Resolution No. 973/2020/UBTVQH14 norms of allocating public investment using state budget in 2021-2025

RESOLUTION

REGULATING THE PRINCIPLES, CRITERIA AND NORMS OF ALLOCATING PUBLIC INVESTMENT USING STATE BUDGET FOR THE PERIOD 2021-2025

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THE STANDING COMMITTEE OF THE NATIONAL ASSEMBLY

Pursuant to the Constitution of the Socialist Republic of Vietnam;

Pursuant to the Law on State Budget No.83/2015/QH13;

Pursuant to the Law on Public Investment No.39/2019/QH14;

RESOLUTION:

Chapter I

GENERAL REGULATIONS

Article 1. Scope of adjustment

This resolution provides for the principles, criteria and norms of allocating public investment using state budget for the period 2021-2025.

Article 2. Subjects of application

This Resolution applies to:

1. Ministries, central agencies and localities according to the provisions of Clause 4, Article 4 of the Law on Public Investment.

2. Organizations and individuals involved in the formulation of annual and medium-term plans for public investment with state budget sources.

Chapter II

PRINCIPLES, CRITERIA AND NORMS OF ALLOCATING OF PUBLIC INVESTMENT USING STATE BUDGET

Article 3. Sector and fields that uses public investment of state budget for the period 2021-2025

Public investment using state budget is allocated to the subjects specified in Article 5 of the Law on Public Investment and classified by sectors and fields specified in Article 36 of the Law on State Budget, specifically as follows:

1. National Defense: Tasks, programs and projects in the sectors and fields serving defense and cipher purposes, natural disaster response and search and rescue by specialized central and local units as decentralized.

2. Social security, order and safety: Tasks, programs and projects in the sectors and fields serving the purposes of social security, order and safety, fire prevention and fighting, investigation, crime prevention and fighting, criminal judgment execution, disaster response and search and rescue by specialized central and local units as decentralized.

3. Education, training and vocational education: Duties, programs, investment projects to build infrastructure, facilities, equipment for educational, training and educational purposes, vocational education at all levels from preschool to university.

4. Science and technology: Duties, programs, investment projects to build infrastructure, facilities, equipment, technology to serve the goals of scientific and technological development, testing, experimentation, analysis, verification, inspection, standards - metrology - quality, intellectual property, specialized designs in the field of natural sciences and engineering, technology application and transfer Center for innovation, research and development, industrial development assistance, high-tech zones, hi-tech agriculture, forestry and fisheries center.

5. Health, population and family: Duties, programs, and investment projects to build infrastructure, facilities, and equipment for medical purposes (including preventive medicine; medical examination, treatment, first aid, rehabilitation; traditional medicine; medical assessment, forensic, mental forensic examination; inspection and testing of pharmaceuticals, cosmetics and other activities of health sector), population, family, reproductive health, food hygiene and safety.

6. Culture and information: The tasks, programs and projects that serve objectives of the following sections:

a) Culture: To protect and preserve the value of the tangible and intangible cultural heritages and the national culture; to develop literature, art, cinema, libraries, museums, grassroots culture and performing arts; to develop the system of cultural institutions and cultural works;

b) Information: Infrastructure, facilities, and equipment that serve the publishing and press services of the State;

7. Radio, television, news: Duties, programs, investment projects to build infrastructure, facilities, equipment for radio, television, news to perform essential political, social and public utility tasks.

8. Physical training and sports: Tasks, programs and investment projects to build infrastructure, facilities and equipment for the development of physical training and sports.

9. Environment protection: Tasks, programs and projects that serve objectives of the following sections:

a) Environment: infrastructure, facilities, equipment of environment monitoring, warning, protection of resources, remediation of environmental pollution, waste, wastewater treatment, green growth, response to climate changes and sustainable development;

b) resources: infrastructure, facilities, equipment for cartography, hydrometeorology, geological exploration, protection of natural resources;

10. Economic activities: Tasks, programs and projects that serve objectives of the following sections:

a) Agriculture, forestry, salt production, irrigation and fisheries: infrastructure, facilities, equipment for agriculture, forestry, salt production, irrigation and fisheries; rural economy (including building a new countryside, providing clean water and ensuring rural environmental sanitation, developing trades, rural craft villages associated with households and cooperatives, rural population re-arrangement, settled agriculture, settlement, stable free migration and resettlement); development of plant varieties and domestic animals; forest planting, protection and development; prevention and overcoming of consequences of natural disasters, forest fires and epidemics;

b) Industry: electricity supply in rural, mountainous and island areas; tasks and projects in the oil and gas sector under the Prime Minister s decisions, money printing and minting facilities and equipment;

c) Traffic: roadway, railway, inland waterways, sea and air transport infrastructure;

d) Industrial parks and economic zones: infrastructure of coastal economic zones, border-gate economic zones and infrastructure of industrial parks and industrial clusters;

dd) Commerce: local market, wholesale market, logistic center, exhibition fair center, export and import infrastructure;

e) Water supply and drainage;

g) Warehouse: infrastructure, facilities, warehouse equipment, specialized storage, national reserve warehouse, archive of documents, evidence warehouse;

h) Tourism: Infrastructure for sustainable tourism development in tourist sites, spots and areas;

i) Telecommunications: infrastructure, facilities, materials and equipment serving telecommunications purposes in order to perform essential political, social and public tasks;

k) Post: infrastructure, facilities, materials and equipment serving postal purposes to perform essential political, social and public tasks;

l) Information technology: digital information infrastructure, digital economy; modernization of information technology in Party and State agencies; information technology and database application and development; shared national platforms, applications and services; network safety and security;

m) Planning: planning tasks;

n) Public works in urban centers;

o) Providing charter capital to policy banks, off-budget state financial funds; subsidizing preferential credit interest rates, management fees; supporting business development to invest in agriculture and rural areas; support for small and medium enterprises according to the provisions of the Law on Support for Small and Medium Enterprises; support cooperatives under the Law on Cooperatives.

11. Operations of state management agencies, public non-productive units, political organizations and socio-political organizations: tasks, programs and projects for constructing, renovating and upgrading offices, public houses, purchasing equipment of agencies belonging to the political system, the State; projects to purchase, build and renovate working offices, renovate and upgrade houses, and purchase equipment of overseas Vietnamese representative agencies.

12. Social aspect: tasks, programs, and projects to invest in the construction, renovation and upgrading of infrastructure, facilities, equipment procurement of facilities of nursing, rehabilitating, nurturing people with meritorious services; job assistance; health care and nursing for employees; to build, renovate and upgrade works with credit for martyrs; detoxification facilities and other social assistance.

13. Other tasks, programs and projects as provided for by law: to support investment for other subjects and policies as decided by the Prime Minister; tasks, programs and projects subject to public investment, which have not been classified into the 12 above-mentioned sectors and fields.

Article 4. General principle of public investment using state budget allocation

1. The allocation of public investment using state budget for the period 2021-2025 must comply with the provisions of the Public Investment Law, the State Budget Law and relevant legal documents.

2. To ensure the centralized and unified management of objectives, mechanisms and policies; to implement decentralization in investment management according to the provisions of law, to create active rights for ministries, central agencies and local authorities at all levels.

3. The allocation of public investment using state budget must serve the implementation of the country s development goals and orientations in the 10-year socio-economic development strategy 2021-2030, the 5-year socio-economic development plan 2021-2025 of the nation, sectors, fields, localities, national 5-year financial plan, 5-year public debt loan and repayment plan, planning according to the provisions of the Law on Planning to be decided or approved by competent authorities, ensuring the goal of sustainable development, harmony between economy and society.

4. In suitability with the ability to balance investment capital from the State budget in the 5-year financial plan, ensuring macro balances and safety of public debt. To step up the restructuring of public investment, rationally calculate the resource structure of the central and local budgets, ensure that the central budget plays a key role; increase the mobilization of off-state budget capital sources, promote the attraction of social capital sources for the implementation of infrastructure investment projects.

5. To allocate non-dispersed, non-spread, concentrated investment capital; ensure efficient use of investment capital. Only assign capital plans to projects with sufficient investment procedures decided by competent authorities according to the provisions of the Law on Public Investment and other relevant legal documents. Programs and projects for which investment policy has been decided by competent authorities, new projects must ensure the allocation of capital for group A projects does not exceed 6 years, group B does not exceed 04 years, group C does not exceed 03 years. In case of failure to meet the above time limit, the Prime Minister decides on the time to allocate capital for project implementation for projects using central budget capital, the People s Council of province shall decide the time to allocate capital for implementing projects using local budget.

6. To focus on prioritizing the allocation of capital for implementation, speeding up the progress, early completing and promoting effectively projects under national target programs, important national projects, connection programs and projects that have inter-regional impacts, have a meaning to promote rapid and sustainable socio-economic development, protection of people s health, prevention and control of natural disasters, response to climate change (landslide river bank, coast, saltwater intrusion, sea level rise,...), ensure water security.

7. To prioritize the allocation of capital to mountainous, border, island, ethnic minority areas, areas with difficulties and extreme difficulties, in sync with the National target program for economic-social development for the ethnic minorities and mountainous areas for the period 2021-2030, contributing to narrowing the gap in the development level, income and living standards of the population between regions and areas of the country.

8. The order of priority to allocate public investment using state budget for the period 2021-2025 is applied as follows:

a) Allocate sufficient capital to pay the outstanding debts for basic construction according to the provisions of Clause 4, Article 101 of the Law on Public Investment (if any);

b) Allocate sufficient capital to repay the advance to the plan without source to repay in the medium-term plan for public investment in the previous period (if any);

c) Allocate capital to projects that have been completed and handed over to use but have not allocated enough capital; capital for projects using ODA and concessional loans from foreign sponsors (including reciprocal capital); State investment capital for the participation in the project implementation under the public-private partnership mode; transition projects implemented according to the approved schedule; the project is expected to be completed in the planning period;

d) Allocate capital to perform planning tasks;

dd) Allocate capital for the preparation of investment for the formulation, appraisal and decision on investment policy and formulation, appraisal, and decision on investment in programs and projects;

e) Allocate capital for new construction projects meeting the requirements specified in Clause 5, Article 51 of the Law on Public Investment.

9. Ensure publicity, transparency and fairness in the allocation of public investment capital, contributing to promoting administrative reform and strengthening anti-corruption, thrift and waste combat practice.

Article 5. Principles, criteria and norms of allocating public investment capital from the central budget

1. Principles of capital allocation: comply with the contents specified in Article 51 of the Law on Public Investment, Article 4 of this Resolution on general principles, priority order of capital allocation and specific principles as follows:

a) Ensure reasonable correlation in the structure of the allocation of investment capital between ministries, central agencies and between branches and domains; targeted supplementary central budget capital for the localities; capital for the implementation of specific tasks, programs and projects, including: national target programs, national important projects, connection programs, projects with inter-regional impacts, promote rapid and sustainable socio-economic development, protect and take care of people s health, prevent and combat natural disasters, respond to climate change, ensure water security;

b) Public investment capital from the central budget of the ministries, central agencies and localities shall be allocated according to branches and domains according to the provisions of Article 3 of this Resolution;

c) Tasks, programs and projects that are planned for public investment capital from the central budget must ensure all investment procedures under the Law on Public Investment.

2. Criteria and norms for allocating pubic investment capital from the central budget source:

a) Public investment capital from central budget allocated to tasks, programs and projects belonging to the investment spending tasks of the central budget shall comply with the law on state budget and subject to investment public investment prescribed in Article 5 of the Law on Public Investment;

b) Structure of central budget capital allocation:

- A maximum of 30% is reserved for targeted supplementation for localities and allocated according to sectors or fields, excluding capital from projects under the National Target Program and ODA and concessional loans of foreign donors;

- The remaining capital amount is allocated as follows:

+ Allocate to ministries and central agencies according to branches and domains. Ministries and central agencies are responsible for allocating specifically to programs and projects, including domestic capital, ODA and concessional loans of foreign donors in accordance with the law and the principles and order of priority specified in this Resolution;

+ Allocate to specific tasks, programs and projects, including: national target programs, important national projects, connection programs, projects with inter-regional impacts that are significant to promote rapid and sustainable socio-economic development, protection of people s health care, national master planning tasks, national marine spatial planning, national land use planning, national sector planning national budget, regional planning, payment obligations of the central budget, and other policies using public investment capital from the central budget as prescribed by law.

Article 6. Principles, criteria and norms of allocating the National Target Program

1. To comply with the provisions of the State Budget Law and the Public Investment Law.

2. The principles, criteria and norms of central budget capital allocation for national target programs shall comply with the investment policy of each program decided by the National Assembly.

Article 7. Principles and criteria for allocating pubic investment capital from the central budget to ministries and central agencies

1. Comply with the provisions of Article 5 of this Resolution and distribute according to the following specific principles and criteria:

a) Prioritize allocating the missing medium-term investment plan capital of projects on the list of the medium-term public investment plan for the 2016-2020 period, and transitioning to the 2021-2025 period; Recovery of advance capital.

b) The remaining capital amount shall be allocated to new projects in the branches and domains specified in Article 3 of this Resolution.

2. Public investment capital from the central budget allocated to ministries and central agencies defined in Clause 4, Article 4 of the Law on Public Investment according to the branches or domains specified in Article 3 of this Resolution.

Article 8. Principles, criteria and norms for allocating pubic investment capital with central budget purposeful additions to localities

1. Principles of capital allocation: comply with the provisions of Article 5 of this Resolution and the following specific principles:

a) Ensure a reasonable correlation between the development of key economic regions, localities with large revenues, a high proportion of central budget regulation, and the priority of the Mekong River Delta region, mountainous, border, island, ethnic minority areas and other disadvantaged regions to contribute to narrowing the gap in development, income and living standards of the population between regions in the region all over country;

b) Localities are responsible for allocating targeted additional capital for programs and projects in all sectors and fields in accordance with law according to the principles and order of priority specified in this Resolution and to efficiently use the investment capital of the State budget, creating conditions to attract maximum other capital sources for development investment;

c) Ensure the publicity, transparency and fairness in the allocation of public investment capital;

d) The allocation of domestic central budget funds to the local purposeful supplementation shall be made as follows:

- Prioritize allocating the missing medium-term investment plan capital of projects on the list of the medium-term public investment plan for the 2016-2020 period, transitioning to the period of 2021-2025; recovery of advance capital;

- The remaining capital amount shall be allocated to new projects in the branches and domains specified in Article 3 of this Resolution.

2. Criteria and norms for capital allocation:

a) Public investment capital from the central budget in the country purposefully added to the local budget, allocated according to the branches and domains specified in Article 3 of this Resolution;

b) Local central budget targeted additional public investment capital allocated to projects of group B or higher (excluding projects under national target programs). Other cases decided by the Prime Minister;

c) Allocate to new projects in the local sectors and fields on the basis of scoring according to the following criteria:

- Population criterion: Average population and number of ethnic minorities of localities (except for Hanoi City and Ho Chi Minh City);

- Development criteria: Proportion of poor households, domestic revenues (excluding revenues from land use, construction lottery), rate of central budget regulation and rate of supplementation from the central budget to the local budget;

- Area criteria: Area of ​​natural land, rate of forest cover in the locality;

- Criteria of administrative units at district level: Number of administrative units at district level; the number of mountainous districts; highlands and islands; the land border of each locality;

- Additional criteria, including:

+ Social safety criteria for the area of ​​the war base (historical safety zone);

+ Criteria for communes on islands and in land border areas, including: communes in Vietnam s border

- China, Vietnam - Laos and Vietnam - Cambodia;

+ Regional criteria, including: areas strongly affected by natural disasters, climate change (riverbank erosion, coastal erosion, drought, saline intrusion, sea level rise, ...).

Article 9. Public investment capital from the local budget

1. Public investment capital from local budget sources shall be allocated according to branches and domains according to the provisions of Article 3 and the principles prescribed in Article 4 of this Resolution.

2. The plan for public investment capital from the local budget in 2021 is formulated in accordance with the law on public investment and the state budget, and is expected to be received by the local budget according to decentralization. balanced additions from the central budget to local budgets (if any), in line with the orientation of the 5-year socio-economic development plan 2021-2025 and specific targets and tasks for socio-economic development of the year 2021; Implementation results of local budget estimates in 2019, expected to be implemented in 2020.

3. The plan for public investment capital from the local budget from 2022 to 2025 is determined each year on the basis of the 5-year average growth rate of public investment capital from the local budget in comparison with the public investment capital in 2021 (excluding land use revenue, construction lottery according to reports of localities).

Chapter III

TERMS OF ENFORCEMENT

Article 10.Responsibilities of the Government

1. Organize and direct ministries, ministerial-level agencies, Government-attached agencies, and other central and local agencies to implement this Resolution.

2. Report on the implementation of this Resolution at the request of the National Assembly or the Standing Committee of the National Assembly.

3. In case of supplementing or amending public investment using state budget allocation principles, criteria and norms for the period 2021-2025 in addition to the provisions of this Resolution, the Government shall report to the Standing Committee of the National Assembly for decision.

Article 11. Responsibilities of the Prime Minister

1. To determine in detail the allocation norms for each criterion, milestones, the data-providing agency as a basis for determining public investment capital using central budget that is supplemented purposefully to localities in the period 2021-2025; to determine the 5-year average growth rate of public investment capital from local budgets compared to public investment capital in 2021.

2. Detailed provisions for the implementation of this Resolution.

Article 12. Effect of implementation

This Resolution takes effect from the date of its signing and applies to budget years for the period of 2021-2025.

Article 13. Transition provisions

1. For unfinished projects, the projects included in the medium-term public investment plan for the 2016-2020 period with the state budget source but have not been allocated annual capital for implementation, Ministries and agencies the central and local levels shall continue to allocate capital from the State budget to complete according to the capital arrangement schedule already decided by competent authorities.

2. For projects planned for investment but not included in the medium-term public investment plan for the 2016-2020 period with state budget sources, in cases Ministries, central agencies and localities plan to continue in the medium-term plan for the period 2021-2025 for the state budget of their respective units, to comply with the provisions of Article 101 of the Law on Public Investment.

3. Projects under the Target Programs included in the medium-term public investment plan for the 2016-2020 period that have been arranged with an annual public investment using state budget but are insufficient of transitional capital for the period 2021-2025, depending on the nature and objectives of the project, are classified into 13 sectors and fields according to the Appendix attached to this Resolution.

Article 14. Supervision of the implementation of the Resolution

The Standing Committee of the National Assembly,the Finance and Budget Committee, the Ethnic Council and other Committees of the National Assembly, National Assemblydeputies’delegations, National Assembly deputies shall supervise the implementation of this Resolution within their scope of duties and powers as prescribed by the law.