budget of the same level according to the contents prescribed in Clauses 1 and 2, Article 30 of this Law; to adjust local budget estimates when necessary and submit them to People’s Councils of the same level for decision and reporting to immediate superior state administrative agencies and finance agencies.

2. To make final accounts of the local budgets and submit them to the People’s Councils of the same level for decision and reporting to immediate superior state administrative agencies and finance agencies.

3. To examine resolutions on finance-budget of subordinate People’s Councils.

4. Pursuant to resolutions of People’s Councils of the same level, to decide to assign budget collection and spending tasks to each attached agency and unit; budget collection and spending tasks of, transfers to, lower-level budgets, and percentages (%) of revenue sharing among local budgets of various levels.

5. To decide on solutions and organize the implementation of local budget estimates already decided by People’s Councils; to inspect and report on the implementation of the local budget.

6. To coordinate with superior state agencies in managing the state budget in their localities.

7. To report on and disclose the state budget in accordance with law.

8. To perform performance-based budget management according to the Government’s regulation.

9. In addition to the tasks and powers specified in Clauses 1, 2, 3, 4, 5, 6, 7 and 8 of this Article, provincial-level People’s Committees also have the following tasks:

a/ To formulate and submit to People’s Councils of the same level the contents prescribed in Clause 9, Article 30 of this Law;

b/ To formulate three-year finance-state budget plans according to Article 43 of this Law;

c/ To decide on the use of financial reserve funds and other state financial funds in accordance with this Law and other relevant laws.

10. To direct local finance agencies to assume the prime responsibility for, and coordinate with related agencies in, assisting People’s Committees in performing the tasks prescribed in Clauses 1, 2, 3, 4, 5, 6, 7, 8 and 9 of this Article.

11. Chairpersons of People’s Committees of various levels shall organize the performance of assigned tasks and exercise of assigned powers in the field of finance-budget and be held responsible for violations in accordance with law.

Article 32.Tasks and powers of budget-estimating units

1. To formulate annual budget revenue and expenditure estimates; to allocate budget estimates assigned to them by competent authorities to their attached units and adjust the budget estimate allocation according to their competence; to draw up three-year finance-state budget plans in the fields under their management according to Article 43 of this Law.

2. To organize the implementation of their assigned budget revenue and expenditure estimates; to fully and timely pay budget revenues in accordance with law; to make spending according to prescribed regimes and policies for proper objectives and subjects in a thrifty and effective manner.

3. To guide and inspect the collection of budget revenues and payment of budget expenditures by their attached units.

4. To comply with the laws on accounting and statistics; to report on, draw up final accounts of, and disclose information on, their budgets in accordance with law; to approve the final accounts of the budgets of subordinate budget-estimating units.

5. In addition to the tasks and powers prescribed in Clauses 1, 2, 3 and 4 of this Article, public non-business units may proactively use revenues from collected charges and other lawful sources to develop their operations and improve their quality and effectiveness according to the Government’s regulation.

6. Public non-business units and state agencies enjoying autonomy and accountability for their payrolls and funds shall promulgate internal spending regulations in conformity with their assigned budget estimates in accordance with law.

7. Heads of budget-estimating units shall perform their assigned tasks and exercise their assigned powers in the field of finance-budget and be held responsible for violations in the fields under their management in accordance with law.

Article 33.Tasks and powers of project owners

1. To implement investment projects through all stages of the investment process, from investment preparation, project preparation, project implementation, acceptance testing to project handover, in accordance with the laws on management of the state budget, public investment, construction and other relevant laws.

2. To comply with the laws on contracts, accounting, statistics, reporting, finalization and publicization and preservation of project dossiers.

Article 34.State budget-related tasks and powers of agencies, organizations and individuals

1. To fully and timely pay to the state budget taxes, charges, fees and other amounts in accordance with law.

2. If enjoying the State’s subsidies and support in terms of capital and funds according to assigned estimates, to manage and use such capital and funds in a proper, lawful, thrifty and effective manner, and make finalization with finance agencies.

3. To abide by regulations on accounting, statistics and budget disclosure.

4. To be informed of and participate in public oversight of finance-budget in accordance with law.

Chapter III

REVENUE SOURCES AND SPENDING TASKS OF BUDGETS OF VARIOUS LEVELS

Article 35.Revenue sources of the central budget

1. Revenues wholly belonging to the central budget:

a/ Value-added tax on imports;

b/ Import duty and export duty;

c/ Excise tax on imports;

d/ Environmental protection tax on imports;

dd/ Royalties, enterprise income tax, profits shared to the host country and other revenues from oil and gas exploration and exploitation;

e/ Grants of foreign governments, international organizations and other organizations, and overseas individuals to the Vietnamese Government;

g/ Charges for services provided by central state agencies; for those which have to pay their operating expenses at a pre-fixed level, such charges may be deducted; charges for services provided by public non-business units and central state enterprises may be partly or wholly deducted, the remainder shall be paid into the state budget in accordance with the law on charges and fees and other relevant laws;

h/ Fees collected by central state agencies, except registration fees prescribed at Point h, Clause 1, Article 37 of this Law;

i/ Collected fines on administrative violations, other fines and seizures effected by central state agencies in accordance with law;

k/ Proceeds from the sale of state assets, including collected levies for use of land associated with land-attached assets managed by central agencies, organizations and units;

l/ Proceeds from the handling of assets under state ownership by central agencies, organizations and units;

m/ Proceeds from the retrieval of central budget capital invested in economic organizations; dividends and profits received from state-invested joint-stock companies and limited liability companies with two or more members in which ministries, ministerial-level agencies, government-attached agencies or other central agencies act as the owner’s representatives; after-tax profits left after making deductions to set up funds of state enterprises in which ministries, ministerial-level agencies, government-attached agencies or other central agencies act as the owner’s representatives; positive difference between revenues and expenditures of the State Bank of Vietnam;

n/ Revenues from the central financial reserve fund;

o/ Central budget remainder;

p/ Central budget revenues brought forward from preceding years;

q/ Other revenues in accordance with law.

2. Revenues shared by a percentage (%) between the central budget and local budgets:

a/ Value-added tax, except value-added tax prescribed at Point a, Clause 1 of this Article;

b/ Enterprise income tax, except enterprise income tax prescribed at Point dd, Clause 1 of this Article;

c/ Personal income tax;

d/ Excise tax, except the excise tax prescribed at Point c, Clause 1 of this Article;

dd/ Environment protection tax, except the case prescribed at Point d, Clause 1 of this Article.

3. The Government shall detail this Article.

Article 36.Spending tasks of the central budget

1. Development investment expenditures:

a/ Investment in projects, including inter-regional and regional projects of ministries, ministerial-level agencies, government-attached agencies and other central state agencies in the fields prescribed in Clause 3 of this Article;

b/ Investment in, and provision of capital support to, enterprises providing public-utility products and services ordered by the State; economic organizations; central finance institutions; investment of state capital in enterprises in accordance with law;

c/ Other development investment expenditures in accordance with law.

2. National reserve expenditures.

3. Current expenditures of ministries, ministerial-level agencies, government-attached agencies and other central state agencies as assigned in the following fields:

a/ National defense;

b/ Security and social order and safety;

c/ Education, training and vocational training;

d/ Science and technology;

dd/ Health, population and family;

e/ Culture and information;

g/ Broadcasting and news agency;

h/ Physical training and sports;

i/ Environmental protection;

k/ Economic activities;

l/ Activities of state management agencies, political organizations and socio-political organizations; provision of support for activities of socio-politico-organizations, social organizations, and socio-professional organizations in accordance with law;

m/ Social security expenditures, including expenditures to support the implementation of social policies in accordance with law;

n/ Other expenditures as prescribed by law.

4. Expenditures for payment of interests on loans borrowed by the Government.

5. Expenditures for aid provision.

6. Expenditures for provision of loans in accordance with law.

7. Transfers to the central financial reserve fund.

8. Central budget expenditures brought forward to the subsequent year.

9. Budget-balancing transfers and targeted transfers to local budgets.

Article 37.Local budget revenue sources

1. Revenues wholly belonging to local budgets:

a/ Royalties, except royalty collected from oil and gas exploration and exploitation;

b/ License tax;

c/ Agricultural land use tax;

d/ Non-agricultural land use tax;

dd/ Land use levy, except land use levy prescribed at Point k, Clause 1, Article 35 of this Law;

e/ Land and water surface rental;

g/ Proceeds from the lease and sale of state-owned houses;

h/ Registration fee;

i/ Revenues from construction lottery;

k/ Retrieval of local budget capital invested in economic organizations; dividends and profits received in state-invested joint stock companies and limited liability companies with two or more members in which provincial-level People’s Committees act as the owner’s representatives; after-tax profits left after making deductions to sett up funds of state enterprises in which provincial-level People’s Committees act as the owner’s representatives;

l/ Revenues from local financial reserve funds;

m/ Revenues from the sale of state property, including levies for the use of land associated with land-attached assets managed by local agencies, organizations and units;

n/ Grants provided by international organizations and other overseas organizations and individuals directly to localities;

o/ Charges collected from services provided by local state agencies; for those which have to pay their operating expenses at a pre-fixed level, such charges may be deducted; charges collected from services provided by public non-business units or state enterprises in which provincial-level People’s Committees act as the owner’s representatives may be retained partially or wholly and the remainder shall be paid into the state budget in accordance with the law on charges and fees and other relevant laws;

p/ Fees collected by local state agencies;

q/ Collected fines on administrative violations, other fines and seizures handled by local state agencies in accordance with law;

r/ Proceeds from the handling of assets under state ownership by local agencies, organizations and units;

s/ Revenues from public land funds and other yields of public assets;

t/ Lawful contributions of organizations and individuals;

u/ Local budget remainders;

v/ Other revenues as prescribed by law.

2. Revenues shared in percentage (%) between the central budget and local budgets under Clause 2, Article 35 of this Law.

3. Budget-balancing transfers and targeted transfers from the central budget.

4. Local budget revenues brought forward from the preceding year.

Article 38.Spending tasks of the local budget

1. Development investment expenditures:

a/ Investment in locally managed projects according to the fields specified in Clause 2 of this Article;

b/ Investment in, and provision of capital support for, local enterprises providing public utility products and services ordered by the State, and local economic organizations and financial institutions in accordance with law;

c/ Other expenditures as prescribed by law.

2. Current expenditures of local agencies and units as assigned in the fields of:

a/ Education, training and vocational training;

b/ Science and technology;

c/ National defense, security and social order and safety - the part assigned to localities for management;

d/ Health, population and family;

dd/ Culture and information;

e/ Broadcasting and news agency;

g/ Physical training and sports;

h/ Environmental protection;

i/ Economic activities;

k/ Activities of state management agencies, political organizations, and socio-political organizations; provision of support for activities of socio-politico-professional organizations, social organizations, and socio-professional organizations in accordance with law;

l/ Social security expenditures, including expenditures to support the implementation of social policies in accordance with law;

m/ Other expenditures as prescribed by law.

3. Expenditures for payment of interests on loans borrowed by local administrations.

4. Transfers to local financial reserve funds;

5. Expenditures brought forward to the subsequent year.

6. Budget-balancing transfers and targeted transfers to lower-level budgets.

7. Expenditures for support for performance of a number of tasks prescribed at Points a, b and c, Clause 9, Article 9 of this Law.

Article 39.Principles of assignment of revenue sources and spending tasks among local budgets of various levels

1. On the basis of revenue sources and spending tasks of local budgets prescribed in Articles 37 and 38 of this Law, provincial-level People’s Councils shall decide to assign specific revenue sources and spending tasks among local budgets of various levels according to the following principles:

a/ Conforming with the assignment of socio-economic, national defense and security tasks in each field and with economic, geographical and population characteristics and the managerial level of each region and locality;

b/ Commune and township budgets are entitled to a portion of revenues from non-agricultural land use tax; license tax collected from business individuals and households; agricultural land use tax collected from households; and land and house registration fees;

c/ District- and commune-level budgets do not have scientific and technological research spending tasks;

d/ The spending tasks assigned to towns and provincial cities must include those for construction of public general education schools of all levels, public lighting, water supply and drainage, urban traffic, urban sanitation and other public welfare projects.

2. Based on the percentage (%) of revenue sharing assigned by the Prime Minister and the revenues wholly belonging to local budgets, provincial-level People’s Councils shall decide on the percentage (%) of revenue sharing among local budgets of various levels.

Article 40.Determination of amounts of budget-balancing transfers, targeted transfers and percentage (%) of revenue sharing among budgets of various levels

1. Local budgets are entitled to use the revenues wholly belonging to local budgets and shared revenues, for shareable revenues, and budget-balancing transfers from higher-level budgets to balance their revenues and expenditures for ensuring the assigned socio-economic, national defense and security tasks.

2. The percentage of revenue sharing and budget-balancing transfers shall be determined on the basis of:

a/ Taking into account revenue sources and spending tasks prescribed in Articles 35, 37 and 38 of this Law according to the budget collection regime, budget allocation principles, criteria and norms, and regimes, criteria and norms of budget expenditures based on the population, natural conditions and socio-economic conditions of each region, paying attention to deep-lying and remote areas, former revolutionary bases, ethnic minority areas, areas with difficulties and exceptional difficulties; areas with large wet-rice cultivation acreage; protection forest and special-use forest areas; and key economic areas;

b/  Revenues belonging to local budgets prescribed at Points dd and i, Clause 1, Article 37 of this Law shall not be used to determine the percentage (%) of revenue sharing between the central budget and local budgets and determining budget-balancing transfers from the central budget to local budgets.

3. Targeted transfers from a higher-level budget to a lower-level budget shall be determined according to the budget allocation principles, criteria and norms, and regimes, criteria and norms of budget expenditure; capacity of the higher-level budget and budget balancing capacity of each locality at the lower level, in order to support the lower-level budget in the following cases:

a/ Implementation of a new policy or regime promulgated by superior authorities which has not been included in the budget estimate right in the first year of the budget stabilization period;

b/ Implementation of national target programs and other programs and projects of superior authorities assigned to subordinates;

c/ Support of expenditures for the remediation of consequences of widespread disasters, catastrophes and epidemics which go beyond the balancing capacity of the lower-level budget;

d/ Support for the implementation of a number of major and particularly important programs and projects with great impacts on local socio-economic development. Specific support levels shall be set for each program or project. The total annual funding support for development investment from the central budget to local budgets prescribed at this Point must not exceed 30% of the central budget’s total expenditures for capital construction investment.

Chapter IV

FORMULATION OF STATE BUDGET ESTIMATES

Article 41.Bases for formulation of annual state budget estimates

1. Tasks of socio-economic development, national defense and security maintenance, foreign policy and gender equality.

2. Specific tasks of ministries, ministerial-level agencies, government-attached agencies, other central agencies and organizations, and local agencies, organizations and units.

3. The laws on taxes, charges and fees, state budget collection regimes; state budget allocation norms and regimes, criteria and norms of state budget expenditures.

4. Decentralization of budget revenue sources, budget spending tasks and percentage (%) of revenue sharing and budget-balancing transfers from higher-level budgets to lower-level budgets.

5.  Legal documents of competent authorities and state agencies guiding the planning of socio-economic development and formulation of state budget estimates for the subsequent year.

6. Five-year financial plans, three-year financial and state budget plans, and medium-term state budget investment plans.

7. Implementation of the state budget of the previous year.

8. Figures for budget revenue and expenditure estimate examination notified to related budgets, agencies, organizations and units.

Article 42.Requirements on formulation of annual state budget estimates

1. State budget estimates shall be summarized by revenue, expenditure and the structure of development investment expenditure, current expenditure, national reserves expenditure, debt payment and aid expenditure, financial reserve fund transfer and budget contingency expenditure.

2. Budget estimates formulated by budget-estimating units of various levels must fully show revenues and expenditures according to the forms and time limits set by competent state agencies, in which:

a/ Budget revenue estimates shall be formulated on the basis of anticipated macro-economic targets and relevant targets, the laws on taxes, charges and fees, and the budget collection regime;

b/ Development investment expenditure estimates shall be formulated on the basis of approved master plans, plans, programs and projects; five-year financial plans; medium-term state budget investment plans, resource balancing capacity in the budget estimation year, and the laws on public investment and construction and relevant laws;

c/ Current expenditure estimates shall be formulated on the basis of assigned tasks, approved tasks, and regimes, criteria and norms prescribed by competent agencies. The formulation of state budget estimates by state agencies enjoying autonomy and accountability for their payrolls and administrative management funds; and public non-business units enjoying autonomy and accountability in performing their tasks and organizing their apparatus, payrolls and finance must comply with the Government’s regulations;

d/ State budget expenditure estimates in the field of education, training and vocational training, and science and technology must comply with the rates prescribed by relevant laws;

dd/ Expenditure estimates for the implementation of national target programs shall be formulated based on the list of national target programs and total funds for these programs in each period decided by the National Assembly, and objectives, contents, tasks and details of component projects of each national target program;

e/ Debt payment expenditure estimates shall be formulated on the basis of ensuring payment of debts which become due in the budget estimation year;

g/ Estimates of loans to offset state budget deficit shall be formulated based on the state budget balance, capacity of each lending source and debt payment capacity, and the debt safety limit under the National Assembly’s resolution.

Article 43.Three-year finance-state budget plans

1. The three-year finance-state budget plan is a finance-state budget plan which is annually made on the basis of the five-year finance plan for three consecutive years, including the year of making budget estimates and two following years. This plan shall be made concurrently with annual state budget estimates in order to guide the formulation of annual state budget estimates and determine the order of priority in the allocation of resources for each sector, task, activity, regime and policy in each sector in the medium term.

2. The three-year finance-state budget plans include the national three-year finance-state budget plans and provincial-level three-year finance-state budget plans and must cover anticipated macro-economic targets, key budget policies; anticipated revenues and expenditures and revenue and expenditure structure; anticipated budget deficit; state budget balancing principles and order of priority in the allocation of budget resources and ceiling limits for development investment and debt payment expenditures and current expenditures; anticipated payable provisions, and major solutions for implementation of the plan within 3 years.

3. Ministries, ministerial-level agencies, government-attached agencies, other central agencies and provincial-level agencies and units shall make their three-year finance-state budget plans which must cover their major objectives, tasks, regimes and policies; anticipated financial resources, including anticipated revenues which are assigned to them for management, and required state budget expenditures for implementation; principles and method of determining the order of priority in the implementation of tasks, activities, regimes and polices, and planned allocation of funds within the ceiling expenditure limits set by competent agencies; and major solutions to striking a balance between the budget expenditure needs and ceiling expenditure limits within 3 years.

4. The Ministry of Finance shall assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment in, summarizing the national three-year finance-state budget plan and reporting it to the Government for submission to the National Assembly; provincial-level Finance Departments shall assume the prime responsibility for, and coordinate with provincial-level Planning and Investment Departments in, summarizing provincial-level three-year finance-state budget plans and reporting them to provincial-level People’s Committees for submission to People’s Councils of the same level for reference when discussing, considering and approving annual state budget estimates and annual state budget allocation plans.

5. The Government shall prescribe the three-year finance-state budget planning.

Article 44.Time frame for guiding the formulation of, developing, summarizing, deciding on and assigning state budget estimates

1. Before May 15, the Prime Minister shall promulgate regulations on socio-economic development planning and state budget estimation for the subsequent year.

2. Before September 20, the Government shall submit the documents and reports prescribed in Clause 1, Article 47 of this Law to the Standing Committee of the National Assembly for comment.

3. The Government’s reports shall be sent to National Assembly deputies at least 20 days before the opening of the year-end session of the National Assembly.

4. Before November 15, the National Assembly shall decide on state budget estimates and the central budget allocation plan for the subsequent year.

5. Before November 20, the Prime Minister shall assign the subsequent year’s budget revenue and expenditure estimates to each ministry, ministerial-level agency, government-attached agency, other central agency, province and centrally run city.

6. Before December 10, provincial-level People’s Councils shall decide on local budget estimates and provincial-level budget allocation for the subsequent year. Lower-level People’s Councils shall decide on the subsequent year’s local budget estimates and budget allocation of their level within 10 days after immediate superior People’s Councils decide on budget estimates and allocation.

7. Within 5 working days after the People’s Council decides on budget estimates, the People’s Committee of the same level shall assign budget estimates of the subsequent year to each agency and unit of its level and lower levels; and concurrently report to the immediate superior People’s Committee and finance agency; the provincial-level People’s Committee shall report to the Ministry of Finance on budget estimates already decided by the provincial-level People’s Council.

8. Before December 31, ministries, ministerial-level agencies, government-attached agencies, other central agencies and People’s Committees of various levels shall complete the assignment of budget estimates to each attached agency and unit and lower-level People’s Committees.

Article 45.Responsibilities of agencies, organizations and units for formulating annual budget estimates

1. Local budget-revenue collecting agencies of various levels shall formulate state budget revenue estimates in their localities and send them to superior budget revenue-collecting agencies and the finance agencies of the same level. Central budget revenue-collecting agencies shall formulate state budget estimates for their assigned fields and send them to the Ministry of Finance for summarization and formulation of state budget estimates.

2. Agencies, organizations, units and investors shall formulate budget revenue and expenditure estimates within their assigned tasks and report them to their managing agencies for summarization and reporting to the finance agencies of the same level.

3. Local finance agencies of various levels shall examine budget estimates of agencies, organizations and units of the same level and local budget estimates of lower levels; assume the prime responsibility for, and coordinate with related agencies in, summarizing and formulating local budget estimates and budget allocation plans of their level according to Clauses 1 and 2, Article 30 of this Law, and report them to the People’s Committees of the same level.

4. People’s Committees of various levels shall summarize and formulate local budget estimates and report them to the Standing Bodies of the People’s Councils of the same level for consideration and comment. Provincial-level People’s Committees shall send budget estimates to the Ministry of Finance, the Ministry of Planning and Investment and relevant agencies according to regulations for summarization and formulation of state budget estimates and submission to the Government; and concurrently to National Assembly deputies’ delegations for oversight.

5. Central and local line management agencies shall coordinate with finance agencies and planning and investment agencies of the same level in formulating state budget estimates according to their assigned sectors and fields.

6. The Ministry of Finance shall examine budget estimates of ministries, ministerial-level agencies, government-attached agencies and other central and local agencies; assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment and related ministries and sectors in, summarizing and formulating state budget estimates and central budget allocation plans and submit them to the Government in accordance with Clause 1, Article 47 of this Law.

Article 46.Discussion and decision on state budget estimates and annual budget allocation plans

1. Ministries, ministerial-level agencies, government-attached agencies, other central agencies and local agencies and units shall hold discussions with their attached agencies and units.

2. Finance agencies of various levels shall assume the prime responsibility for holding:

a/ Discussions on annual budget estimates with agencies and units of the same level;

b/ Discussions on the budget estimates of the first year of the budget stabilization period with immediate lower-level People’s Committees for determining the percentage (%) of revenue sharing between budgets of various levels and amounts of budget-balancing transfers from higher-level budgets to lower-level budgets as the basis for the formulation of budget estimates for subsequent years;

c/ For subsequent years in the budget stabilization period, finance agencies shall work with immediate lower-level People’s Committees at the latter’s request.

3. During discussions on budget estimates and budget allocation plans, finance agencies may request modification of estimated revenues or expenditures which are unlawful or unsuitable to the budget capacity or socio-economic development orientations. If opinions between the finance agency and agencies or units of the same level and lower-level People’s Committees remain divergent, local finance agencies shall report them to the People’s Committees of the same level for decision; and the Ministry of Finance shall report them to the Prime Minister for decision.

4. Appraisal and submission of state budget estimates and central budget allocation plan to the National Assembly for decision:

a/ The Government shall discuss and comment on its draft reports submitted by the Ministry of Finance before submission to the National Assembly;

b/ The Finance and Budget Committee of the National Assembly shall assume the prime responsibility for verifying the Government’s reports submitted to the Standing Committee of the National Assembly;

c/ On the basis of the verification of the National Assembly’s Finance and Budget Committee and opinions of the Standing Committee of the National Assembly, the Government shall finalize reports for submission to the National Assembly;

d/ The National Assembly shall discuss and decide on state budget estimates and the central budget allocation plan for the subsequent year. When discussing and deciding on state budget estimates and the central budget allocation plan, the National Assembly shall decide on solutions to ensure the budget balancing capacity in case budget revenues and expenditures are adjusted.

5. The Standing Committee of the National Assembly shall stipulate the order and procedures for National Assembly agencies’ verification of state budget estimates and the central budget allocation plans.

6. The consideration and decision on local budget estimates and local budget allocation plans must comply with the Government’s regulations.

Article 47.Submitted documents on state budget estimates and budget allocation plans

1. Documents submitted by the Government to the National Assembly on state budget estimates and the central budget allocation plan comprise:

a/ Evaluation of the implementation of the current year’s state budget; bases for formulation of state budget estimates and allocation of the central budget; basic contents and solutions for implementation of state budget estimates;

b/ State budget revenue estimates together with solutions for mobilization of revenue sources for the state budget;

c/ State budget expenditure estimates, clearly stating the objectives and important programs of the national economy and the Party’s and the State’s major policies related to the state budget;

d/ State budget deficit and sources to offset such deficit; the ratio of the deficit to the gross domestic product;

dd/ Five-year finance plan, for the first year of the planning period;

e/ Three-year finance-state budget plan;

g/ Report on public debts in accordance with the Law on Public Debt Management, clearly stating due debts, overdue debts, interests payable in the year, debts arising from additional borrowings to offset the state budget deficit, the debt payment capacity in the year, and debt amounts by the year end;

h/ Report on the implementation of the finance plan, the subsequent year’s finance plans of centrally managed state extrabudgetary financial funds;

i/ Specific policies and measures for finance and state budget stabilization;

k/ List, implementation schedule and the planning year’s investment estimates of state budget-funded key national programs and projects already decided by the National Assembly;

l/ Expenditure estimates of each ministry, ministerial-level agency, government-attached agency and other central agency by field; budget collection and spending tasks, deficit level, percentage (%) of revenue sharing and transfers from the central budget to the budget of each province or centrally run city;

m/ Other documents clearly explaining state budget revenue and expenditure estimates and the central budget allocation plan; and tax reduction and exemption in the report on state budget estimates submitted to the National Assembly.

2. The Government shall prescribe documents submitted by People’s Committees to People’s Councils of the same level on local budget estimates and local budget allocation plans.

Article 48.Re-formulation of state budget estimates

1. In case the state budget estimate and central budget allocation plan are not decided by the National Assembly, the Government shall re-formulate the state budget estimate and the central budget allocation plan for submission to the National Assembly at the time decided by the latter.

2. In case the local budget estimate and the plan on allocation of the budget of its level are not decided by the People’s Council, the People’s Committee shall re-make the local budget estimate and the plan on allocation of the budget of its level for submission to the People’s Council at the time decided by the latter which, however, must not be later than the time limit prescribed by the Government.

Chapter V

IMPLEMENTATION OF THE STATE BUDGET

Article 49.Allocation and assignment of state budget estimates

1. After being assigned budget estimates by the Government or People’s Committees, level-I budget-estimating units at central and local levels shall allocate and assign budget estimates to their attached budget-using units and units of the lower-level budgets which are authorized to perform spending tasks of these budget-estimating units, and send them to the finance agencies of the same level and concurrently to the State Treasury where transactions are made for implementation. The allocation and assignment of estimates must meet the deadline and requirements prescribed in Article 50 of this Law.

2. The finance agencies of the same level shall examine estimates assigned by level-I budget-estimating units to budget-using units. When detecting that the allocation is against the assigned budget estimates in terms of the total and details by field and task, or is unconformable with prescribed policies and regimes, they shall request level-I budget-estimating units to adjust the allocation within 10 working days after receiving the latter’s allocation reports.

3. No organization or person other than agencies competent to assign budget estimates may change assigned budget tasks.

Article 50.Requirements and time limit for allocation and assignment of state budget estimates

1. The allocation and assignment of budget estimates to budget-using units must ensure:

a/ Conformity with the total and details of the assigned budget estimates for each field and assigned budget collection and spending task;

b/ Conformity with expenditure policies, regimes, criteria and norms;

c/ Allocation of sufficient capital and funds for retrieval of amounts already advanced from the estimates which are due in the year, and committed domestic funds for projects funded with official development assistance (ODA) of foreign donors;

d/ For allocation of development investment capital, satisfaction of requirements prescribed by the laws on public investment and construction and other relevant laws;

dd/ For allocation of targeted transfers from higher-level budgets to lower-level budgets, assurance of proper targets and beneficiaries and proper implementation of commitments or regulations on allocation of local budgets for those targets.

2. Time limits for allocation and assignment of state budget estimates:

a/ For budget estimates assigned under Clauses 5 and 7, Article 44 of this Law, level-I budget-estimating units shall complete the budget allocation and assignment to their attached budget-using units before December 31 of the preceding year in accordance with Clause 8, Article 44 of this Law;

b/ In case of assignment of additional budget estimates, within 10 working days after receiving the additional budget estimates, superior budget-estimating units and lower-level People’s Committees shall complete the allocation and assignment of those estimates according to regulations.

Article 51.Temporary allocation of budgets

1. In case at the beginning of the budget year, the budget estimates and budget allocation plans have not yet been decided by the National Assembly or People’s Councils, finance agencies and State Treasuries of various levels may, according to their functions, temporarily allocate funds for spending tasks which cannot be delayed until the budget estimates are decided by competent authorities:

a/ Payment of salaries and amounts of salary nature;

b/ Expenses for professional operations and civil duties;

c/ Budget-balancing transfers to lower-level budgets;

d/ Other necessary expenses for the operation of the state apparatus, except for equipment procurement and repair;

dd/ Funds for transitional projects of national target programs and for national important projects; and for other important and urgent transitional investment projects to remedy consequences of disasters, catastrophes and epidemics.

2. The monthly temporarily allocated amount for the tasks prescribed at Points a, b, c and d, Clause 1 of this Article must not exceed the monthly average expenditure of the preceding year.

3. For expenditures for programs and projects funded with ODA or concessional loans from donors which have not been estimated or exceed the assigned estimates, the Government shall report them to the Standing Committee of the National Assembly for comment before implementation and to the National Assembly at its next session.

Article 52.Adjustment of state budget estimates

1. Overall adjustment of the state budget in case of changes therein compared to the assigned estimates which necessitate overall adjustment:

a/ The Government shall make the overall adjustment of the state budget estimate and submit it to the National Assembly for decision;

b/ On the basis of the National Assembly’s resolution on overall adjustment of the state budget estimate and budget collection and spending tasks assigned by superior authorities, People’s Committees of various levels shall make the overall adjustments of local budget estimates and submit them to the People’s Councils of the same level for decision.

2. The Government shall propose the Standing Committee of the National Assembly to decide on the adjustment of budget collection and spending tasks of a number of ministries, ministerial-level agencies, government-attached agencies, other central agencies, provinces and centrally run cities and report it to the National Assembly at its next session in the following cases:

a/ A number of expenditures shall be reduced as revenues are unlikely to reach the estimated level already decided by the National Assembly;

b/ The adjustment is urgent for national defense and security or another objective reason.

3. The People’s Committee shall propose the People’s Council of the same level to decide on the adjustment of the local budget estimate and report it to the People’s Council at the next session in the following cases:

a/ A number of expenditures must be reduced as revenues are unlikely to reach the estimated level already decided by the People’s Council;

b/ The Standing Committee of the National Assembly decides to adjust the budget estimates of a number of provinces and centrally run cities as prescribed in Clause 2 of this Article;

c/ Adjustment of the budget estimates of a number of budget-estimating units or localities at lower level is required.

4. The Government shall request provincial-level People’s Councils to adjust their budget estimates if the allocation of local budgets fails to conform with the National Assembly’s resolution.

5. People’s Committees shall request People’s Councils at lower levels to adjust their budget estimates if the allocation of local budgets fails to conform with the resolutions of People’s Councils at higher levels.

Article 53.Adjustment of estimates already assigned to budget-using units

1. Budget estimates already assigned to attached budget-using units shall be adjusted in the following cases:

a/ As a result of the adjustment of budget estimates under Article 52 of this Law;

b/ Finance agencies request level-I budget-estimating units to adjust estimates under Clause 2, Article 49 of this Law;

c/ Level-I budget-estimating units adjust estimates among their attached units within the total assigned level and details by expenditure item.

2. The budget estimate adjustment must meet requirements on budget estimate allocation and assignment prescribed in Clause 1, Article 50 of this Law. After adjusting budget estimates, level-I budget-estimating units shall send the adjustment to the finance agencies of the same level for examination and to the State Treasuries where transactions are made, for implementation.

3. Adjustment of budget estimates already assigned to budget-using units shall be completed before November 15 of the current year.

Article 54.Administration of the state budget

1. Within the ambit of their tasks and powers, agencies, organizations, units and individuals shall work out necessary measures to ensure the fulfillment of the assigned budget collection and spending tasks, to practice thrift and combat waste and corruption; and to strictly observe finance rules and discipline.

2. All agencies, organizations, units and individuals shall fulfill the budget payment obligation in accordance with law; and use state budget funds for proper purposes, strictly according to prescribed regimes and in an economical and efficient manner.

3. Finance agencies shall ensure funding sources for timely payment of expenditures as estimated.

Article 55.Organization of state budget collection

1. Budget revenue-collecting agencies are finance agencies, tax agencies, customs agencies and other agencies assigned or authorized by competent state agencies to organize the collection of state budget revenues.

2. Only budget revenue-collecting agencies may organize the collection of budget revenues.

2. Budget revenue-collecting agencies have the following tasks and powers:

a/ To coordinate with related state agencies in organizing the proper, full and timely collection of state budget revenues in accordance with law; to submit to the direction and inspection by the Ministry of Finance, managing agencies and People’s Committees and supervision by People’s Councils, of the collection of budget revenues in their localities; to coordinate with the Vietnam Fatherland Front and its member organizations in public information work and mobilizing organizations and individuals to strictly fulfill their budget payment obligation in accordance with this Law and other relevant laws;

b/ To manage and effect the collection of taxes, charges and fees and other amounts payable directly to the State Treasury. To make full and timely payment to the State Treasury according to regulations of the Ministry of Finance, in case of authorized collection;

c/ To urge and examine agencies, organizations, units and individuals in paying all payable amounts into the state budget on time;

d/ To examine and control sources of budget revenues; to examine and inspect the observance of regulations on budget declaration, collection and payment and handle violations in accordance with law.

4. The State Treasury may open accounts at the State Bank of Vietnam and commercial banks to collect state budget revenues; and shall promptly account all revenues into the budget and regulate revenues to budgets of various levels according to regulations.

Article 56.Organization of state budget payment

1. Funds for spending tasks already arranged in budget estimates shall be ensured according to the implementation schedule and within the assigned estimates.

2. Capital or funds may be advanced for investment projects and other urgent spending tasks for performance of jobs under signed contracts. The advanced amount shall be based on the contract value and within the assigned budget estimates and in accordance with relevant laws. Advanced amounts shall be retrieved upon payment for completed work volumes or tasks.

3. Lower-level budgets may receive advance payments from higher-level budgets for the performance of spending tasks according to the assigned budget estimates when necessary.

4. Based on the assigned budget estimates and requirements of tasks:

a/ Heads of budget-using units shall send expenditure decisions to State Treasuries for implementation;

b/ Lower-level finance agencies shall withdraw transfers from higher-level budgets at the State Treasury.

5. The State Treasury shall examine the legality of necessary documents in accordance with law and, when all the conditions prescribed in Clause 2, Article 12 of this Law are met, effect budget expenditures by making direct payment or advance payment in accordance with Clauses 2 and 3 of this Article.

6. Heads of State Treasuries shall refuse payment for expenditures which fail to fully meet the conditions prescribed in Clause 2, Article 12 of this Law, and take responsibility for their decisions in accordance with law.

Article 57.Advance payment from budget estimates of the subsequent year

1. Advance payments from budget estimates of the subsequent year may be made for central and provincial- and district-level budgets for the implementation of national important projects and urgent central and local projects under state-funded medium-term investment plans already decided by competent authorities. The advanced amount must not exceed 20% of the estimated expenditures for capital construction of the year of implementing capital construction works under approved state-funded medium-term investment plans. The allocation of budget estimates of the subsequent year must ensure sufficient estimates in order to retrieve all the advanced amounts; and advance payments from the estimates of the subsequent year are not allowed when the advanced budget amounts have not been fully retrieved.

2. The Government shall prescribe in detail principles, criteria and conditions for making advance payments from budget estimates of the subsequent year.

Article 58.Handling of temporary shortage of the state budget fund

1. In case the central budget fund incurs a temporary shortage, it may receive advance payments from the central financial reserve fund and other lawful financial sources for handling such shortage and such advanced amounts shall be reimbursed in the budget year. If the financial reserve fund and other lawful financial sources cannot afford such advance payment, the State Bank of Vietnam shall make an advance payment for the central budget under the Prime Minister’s decision. Advanced amounts from the State Bank of Vietnam shall be reimbursed within the budget year, except in special cases decided by the Standing Committee of the National Assembly.

2. In case the provincial-level budget fund incurs a temporary shortage, it may receive advance payments from the local and central financial reserve funds and other lawful financial sources for handling such shortage and such advanced amounts shall be reimbursed within the budget year.

3. In case the district- and commune-level budget funds incur a temporary shortage, they may receive advance payments from the local financial reserve fund and other lawful financial sources for handling such shortage, and such advance amounts shall be reimbursed within the budget year.

Article 59.Handling of increases or decreases in revenues and expenditures compared to budget estimates in the implementation of the state budget

1. In case revenues are unlikely to reach the estimates decided by the National Assembly or People’s Councils, a number of expenditures shall be reduced in accordance with Point a, Clause 2, and Point a, Clause 3, Article 52 of this Law.

2. Increased revenues, except increased local budget revenues as a result of revenues from new projects put into operation in the budget stabilization period, shall be paid into the higher-level budget and saved budget expenditures as compared to their estimates, shall be used in the following order of priority:

a/ Reduction of deficit, increase of payment of debts, both principal and interest;

b/ Transfer to the financial reserve fund;

c/ Transfer to sources for salary policy implementation;

d/ Implementation of a number of social security policies;

dd/ Increase of expenditures for investment in a number of important projects;

e/ Performance of the tasks prescribed in Clauses 3 and 4 of this Article.

The Government shall make plans on use of increased revenues and saved expenditures of the central budget and report them to the Standing Committee of the National Assembly for decision and to the National Assembly at its next session. People’s Committees shall make plans on use of increased revenues and saved expenditures of the budgets of their level and report them to the Standing Bodies of the People’s Councils and to the People’s Councils at the next session. Increased local budget revenues as a result of revenues newly arising in the budget stabilization period must comply with Point d, Clause 7, Article 9 of this Law.

3. Closing the budget year, if the local budget incurs a deficit compared to the estimate for an objective reason and cannot be balanced after reducing a number of expenditures in accordance with Clause 1 of this Article and using other local lawful financial resources, the local budget may receive support from the higher-level budget according to the latter’s capacity.

4. Bonus for higher revenues shared among budgets of various levels than estimated:

a/ In case the central budget records an increase in revenues shared between the central and local budgets as compared with the estimate, the central budget shall set aside an amount not exceeding 30% of the increased revenue as bonus for localities reporting revenue increases, which must not exceed the increased revenue as compared with the implementation level of the preceding year.

Based on the bonus level decided by the Standing Committee of the National Assembly, provincial-level People’s Committees shall report to the People’s Councils of the same level for decision the use of the receivable bonus for development of infrastructure programs and projects and performance of important tasks, and for grant of bonus to lower-level budgets;

b/ Provincial-level People’s Committees shall propose the People’s Councils of the same level to regulate the bonus for increased revenue shared among local budgets of various levels.

Article 60.Reporting on state budget implementation

1. Tax agencies and customs offices of various levels shall periodically report to the finance agencies of the same level and related agencies on the collection of state budget revenues in accordance with law.

2. State Treasuries shall periodically report to the finance agencies of the same level and related agencies on the implementation of state budget revenues and expenditures in accordance with law.

3. Level-I budget-estimating units shall periodically report to the finance agencies of the same level and related agencies on the implementation of state budget revenues and expenditures in accordance with law.

4. Local finance agencies of various levels shall periodically report to the People’s Committees of the same level and related agencies on the implementation of local budget revenues and expenditures; and report to the higher-level finance agencies on the use of targeted transfers from the higher-level budget in accordance with law.

5. Local People’s Committees of various levels shall report to the Standing Bodies of the People’s Councils of the same level on the contents prescribed in Clause 3, Article 52, and Clause 2, Article 59, of this Law; and report to the People’s Councils of the same level on the implementation of local budgets at their year-end session and on additional assessment at their mid-year session.

6. Lower-level People’s Committees shall periodically report to higher-level finance agencies on the implementation of local budget revenues and expenditures. Provincial-level People’s Committees shall periodically report to the Ministry of Finance on the collection of state budget revenues in their localities and the implementation of local budget revenues and expenditures in accordance with law.

7. The Ministry of Finance shall periodically report to the Government and related agencies on the implementation of state budget revenues and expenditures in accordance with law.

8. The Government shall report to the Standing Committee of the National Assembly on the contents prescribed in Clause 2, Article 52, and Clause 2, Article 59, of this Law. The Government shall report to the National Assembly on the implementation of state budget revenues and expenditures at its year-end session and on additional assessment of the implementation of budget revenues and expenditures at its mid-year session.

Article 61.Budget management and use by budget-using units

1. Heads of budget-using units shall take responsibility for the management and use of their budgets according to the assigned estimates, evaluate the results of task performance, ensure efficiency, thrift, compliance with budget expenditure policies, regimes, criteria and norms.

2. Persons in charge of finance and accounting of budget-using units shall comply with the regimes on finance-budget management, state accounting, and internal inspection, and prevent, detect violations and propose heads of units and finance agencies of the same level to handle them.

Article 62.Management of the state budget fund

1. The state budget fund comprises all amounts of money of the State on the accounts of the State Treasury opened at the State Bank of Vietnam and commercial banks, and cash in State Treasury units. The state budget fund shall be formed from the budget funds of various levels and deposits of state financial funds and economic units and organizations at the State Treasury.

2. The State Treasury shall perform the centralized and uniform management of the state budget fund to fully and promptly meet the payment demands of the state budget and units making transactions at the State Treasury; and ensure the secure management and efficient use of the state budget fund.

3. The Government shall prescribe the management of the state budget fund.

Chapter VI

ACCOUNTING, AUDIT AND ACCOUNT FINALIZATION OF THE STATE BUDGET

Article 63.Accounting and account finalization of the state budget

1. Agencies, organizations, units and individuals related to state budget revenues and expenditures shall account, report on, and make final accounts of, the state budget in accordance with the prescribed accounting regime and this Law.

2. Finance agencies may suspend budget expenditures of budget-estimating agencies, organizations and units of the same level that fail to observe the reporting regimes on accounting, final accounts and other financial statements, and shall take responsibility for their decision.

3. The State Treasury shall account the state budget, summarize data on state budget revenues and expenditures, and report them to the finance agency of the same level and related agencies according to regulations.

Article 64.Year-end settlement of state budget revenues and expenditures

1. At the end of a budget year, agencies, organizations, units and individuals related to state budget revenues and expenditures shall close accounting books and make statements of final state budget accounts.

2. The deadline for adjustment of final state budget accounts is January 31 of the subsequent year.

3. Estimated expenditures, including transfers in the year, which have not been spent or fully spent by the year end, including the time for adjustment of final state budget accounts, shall be cancelled, except a number of expenditures brought forward to the subsequent year for implementation and accounting in the subsequent year’s budget:

a/ Expenditures for development investment brought forward to the subsequent year in accordance with the Law on Public Investment;

b/ Expenditures for equipment procurement with adequate dossiers and equipment procurement contracts signed before December 31 of the year of budget estimate implementation;

c/ Sources for implementation of salary policies;

d/ Funds assigned under the autonomy regime to public non-business units and state agencies;

dd/ Estimates added by competent authorities after September 30 of the year of budget estimate implementation;

e/ Funds for scientific research.

4. Increased revenues and saved expenditures shall be used in accordance with Clause 2, Article 59 of this Law. In case competent authorities decide to use them in the subsequent year, they may be brought forward to the subsequent year’s budget for implementation.

5. The Government shall prescribe in detail the bring-forward to the subsequent year’s budget.

Article 65.Requirements on account finalization of the state budget

1. Date on final state budget accounts must be accurate, truthful and complete.

2. Final accounts of state budget revenues are the revenues which have been actually paid and accounted as state budget revenues according to regulations. Revenues belonging to the budgets of preceding years which are paid into the current year’s budget shall be accounted as revenues of the current year’s budget. Final accounts of state budget expenditures are the expenditures which have been actually paid and accounted as state budget expenditures according to regulations.

3. Figures in final accounts of budgets of budget-using units and project owners and of budgets of various levels shall be collated and confirmed by State Treasuries where transactions are made.

4. Contents of statements of final state budget accounts must be strictly conformable with contents of the assigned state budget estimates and the state budget revenue index.

5. In the statements of final accounts of district- and commune-level budgets, budget expenditures must not be higher than budget revenues.

6. Statements of final account of budget-using units, superior budget-estimating units and budgets of various levels shall be accompanied by explanations and assessments of results and efficiency of budget expenditures against results of task performance of the units and localities and their assigned fields, programs and targets.

7. Statements of final accounts of state extrabudgetary finance funds shall be accompanied by explanations and assessments of results and efficiency of task performance of these funds.

8. Unlawfully collected state budget revenues shall be refunded to the payers; uncollected state budget revenues shall be fully collected; unlawfully spent state budget expenditures shall be fully retrieved.

Article 66.Approval of final state budget accounts

1. Annual final state budget accounts shall be approved based on the following contents:

a/ Every revenue and expenditure arising in the unit shall be examined and approved;

b/ Revenues must comply with the laws on taxes, and charges and fees, and other regulations of revenues of the State;

c/ Expenditures must meet the conditions prescribed in Clause 2, Article 12 of this Law;

d/ Revenues and expenditures shall be accounted according to the state accounting regime, the state budget revenue index and the budget year;

dd/ Revenue and expenditure documents must be lawful. Figures in accounting books and statements of final accounts must match those in revenue and expenditure documents and figures kept by the State Treasury.

2. Agencies approving annual final accounts:

a/ Superior budget-estimating units shall approve annual final accounts of their attached budget-estimating units according to regulations;

b/ Finance agencies shall approve final state budget accounts of level-I budget-estimating units of the same level according to regulations, if these units are concurrently budget-using units.

3. When approving final accounts, an agency may:

a/ Request the State Audit Office of Vietnam or hire an independent audit unit in accordance with the audit law to audit settlement reports of large-scale target projects and programs to provide more grounds for the approval;

b/ Request the concerned unit to give explanations or provide necessary information and data for the approval;

c/ Request the concerned unit to immediately pay payable amounts into the state budget according to regulations and remove expenditures which have been unlawfully spent or spent against the approved estimates; handle according to its competence or propose a competent agency to handle the head of the concerned unit which has made unlawful expenditures, causing loss to the state budget;

d/ Correct errors or request, when necessary, the subordinate unit to re-make the statement of final accounts.

4. Completing the approval of annual final accounts, superior budget-estimating units shall issue notices of approval of final accounts to subordinate budget-estimating units; level-I budget estimating units shall send such notices to subordinate budget-estimating units and finance agencies of the same level for appraisal according to regulations.

Finance agencies shall issue notices of approval of final accounts of level-I budget-estimating units which are concurrently budget-using units.

5. The head of a unit approving final accounts shall take responsibility for his/her approval. If failing to detect violations or having detected violations but failing to handle them, he/she shall be handled in accordance with law.

Article 67.Appraisal of final state budget accounts

1. Agencies appraising final state budget accounts

a/ Except the case prescribed at Point b, Clause 2, Article 66 of this Law, finance agencies of various levels shall appraise annual final accounts of level-I budget-estimating units funded by the budgets of their respective levels;

b/ Provincial-and district-level finance agencies shall appraise annual final accounts of the lower-level budget(s);

c/ The Ministry of Finance shall not appraise annual final accounts of the budgets of provinces and centrally run cities.

2. Finance agencies of various levels shall appraise annual final accounts of level-I budget-estimating units funded by the budgets of their respective levels as follows:

a/ Examining the completeness and consistency of figures of final accounts according to regulations; ensuring consistency between figures of final accounts of level-I budget-estimating units and notices of approval of final accounts of their attached agencies and units and the State Treasury’s confirmations of these figures;

b/ Considering and verifying the accuracy and lawfulness of figures of final accounts of increased or decreased amounts compared to the assigned estimates;

c/ Giving comments on annual final accounts.

3. Provincial- and district-level finance agencies shall appraise final accounts of the lower-level budget(s) as follows:

a/ Examining the completeness and consistency of figures of final accounts according to regulations;

b/ Considering and verifying the accuracy and lawfulness of figures of final accounts of increased or decreased amounts against the assigned estimates;

c/ Giving comments on annual final accounts.

4. When appraising final accounts, a finance agency may:

a/ Request level-I budget-estimating units and subordinate finance agencies to provide necessary information and data for the appraisal;

b/ Request responsible agencies to remove and recover unlawfully spent expenditures and immediately pay payable amounts into the state budget according to regulations;

c/ Request the agency approving final accounts to correct any errors in the figures in final accounts of the budget-estimating unit;

d/ Request refund or propose a competent authority to request refund of amounts unlawfully collected into the state budget.

5. Completing the appraisal of annual final accounts, finance agencies shall send appraisal notices together with their comments and recommendations to level-I budget-estimating units or lower-level People’s Committees for implementation.

If detecting errors, finance agencies shall request level-I budget-estimating units to adjust figures in final accounts; for final accounts of lower-level budgets, finance agencies shall request lower-level People’s Committees to propose their People’s Councils to adjust these figures.

If detecting violations, finance agencies shall handle or propose competent agencies to handle those violations in accordance with law.

6. In the course of summarizing final state budget accounts, if detecting any errors in final accounts of the budgets of provinces and centrally run cities, the Ministry of Finance shall request provincial-level People’s Committees to propose People’s Councils of the same level to adjust figures. If detecting violations, the Ministry of Finance shall handle or propose competent agencies to handle those violations in accordance with law.

Article 68.Making of final state budget accounts by budget-estimating units and project owners

1. A budget-estimating unit shall make final accounts of its state budget revenues and expenditures and send them to the immediate superior budget-estimating agency.

2. The project owner of a capital construction investment program or project or a national target program or important project shall:

a/ At the end of the budget year, make statements of final accounts of all used funds and budget fund and reports on the use of funds and the value of completed work volumes which have been paid in the year, and send them to the agency allocating capital construction investment fund, the superior agency of the project owner, and the finance agency of the same level;

b/ When the capital construction program or project or national target program or national important project is completed, make statements of final accounts of all funds and state budget fund together with reports explaining the use of the funds, and send them to the agency allocating capital construction investment fund and the agency competent to approve finalization statements of capital construction works and the program or project according to regulations;

c/ For a national target program or national important project whose investment is decided by the National Assembly, in addition to the reports prescribed at Points a and b of this Clause, submit a finalization statement to the Government for consideration and submission to the National Assembly.

3. Based on approved final accounts of budget-using units, superior budget-estimating units shall make statements of final state budget accounts under their management and submit them to their immediate superior budget-estimating units; or to the finance agencies of the same level, for level-I budget-estimating units.

Level-I budget-estimating units shall set the deadline for their attached budget-estimating units to send statements of final state budget accounts, ensuring that they shall send statements of final state budget accounts to the finance agencies of the same level according to the prescribed deadline.

Article 69.Time limit and sequence of making final accounts of local budgets

1. Based on the State Treasury’s report, results of approval and appraisal of final state budget accounts of level-I budget-estimating units of its level and statements of final accounts of lower-level budgets already approved by the People’s Council, the local finance agency shall summarize and make final accounts of the local budget and submit them to the People’s Committee of the same level.

2. The People’s Committee shall send the statement of final accounts of the local budget to the boards of the People’s Council of the same level for appraisal, and concurrently to the immediate superior finance agency.

3. The People’s Committee shall report on final accounts of the local budget to the Standing Body of the People’s Council of the same level for comment before submitting them to the People’s Council.

4. The statement of final state budget accounts of the People’s Committee and appraisal reports of the boards of People’s Council shall be sent to deputies of the People’s Council of the same level at least 5 working days before the opening of the People’s Council’s mid-year session of the subsequent year.

5. The commune-level People’s Council shall consider and approve the statement of final accounts of the budget of its level and submit it to the district-level People’s Committee within 5 working days after this statement is approved. The district-level People’s Committee shall summarize and make a statement of final accounts of the district-level budget and submit it to the district-level People’s Council for approval and to the provincial-level People’s Committee within 5 working days after this statement is approved. The provincial-level People’s Committee shall summarize and make a statement of final accounts of the local budget and submit it to the provincial-level People’s Council for approval before December 31 of the subsequent year.

The provincial-level People’s Council shall specify the deadlines for approval of final accounts of commune- and district-level budgets and for the People’s Committee to send the statement of final budget accounts to the agencies prescribed in Clauses 2 and 3 of this Article.

6. In case final accounts of the local budget of a certain level has not been approved by the People’s Council, the People’s Committee of the same level and the State Audit agency having audited the budget of that level shall further clarify the contents requested by the People’s Council and submit them again at the time decided by the People’s Council, which, however, must be within 30 days since the deadline prescribed in Clause 5 of this Article.

Article 70.Time limit and sequence of account finalization of the state budget

1. Level-I budget-estimating units of the central budget shall make statements of final accounts of budget revenues and expenditures under their management and send them to the Ministry of Finance and the State Audit Office of Vietnam before October 1 of the subsequent year.

2. Provincial-level People’s Committees shall send statements of final accounts of the local budgets to the Ministry of Finance and the State Audit Office of Vietnam before October 1 of the subsequent year.

3. Within 5 working days after provincial-level People’s Councils approve final accounts of the local budgets, provincial-level People’s Committees shall send final accounts of the local budgets to the Ministry of Finance and the State Audit Office of Vietnam.

4. Based on reports of the State Treasury, results of appraisal of statements of final state budget accounts of level-I budget-estimating units of the central budget and final accounts of the local budgets already approved by provincial-level People’s Councils, the Ministry of Finance shall summarize and make a statement of final state budget accounts and submit it to the Government and send it to the State Audit Office of Vietnam within 14 months after the end of the budget year.

5. Within 16 months after the end of the budget year, the Government shall report on final state budget accounts to the Standing Committee of the National Assembly for comment before submitting it to the National Assembly.

6. The Government’s statement of final state budget accounts shall be sent to National Assembly deputies at least 20 days before the opening of the mid-year session of the National Assembly.

7. The National Assembly shall consider and approve final state budget accounts within 18 months after the end of the budget year.

8. The sequence and procedures of appraisal of final state budget accounts by the National Assembly’s agencies before approval shall be prescribed by the Standing Committee of the National Assembly.

9. In case final state budget accounts are not approved by the National Assembly, the Government shall, within the ambit of its tasks and powers, and the State Audit Office of Vietnam shall continue clarifying the contents requested by the National Assembly for submission to the National Assembly at the time decided by the National Assembly.

Article 71.Audit of statements of final accounts of the state budget and local budgets

1. The State Audit Office of Vietnam shall audit statements of final accounts of the state budget before submitting them to the National Assembly for consideration and approval.

2. The State Audit Office of Vietnam shall audit statements of final accounts of local budgets before sending them to provincial-level People’s Councils for consideration and approval.

Article 72.Handling of state budget remainder

1. Central and provincial-level budget remainders shall be used to pay principals and interests of borrowings of the state budget. Half of the rest (if any) of the budget remainder shall be set aside for the financial reserve fund of the same level and the other half, for budget revenues of the subsequent year. In case the financial reserve fund has reached the level of 25% of the annual budget expenditure estimate, the rest of the budget remainder shall be accounted as budget revenue of the subsequent year.

2. District- and commune-level budget remainders shall be accounted as budget revenue of the subsequent year.

Article 73.Handling of unlawful state budget revenues and expenditures after final state budget accounts are approved

After final accounts of the state budget and budgets of local administrations of various levels have been approved by competent authorities, any unlawful budget revenues and expenditures detected shall be handled in accordance with Clause 8, Article 65 of this Law and shall be finalized in the budget of the year in which those revenues and expenditures are handled.

Chapter VII

IMPLEMENTATION PROVISIONS

Article 74.Implementation guidance for specific contents

1. Pursuant to this Law, the Government shall prescribe the management and use of the budget for a number of activities in the fields of national defense, security, and foreign affairs, and a number of specific finance-budget mechanisms and policies for Ho Chi Minh City, a number of provinces and centrally run cities, and special administrative-economic units, and report them to the Standing Committee of the National Assembly for comment before their implementation, and to the National Assembly at its next session.

2. Hanoi City shall implement specific finance-budget mechanisms and policies in accordance with the Law on Capital City.

Article 75.Transitional provisions

1. Final accounts of the state budget of 2015 and 2016 must still comply with State Budget Law No. 01/2002/QH11.

2. The 2011-2015 budget stabilization period shall be extended through 2016. The subsequent budget stabilization period will last from 2017 to 2020. Budget estimates of 2016 of ministries, ministerial-level agencies, government-attached agencies, other central agencies and localities must comply with the following provisions:

a/ For current expenditure estimates, to apply norms on allocation of state budget current expenditures under the Prime Minister’s Decision No. 59/2010/QD-TTg of September 30, 2020;

b/ For development investment expenditure estimates, to apply the principles, criteria and norms of allocation of investment fund of the state budget fund for 2016-2020 under the Standing Committee of the National Assembly’s resolution. Development investment expenditure estimates for 2016 must be within the framework of the medium-term investment plan of 2016-2020 and shall be arranged in proportion to the increase rate of the 2016 state budget expenditure compared to 2015.

Article 76.Effect

1. This Law takes effect in the budget year of 2017.

2. State Budget Law No. 01/2002/QH11 ceases to be effective on the effective date of this Law.

Article 77.Detailing

The Government shall detail the articles and clauses in this Law as assigned.

This Law was passed on June 25, 2015, by the XIII^thNational Assembly of the Socialist Republic of Vietnam at its 9^thsession.-

Chairperson of the National Assembly
NGUYEN SINH HUNG