Law on the State Budget No. 89/2025/QH15

LAW

On the State Budget^[1]

Pursuant to the Constitution of the Socialist Republic of Vietnam, which has a number of articles amended and supplemented under Resolution No. 203/2025/QH15;

The National Assembly promulgates the Law on the State Budget.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Law provides the formulation, execution, audit, account-finalization, disclosure and supervision of the state budget; and the tasks and powers of related agencies, organizations, units and individuals in the field of the state budget.

Article 2. Subjects of application

1. State agencies, political organizations, and the Vietnam Fatherland Front.

2. Public non-business units.

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

Article 3. Application of law

1. The formulation, execution, audit, account-finalization, disclosure and supervision 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 has provisions different from those of this Law, the provisions of such treaty shall prevail.

Article 4. Interpretation of terms

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

1. State budget deficits include the central budget’s deficit and provincial-level budgets’ deficit. The central budget’s deficit is the positive difference between the total central budget expenditure excluding repaid loan principals and the total central budget revenue excluding borrowings. Provincial-level budgets’ deficit is the aggregate of the provincial-level budget’s deficit of each locality, which is the positive difference between the total provincial-level budget expenditure excluding repaid loan principals and the total provincial-level budget revenue of each locality excluding borrowings.

2. National reserve expenditure means the state budget-covered expenditure item for purchasing national reserve goods; and for activities related to import, export, purchase, sale, preservation, protection and insurance of national reserve goods in accordance with the law on national reserves.

3. Development investment expenditure means the state budget-covered expenditure item covering public investment expenditures under the Law on Public Investment and other development investment expenditure items as specified by law.

4. Aid expenditure means the state budget-covered expenditure item for the performance of external affairs and development cooperation tasks between the State and the Government of Vietnam and foreign countries and between Vietnamese localities and foreign localities; and for humanitarian relief or emergency assistance to foreign countries in accordance with law.

5. Recurrent expenditure means the state budget-covered expenditure item to ensure the operation of the state apparatus, political organizations and the Vietnam Fatherland Front, and support the operation of other organizations, and perform the State’s regular tasks concerning socio-economic development and national defense and security assurance, and other recurrent expenditure items in accordance with law.

6. Expenditure for interest payment means an expenditure item to be covered by the central budget or a provincial-level budget to pay interests, charges and other costs arising from borrowing activities of the central budget or the provincial-level budget (excluding interests, charges and other costs arising from borrowing loans for on-lending to public non-business units or enterprises).

7. Loan principal repayment means the obligation of the central budget or a provincial-level budget to repay principals of loans of the central budget or the provincial-level budget (excluding repayment of principals of loans for on-lending to public non-business units or enterprises). Expenditure for loan principal repayment may not be included in the balancing expenditures of each budget level.

8. State budget contingency means an amount in the budget expenditure estimate not yet allocated and already decided by a competent agency for each budget level.

9. Finance agencies means agencies performing the state management and specialized financial functions, including the Ministry of Finance, specialized agencies in charge of finance under provincial-level People’s Committees (below referred to as provincial-level finance agencies), and divisions having the financial advisory function under commune-level People’s Committees (below referred to as commune-level finance agencies).

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

11. Budget-estimating unit means an agency, organization or unit assigned by a competent authority to carry out budget estimation.

12. Tier-I budget-estimating unit means a budget-estimating unit assigned by the Prime Minister or a People’s Committee to carry out budget estimation.

13. Budget-using unit means a budget-estimating unit assigned to directly manage and use budget funds.

14. Remaining expenditure estimate of a budget level means the expenditure estimate of a budget level that has been decided by a competent authority but not yet allocated or used by the end of a budget year, including also contingency (if any).

15. Surplus of the central budget or surplus of provincial-level budget means the positive difference between the total budget revenue excluding borrowings and the total budget expenditure excluding repaid loan principals after the end of a budget year.

16. Surplus of commune-level budget means the positive difference between the total budget revenue and the total budget expenditure after the end of a budget year.

17. State budget means all revenues and expenditures of the State that are estimated and implemented within a specified period, and are decided by competent state agencies to ensure the performance of the State’s functions and tasks.

18. Central budget means the state budget’s revenues retained for the central budget and the state budget’s expenditures to be covered by the central budget.

19. Local budget means the state budget’s revenues retained for the local budget, transfers from the central budget to the local budget, and the state budget’s expenditures to be covered by the local budget.

20. Budget management decentralization means the determination of the scope, responsibilities and powers of local administrations at all levels and budget-estimating units in managing the state budget in conformity with the decentralization for socio-economic management.

21. Financial reserve fund means a fund of the State formed from the state budget and other financial sources in accordance with law.

22. The state budget’s funds means all money amounts of the State, including also borrowed amounts shown in the accounts of state budgets at all levels at a time.

23. Off-budget state financial fund means a fund established under a competent state agency’s decision, operating independently from the state budget, with its revenue sources and expenditure items used for the performance of tasks in accordance with law.

24. Balancing transfer means a transfer from a higher-level budget to a subordinate budget for the subordinate local administration to balance its budget funds for performing its assigned tasks.

25. Target transfer means a transfer from a higher-level budget to a subordinate budget as support for the implementation of specific programs, projects and tasks.

Article 5. Scope of the state budget

1. State budget revenues, including:

a/ All revenues from taxes and fees and charges collected from service activities performed by state agencies;

b/ Charges collected from service activities and remitted into the state budget by public non-business units and organizations assigned by competent agencies to provide public services in accordance with law;

c/ Non-refundable aid provided by foreign governments, organizations and individuals to the State and the Government of Vietnam and local administrations; and donations and voluntary contributions of organizations and individuals at home and abroad;

d/ Other revenues as specified by law.

2. State budget expenditures, including:

a/ Development investment expenditures;

b/ National reserve expenditures;

c/ Recurrent expenditures;

d/ Expenditures for loan interest payment;

dd/ Aid expenditures;

e/ Other expenditures as specified by law.

3. State budget deficits.

4. The total borrowings of the state budget, including borrowings for offsetting deficits and borrowings for repaying loan principals of the state budget.

5. Sources for the state budget’s loan principal repayment, including borrowed amounts for loan principal repayment; state budget revenues included in estimates; increased revenues compared to estimates or remaining expenditure estimates of all budget levels; and state budget surpluses.

Article 6. The state budget system

1. The state budget consists of the central budget and local budgets.

2. Local budgets consist of provincial-level budgets and commune-level budgets.

Article 7. Principles of balancing the state budget

1. All revenues from taxes, charges and fees, and other budget revenues shall be fully included in the state budget balance in adherence to the principle of not being associated with specific expenditure items. In case a revenue needs to be associated with a specific expenditure item in accordance with law, such revenue shall be respectively included in the budget expenditure estimates. The promulgation of policies on collection of budget revenues must ensure budget balancing in the medium term and long term and compliance with international integration commitments.

2. The state budget shall be balanced in adherence to the principle that total revenues from taxes, charges and fees and other budget revenues must be larger than total recurrent expenditures and contribute to increasing accumulations to cover development investment expenditures. In case of a deficit, the deficit amount must be smaller than the development investment expenditure, aiming to achieve a budget revenue-expenditure balance. For special cases, the Government shall submit them to the National Assembly for consideration and decision.

3. Borrowings to offset state budget deficits may only be used to cover development investment expenditures, but not for recurrent expenditures.

4. The central budget’s deficits shall be offset from the following sources:

a/ Domestic borrowings from the issuance of government bonds and national construction debentures, and other domestic loans as specified by law;

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

5. Local budgets’ deficits:

a/ Deficit is allowed only for expenditures of provincial-level budgets; local budgets’ deficits may only be used for investment in projects under the medium-term public investment plans decided by provincial-level People’s Councils;

b/ Local budgets’ deficits shall be offset by domestic borrowings from the issuance of municipal bonds, amounts on-lent from the Government’s loans, and other domestic borrowings as specified by law;

c/ Local budgets’ deficits shall be included in state budget deficits and decided by the National Assembly.

6. Outstanding balance of borrowings of local budgets:

a/ For localities not receiving balancing transfers from the central budget, the outstanding balance of borrowings must not exceed 120% of the revenue estimates retained for the local budgets as decentralized;

b/ For localities receiving balancing transfers from the central budget, the outstanding balance of borrowings must not exceed 80% of the revenue estimates retained for the local budgets as decentralized;

c/ In case it is necessary to mobilize loans exceeding the outstanding balance of borrowings specified at Point a or b of this Clause to implement projects of a locality, the provincial-level People’s Committee shall report thereon to the same-level People’s Council, or to the Standing Board of the People’s Council when the Council is in recess, for the latter to consider and give opinions before reporting to the Government for submission to the National Assembly for decision.

Article 8. Principles of state budget management

1. The state budget shall be managed in a unified, democratically centralized, effective, economical, public, transparent and equitable manner, with clear task assignment and power decentralization for management, linking competence with responsibility of state management agencies at all levels.

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

3. Budget revenues must comply with the laws on taxes, charges, fees and other budget revenues.

4. Budget expenditures shall be made only when budget estimates have been assigned by competent authorities, except the case of temporary allocation of budget funds as specified in Article 53 of this Law, and must comply with expenditure regimes, criteria and norms set by competent state agencies.

5. Priority shall be given to allocating budget funds for development investment expenditures to implement the Party’s and the State’s guidelines and policies on economic development in each period; development of education, training, science, technology, innovation and digital transformation; sustainable poverty reduction; development of agriculture, rural areas and health; ethnic affairs policies; and gender equality objectives, and other important policies.

6. Budget funds shall be allocated for the performance of socio-economic development tasks; assurance of national defense, security and foreign affairs; operation of the state apparatus; and performance of the State’s obligations under international commitments and commitments with investors.

7. The state budget shall ensure funding for the operation of political organizations, the Vietnam Fatherland Front’s bodies at all levels and socio-political organizations under the Vietnam Fatherland Front; and provide support for social organizations to perform tasks assigned by the State.

8. The state budget shall ensure funding for payment of due interests that are to be covered by the state budget.

9. Deciding on investment and expenses for investment in programs, tasks and projects funded by the state budget must comply with the Law on Public Investment and other relevant laws.

10. The state budget does not cover the operating expenses of off-budget state financial funds. In case the state budget covers part of the charter capital of such a fund, the coverage must be consistent with the state budget’s capacity, and the fund must fully satisfy the following conditions: being established and operating in accordance with law; being financially independent; and having revenue sources and expenditure items not identical to those of the state budget.

The state budget shall allocate money for funds intended for science and technology development, innovation and digital transformation, and policy and law making in accordance with specialized laws in conformity with the state budget’s capacity.

Article 9. Principles of decentralization for management of revenue sources and expenditure items, and relations among budget levels

1. The central budget, provincial-level budgets and commune-level budgets may decentralize the management of specific revenue sources and expenditure items.

2. The central budget plays the key role, ensuring the implementation of national expenditure items, and providing support for localities that have yet to balance their budgets and the localities under Article 43 of this Law.

3. Local budgets may decentralize the management of revenue sources to ensure proactive performance of their assigned expenditure items. Provincial-level People’s Councils shall decide on the decentralization for the management of revenue sources and expenditure items between provincial-level budgets and commune-level budgets in conformity with the decentralization for socio-economic management, national defense and security, and the management capacity of each level of authorities in localities.

4. The promulgation and implementation of new policies and regimes that result in an increase in budget expenditures shall be accompanied by financial solutions, ensuring conformity with the fund-balancing capacity of each budget level; and deciding on investment in programs and projects funded by the state budget must ensure that the use of funds is within the budget scope as decentralized.

5. Expenditure items to be covered by the state budget at a level shall be paid by the state budget at that level, except the following cases:

a/ A subordinate budget provides support to units managed by the superior authority and based in the locality in case it is necessary to expeditiously mobilize higher-level forces to respond to disasters, catastrophes and epidemics, and other cases of emergency to ensure socio-economic stability, security and social order and safety in the locality;

b/ Units managed by the higher-level authority and based in the locality, while performing their own functions, concurrently perform certain tasks at the request of the lower-level authority;

c/ Local budget contingencies are used to help another locality remediate consequences of disasters, catastrophes and epidemics, and perform other important and urgent tasks;

d/ A local budget’s development investment capital is used for infrastructure construction projects in the locality that are covered by expenditure items of the immediate higher-level budget; or used as support for another locality to invest in key projects and works with regional, national or international connectivity that have spillover effects and drive  socio-economic development, and other important tasks provided that the use of capital is within the fund-balancing capacity of the local budget and does not affect the performance of tasks assigned to the local budget.

6. In case a state management agency covered by a higher-level state budget authorizes a state management agency covered by a subordinate budget to cover the former’s expenditure items, it shall allocate and assign fund estimates to the authorized agency to cover such expenditure items. The authorized agency shall carry out account-finalization for such estimates with the authorizing agency.

7. Percentage (%)-based division shall be made for revenues divided among budget levels and for transfers from a higher-level budget to a subordinate budget, ensuring fairness and balanced development among regions and localities.

8. In case the implementation of a treaty results in a decrease in revenues of the central budget, the Government shall propose the National Assembly to adjust the division of revenue sources between the central budget and local budgets in order to maintain the central budget’s key role.

Article 10. State budget contingencies

1. A contingency rate shall be set at between 2% and 5% of total expenditures of each budget level, in which a higher-level budget’s expenditures do not include balancing transfers to a subordinate budget, and a subordinate budget’s expenditures do not include target transfers from a higher-level budget (if any).

2. State budget contingencies shall be used to cover:

a/ Expenditures for the prevention and control and remediation of consequences of disasters, catastrophes and epidemics, and famine relief; the performance of important national defense and security tasks; national reserves; the performance of unexpected and urgent external tasks of the State; sharing of reduced revenues for public-private partnership projects; and performance of other necessary tasks to be covered by the budget at a level that have not yet been included in the estimates;

b/ Expenditures as support for subordinate budgets for performance of the tasks specified at Point a of this Clause;

c/ Expenditures as support for other localities as specified at Point c, Clause 5, Article 9 of this Law.

3. Cases of use of state budget contingencies specified in Clause 2 of this Article for allocation to programs, tasks and projects not included in the medium-term public investment plans must comply with the Government’s regulations.

4. Competence to decide on the use of state budget contingencies:

a/ The Prime Minister may decide on the use of the central budget’s contingencies and periodically report thereon to the Government for reporting to the National Assembly Standing Committee and for reporting to the National Assembly at their upcoming sessions;

b/ People’s Committees at all levels shall decide on the use of contingencies of budgets at their respective levels and periodically report thereon to Standing Boards of People’s Councils and report to the same-level People’s Councils at their upcoming sessions.

Article 11. Financial reserve funds

1. The Government and provincial-level People’s Committees shall establish financial reserve funds from increased revenue sources as compared to estimates or the remaining expenditure estimates of a budget level, budget surpluses, and allocations in annual budget expenditure estimates based on the state budget’s fund-balancing capacity, and other financial sources as specified by law. The balance of a financial reserve fund at each level must not exceed 25% of annual expenditure estimates at that level, excluding target transfers from a higher-level budget (if any).

2. A financial reserve fund shall be used in the following cases:

a/ To make advance payment for the budget at a level to meet expenditure needs based on budget expenditure estimates when revenues remain insufficient; advance payments shall be refunded within 12 months after being made;

b/ To meet expenditure needs of the budget at a level in case state budget revenues or borrowings to offset deficits are lower than estimates decided by the National Assembly or the concerned People’s Council, or to perform the tasks of preventing and controlling, and remediating consequences of, disasters, catastrophes and epidemics, national defense and security tasks, and other urgent tasks that are not included in the estimates and, after the budget is rearranged and budget contingencies have been used up, the budget funds remain insufficient, provided that the amount used in a year does not exceed 70% of the fund’s balance at the beginning of the year;

c/ To make advance payment for important infrastructure programs, tasks and projects in the locality in order to accelerate their implementation progress; the advance payments shall be refunded within 36 months after being made; and the total amount of advance payments must not exceed 50% of the fund’s balance at the beginning of the year.

3. The Government shall detail this Article.

Article 12. Conditions for implementation of state budget revenues and expenditures

1. State budget revenues shall be collected in accordance with this Law, the law on taxes, charges and fees, and other relevant laws.

2. State budget expenditures shall only be made when they are included in assigned budget estimates, except the case of temporary allocation of budget funds specified in Article 53 of this Law, and when they have been decided by the head of the budget-using unit, the project owner or an authorized person, meeting the conditions in each of the following cases:

a/ The conditions specified in the Law on Public Investment and other relevant laws, for development investment expenditures;

b/ Complying with the regimes, criteria and norms for budget expenditures as specified by competent state agencies, for recurrent expenditures; or complying with internal spending regulations and assigned estimates, for agencies or units that have been allowed by competent authorities to practice autonomy and accountability for the payroll and funding use;

c/ The conditions specified in the law on national reserves, for national reserve expenditures;

d/ Complying with the bidding law, for bidding packages under tasks, programs or projects requiring selection of contractors to provide consultancy, procurement or construction and installation services;

dd/ Complying with the law on price, for expenditures for jobs performed under the State’s order placement mechanism, except science, technology and innovation tasks, which must comply with the law on science, technology and innovation.

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 currency shall be converted into Vietnam dong at exchange rates set by a competent agency to serve the accounting of state budget revenues and expenditures at the time they arise.

2. All state budget revenues and expenditures shall be fully and promptly accounted and account-finalized in accordance with applicable regimes.

3. Accounting and account-finalization of the state budget shall be uniformly implemented in accordance with the law on accounting, the state budget index, and this Law.

4. Documents of state budget revenues and expenditures shall be issued, used and managed in accordance with law.

Article 14. Budget year

A budget year begins on January 1 and ends on December 31 of a calendar year.

Article 15. Disclosure of the state budget

1. State budget estimates submitted to the National Assembly and People’s Councils; state budget estimates already decided by competent authorities; reports on the implementation of the state budget; the state budget’s final accounts approved by the National Assembly or People’s Councils; estimates, implementation and final accounts of budget-estimating units and organizations receiving the state budget’s support; financial plans and implementation thereof, and final accounts of off-budget state financial funds shall be disclosed in accordance with the following provisions:

a/ To-be-disclosed contents:

All budget levels shall disclose data and explanatory reports on budget documents (except detailed data and explanatory reports concerning national defense, security and national reserves, and documents and data on assignment of estimates as specified by the law on protection of state secrets), including: state budget estimates and budget allocations, tentative annual financial plans of off-budget state financial funds submitted to the National Assembly or People’s Councils; state budget estimates and budget allocations decided by competent authorities in accordance with this Law; the implementation of the state budget (on a quarterly, biannual, 9-month and annual basis); and the state budget’s final accounts approved by the National Assembly or People’s Councils.

Budget-estimating units and organizations receiving state budget support shall disclose their budget revenue and expenditure estimates assigned by competent authorities, and other funding sources (if any); the implementation of state budget estimates (on a quarterly, biannual, 9-month and annual basis); and the state budget’s final accounts approved by competent authorities.

Off-budget state financial funds shall disclose their financial plans assigned by competent authorities, implementation of financial plans (on a biannual and annual basis), and financial final accounts approved by competent authorities.

Programs and public investment projects are subject to disclosure in accordance with the law on public investment;

b/ Disclosure shall be carried out in one or several of the following forms: disclosure at meetings, and posting at offices of agencies, organizations and units; distribution of publications; sending of notices to related agencies, organizations, units and individuals; posting on portals; and notification in the mass media. For agencies and units having their portals, disclosure shall be carried out on such portals.

2. Disclosure of state budget procedures:

a/ Subject to disclosure are budget revenue-collecting agencies, finance agencies and State Treasury offices;

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

c/ Disclosure shall be carried out in the forms of posting at transaction offices and announcement on websites of agencies.

3. To-be-disclosed contents must be complete with indicators and forms provided by the Ministry of Finance.

4. Responsible entities shall carry out disclosure under Clauses 1, 2, and 3 of this Article, otherwise, they shall be handled in accordance with law.

5. The Government shall provide in detail the disclosure of the state budget.

Article 16. Community’s supervision of the state budget

1. The state budget shall be subject to the community’s supervision. The Vietnam Fatherland Front Committees at all levels shall assume the prime responsibility for organizing the community’s supervision of the state budget. The community’s supervision of the state budget covers:

a/ Compliance with the law on the state budget;

b/ Implementation of annual state budget estimates;

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

2. The Government shall provide in detail the community’s supervision of the state budget.

Article 17. Five-year financial plans

1. Five-year financial plan is a financial plan formulated for a 5-year period together with a 5-year socio-economic development plan. A 5-year financial plan sets overall and specific finance-budget objectives ; major finance-budget orientations; amounts and structure of domestic revenues, revenues from crude oil, and balanced revenues from export-import activities; amounts and structure of development investment expenditures, expenditures for interest payment, aid expenditures and recurrent expenditures; budget deficit orientations; limits on national foreign debts, public debts and government debts; and major solutions for implementation of the plan.

2. A 5-year financial plan is used:

a/ To implement national, sectoral and local socio-economic development objectives; balance and efficiently use public financial resources and the state budget in the medium term; and promote publicity and transparency of the state budget;

b/ As a basis for competent authorities to consider and decide on medium-term public investment plans using the state budget;

c/ To set orientations for the formulation of annual state budget estimates.

3. Five-year financial plans include national 5-year financial plans and 5-year financial plans of provinces and centrally run cities.

4. The Ministry of Finance shall assume the prime responsibility for formulating national 5-year financial plans for submission to the Government for reporting to the National Assembly. Provincial-level finance agencies shall formulate their respective local 5-year financial plans for submission to provincial-level People’s Committees for reporting to the same-level People’s Councils for consideration and decision simultaneously with the submission of budget estimates of the first year of a planning period.

5. The Government shall provide in detail the formulation of 5-year financial plans.

Article 18. Prohibited acts in the field of the state budget

1. Abusing positions or powers to appropriate state budget revenues, or causing damage to state budget revenues due to irresponsibility.

2. Collecting revenues in contravention of the law on taxes, charges and fees, and the law on other state budget revenues; improperly dividing revenues among budgets at different levels; retaining state budget revenues in contravention of regulations; and arbitrarily imposing to-be-collected amounts in contravention of law.

3. Making payments without estimates, except the case of temporary allocation of budget funds specified Article 53 of this Law; making payments beyond assigned budget estimates; making payments in contravention of expenditure regimes, criteria and norms or for improper purposes; arbitrarily imposing to-be-paid expenditures in contravention of law.

4. Deciding on investment in or deciding on adjustment of state budget-funded programs and projects in contravention of the law on public investment.

5. Borrowing loans in contravention of law, or borrowing loans beyond the budget’s fund-balancing capacity.

6. Using the state budget to provide loans, make advance payments or make capital contributions in contravention of law.

7. Delaying the payment of state budget expenditures though the law-specified conditions for making payments have been satisfied.

8. Carrying out the accounting in contravention of the law on accounting and the state budget index.

9. Preparing or submitting state budget estimates or final accounts after the law-specified deadlines.

10. Approving or reviewing the state budget’s final accounts in contravention of law.

11. Withdrawing the state budget at the State Treasury for expenditures not included in estimates decided by competent agencies, except the case of temporary allocation of budget funds and advance payment of budget estimates for the subsequent year as specified in Articles 53 and 59 of this Law.

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

Chapter II

TASKS AND POWERS OF STATE AGENCIES AND RESPONSIBILITIES AND OBLIGATIONS OF ORGANIZATIONS AND INDIVIDUALS WITH RESPECT TO THE STATE BUDGET

Article 19. Tasks and powers of the National Assembly

1. To make laws and resolutions and amend laws and resolutions in the field of finance-budget.

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

3. To decide on national 5-year financial plans.

4. To decide on state budget estimates:

a/ Total state budget revenues, including domestic revenues, revenues from crude oil, revenues from export-import activities, and revenues from non-refundable aid;

b/ Total state budget expenditures, including the central budget’s expenditures and local budgets’ expenditures, detailed for development investment expenditures, national reserve expenditures, recurrent expenditures, expenditures for interest payment, aid expenditures, additional expenditures to financial reserve funds, and budget contingencies;

c/ State budget deficits, including deficit of the central budget and deficit of local budgets, detailed by locality; and sources for offsetting state budget deficits;

d/ Total borrowings of the state budget, including borrowings to offset state budget deficits and borrowings to repay loan principals of the state budget;

dd/ Sources for repayment of loan principals of the central budget.

5. To decide on the allocation of central budget funds:

a/ The central budget’s total expenditures, including expenditures with detailed allocations and those without detailed allocations; development investment expenditures and recurrent expenditures, national reserve expenditures, expenditures for interest payment, aid expenditures, additional expenditures to financial reserve funds; and budget contingencies;

b/ Estimates for development investment expenditures, recurrent expenditures, national reserve expenditures and aid expenditures of each of ministries, ministerial-level agencies, government-attached agencies and other central agencies;

c/ Additional amounts from the central budget to the budget of each locality, including balancing transfers and target transfers.

6. To decide on the percentage (%) for division between the central budget and the budget of each locality with respect to the revenues specified in Clause 2, Article 36 of this Law.

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

8. To decide on adjustment of state budget estimates under Clause 1, Article 54 of this Law.

9. To approve the state budget’s final accounts.

10. To oversee the implementation of the state budget, basic national policies on finance-budget, and the National Assembly’s resolutions on the state budget.

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

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

1. To promulgate ordinances and resolutions in the field of finance-budget in accordance with law.

2. To give opinions on draft laws, draft resolutions, and other reports and drafts in the field of finance-budget that are submitted by the Government to the National Assembly.

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

4. To give opinions on the Government-submitted regimes on budget expenditures that are important, have broad scope of impacts and are related to the performance of the country’s socio-economic tasks.

5. To decide on principles, criteria and norms for allocation of state budget expenditures, which shall be modified and supplemented every 5 years or as decided by the National Assembly Standing Committee.

6. To oversee the implementation of laws and resolutions of the National Assembly, and ordinances and resolutions of the National Assembly Standing Committee in the field of finance-budget.

7. To terminate the implementation of legal documents of the Government and the Prime Minister in the field of finance-budget that contravene the Constitution, laws and resolutions of the National Assembly, and propose the annulment of such documents to the National Assembly at its upcoming session for decision.

8. To annul legal documents of the Government and the Prime Minister in the field of finance-budget that contravene ordinances and resolutions of the National Assembly Standing Committee.

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

Article 21. Tasks and powers of the National Assembly’s Committee for Economic and Financial Affairs

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

2. To assume the prime responsibility for verifying state budget estimates, plans on allocation of central budget funds, plans on adjustment of state budget estimates, reports on implementation of the state budget and the state budget’s final accounts, as well as principles, criteria and norms for allocation of state budget expenditures that are submitted by the Government to the National Assembly or the National Assembly Standing Committee.

3. To verify regimes on budget expenditures that are important, have broad scope of impacts and are related to the performance of the country’s socio-economic tasks that are submitted by the Government to the National Assembly Standing Committee.

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

5. To supervise legal documents of the Government, the Prime Minister, ministers, and heads of ministerial-level agencies, and joint legal documents of competent central agencies in the field of 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 Committee for Economic and Financial Affairs and related agencies of the Government in verifying draft laws, draft resolutions, draft ordinances, state budget estimates, plans on allocation of central budget funds, reports on implementation of the state budget, the state budget’s final accounts, and other drafts or reports in the field of finance-budget as assigned, that are submitted by the Government to the National Assembly or the National Assembly Standing Committee.

2. To oversee the implementation of laws and resolutions of the National Assembly, and ordinances and resolutions of the National Assembly Standing Committee regarding finance-budget; to supervise the implementation of the state budget and fiscal-budgetary policies in the fields under their charge.

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

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

2. To submit reports on audit of the state budget’s final accounts to the National Assembly for the latter to consider and approve the state budget’s final accounts.

3. To coordinate with the Committee for Economic and Financial Affairs and other agencies of the National Assembly, and the Government in reviewing and verifying reports on state budget estimates, plans on allocation of central budget funds, and plans on adjustment of state budget estimates that fall within the National Assembly’s competence.

4. To submit opinions of the State Audit Office of Vietnam to the National Assembly for the latter to consider and decide on state budget estimates, plans on allocation of central budget funds, and plans on adjustment of state budget estimates that fall within the National Assembly’s competence.

Article 24. Tasks and powers of the President

1. To promulgate laws and ordinances in the field of finance-budget.

2. To perform the tasks and exercise the powers provided by the Constitution and law in negotiating, signing, deciding on ratification, or submitting to the National Assembly for ratification of treaties in the field of finance-budget.

3. To request the Government to hold meetings to discuss financial-budgetary activities when necessary.

Article 25. Tasks and powers of the Government

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

2. To formulate and submit national 5-year financial plans to the National Assembly.

3. To formulate and submit to the National Assembly annual state budget estimates and annual plans on allocation of central budget funds, and adjustments to state budget estimates under Clause 1, Article 54 of this Law.

4. To adjust revenue and expenditure estimates of certain ministries, ministerial-level agencies, government-attached agencies and other central agencies, and certain provinces and centrally run cities under Clause 2, Article 54 of this Law.

5. To decide on the use of revenues exceeding the expenditure estimates or the remaining expenditure estimates of the central budget, and report thereon to the National Assembly Standing Committee and to the National Assembly at its upcoming session as specified in Clause 2, Article 61 of this Law.

6. To uniformly manage the state budget and ensure close coordination between line agencies and local authorities in implementing the state budget.

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

8. To report to the National Assembly and the National Assembly Standing Committee on financial-budgetary matters upon requests.

9. To provide processes and procedures for estimation and allocation of budget funds; addition of budget estimates in a year; collection and remittance, control and payment of budget expenditures and budget’s final accounts; advance payment of budget estimates for the subsequent year; use of budget contingencies; and use of financial reserve funds and other financial funds of the State in accordance with this Law and other relevant laws.

10. To decide, after consulting the National Assembly Standing Committee, on regimes on budget expenditures that are important, have a broad scope of impacts and are related to the performance of the country’s socio-economic tasks.

11. To decide on budget expenditure regimes, criteria and norms for implementation nationwide, excluding sector-specific expenditure regimes, criteria and norms; for certain budget expenditure regimes, criteria and norms, to ensure suitability to local characteristics; to provide framework regulations and assign provincial-level People’s Councils to make specific decisions, unless otherwise provided by specialized laws.

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

13. To guide and inspect People’s Councils in implementing documents of superior state agencies; to examine the legality of legal documents in the field of finance-budget in accordance with law.

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

15. To specify conditions for cases in which local budget deficits are permitted, ensuring suitability to the debt payment capacity of localities and with the overall deficit level of the state budget.

16. To provide the management of donations, voluntary contributions and non-refundable aid to the Vietnamese State and Government, and local administrations.

17. To provide regulations on provision of support from the state budget for social organizations to perform tasks assigned by the State.

18. To provide the use of local budgets’ development investment capital for infrastructure construction projects in localities with expenditure items to be covered by the immediate higher-level budget; to support other localities in constructing key projects and works of regional, national or international connectivity, that have spillover effects and drive socio-economic development, and in performing other important tasks.

19. To provide the performance-based management of budgets.

Article 26. Tasks and powers of the Prime Minister

1. To provide the formulation of the socio-economic development plan and the state budget estimates for the subsequent year.

2. Based on the National Assembly’s resolution on the state budget estimates and allocation of central budget funds, to decide to assign:

a/ Budget revenue and expenditure items to each of ministries, ministerial-level agencies, government-attached agencies and other central agencies; development investment expenditures detailed for the field of education-training and vocational training, and the field of science, technology, innovation and digital transformation; and field-specific recurrent expenditures;

b/ Revenue and expenditure items, budget deficits, borrowings, and transfers from the central budget to each province or centrally run city as specified at Points a, b, c and d, Clause 4, and Point c, Clause 5, Article 19 of this Law; development investment expenditures and recurrent expenditures detailed for the fields of education-training and vocational training, and the field of science, technology, innovation and digital transformation.

3. To decide on detailed allocations for expenditures without detailed allocations as specified at Point a, Clause 5, Article 19 of this Law, ensuring timeliness and compliance with law; to send quarterly reports to the Government for further reporting to the National Assembly Standing Committee and to the National Assembly at its upcoming session.

4. To decide on the use of the central budget’s contingencies under Clause 2, Article 10 of this Law.

Article 27. Tasks and powers of the Ministry of Finance

1. To submit to the Government draft laws and draft resolutions of the National Assembly, and draft ordinances and draft resolutions of the National Assembly Standing Committee in the field of finance-budget, national 5-year financial plans, medium-term public investment plans, and other reports or drafts in the field of finance-budget; to promulgate legal documents in the field of finance-budget.

2. To formulate principles, criteria and norms for the allocation of state budget expenditures; regimes, criteria and norms for budget expenditures, finance-budget management mechanisms; regulations on accounting, payment, account-finalization, and the state budget index, reporting regime, and financial-budgetary publicity, and submit them to the Government for decision, or decide by itself as decentralized by the Government, for uniform implementation nationwide.

3. To decide on promulgation of sector-specific regimes, criteria and norms for budget expenditures after reaching agreement with line ministries; in case of disagreement, to submit such regimes, criteria and norms to the Prime Minister for consultation before making decision. Particularly for the field of science, technology, innovation and digital transformation, to comply with Clause 1, Article 28 of this Law.

4. To summarize, formulate and submit to the Government state budget estimates, plans on allocation of central budget funds, adjustments to state budget estimates, and the state budget’s final accounts.

5. To summarize and submit to the Prime Minister detailed allocation plans for expenditures without detailed allocations as specified in Clause 3, Article 26 of this Law .

6. To decide to specifically assign state budget revenue and expenditure items under the Prime Minister’s decisions and state budget revenue and expenditure items for the performance of sectoral management functions and tasks to each of ministries, ministerial-level agencies, government-attached agencies and other central agencies, and each of provinces and centrally run cities.

7. To organize the implementation of the state budget; to uniformly manage and direct the collection of taxes, charges, fees, loans, and other state budget revenues, and international aid amounts; to organize the implementation of budget expenditures according to approved estimates.

8. To assume the prime responsibility for submitting to the Prime Minister for consideration and decision the use of the central budget’s contingencies in accordance with Clause 4, Article 26 of this Law.

9. To assume the prime responsibility for formulating, and submit to competent authorities for approval, 5-year and annual plans on public debt borrowing and repayment.

10. To examine finance-budget regulations issued by ministries, ministerial-level agencies, provincial-level People’s Councils and People’s Committees and chairpersons of provincial-level People’s Committees; in case such regulations are contrary to the Constitution, laws or resolutions of the National Assembly, ordinances or resolutions of the National Assembly Standing Committee, or documents of superior state agencies, to recommend solutions in accordance with law.

11. To inspect finance-budget matters and handle, or propose competent authorities to handle, in accordance with law, violations of finance-budget management regimes committed by ministries, ministerial-level agencies, government-attached agencies, other central agencies, local authorities, economic organizations, administrative units, public non-business units, and other subjects obliged to make payments to the state budget and use the state budget.

12. To manage the state budget’s funds, state reserve funds, the state treasury, and other funds of the State in accordance with law.

13. To summarize, and evaluate the efficiency of, state budget expenditures based on evaluation reports of ministries, ministerial-level agencies, government-attached agencies, other central agencies and local authorities.

14. To disclose the state budget in accordance with Article 15 of this Law.

Article 28. Tasks and powers of the Ministry of Science and Technology

1. To decide on, or submit to competent authorities for promulgation, budget expenditure regimes, criteria and norms for the field of science, technology, innovation and digital transformation.

2. To guide, summarize and propose state budget expenditure estimates for the field of science, technology, innovation and digital transformation (including development investment expenditures and recurrent expenditures) of ministries, ministerial-level agencies, government-attached agencies, other central agencies and local authorities, in accordance with this Law, the Law on Public Investment, and specialized laws, ensuring that the total and structure of expenditures comply with the Party’s guidelines and the State’s laws, and send them to the Ministry of Finance for summarization and submission to competent authorities for consideration and decision.

Article 29. Tasks and powers of the State Bank of Vietnam

1. To coordinate with the Ministry of Finance in formulating, and organizing the implementation of, plans on borrowing of loans to offset state budget deficits.

2. To make advance payments for the state budget to address temporary shortfall in the state budget’s funds under the Prime Minister’s decisions.

Article 30. Tasks and powers of ministries, ministerial-level agencies, government-attached agencies and other central agencies

1. To formulate annual budget estimates of their own ministries and agencies.

2. To coordinate with the Ministry of Finance and other related ministries or agencies in summarizing annual state budget estimates and annual plans on allocation of central budget funds, national 5-year financial plans, and the state budget’s annual final accounts in the sectors and fields under their charge.

3. To inspect and monitor the implementation of the state budget in the sectors and fields under their charge.

4. To report on the implementation, results and efficiency of use of the state budget in the sectors and fields under their charge.

5. To promulgate technical-economic norms for use as a basis for performance-based budget management in the sectors and fields under their charge.

6. To coordinate with the Ministry of Finance in formulating budget expenditure regimes, criteria and norms in the sectors and fields under their charge.

7. To manage, organize the implementation of, account-finalization of, and publicize, the budget funds assigned to them; to ensure that state budget revenues and expenditures comply with law and achieve efficiency.

8. Ministers and heads of ministerial-level agencies, government-attached agencies and other central agencies shall organize the performance of their assigned tasks and powers in the field of finance-budget, and give explanations to competent agencies upon requests, and take responsibility for errors or violations occurring in the fields under their management in accordance with law.

Article 31. Tasks and powers of People’s Councils at all levels

1. For the People’s Council at a level, based on the revenue and expenditure items assigned by superior authorities and local conditions, to decide on:

a/ State budget revenue estimates in the locality, including domestic revenues, revenues from crude oil, revenues from import-export activities and revenues from non-refundable aid, ensuring that they are not lower than the state budget revenue estimates assigned by superior authorities;

b/ Local budget revenue estimates, including revenues to be wholly retained for the local budget, revenues divided by percentage (%) for the local budget, and transfers from higher-level budgets;

c/ Local budget expenditure estimates, including expenditures of the budget of its respective level and expenditures of the budget of the subordinate level, detailed for development investment expenditures, recurrent expenditures, expenditures for interest payment, aid expenditures, and expenditures to increase financial reserve funds; and budget contingencies;

d/ Total borrowings of the local budget, including borrowings to offset the local budget’s deficit and borrowings for repayment of loan principals of the local budget.

2. To decide on the allocation of estimates of the budget of its respective level, specifically as follows:

a/ Total budget expenditures, including expenditures with detailed allocations and expenditures without detailed allocations; development investment expenditures and recurrent expenditures; expenditures to increase the local financial reserve fund; and budget contingencies;

b/ Development investment expenditure and recurrent expenditure estimates of each agency or unit at the level equivalent to the budget level;

c/ Transfers for the budget of each commune-level locality, including balancing transfers and target transfers.

3. To approve the final accounts of the local budget.

4. To decide on guidelines and measures for implementation of the local budget.

5. To decide on adjustment of local budget estimates under Article 54 of this Law.

6. To supervise the implementation of the budget decided by the People’s Council.

7. To annul legal documents on finance-budget that contravene the Constitution, laws and resolutions of the National Assembly, or ordinances and resolutions of the National Assembly Standing Committee; and documents issued by superior state agencies in accordance with law.

8. To decide on the list of programs, tasks, projects and other objects of public investment that are included in the state budget-funded medium-term public investment plan of the budget at its respective level; to decide on the state budget-funded important investment programs and projects of the locality.

9. In addition to the tasks and powers specified in Clauses 1 thru 8 of this Article, a provincial-level People’s Council also has the following tasks and powers:

a/ To decide on 5-year financial plans of the locality, which must have the following contents: overall objectives and specific objectives; the capacity to collect state budget revenues in the locality; revenues and expenditures, deficits and borrowing limits of the local budget; and main solutions for implementation;

b/ To decide on expenditures for interest payment, aid expenditures, expenditures to increase the local financial reserve fund, the local budget’s deficits, and sources for offsetting the local budget’s annual deficit;

c/ To decide on sources for repayment of loan principals of the local budget;

d/ To decide on the decentralization for revenue sources and expenditure items between the provincial-level budget and commune-level budgets under Clause 3, Article 9, and Article 41, of this Law;

dd/ To decide on percentage (%) for division between the provincial-level budget and the commune-level budget with respect to the revenues retained for the local budget as specified in Clause 2, Article 38 of this Law, and the revenues divided between the provincial-level budget and the commune-level budget;

e/ To decide on the collection of charges, fees and people’s contributions in accordance with law; to set charges and fees not included in the list provided by the Law on Charges and Fees.

The setting of charges and fees not included in the list referred to at this Point must ensure suitability to the development capacity and requirements of the locality; create a favorable production and business environment for enterprises; maintain market consistency and avoid impeding the circulation of goods and services; and ensure reasonable distribution of goods, services, and lawful incomes of organizations and individuals in the locality;

g/ To decide on principles, criteria and norms for the allocation of the local budget;

h/ To decide or assign the provincial-level People’s Committee to decide on specific budget expenditure regimes, criteria and norms under framework regulations of the Government or the Ministry of Finance in conformity with the local budget’s fund-balancing capacity;

i/ To decide to assign commune-level People’s Councils to issue budget expenditure regimes suitable to the management and fund-balancing capacity of commune-level budgets;

k/ To specify the payment of bonuses in excess of revenues as compared to estimates from the provincial-level budget to commune-level budgets;

l/ To decide on budget expenditure regimes for the performance of socio-economic development, social security, and social order and safety maintenance tasks in the locality in conformity with practical conditions and the fund-balancing capacity of the local budget;

m/ To decide on aid expenditures.

10. The Government shall detail Points h, l and m, Clause 9 of this Article.

Article 32. Tasks and powers of People’s Committee at all levels

1. For the People’s Committee at a level, to formulate local budget estimates and plans on allocation of the budget at its respective level based on the contents specified in Clauses 1 and 2, Article 31 of this Law; to adjust local budget estimates in the cases specified in Article 54 of this Law, and submit them to the same-level People’s Council for decision.

Based on the resolution of the People’s Council, the commune-level People’s Committee shall report to the provincial-level People’s Committee and the provincial-level finance agency; and the provincial-level People’s Committee shall report to the Ministry of Finance on local budget estimates, adjusted estimates of the local budget, and the plan on allocation of the budget at its respective level.

2. To make final accounts of the local budget and submit them to the same-level People’s Council for approval.

Based on the resolution of the People’s Council, the commune-level People’s Committee shall report to the provincial-level People’s Committee and the provincial-level finance agency; and the provincial-level People’s Committee shall report to the Ministry of Finance on final accounts of the local budget.

3. To decide on plans on use of revenues exceeding estimates or the remaining expenditure estimates of the budget at its respective level; to report implementation results to the Standing Body of the same-level People’s Council, and report to the same-level People’s Council at its upcoming session under Clause 2, Article 61 of this Law.

4. To examine resolutions in the field of finance-budget that are issued by the subordinate People’s Council.

5. Based on the resolution of the same-level People’s Council, to decide to assign:

a/ Budget revenue and expenditure items for each of subordinate agencies and units; investment expenditures, detailed for the field of education-training and vocational training, and the field of science, technology, innovation and digital transformation; and sector-specific recurrent expenditures;

b/ Revenue and expenditure items, transfers to subordinate budgets, and percentage (%) for division between the provincial-level budget and the commune-level budget with respect to divided revenues; development investment expenditures and recurrent expenditures, detailed for the field of education, training and vocational training, and the field of science, technology, innovation and digital transformation.

6. To adjust local budget estimates under Clause 3, Article 54 of this Law.

7. To allocate and assign expenditure estimates for expenditures without detailed allocations as specified at Point a, Clause 2, Article 31 of this Law, and fund estimates as target transfers from the higher-level budget during the year, ensuring timeliness, thrift, efficiency, and compliance with law; and periodically report thereon to the Standing Body of the same-level People’s Council and to the same-level People’s Council at its upcoming session.

8. To decide on solutions for, and organize, the implementation of local budget estimates approved by the People’s Council; to examine and report on implementation of the local budget.

9. To coordinate with superior state agencies in managing the state budget in the locality.

10. To report on and disclose the state budget in accordance with this Law and other relevant laws.

11. To conduct the performance-based budget management under the Government’s regulations.

12. In addition to the tasks and powers specified in Clauses 1 thru 11 of this Article, a provincial-level People’s Committee also has the following tasks and powers:

a/ To decide on specific levels for certain regimes, criteria and norms of budget expenditures as assigned by the People’s Council; to decide on certain regimes for urgent budget expenditures for prevention and control, and remediation of consequences, of disasters, catastrophes and epidemics, and report thereon to the People’s Council at its upcoming session;

b/ To prepare and submit to the same-level People’s Council for decision the contents specified in Clause 9, Article 31 of this Law;

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

13. To direct the local finance agency to assume prime responsibility for, and coordinate with related agencies in, assisting the People’s Committee in performing the tasks specified in Clauses 1 thru 12 of this Article.

14. Chairpersons of People’s Committees at all levels shall organize the performance/exercise of assigned tasks/powers in the field of finance-budget, provide explanations when requested by competent agencies, and take responsibility for errors or violations occurring in the fields under their management in accordance with law.

Article 33. Tasks and powers of budget-estimating units

1. To prepare annual budget revenue and expenditure estimates; to allocate budget estimates assigned by competent authorities to subordinate units and units assigned budget estimates as specified in Clause 1, Article 51 of this Law, and adjust estimate allocations according to their competence.

2. To organize the implementation of assigned budget revenue and expenditure estimates; to fully and promptly remit payable amounts into the budget in accordance with law; to make expenditures in accordance with regimes and policies, for proper purposes and to eligible beneficiaries, ensuring thrift and efficiency.

3. To guide and inspect the implementation of budget revenues and expenditures by subordinate units and units assigned budget estimates as specified in Clause 1, Article 51 of this Law.

4. To comply with the laws on accounting and statistics; to prepare budget reports, and account-finalize and disclose budget funds in accordance with law; to review and approve final accounts of subordinate budget-estimating units.

5. In addition to the tasks and powers specified in Clauses 1, 2, 3 and 4 of this Article, public non-business units may use revenues from charges and other lawful sources to develop, and improve the quality and efficiency of, their operation under the Government’s regulations.

6. Public non-business units and state agencies that implement the mechanism of autonomy and accountability in the use of payrolls and funds shall promulgate internal spending regulations in conformity with the estimates assigned for autonomy practice in accordance with law.

7. Heads of budget-estimating units shall properly perform/exercise their assigned tasks/ powers in the field of finance-and budget; provide explanations when requested by competent authorities; and take full responsibility for errors and violations occurring in the fields under their management in accordance with law.

Article 34. Tasks and powers of project owners

1. To exercise/perform the rights/responsibilities of project owners in accordance with the Law on Public Investment.

2. To comply with regulations on contracts, accounting, statistics, reporting, account-finalization, disclosure, and preservation of project dossiers.

Article 35. Rights and obligations of agencies, organizations, units and individuals related to the state budget

1. To fully and promptly remit taxes, charges, fees and other payable amounts into the state budget in accordance with law.

2. If being entitled to capital or funding allocation or support by the State based on assigned estimates, to manage and use such capital or funding for proper purposes and in compliance with regulations, ensuring thrift and efficiency, and make account-finalization with finance agencies.

3. To comply with regulations on accounting, statistics and budget disclosure.

4. To be provided with information and participate in the community’s supervision of finance-budget in accordance with law.

5. To take responsibility for errors or violations in accordance with law.

Chapter III

REVENUE SOURCES AND EXPENDITURE ITEMS OF BUDGETS AT ALL LEVELS

Article 36. Revenue sources of the central budget

1. Revenues wholly retained for the central budget include:

a/ Export duty, import duty and top-up import duty;

b/ Excise tax on imported goods;

c/ Royalty, corporate income tax, profits allowed to be divided for the host country, and other revenues from oil and gas exploration and exploitation activities;

d/ Non-refundable aid provided by foreign governments, international organizations, and foreign organizations and individuals to the State or the Government of Vietnam;

dd/ Charges for service activities performed by central state agencies; charges for service activities shall be remitted by public non-business units and organizations assigned by competent agencies to provide public services into the state budget in accordance with law;

e/ Fees collected by central state agencies, except the registration fee specified at Point e, Clause 1, Article 38 of this Law;

g/ Revenues collected by central state agencies from administrative fines and other penalties in accordance with law;

h/ State budget revenues from the exploitation and disposal of public assets by centrally run agencies, organizations or units in accordance with the law on management and use of public assets;

i/ Recovered amounts from the central budget’s investments in economic organizations; dividends in cash and distributed profits in joint stock companies and limited liability companies with two or more members having the State’s capital contributions in which ministries, ministerial-level agencies, government-attached agencies or organizations assigned by the Government act as the owner’s representative agencies; after-tax profits left after setting up funds of enterprises in which the State holds 100% of charter capital and in which ministries, ministerial-level agencies or government-attached agencies act as the owner’s representative agencies; and the positive difference between revenues and expenditures of the State Bank of Vietnam after setting up risk provisions and funds in accordance with law;

k/ Revenues from the central financial reserve fund;

l/ Surplus revenues of the central budget;

m/ Revenues carried forward from the central budget in the previous year;

n/ Top-up corporate income tax based on the global anti-base erosion rules;

o/ Revenues from overseas goods and service suppliers;

p/ Revenues from the licensing of radio frequencies;

q/ Other revenues as specified by law.

2. Revenues divided and the percentage (%) for division between the central budget and local budgets, including:

a/ Corporate income tax (excluding corporate income tax from oil and gas exploration and exploitation activities, and top-up corporate income tax based on the global anti-base erosion rules);

b/ Personal income tax;

c/ Excise tax, excluding refunded excise tax amounts (if any) and excise tax collected from imported goods;

d/ Environmental protection tax;

dd/ Revenues from the licensing of the exploitation of minerals and water resources by the central licensing agency, in which 70% will be retained for the central budget, and 30% for local budgets;

e/ Value-added tax (excluding refunded value-added tax amounts as specified by the Law on Value-Added Tax), in which 70% will be retained for the central budget, and 30% for local budgets. The division of revenues for each locality shall be based on principles and criteria applicable in each period as decided by the National Assembly Standing Committee;

g/ Land use levy and land rental, except revenues from land use levy associated with assets on land that are managed by centrally run agencies, organizations and units as specified at Point h, Clause 1 of this Article. For localities not receiving balancing transfers, 20% of the revenues will be retained for the central budget, and 80% for local budgets. For localities receiving balancing transfers, 15% of the revenues will be retained for the central budget, and 85% for local budgets.

3. The Government shall formulate plans on specific division ratios for each type of revenues between the central budget and local budgets as specified at Points a, b, c and d, Clause 2 of this Article, ensuring the key role of the central budget and stable division ratios to promote local budget autonomy, and submit them to the National Assembly for consideration and decision.

In cases of major fluctuations in state budget revenues and expenditures, or in case of a large difference in state budget revenues and expenditures among localities, requiring adjustment of division ratios, the Government shall again formulate plans on division ratios for the revenues specified at Points a, b, c, d, dd and g, Clause 2 of this Article, and submit them to the National Assembly for consideration and decision.

Article 37. Expenditure items of the central budget

1. Development investment expenditures, covering:

a/ Investment in programs, projects, tasks and other objects of public investment of ministries, ministerial-level agencies, government-attached agencies, other central agencies and state enterprises in accordance with the Law on Public Investment;

b/ Capital investment and support for enterprises providing essential public products and services, enterprises operating in the fields directly serving national defense and security purposes under the State’s task assignment or order placement; economic organizations; and centrally run financial institutions; and investment of state capital in centrally run enterprises in accordance with law;

c/ Other development investment expenditures as specified by law.

2. National reserve expenditures.

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

a/ National defense;

b/ Security and social order and safety;

c/ Education, training and vocational training;

d/ Science, technology, innovation and digital transformation;

dd/ Health, population and family affairs;

e/ Culture and information;

g/ Radio, television and news agency;

h/ Physical training and sports;

i/ Environmental protection;

k/ Economic activities;

l/ Operation of state management agencies, political organizations, the Central Committee of the Vietnam Fatherland Front and socio-political organizations under the Central Committee of the Vietnam Fatherland Front; support for social organizations in accordance with law;

m/ Social security expenditures;

n/ Other expenditures as specified by law.

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

5. Aid expenditures as specified by the Government.

6. Expenditures for loan provision as specified by the Government.

7. Expenditures for increasing the central financial reserve fund.

8. Expenditures for carrying forward of the central budget to the subsequent year.

9. Expenditures as balancing transfers or target transfers to local budgets.

Article 38. Revenue sources of local budgets

1. Revenues wholly retained for local budgets, including:

a/ Royalty, excluding royalty collected from oil and gas exploration and exploitation activities;

b/ Agricultural land use tax;

c/ Non-agricultural land use tax;

d/ Water surface rental and marine area use levy;

dd/ Revenues from lease and sale of state-owned houses;

e/ Registration fee;

g/ Revenues from lottery activities;

h/ Recovered amounts from local budgets’ investments in economic organizations; dividends in cash and profits divided in joint stock companies and limited liability companies with two or more members with the State’s capital contributions in which provincial-level People’s Committees act as the owner’s representative agencies; after-tax profits left after setting up funds of enterprises in which the State holds 100% of charter capital and provincial-level People’s Committees act as the owner’s representative agencies;

i/ Revenues from local financial reserve funds;

k/ State budget revenues from the exploitation and disposal of public assets by locally run agencies, organizations and units in accordance with the law on management and use of public assets;

l/ Non-refundable aid provided directly to local administrations by international organizations, other organizations and foreign individuals;

m/ Charges for service activities performed by local state agencies. Charges for public non-business activities shall be remitted into the state budget by public non-business units and organizations assigned by competent agencies to provide public services in accordance with law;

n/ Fees collected by local state agencies;

o/ Revenues from the licensing of the exploitation of minerals and water resources by local competent agencies;

p/ Revenues from administrative fines and other penalties collected by local state agencies in accordance with law;

q/ Revenues from public land areas and other yields from public assets;

r/ Contributions of agencies, organizations and individuals in accordance with law;

s/ Surplus revenues of local budgets;

t/ Revenues carried forward from local budgets in the previous year;

u/ Other revenues as specified by law.

2. Revenues divided by percentage (%) between the central and local budgets as specified in Clause 2, Article 36 of this Law.

3. Balancing transfers and target transfers from the central budget.

Article 39. Expenditure items of local budgets

1. Development investment expenditures, covering:

a/ Investment in locally managed programs, projects, tasks and other objects of public investment in accordance with the Law on Public Investment, and the expenditure item specified at Point d, Clause 5, Article 9 of this Law;

b/ Capital investment and support for enterprises providing essential public products and services for society under the State’s order placement; economic organizations; and local financial institutions; and investment of state capital in local enterprises in accordance with law;

c/ Interest rate difference subsidies, management expenses, and loans transferred through policy banks for the implementation of socio-economic development policies in localities;

d/ Other development investment expenditures as specified by law.

2. Recurrent expenditures of local agencies and units as decentralized in the following fields:

a/ Education-training and vocational training;

b/ Science, technology, innovation and digital transformation;

c/ National defense, security and social order and safety, for those assigned to localities for management; support for the implementation of certain expenditure items to be covered by the central budget;

d/ Health, population and family affairs;

dd/ Culture and information;

e/ Radio and television;

g/ Physical training and sports;

h/ Environmental protection;

i/ Economic activities;

k/ Operation of state management agencies, political organizations, provincial- and commune-level Vietnam Fatherland Front Committees and socio-political organizations under the provincial- and commune-level Vietnam Fatherland Front Committees; and support for social organizations in accordance with law;

l/ Social security expenditures;

m/ Other expenditures as specified by law.

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

4. Expenditures for increasing local financial reserve funds.

5. Aid expenditures as specified by the Government.

6. Expenditures for loan provision as specified by the Government.

7. Expenditures for carrying forward of local budget funds to the subsequent year.

8. Balancing transfers and target transfers to commune-level budgets.

9. Expenditures as support for the implementation of certain items specified at Points a, b and c, Clause 5, Article 9 of this Law.

Article 40. State budget expenditure items covered by public investment expenditures and recurrent expenditures

1. Compensation, support and resettlement upon land recovery or land requisition by the State; ground clearance preparation and ground clearance.

2. Expenses for preparation and approval of public investment projects funded by official development assistance (ODA) or concessional loans of foreign donors.

3. Formulation, appraisal and approval of prefeasibility studies and investment policy proposal reports; and formulation and appraisal of projects and decision on investment in projects.

4. Procurement, repair, renovation and upgrading of assets and equipment; hiring of goods and services; repair, renovation, upgrading, expansion or construction of work items of projects for which construction investment activities have been carried out.

5. Planning activities.

6. Other necessary tasks.

7. The Government shall detail this Article.

Article 41. Principles for decentralization for revenue sources and expenditure items between provincial-level budgets and commune-level budgets

Based on revenue sources and expenditure items of local budgets as specified in Articles 38 and 39 of this Law, provincial-level People’s Councils shall decide on specific decentralization for revenue sources, percentage (%) for division of revenues and expenditure items between provincial-level budgets and commune-level budgets in conformity with the decentralization for performance of socio-economic and national defense and security tasks among sectors, as well as economic, geographical and demographic characteristics, and management capacity of each locality.

Article 42. Determination of balancing transfers

1. Local budgets may use revenues wholly retained for them and revenues divided based on percentage (%) and balancing transfers from higher-level budgets to ensure the balancing of revenues and expenditures of the budgets at their respective levels for the performance of assigned socio-economic, national defense and security tasks.

2. Balancing transfers shall be determined based on:

a/ Calculation of the revenue sources and expenditure items specified in Articles 36, 38 and 39 of this Law in accordance with the laws on taxes, charges and fees and other state budget revenues; principles, criteria and norms for budget allocation, and budget expenditure regimes, criteria and norms based on such criteria as population, natural conditions and socio-economic conditions of each region, paying attention to revolutionary base areas, areas with large populations of ethnic minority people, areas with difficult conditions, areas with extremely difficult conditions, regions with large land areas for wet rice cultivation, areas of protection forests and special-use forests, and key economic regions;

b/ Revenues from charges and fees not included in the list provided in the Law on Charges and Fees as specified at Point e, Clause 9, Article 31 of this Law; land use levy revenues retained for local budgets under Point g, Clause 2, Article 36 of this Law; and revenues from lottery activities under Point g, Clause 1, Article 38 of this Law may not be used to determine balancing transfers from the central budget to local budgets.

Article 43. Determination of target transfers

1. Target transfers from higher-level budgets to subordinate budgets shall be determined based on principles, criteria and norms for budget allocation, budget expenditure regimes, criteria and norms, as well as the capacity of higher-level budgets and the fund-balancing capacity of the subordinate budget of each locality.

2. Higher-level budgets shall provide target transfers to subordinate budgets in the following cases:

a/ For implementation of new policies and regimes issued by higher-level authorities for which estimates have not yet been included in annual budget estimates;

b/ For implementation of national target programs and other programs and projects of higher-level authorities, for those assigned to lower-level authorities for implementation;

c/ As support for remediation of consequences of disasters, catastrophes or epidemics which subordinate budgets cannot cover;

d/ As support for the implementation of certain important national programs and projects, key programs and projects of great significance for socio-economic development, and other specific tasks of localities.

Chapter IV

FORMULATION OF STATE BUDGET ESTIMATES

Article 44. 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. Functions and 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, fees and other budget revenues; state budget allocation norms, and regimes, criteria and norms of state budget expenditures.

4. Decentralization of budget revenue sources, budget expenditure items and percentage (%) for division of revenues and balancing transfers from higher-level budgets to subordinate budgets.

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

6. Five-year financial plans and medium-term public investment plans using the state budget.

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

Article 45. Requirements for formulation of annual state budget estimates

1. State budget estimates shall be summarized by revenue, expenditure and the structure of development investment expenditures, recurrent expenditures, national reserves expenditures, expenditures for debt payment and aid expenditures, expenditures to increase financial reserve funds and budget contingencies.

2. Budget estimates of budget-estimating units and estimates of each budget level must fully show revenues and expenditures according to the forms and time limits set by competent state agencies, specifically as follows:

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

b/ Development investment expenditure estimates shall be formulated on the basis of master plans, plans, programs, projects and expenditure items approved by competent authorities in accordance with law; 5-year financial plans; medium-term public investment plans using the state budget and resource balancing capacity in the year of budget estimation, and in accordance with law;

c/ Recurrent expenditure estimates shall be formulated on the basis of approved sector development plans, programs, projects and schemes; regimes, policies, criteria and expenditure norms (if any); and other necessary expenditure items included in policies and plans of competent authorities that require additional funding for implementation. 

The formulation of state budget estimates by state agencies practicing autonomy and accountability for their payrolls and administrative management expenses; public non-business units practicing autonomy and accountability for task performance, apparatus, payroll and finance; and expenses for providing services and collecting charges by state administrative agencies must comply with the Government’s regulations;

d/ Priority will be given to allocation of state budget expenditure estimates in the field of education-training and vocational training; and the field of science, technology, innovation and digital transformation must comply with the Party’s guidelines and the State’s laws for each sector;

dd/ Expenditure estimates for the implementation of programs, schemes, projects and tasks approved by competent authorities for many years shall be formulated based on the annual implementation capacity and the total approved funds (if any);

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

g/ Estimates of loans to offset state budget deficits shall be formulated based on the state budget’s balance, capacity of each loan source and debt payment capacity, and must be within the debt safety limit set in the National Assembly’s resolution.

Article 46. Time frame for guiding the formulation, summarization, decision and assignment of state budget estimates

1. Before May 15, the Prime Minister shall promulgate regulations on the formulation of socio-economic development plans and state budget estimates for the subsequent year.

2. Before September 20, the Government shall submit the documents and reports specified in Article 49 of this Law to the National Assembly Standing Committee for opinion, and receive opinions and finalize the documents and reports for submission to the National Assembly.

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

4. Before November 10, the National Assembly shall decide on and promulgate a resolution on state budget estimates and the central budget allocation plan for the subsequent year.

5. Before November 20, the Prime Minister shall assign budget revenue and expenditure estimates of the subsequent year to each of ministries, ministerial-level agencies, government-attached agencies and other central agencies, and each province or 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. Commune-level People’s Councils shall decide on their local budget estimates and allocation of budgets for the subsequent year within 10 days after provincial-level People’s Councils decide on budget estimates and budget allocation.

7. Within 5 working days after the People’s Council of a level decides on budget estimates, the same-level People’s Committee shall assign budget estimates of the subsequent year to each of the agencies and units of its level and subordinate 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 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 at all levels shall complete the assignment of budget estimates to each of their attached agencies and units, units assigned the estimates under Clause 1, Article 51 of this Law and subordinate People’s Committees.

Article 47. Responsibilities of agencies, organizations and units for formulating annual budget estimates

1. Local budget revenue-collecting agencies shall formulate state budget revenue estimates in their localities and send them to superior budget revenue-collecting agencies and finance agencies of the localities. The central budget revenue-collecting agency shall formulate state budget revenue estimates for its assigned fields and send them to the Ministry of Finance for summarization and formulation of state budget estimates.

2. Budget-using units and budget-estimating units shall formulate revenue and expenditure estimates within their assigned tasks, and bear responsibility for the dossiers and data reported to the immediate superior budget-estimating units; tier-I budget-estimating units shall summarize, and bear responsibility for, the dossiers and data reported to the same-level finance agencies.

3. Local finance agencies at various levels shall summarize and balance budget estimates of agencies, organizations and units at the same level and local budget estimates of subordinate levels; assume the prime responsibility for, and coordinate with related agencies in, summarizing and formulating local budget estimates and formulating plans on allocation of budgets of their levels based on the criteria specified in Clauses 1 and 2, Article 31 of this Law, and report thereon to the same-level People’s Committees.

4. People’s Committees at a level shall summarize and formulate local budget estimates and report them to the Standing Bodies of the same-level People’s Councils for consideration and opinion. Provincial-level People’s Committees shall send budget estimates to the Ministry of Finance and related agencies under 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 agencies shall coordinate with the same-level finance agencies in summarizing and formulating state budget estimates according to their assigned sectors and fields.

6. The Ministry of Finance shall summarize and balance budget estimates of ministries, ministerial-level agencies, government-attached agencies, other central agencies and localities; and assume the prime responsibility for, and coordinate with related ministries and sectors in, summarizing and formulating state budget estimates, and formulating central budget allocation plans and submit them to the Government under Article 49 of this Law.

Article 48. 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 on budget estimates with their attached agencies and units.

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

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

b/ Discussions between provincial-level finance agencies and communal-level People’s Committees on state budget revenue estimates, commune-level budget expenditure estimates and balancing transfers and target transfers from provincial-level budgets to commune-level budgets;

c/ Discussions between the Ministry of Finance and provincial-level People’s Committees on state budget revenue estimates, local budget expenditure estimates, and balancing transfers and target transfers from the central budget to local budgets.

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

4. Order and procedures for submitting the state budget estimates and central budget allocation plans to the National Assembly for decision:

a/ The Government shall review and approve the Government’s draft reports submitted by the Ministry of Finance before submitting them to the National Assembly;

b/ The National Assembly’s Committee for Financial and Budgetary Affairs shall assume the prime responsibility for verifying the Government’s reports submitted to the National Assembly Standing Committee and the National Assembly;

c/ On the basis of the verification by the National Assembly’s Committee for Financial and Budgetary Affairs and opinions of the National Assembly Standing Committee, 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. During the discussions, if deciding to adjust budget revenues and expenditures, the National Assembly shall decide on solutions to ensure budget balancing.

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

Article 49. Documents on state budget estimates and the central budget allocation plan submitted by the Government to the National Assembly

1. Evaluation of the implementation of the state budget in the current year; bases for formulation of state budget estimates and allocation of the central budget; basic contents, and solutions for implementation, of state budget estimates.

2. State budget revenue estimates together with solutions for mobilization of revenue sources for the state budget.

3. State budget expenditure estimates, clearly stating the Party’s and the State’s policy priorities, objectives and important programs related to the state budget.

4. State budget deficit and sources to offset such deficit; ratio of the deficit to the gross domestic product.

5. National 5-year finance plan for the first year of the planning period.

6. Report on public debts in accordance with the Law on Public Debt Management, clearly stating due debt amounts, overdue debt amounts, interests payable in the year, debts arising from borrowings to offset the deficit, borrowings to repay the loan principals of the state budget, debt payment capacity in the year, and debt amounts by the year-end.

7. Report on the implementation of the financial plan, and the subsequent year’s tentative financial plans of centrally managed off-budget state financial funds. 

8. Specific policies and measures for stabilization of finance and the state budget.

9. List of, implementation schedule and the planning year’s investment estimates for state budget-funded national important programs and projects decided by the National Assembly.

10. Sector-specific expenditure estimates of each of ministries, ministerial-level agencies, government-attached agencies and other central agencies; budget revenue and expenditure items, deficit level and transfers from the central budget to the budget of each province or centrally run city.

11. Other supporting documents for state budget revenue and expenditure estimates and the central budget allocation plan; and tax, charge and fee reduction and exemption (if any) in the report on state budget estimates submitted to the National Assembly.

Article 50. Re-formulation of state budget estimates

1. In case the state budget estimate or central budget allocation plan is not approved by the National Assembly, the Government shall re-formulate the state budget estimate for the unapproved contents and submit it to the National Assembly at the time decided by the latter.

2. In case the budget estimate of the locality at a level or the plan on allocation of the budget of such level is not approved by the People’s Council, the People’s Committee shall re-formulate the state budget estimate for the unapproved contents and submit it to the People’s Council at the time decided by the latter which, however, must not be later than the time specified by the Government.

3. The Government shall specify the time of re-formulation of local budget estimates as referred to in Clause 2 of this Article.

Chapter V

EXECUTION OF THE STATE BUDGET

Article 51. Allocation and assignment of state budget estimates

1. After being assigned budget estimates by the Government or People’s Committees, tier-I budget-estimating units at central and local levels shall allocate and assign budget estimates to budget-using units under their management, units assigned to manage infrastructure assets in accordance with the law on management and use of public assets, units decentralized to manage, operate, exploit and maintain infrastructure assets, units assigned to perform tasks under the Government’s regulations, and units of the subordinate budgets that are authorized to perform the former’s expenditure items, and send them to the same-level finance agencies and concurrently to the State Treasury offices where transactions are made for implementation. The allocation and assignment of estimates must meet the deadline criterion and requirements specified in Article 52 of this Law.

2. The same-level finance agencies shall examine estimates assigned by tier-I budget-estimating units to budget-using units in terms of total estimate and estimates detailed by sector; funding included in the estimates for tasks and schemes decided by the Prime Minister or the People’s Committee. When detecting that the allocation does not comply with the requirements on total estimate and estimates detailed by sector and item, the finance agencies shall request tier-I budget-estimating units to adjust the estimates within 10 working days after they receive the latter’s allocation reports. After the adjustment, tier-I budget-estimating units shall send the adjusted estimates to the same-level finance agencies and the State Treasury offices for implementation.

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

Article 52. Requirements and deadlines 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 estimates and estimates detailed by sector and assigned budget revenue and expenditure item;

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

c/ Allocation of sufficient capital and funds for recovery of advanced amounts which are due in the year, and counterpart funds for ODA projects of foreign donors as committed;

d/ Satisfaction of requirements specified by the Law on Public Investment, the Construction Law and other relevant laws, for allocation of development investment capital;

dd/ Assurance of proper targets and beneficiaries and proper implementation of commitments or regulations on allocation of local budgets for those targets, for allocation of target transfers from higher-level budgets to subordinate budgets.

2. Deadlines for allocation and assignment of state budget estimates: 

a/ For budget estimates assigned under Clauses 5 and 7, Article 46 of this Law, tier-I budget-estimating units shall complete the allocation and assignment to budget-using units before December 31 of the preceding year under Clause 8, Article 46 of this Law;

b/ In case of assignment of additional budget estimates, within 10 working days after being assigned the additional budget estimates, superior budget-estimating units and subordinate People’s Committees shall complete the allocation and assignment of estimates under regulations; subordinate People’s Committees shall report on decisions on assignment of additional budget estimates to the same-level People’s Councils at the upcoming session.

Article 53. Temporary allocation of budgets

1. Temporary allocation of budgets shall be carried out in the following cases:

a/ At the beginning of a budget year when the budget estimates have yet to be decided by the National Assembly or People’s Councils; or have yet to be assigned by the Prime Minister or People’s Committees;

b/ During the budget year when it is necessary to submit the adjustment or re-determination of the budget estimates of ministries, ministerial-level agencies, government-attached agencies, other central agencies and localities to the competent authorities for decision.

2. Finance agencies and State Treasury offices shall temporarily allocate the budgets for the following expenditure items which cannot be delayed:

a/ Expenses for payment of salaries and amounts of salary nature;

b/ Expenses for professional operations and civil duties;

c/ Balancing transfers to subordinate budgets;

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

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

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

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

Article 54. Adjustment of state budget estimates

1. The Government shall formulate estimates for overall adjustment of the state budget in case there are changes resulting in an increase in the level of borrowings or state budget deficit as compared to the assigned estimates and submit them to the National Assembly for decision. Based on the National Assembly’s resolution on adjustment of the state budget estimates and budget revenue and expenditure items assigned by superior authorities, People’s Committees at various levels shall make adjustments of local budget estimates and submit them to the same-level People’s Councils for decision.

2. The Government shall decide to adjust budget revenue and expenditure estimates of a number of ministries, ministerial-level agencies, government-attached agencies, other central agencies, provinces and centrally run cities without increasing the total level of borrowings and state budget deficit, periodically report thereon to the National Assembly Standing Committee and report to the National Assembly at the upcoming session in the following cases:

a/ The projected revenue is larger or smaller than the estimate, requiring the adjustment of expenditure items compared to the estimate decided by the National Assembly;

b/ Adjustment of the structure of development investment expenditures or recurrent expenditures or adjustment of expenditure sectors decided by the National Assembly;

c/ The adjustment is to meet urgent requirements in terms of national defense and security or for objective reasons;

d/ Adjustment of the level of borrowings and budget deficit among localities provided that the adjustments remain within the total level of borrowings and local budget deficit decided by the National Assembly.

3. People’s Committees at all levels shall decide on the adjustment of local budget estimates, periodically report thereon to Standing Boards of People’s Councils and report to People’s Councils at their upcoming sessions in the following cases:

a/ The projected revenue is larger or smaller than the estimate, requiring the adjustment of expenditure items compared to the estimate decided by the People’s Council;

b/ Adjustment of the structure of development investment expenditures, recurrent expenditures, expenditure estimates assigned in detail by People’s Committees or adjustment of expenditure sectors decided by People’s Councils;

c/ The adjustment is to meet urgent requirements in terms of national defense and security or for objective reasons;

d/ The Government decides on the adjustment of the budget estimates under Clause 2 of this Article;

dd/ When it is required to adjust the budget estimates of a number of budget-estimating units or localities at subordinate levels.

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 resolutions.

5. Provincial-level People’s Committees shall request commune-level People’s Councils to adjust their budget estimates if the allocation of local budgets fails to conform with resolutions of provincial-level People’s Councils.

Article 55. Adjustment of estimates already assigned to budget-using units

1. Tier-I budget-estimating units shall adjust the budget estimates already assigned to budget-using units in the following cases:

a/ As a result of the adjustment of budget estimates under Article 54 of this Law;

b/ Finance agencies request tier-I budget-estimating units to adjust budget estimates under Clause 2, Article 51 of this Law;

c/ It is required to adjust the budget estimates assigned to budget-using units within the total level of expenditures with sector-specific details as assigned.

2. The adjustment of budget estimates must meet requirements on budget estimate allocation and assignment specified in Clause 1, Article 52 of this Law. After adjusting budget estimates, tier-I budget-estimating units shall send the adjustments to the same-level finance agencies for examination and concurrently to the State Treasury offices where transactions are conducted for implementation.

3. The adjustment of budget estimates assigned to budget-using units shall be completed before December 15 of the current year; the adjustment of public investment plans must comply with the Law on Public Investment.

Article 56. Administration of the state budget

1. Agencies, organizations, units and individuals shall, within the ambit of their tasks and powers, work out necessary measures to ensure the fulfillment of the assigned budget revenue and expenditure items, practice thrift and combat waste and corruption; and strictly observe financial rules and disciplines.

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

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

Article 57. Organization of state budget revenue collection

1. 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, superior managing agencies and People’s Committees and supervision by People’s Councils, with respect to the collection of budget revenues in their localities; to coordinate with the Vietnam Fatherland Front and its member organizations in carrying out communications and mobilizing organizations and individuals to strictly perform their budget revenue payment obligation in accordance with this Law and other relevant laws;

b/ To manage and collect taxes, charges and fees and other budget revenues for payment directly to the State Treasury; to make full and timely payment to the State Treasury under the Ministry of Finance’s regulations, in case of authorized collection;

c/ To examine agencies, organizations, units and individuals in remitting revenues payable into the state budget in an adequate and timely manner; 

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

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

Article 58. Organization of state budget payment

1. Advanced payment of capital or funds may be made for investment projects and other urgent expenditure items for performance of jobs under signed contracts. The advanced amount shall be based on the contract value and must be within the assigned budget estimates and comply with relevant laws. Advanced amounts shall be recovered upon payment for completed work volumes or tasks.

2. Subordinate budgets may receive advance payments from higher-level budgets for the performance of expenditure items according to the assigned budget estimates when necessary.

3. Based on the assigned budget estimates and tasks requirements:

a/ Heads of budget-using units shall bear responsibility for the management and use of the budgets within the assigned estimates in accordance with law, ensuring efficiency, thrift and satisfaction of the expenditure conditions specified in Clause 2, Article 12 of this Law, and withdraw estimates at the State Treasury offices where transactions are conducted;

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

4. Based on the proposal of budget-using units, the State Treasury offices where transactions are conducted shall make budget expenditures that are included in the budget estimates assigned by competent authorities or in the cases of temporary allocation of budgets specified Article 53 of this Law.

5. The Government shall detail this Article.

Article 59. Advance payment from budget estimates of the subsequent year

1. Advance payments from budget estimates of the subsequent year may be made for budgets at all levels for the implementation of important and urgent programs, tasks and projects decided by competent authorities. The advanced amount must not exceed 30% of the total expenditure estimates for the programs, tasks and projects. Upon allocation of budget estimates of the subsequent year, sufficient estimates shall be arranged in order to recover all the advanced amounts; it is not allowed to make advance payments from the estimates of the subsequent year when the advanced amounts have not been fully recovered.

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

Article 60. Handling of temporary shortage of the state budget’s funds

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

2. In case a provincial-level budget’s fund suffers a temporary shortage, failing to meet expenditure needs according to the estimates, it may receive advance payments from the local financial reserve fund or the central financial reserve fund, the central budget and other lawful financial sources for handling such shortage and the advanced payments shall be reimbursed within 12 months after being made.

3. In case a commune-level budget’s fund suffers a temporary shortage, failing to meet expenditure needs according to the estimates, it may receive advance payments from the provincial-level financial reserve fund, the provincial-level budget and other lawful financial sources for handling such shortage, and the advance payment shall be reimbursed within 12 months after being made.

Article 61. Handling of increase or decrease in revenues and expenditures compared to estimates in the execution of the state budget

1. In case the projected revenue is larger or smaller than the estimate decided by the National Assembly or People’s Councils, the Government or People’s Committees shall decide to adjust the expenditure items under Point a, Clause 2, and Point a, Clause 3, Article 54 of this Law.

2. At the end of a budget year, revenues exceeding estimates or the remaining expenditure estimates of a budget level may be used for:

a/ Reduction of deficit, increase of expenditures for payment of debts, including principals and interests;

b/ Increase of budget contingencies within the limit specified in Clause 1, Article 10 of this Law and increase of the financial reserve fund within the limit specified in Clause 1, Article 11 of this Law;

c/ Increase of sources for salary policy implementation;

d/ Increase of expenditures for investment in important projects;

dd/ Implementation of social security policies;

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

The Government shall decide on the use of increased revenues as compared to estimates and the remaining expenditure estimates of the central budget and report the results to the National Assembly Standing Committee and report to the National Assembly at the upcoming session. People’s Committees shall decide on the use of increased revenues as compared to estimates and the remaining expenditure estimates of the budgets of their levels and report the results to Standing Boards of the same-level People’s Councils and report to the same-level People’s Councils at the upcoming session.

3. Bonuses for revenues exceeding estimates:

a/ In case there is an increase in revenues divided under Points a, b, c and d, Clause 2, Article 36 of this Law as compared to the estimates and there is no deficit in the central budget as compared to the estimates, the central budget shall deduct an amount not exceeding 20% of the increased revenue to pay bonuses for localities reporting revenue increases, which must not exceed the increased revenue as compared with the applied level of the preceding year;

b/ In case a locality records an increase in cross-land border export and import tax revenue as compared to the estimate assigned by the central authority, the central budget shall deduct an amount not exceeding 10% of the increased revenue to pay bonuses for the locality, which must not exceed the increased revenue as compared to the applied level of the preceding year;

c/ Based on the bonus level decided by the Government, provincial-level People’s Committees shall decide on the use of the bonuses for investment in the construction of infrastructure programs and projects and performance of important tasks, and for payment of bonuses to commune-level budgets;

d/ Provincial-level People’s Committees shall propose the same-level People’s Councils to provide the payment of bonuses for revenues exceeding estimates from the revenues divided among provincial-level budgets and commune-level budgets.

4. The allocation of funds for programs, tasks and projects that are not included in the medium-term public investment plans from the revenues exceeding estimates or the remaining expenditure estimates of a budget level as specified in Clause 2 or 3 of this Article must comply with the Government’s regulations.

5. At the end of a budget year, if the local budget suffers a deficit compared to the estimate due to objective reasons and cannot be balanced though having reduced expenditure items in accordance with Clause 1 of this Article and used other local lawful financial resources, the local budget may receive support from the immediate higher-level budget depending on the latter’s capacity.

Article 62. Reporting on execution of the state budget

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

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

3. Tier-I budget-estimating units shall periodically report to finance agencies 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 same-level People’s Committees and related agencies on the implementation of local budget revenues and expenditures; and report to superior finance agencies on the use of target transfers from higher-level budgets in accordance with law.

5. People’s Committees at a level shall report to the Standing Bodies of the People’s Councils and the People’s Councils at the same level on the contents specified in Clause 3, Article 54, and Clause 2, Article 61, of this Law; and report to the same-level People’s Councils on the implementation of local budgets at their year-end session and report on additional assessment at the upcoming regular session in the subsequent year.

6. Subordinate People’s Committees shall periodically report to superior 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.

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 National Assembly Standing Committee on the contents specified in Clause 2, Article 54, and Clause 2, Article 61, 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 report on additional assessment of the implementation of budget revenues and expenditures at the upcoming regular session in the subsequent year.

Article 63. Budget management and use by budget-using units

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

2. Persons in charge of finance and accounting of budget-using units shall comply with finance-budget management regimes, the accounting law and internal inspection regime; prevent and detect violations of regulations on finance-budget management in the units and report thereon to heads of the units for handling; and when necessary, report thereon to immediate superior management units or the same-level finance agencies for handling in accordance with law.

Article 64. Management of the state treasury’s funds

1. The state treasury’s funds include the State’s all money amounts in Vietnam dong and foreign currencies 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 treasury’s funds shall be formed from the funds of budgets of various levels and deposits of financial reserve funds, off-budget 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 treasury’s funds to fully and promptly meet the payment demands of the state budget and units conducting transactions at the State Treasury; and ensure the safe and efficient management and use of the state treasury’s funds. The State Treasury shall open payment accounts at the State Bank of Vietnam and commercial banks to manage and use the state treasury’s funds.

3. The management and use of the state treasury’s funds must comply with the Government’s regulations.

Chapter VI

ACCOUNTING, AUDIT AND ACCOUNT-FINALIZATION OF THE STATE BUDGET

Article 65. Accounting and account finalization of the state budget

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

2. Finance agencies may suspend budget expenditures of budget-estimating agencies, organizations and units at the same level that fail to observe the regimes on preparation of accounting reports, account-finalization reports and other financial statements, and shall bear responsibility for their decision.

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

Article 66. Handling of state budget revenues and expenditures at the year-end

1. At the end of a budget year, agencies, organizations and units related to state budget revenues and expenditures shall close accounting books and prepare reports on account-finalization of the state budget.

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

3. Expenditure estimates, including also additionally allocated amounts in the year, which have not been spent or fully spent by the end of a budget year, inclusive of the time for adjustment of final accounts of the state budget specified in Clause 2 of this Article, shall be cancelled, except a number of expenditures allowed to be carried forward to the subsequent year for implementation and accounting in the subsequent year’s budget, including:

a/ Estimates additionally allocated by the Prime Minister or People’s Committees at all levels after September 30 of the year of budget estimation, unless the expenditure items have been completed;

b/ Development investment expenditures carried forward to the subsequent year with respect to public investment capital plans allowed for prolonged implementation and disbursement in accordance with the Law on Public Investment;

c/ National target programs that are currently implemented under the National Assembly’s resolutions but must not be later than December 31 of the subsequent year;

d/ Expenditures for procurement of goods and services, repair, renovation, upgrading, expansion or construction of items within invested projects, placement of orders or assignment of tasks for which dossiers are complete, contracts have been signed or bidding has been completed under the bidding law before December 31 of the year of budget estimation;

dd/ Sources for implementation of policies on salaries, allowances, subsidies, and salary-based amounts; and sources for implementation of social security policies;

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

g/ Expenditures for science, technology, innovation and digital transformation.

h/ Expenditures for national reserves;

i/ Expenditures for provision of aid to foreign governments based on estimates assigned by competent authorities;

k/ Expenditures covered by non-refundable aid for Vietnam, donations and voluntary contributions for which specific expenditure items have been determined;

l/ Funds required to be refunded to higher-level budgets according to conclusions and recommendations of inspection and audit agencies.

4. Revenues exceeding estimates or the remaining expenditure estimates of the budget level shall be used in accordance with Clause 2, Article 61 of this Law. In case the competent authorities have decided on the use of such revenues in the subsequent year, such revenues may be carried forward to the subsequent year budget for implementation.

5. The Government shall detail this Article.

Article 67. Requirements on account finalization of the state budget

1. Data on final accounts of the state budget must be accurate, truthful and complete.

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

3. Data on final accounts of budgets of budget-using units and project owners and of budgets of various levels shall be collated and confirmed by State Treasury offices where transactions are conducted.

4. Contents of reports on final accounts of the state budget must be conformable with contents of the assigned state budget estimates and the state budget index; expenditures from non-refundable aid shall be account-finalized based on actual disbursements.

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

6. Reports on final accounts of budget-using units, superior budget-estimating units and budgets of various levels shall be accompanied by explanations assessing results and efficiency of budget expenditures together with results of the task performance by the units and localities and their assigned fields, programs and targets.

7. Reports on final accounts of off-budget state financial funds shall be accompanied by explanations assessing results and efficiency of task performance of these funds.

8. Illegally collected state budget revenues shall be refunded to the payers; uncollected state budget revenues shall be retroactively collected fully and promptly; illegally spent state budget expenditures shall be fully and promptly recovered; amounts required to be refunded to higher-level budgets shall be promptly refunded.

Article 68. Account-finalization of the state budget by budget-estimating units and project owners

1. The unit assigned budget estimates as specified in Clause 1, Article 51 of this Law shall make final accounts of its state budget revenues and expenditures and send them to the immediate superior budget-estimating unit or the estimate-assigning unit. If the budget-using unit is also a tier-I budget-estimating unit, it shall make final accounts of its state budget revenues and expenditures and send them to the same-level finance agency.

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

a/ At the end of a budget year, make reports on final accounts of funding sources used and final accounts of state budget capital, and on the use of capital and the value of completed volumes for which final accounts have been made in the year, and send them to the agency in charge of payment of development investment capital, the superior agency of the project owner, and the same-level finance agency;

b/ When the development investment program or project or the national target program or the national important project is completed, make reports on final accounts of all funding sources and final accounts of state budget capital together with reports explaining the use of capital, and send them to the agency in charge of payment of development investment capital and the agency competent to approve account-finalization reports of development investment works or the program or project under regulations;

c/ For a national target program or national important project subject to the National Assembly’s investment policy decision, in addition to Points a and b of this Clause, submit account-finalization reports to the Government for consideration and submission to the National Assembly.

Article 69. Approval of annual final accounts of the state budget

1. The immediate superior budget-estimating unit of a budget-using unit, and the estimate-assigning unit shall approve and issue a notice of approval of final accounts for the budget-using unit under its management and the estimate-assigning unit as specified in Clause 1, Article 51 of this Law.

2. Approval of final accounts shall be based on the following contents:

a/ Approval of revenues and expenditures arising in the unit, ensuring satisfaction of the conditions specified in Article 12 of this Law, which shall be accounted according to the accounting law, the state budget index and the budget year;

b/ Data in reports on final accounts must match those in accounting books and those certified by the State Treasury.

3. When approving final accounts, an approving agency may:

a/ Request the State Audit Office of Vietnam or hire an independent audit unit in accordance with the audit law to audit account-finalization reports of large-scale projects and target programs so as to have 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 pay amounts payable into the state budget according to regulations and write-off expenditures which have been illegally spent or spent against the approved estimates from accounting books; and handle according to its competence or propose a competent agency to handle the head of the concerned unit that has made illegal expenditures, causing loss to the state budget;

d/ Correct errors or, when necessary, request the subordinate unit to re-make the account-finalization reports.

4. The head of a final account-approving unit shall bear responsibility for his/her approval. If having detected violations but failing to handle them, he/she shall be handled in accordance with law.

5. In case a tier-I budget-estimating unit is also a budget-using unit, it shall make account-finalization reports and submit them to the finance agency for the latter to check the completeness and consistency between the figures in the final accounts and those confirmed by the State Treasury. The head of the concerned unit shall bear responsibility for the final accounts of the budget of the unit.

6. The Government shall detail this Article.

Article 70. Summarization of final accounts of the state budget

1. Final account-summarizing agencies:

a/ Superior budget-estimating units shall summarize reports on final accounts of the state budget under their management that have been approved under Clause 2, Article 69 of this Law and submit them to their immediate superior budget-estimating units; or to the same-level finance agencies, for tier-I budget-estimating units;

b/ Finance agencies of various levels shall examine final accounts of tier-I budget-estimating units at the same level with respect to the completeness and consistency between the figures of final accounts and those confirmed by the State Treasury; and summarize annual final accounts of tier-I budget-estimating units funded by the budgets of their respective levels and annual final accounts of subordinate budgets.

2. In the course of summarizing final accounts of the state budget, if detecting errors, finance agencies shall request tier-I budget-estimating units of the same level; and the Ministry of Finance shall request provincial-level People’s Committees to propose the same-level People’s Councils to adjust  final accounts of local budgets; provincial-level finance agencies shall request commune-level People’s Committees to propose the same-level People’s Councils to adjust  final accounts of commune-level budgets.

If detecting violations, superior budget-estimating units or finance agencies shall handle them within their competence or propose the competent authorities to handle them in accordance with law.

Article 71. Time limit and sequence for making final accounts of local budgets

1. Based on results of approval and summarization of final accounts of the budget of the tier-I budget-estimating unit of its level and reports on final accounts of the subordinate budget 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 same-level People’s Committee.

2. The People’s Committee shall report on final accounts of the local budget to the Standing Body of the same-level People’s Council for opinion, and receive opinions and revise them for submission to the People’s Council.

3. The commune-level People’s Council shall consider and approve the report on final accounts of the budget of its level of a year before March 31 of the subsequent year and submit it to the provincial-level People’s Committee within 5 working days after report is approved. The provincial-level People’s Committee shall summarize and make final accounts of the local budget and send them to the Ministry of Finance and the State Audit Office of Vietnam before May 1 of the subsequent year and submit them to the provincial-level People’s Council before July 1 of the subsequent year for approval.

4. In case the final accounts of the local budget of a level have not been approved by the People’s Council, the same-level People’s Committee 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 10 working days.

Article 72. Time limit and sequence of making final accounts of the state budget

1. Tier-I budget-estimating units funded by the central budget shall make reports on final accounts of budget revenues and expenditures in a year within their competence and send them to the Ministry of Finance and the State Audit Office of Vietnam before July 5 of the subsequent year.

2. Provincial-level People’s Committees shall send reports on final accounts of the local budgets of a year that have been approved by provincial-level People’s Councils to the Ministry of Finance and the State Audit Office of Vietnam before July 5 of the subsequent year.

3. The Ministry of Finance shall summarize and make reports on final accounts of the state budget of a year for submission to the Government and send them to the State Audit Office of Vietnam no later than August 15 of the subsequent year.

4. The Government shall report on final accounts of the state budget of a year to the National Assembly Standing Committee no later than September 20 of the subsequent year for opinion, and receive opinions and revise them for submission to the National Assembly.

5. The National Assembly shall consider and approve final accounts of the state budget within 12 months after the end of a budget year.

6. The sequence and procedures of verification of final accounts of the state budget by the National Assembly’s agencies shall be prescribed by the National Assembly Standing Committee.

7. In case final accounts of the state budget have not yet been approved by the National Assembly, the Government shall, within the ambit of its tasks and powers, and the state audit agency 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 73. Audit of reports on final accounts of the state budget and reports on final accounts of local budgets

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

Article 74. Handling of surplus of the state budget

1. Surplus of the central budget and provincial-level budgets shall be used to repay loan principals and interests of the state budget; if there is an amount left thereafter, 50% of such amount shall be deducted for the same-level financial reserve fund and the remaining 50% shall be carried forward to the subsequent year’s budget revenue. In case the financial reserve fund has reached the level of 25% of the annual budget expenditure estimate, the remaining surplus shall be accounted as budget revenue of the subsequent year. Surplus of commune-level budgets shall be accounted as budget revenue of the subsequent year.

2. The Government shall detail this Article.

Article 75. Handling of illegal state budget revenues and expenditures after final accounts of the state budget are approved

After final accounts of provincial-level budgets and commune-level budgets have been approved by People’s Councils, or after final accounts of the state budget have been approved by the National Assembly, any illegal budget revenues and expenditures are detected, including recommendations from inspection and audit agencies, shall be handled under Clause 8, Article 67 of this Law and accounted in the budgets of the year in which those revenues and expenditures are handled.

Chapter VII

IMPLEMENTATION PROVISIONS

Article 76. Implementation guidance for specific contents

1. Pursuant to this Law, the Government shall prescribe the management and use of budgets for a number of activities of the Communist Party of Vietnam, a number of activities in the fields of national defense, security and external 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 National Assembly Standing Committee for opinion before implementation, and report them to the National Assembly at its next session.

2. The payment of after-tax profits left after setting up of funds, and profits divided corresponding to the State’s capital contributions in state enterprises to the state budget must comply with the law on management and investment of state capital in enterprises.

3. To amend and supplement Law No. 97/2015/QH13 on Charges and Fees, which has a number of articles amended and supplemented under Law No. 09/2017/QH14, Law No. 23/2018/QH14, Law No. 72/2020/QH14, Law No. 16/2023/QH15, Law No. 20/2023/QH15, Law No. 24/2023/QH15, Law No. 33/2024/QH15, Law No. 35/2024/QH15, Law No. 47/2024/QH15, Law No. 60/2024/QH15 and the Law on Employment, as follows: to annul the phrase “in case state agencies are allowed to have operating expenses covered by collected charges, such expenses shall be deducted and the remainder shall be remitted into the state budget” in Clause 1, Article 12.

Article 77. Implementation provisions

1. This Law takes effect from the 2026 budget year, except the cases specified in Clause 3 of this Article.

2. Law No. 83/2015/QH13 on the State Budget, which has a number of articles amended and supplemented under Law No. 59/2020/QH14 and Law No. 56/2024/QH15, ceases to be effective on the effective date of this Law.

3. A number of contents specified in this Law shall apply from July 1, 2025, specifically as follows:

a/ The decentralization of expenditure items between provincial-level budgets and commune-level budgets in the field of science, technology, innovation and digital transformation;

b/ The summarization and making of state budget estimates for the field of science, technology, innovation and digital transformation. For the organization of state budget payment for the field of science, technology, innovation and digital transformation specified in Clause 4, Article 58 of this Law: budget-using units shall send a payment request to the State Treasury offices where transactions are made (estimate withdrawal slip/payment order) to execute payment for the expenditures included in the budget estimates allocated by competent authorities;

c/ Temporary allocation of budgets in accordance with Article 53 of this Law.

4. This Law’s provisions on the division of revenues from land use levy and land rental shall apply for budget estimation from 2026.

5. Hanoi City shall implement specific finance-budget mechanisms and policies in accordance with the Law on the Capital. A number of localities currently applying specific finance-budget mechanisms and policies may continue to implement the provisions in the National Assembly’s resolutions and the Government’s regulations.

Article 78. Transitional provisions

For final accounts of the 2024 budget and the process and requirements for making the 2026 budget estimates, Law No. 83/2015/QH13 on the State Budget, which has a number of articles amended and supplemented under Law No. 59/2020/QH14 and Law No. 56/2024/QH15, shall apply.

Article 79. Detailing

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

This Law was passed on June 25, 2025, by the 15^th National Assembly of the Socialist Republic of Vietnam at its 9^th session.-

Chairman of the National Assembly
TRAN THANH MAN