Resolution No. 27/2016/QH14 dated November 11, 2016 of the National Assembly on state budget estimates of 2016

THE NATIONAL ASSEMBLY 

Resolution No. 27/2016/QH14 dated November 11, 2016 of the National Assembly on state budget estimates of 2016

Pursuant to the Constitution ofthe Socialist Republic of Vietnam;

Pursuant to the Law on State budget No.83/2015/QH13and the Resolution No.25/2016/QH14 dated November 09, 2016 by theNational Assemblyon National 5-yearfinancial plansfor the 2016-2020 period;

Upon the consideration of the Report No.467/BC-CPdated October 19, 2016 and No.522/CP-KTTHdated November 09, 2016 by the Government; the Inspection report No.183/BC-UBTCNS14 dated October 19, 2016 by the Finance and Budget Committee; the Report No.54/BC-UBTVQH14dated November 11, 2016 by the Standing committee of the National Assembly of the Socialist Republic of Vietnam and theNational Assembly’s enquiry reports,

RESOLVES:

Article 1. Approval for state budget estimates of 2017

1.Estimated gross state budget balance revenue isVND1,212,180 billion(one million two hundred twelve thousand one hundred and eighty billion).

2. Estimated gross state budget balance revenue isVND 1,390,480 billion(one millionthreehundredninetythousandfourhundred and eighty billion).

3. State budget deficitisVND178,300billion(one hundred seventy eight thousand and three hundred billion), equivalent to3.5%of gross domestic products (GDP), including:

Central government’sbudget deficit isVND 172,300 billion(one hundred seventytwothousand and three hundred billion), equivalent to3.38%ofGDP;

Localgovernment’sbudget deficit isVND6,000billion(six thousand billion), equivalent to0.12%of GDP.

4.Estimated loan of the state budget, including loans taken to make up for the deficit and loans taken to pay loan principals of the state budget isVND340,157billion(three hundred forty thousand one hundred and fifty seven billion).

(To attach with the Appendix No. 1, 2, 3 and 4)

Article 2. Government s responsibilities

1.Execute closely the fiscal policies; cooperateconsistentlywhichmonetarypolicies to support the development of production and business, continue to stabilizemacroeconomics, control the inflation and boost the economic growth. Reinforce the disciplines on finance - budget; implement state budget estimate according to law. Strengthen the inspection and the explicitness and transparency in the use of the state budget, especially in areas most likely to raise corruption and/or extravagance.

2.Direct the conduct and implementation of laws on tax and promptly provide guidance on the conversion of a number of types of charge to service prices according to law. Strengthen the investigation and inspection of taxation; prevent the loss of revenue,smuggling, trade frauds, production and trade ofcounterfeits, price transfer and tax evasion; promptly discover and handle the unconformable declaration, fraud or evasion of taxes. Minimize the promulgation of new policies which lead to the decrease of the State budget revenue.

3.From 2017, the revenues of road pricing collected for each vehicle, marine security charges (after deducting the collection costs) will be specified in the gross state budget balance revenue and will be used for maintaining the road network and ensure the marine security.

4.Distribute the revenues of environment protection tax on petroleum products between the central government’s budget and local government’s budget according to regulations of the Law on State budget.

5.By 2017, transfer 100% of revenues ofspecial excise dutyon petroleum products of Nghi Son Refinery to the central government’s budget. From 2018, when the refinery operates stably, the transfer of revenues will be redistributed according to law.

6.Collect 72% of interests from the trade of oil and gas of the host country, interests distributed from joint Russian-Vietnamese enterprise “Vietsovpetro” and the document reading’s incurred amount of money in 2017. The remaining amount (28%) will be given toVietnam National Oil and Gas Groupto make investment according to law.

7.Guide local governments to include the revenue from lottery operations in the balance revenue of local government’s budget and use the whole of such revenue for development investment under the decision ofprovincial People’s Councils, where the investment in education, training, vocational training, healthcare, agricultural development andclimate change responseshall be prioritized. Arrange the expenditure onfood safetymanagement and assurance in local areain proportion tothe revenue frompenalties for administrative violationsagainst regulations onfood safetywhich is transferred to local government’s budget.

8.Ensure the rate of publication ofGovernment bondshaving term of not less than 5 years at least 70% of total amount ofGovernment bondstoanswer tothe requests forcapital mobilizationfor the State budget, schedule structure ofdebt portfolio,risk managementand bondmarket development.

9.Direct the State budget expenditure according to the assigned estimates. Savethoroughlyonrecurrentexpenditure of each Ministry, central and local authorities; minimize the expenditure on the organization of conferences, seminars, festivals; limit the expenditure on overseas research/survey trips; limit the expenditure on purchase of vehicles and expensive equipment; encourage the limitations on employment of public automobiles reasonably and efficiently.Enhancetheadministrative reformin the State budget expenditure management. Promulgate policies on increasing the State budget expenditure only when it is actually necessary and with available sources. Manage closely and minimize the state budget estimate advances and brought forward expenditure. Must not convert on-lent loans or government-guaranteed loans into state budget allocation. Strictly comply withthe Law on Thrift practice and waste preventionand theAnti-corruption Law.

10.Adjust the base salary from VND 1.21 million per month to VND 1.3 million per month, increase the retirement pension,social insuranceallowance and benefit to people meritorious to the Revolution an amount equal to the increase in the base salary. Time for such activities is from July 01, 2017.

Assign Ministriesand central and local authoritiesto be self-controlledin extra pay,on the basis oftheassigned state budget estimates, to regulate the increase in base salary.

Centralgovernment’sbudget shallguarantee the funding for adjustment of retirement pension,social insuranceallowance (covered by the state budget) and benefit to people meritorious to the Revolution; support partially the extra pay for a number of poor localities whose budgets cannot be balanced according to regulations of the Government.

11.In 2017, issue VND 50,000 billion ofGovernment bondsto invest in essential and urgent constructions and projects in medium-termpublic investment plans. Estimatedgovernment bondcapitals in 2016 which have not been used may be transferred for use in 2017.

The management of spending from the state budget to serve the investment in development must comply with law provisions. Strengthen the mobilization of domestic and foreignresourcesfor development investment, complete the legal basis to enhancepublic-private partnership, enabling economic sectors to participate in infrastructural construction, especially inagriculture and rural areasand tourism sector.

Guide local governments to use supplements serving certain purpose to prioritize the support related to housing forhouseholdsofpeople meritorious to the revolution.

12.From 2017, direct responsible local governments to initially arrange the payment of loan principals and interests according to the Law on State budget.

13.Closely monitorthe State budget deficit; put forward positive measures to minimize the deficit. Reinforce the inspection and supervision of applications for loans, use of loans and debt payment, especially new loans and Government-guaranteed loans. Ensure balance of public debts,government debtsandnational foreign debtswithin prescribed limits.

14.Direct Ministries and central and local authorities to boost the self-control of non-business unit in association with the roadmap for accurate calculation of public service prices and, on that basis, decrease the direct aid for non-business unit to increase the spending on support for poor people andbeneficiaries of incentive policiesand create funding for salary reform and for supporting the purchase and maintenance to increase publicservice quality. Adjust prices of articles under the state management toward the market price, ensuring to make up reasonably for theproductionand tradingcostto attract the investment from other economic sectors.

Article 3. Implementation supervision

The Standing committee of the National Assembly, the Finance and Budget Committee,the Council of Ethnic Affairs, committees of the National Assembly, delegations of the National Assembly, and deputies of the National Assembly shall be responsible for supervising the implementation of this Resolution withintheirresponsibility andpoweras prescribed.

This Resolution has been ratified in the 2nd Meeting Session of the 14th National Assembly dated November 11, 2016.

The Chairwoman of the National Assembly

Nguyen Thi Kim Ngan

APPENDIX 1

STATE BUDGET BALANCE IN 2017
(To attach with theResolutionNo.27/2016/QH14dated November 11, 2016 by theNational Assembly)

Unit: Billion dong

Notes:

(1) The difference between the deficit and the surplus of local government.

(2) By offsetting payment of principals against the surplus, economical spending,residualand local government’s budget surplus, the amount of loans taken to pay loan principals shall be around VND 156,537 billion.

APPENDIX 2

REVENUE AND EXPENDITURE BALANCE OF CENTRAL GOVERNMENT’S BUDGET AND LOCAL GOVERNMENT’S BUDGET IN 2017
(To attachwith the Resolution No. 27/2016/QH14 dated November 11, 2016 by the National Assembly)

Unit: Billion dong

APPENDIX 3

ESTIMATES OF REVENUE OF STATE BUDGET BY CATEGORY OF 2017
(To attached with the Resolution No. 27/2016/QH14 dated November 11, 2016 by the National Assembly)

Unit: Billion dong

APPENDIX 4

EXPENDITURE ESTIMATES OF THE STATE BUDGET, CENTRAL GOVERNMENT’S BUDGET AND LOCAL GOVERNMENT’S BUDGET ACCORDING TO EXPENDITURE STRUCTURE OF 2017
(To attach with the Resolution No. 27/2016/QH14 dated November 11, 2016 by the National Assembly)

Unit: Billion dong

Notes:

(1) Including the supplement serving certain purpose to local government’s budget; having deducted the balance supplement to local government’s budget.

(2) Includingthe balancesupplementof VND194,250billion from central government’s budget tolocal government’s budget;not includingthe supplementserving certain purpose from central government’s budget to local government’s budget