Resolution 69/2022/QH15 on the state budget estimates for 2023

RESOLUTION

On the state budget estimates for 2023

_____________

THE NATIONAL ASSEMBLY

Pursuant to Constitution of the Socialist Republic of Vietnam;

Pursuant to the Law on State Budget No. 83/2015/QH13, which is amended and supplemented by the Law No. 59/2020/QH14;

On the basis of the Government’s Report No. 32/BC-CP dated October 16, 2022; Appraisal Report No. 53/BC-UBTCNS15-m dated October 19, 2022 of the Finance and Budget Committee; Report No. 362/BC-UBTVQH15 dated November 11, 2022 of the National Assembly Standing Committee and opinions of National Assembly delegates,

RESOLVES:

Article 1. To approve the state budget estimates for 2023

1. Total state budget revenue is VND 1,620,744 billion (one million, six hundred twenty thousand, seven hundred forty-four billion VND).

2. Total state budget expenditure is VND 2,076,244 billion (two million, seventy-six thousand, two hundred forty-four billion VND).

3. State budget deficit is VND 455,500 billion (four hundred fifty-five thousand, five hundred billion VND), corresponding to 4.42% GDP, in which:

Central budget deficit is VND 430,500 billion (four hundred thirty thousand, five hundred billion VND), corresponding to 4.18% GPD;

Local budget deficit is VND 25,000 billion (twenty-five thousand billion VND), corresponding to 0.24% GDP.

4. Total budget borrowings is VND 648,213 billion (six hundred forty-eight thousand, two hundred and thirteen billion VND).

(Appendices No. I, II, III, and IV attached hereto)

Article 2. To add and adjust the state budget estimates in 2022, and adjust the 2021-2025 medium-term public investment plan

1. Adding VND 1,707.58 billion of revenues from the oil and gas prospecting and exploration fund at Vietnam National Oil and Gas Group to state budget revenue and expenditure estimates in 2022 at request of the Government under Report No. 31/TTr-CP and Report No. 32/BC-CP dated October 16, 2022. The Government shall be responsible for accuracy of the data; paying and finalizing in accordance with the law provisions when making state budget revenue and expenditure. State audit shall audit in accordance with the law provisions.

2. Adding VND 7,265 billion of the medium-term public investment plan with foreign capital and central government budget funding sources for the 2021-2025 period to the Ministry of Transport from unallocated central budget in order to fund 1 project where Vietnam Infrastructure Development and Finance Investment Joint Stock Company acts as the project owner and which has been permitted by the National Assembly to convert loans into on-lending capital and Government guarantee into capital for dispensing of state budget in accordance with Resolution No. 63/2022/QH15.

3. Adding VND 31,392 billion of the foreign capital development investment expenditure estimate to the Ministry of Transport, and correspondingly increasing the state budget deficit in 2022 to arrange the 2022 capital plan for 05 projects, including: 1 project where Vietnam Infrastructure Development and Finance Investment Joint Stock Company acts as the project owner, and 04 projects where Vietnam Expressway Corporation acts as the project owner, which has been permitted by the National Assembly to convert loans into on-lending capital and Government guarantee into capital for dispensing of state budget in accordance with Resolution No. 63/2022/QH15.

4. Permitting the use of debt payment expenditure estimates of the central government budget in 2022 to settle all due foreign loans of the Vietnam Expressway Corporation and all advance principal and foreign loans of the Vietnam Infrastructure Development and Finance Investment Joint Stock Company that have been converted to capital for dispensing of state budget in accordance with the law provisions. The Government shall be responsible for the incurred amount, settling and finalizing in accordance with the law provisions.

5. Permitting the extension of disbursement period of investment and professional capital of the central government budget in 2022 (including the plan for 2021 that has been extended to 2022) of 3 National target programs that have been distributed by the National Assembly Standing Committee under Resolution No. 517/NQ-UBTVQH15 dated May 22, 2022 and have not disbursed to the end of December 31, 2023.

6. Permitting the inclusion of central government budget-funded investments generated from the handling and rearrangement operations of housing and land conducted by ministries and central authorities in the annual state budget estimates on the basis of realistic revenue capacity and report to the National Assembly for consideration and decision.

7. The adjustment of the medium-term public investment plan funded by central government budget among internal tasks and projects of each ministry, central authority, and local authority, shall comply with the Law on Public Investment. In the case where internal shift changes total capital of the 2021-2025 medium-term public investment of a field or sector, immediately reporting to the National Assembly for consideration and decision; in cases of emergency or during the interval between sessions of the National Assembly, the Government shall consolidate and report to the National Assembly Standing Committee for consideration and comments in order to present to the National Assembly in the next session.

8. Regarding the replacement or addition of new tasks and projects in the 2021-2025 medium-term public investment plan compared to the list reported to the National Assembly by the Government in the 1^st session of the XV^th National Assembly, the Government shall report to the National Assembly for consideration and decision; and in cases of emergency or during the interval between sessions of the National Assembly, the Government shall report to the Standing National Assembly Committee for comments prior to allocating capital for 2021-2025 medium-term public investment plan, and present to the National Assembly in the next session.

9. From 2022, the central budget shall receive 100% of revenues generated by electronic commerce and business activities that utilize digital platforms, cross-border services, and other services performed by foreign service providers that carry out tax registration, tax declaration, and tax payment directly via the portal of the General Department of Taxation.

10. The Government shall develop solutions for allocating the remaining capital of the medium-term public investment plan, the Program for socio-economic recovery and development in order to fund projects in the Program as soon as they are eligible in accordance with the law provisions and request the National Assembly Standing Committee to consider and give opinions before March 31, 2023. After the above time, any unallocated capital of the medium-term public investment plan shall be transferred to provision of the medium-term public investment plan whereas the remaining capital of the Program for socio-economic recovery and development shall not be allocated further.

Article 3. Regarding implementation of salary policies

1. General reform of salary policies according to Resolution No. 27-NQ/TW dated May 21, 2018 of the 7^th Session of the XII Central Executive Committee shall not be implemented in 2023. From July 1, 2023, increasing the base salary for cadres, civil servants, public employees to 1.8 million VND/month; increasing pension and social insurance allowance by 12.5% for beneficiaries of state budget allowance and providing additional support for persons retiring before 1995 with low benefit level; increasing standard allowance level for persons with meritorious services no lower than the poor household standard in urban areas, and increasing expenditure on social security policies associated with the base salary by 20.8%. From January 1, 2023, increasing professional allowance of preventive and center-based healthcare workers according to Conclusion No. 25-KL/TW dated December 30, 2021 of the Political Bureau.

2. Continuing to implement specific financial and income mechanisms for agencies and units that are implementing specific financial and income mechanisms at the central level prescribed by competent authorities for a number of agencies and state administrative units until the implementation of the general reform of salary policies according to Resolution No. 27-NQ/TW dated May 21, 2018 of the 7^th Session of the XII Central Executive Committee; Monthly salary and additional income shall be calculated based on the base salary of 1.8 million VND/month from July 1, 2023 according to a specific mechanism, ensuring that it does not exceed the average salary and additional income in 2022 (excluding the salary and additional income due to adjusting the salary coefficient according to rank or grade when upgrading rank or grade).

3. Ministries, governmental and local agencies shall adopt solutions for generating resources for salary policy reform in accordance with the law provisions. During 2023-2025, continuing to exclude some revenues when calculating the increase in revenues of local budget revenues compared to the estimate to reserve sources for salary reform in accordance with Resolution No. 34/2021/QH15 dated November 13, 2021 of the National Assembly.

Article 4. Assignment to the Government

1. Concentrating on implementing fiscal policies appropriately, effectively, and promptly in order to adapt to complicated shift inside and outside the country, ensuring the targets of maintaining macroeconomic stability, controlling inflation, boosting growth, and ensuring major balances of the economy.

2. Continuing to finalize state budget revenue system, enhance revenue management, restructure revenue sources in order to maintain sustainability; researching amendment, addition, and improvement of tax administration regulations, especially in new and emerging business sectors in the digital economy and cross-border transactions, etc., ensuring proper, adequate, and timely collection of fees, charges, taxes, and other collectibles to the state budget. In the case where the central budget revenues in 2023 exceed the estimates, the Government shall request the National Assembly Standing Committee to allocate resources in order to implement salary reform in accordance with the law provisions and reduce state budget deficit. Consolidating and submitting reports on implementation of the National Assembly’s Resolution No. 94/2019/QH14 on freezing of tax arrears and write-off of late-payment fines and interests for taxpayers that are no longer able to pay these amounts to the state budget to the National Assembly in the session by the end of 2023.

From 2023, the Government shall develop mechanisms for monitoring tax declared and paid by foreign suppliers with respect to revenues generated by provision of goods and services for individuals and enterprises in Vietnam in order to assess, improve, and ensure the implementation of tax administration policies on foreign suppliers.

Closely monitoring VAT, import duty, and export duty refund to ensure the proper subjects in accordance with the law provisions; continuing to implement tax administrative reforms, and promoting digitalization of tax administration; strictly implementing regulations and law on auctioning when transferring, leasing public property, assigning land, and leasing land in accordance with the law provisions.

Urgently implementing solutions for promoting equitization and divestment of state capital in enterprises in the 2021-2025 period, associating leading individuals with responsibilities; aiming towards approving and revising scheme for enterprise restructuring; fully promulgating guiding documents in order to create the legal basis for implementation.

Researching and improving financial regulations in land in accordance with Resolution No. 18-NQ/TW dated June 16, 2022 of the 5^th Session of the XIII Central Executive Committee in order to ensure mutual benefits between the Government, land users, and investors; adopting mechanisms for reasonably and effectively regulating revenues generated by land levy and land rents between central budget and local budget; adopting solutions for reinforcing and improving leader role of central budget.

3. Enforcing discipline and order, and strengthening responsibilities of leading individuals in managing and using finance, budget; managing state budget expenditure closely, economically, and effectively; cutting unnecessary expenditures, thoroughly reducing recurrent expenditure; only promulgating policies that increase budget expenditure when necessary and adequate resources present; allocating and distributing estimates in a timely manner in accordance with the Law on State Budget; increasing investment preparation quality, remediating the tardiness in implementing public investment projects and disbursement of public investment; strictly rerouting capital of projects behind progress to more capable projects with disbursement potentials but subject to lack of capital, minimizing transfer of funding sources; considering responsibilities in developing estimates that are not close to reality, and ineffectively organizing the implementation, causing low disbursement of public investment.

Directing research to adjust funding norms, prioritizing arrangements to ensure regular maintenance, especially in the field of transportation; Fully promulgating economic and technical norms and criteria and standards for assessing the quality of public services, mechanisms for monitoring, evaluating and verifying service quality and operational efficiency of public non-business units to serve as a basis for building unit prices, ordering plans and assigning tasks to public non-business units.

Adopting effectively solutions for improving quality of proposal, preparation, and approval of ODA projects, developing specific plans for implementation for each stage, researching solutions for handling cases where capital is returned due to subjective reasons.

4. Continuing to direct ministries, central and local agencies to downsize and rearrange organization structure for effective and efficient operation; innovating management mechanisms, financial mechanisms, reorganizing the system of public non-business units, reducing direct support from the state budget for public non-business units.

5. Extensively coordinating anti-wasteful and efficient practice; strengthening inspection and examination, handling of responsibilities of organizations and individuals in complying with regulations on anti-wasteful and efficient practice, and ensuring effectiveness of state budget use. Prioritizing implementation of relevant details under the Resolution on promoting the implementation of legal policies on anti-wasteful and efficient practice.

6. Closely monitoring central budget deficit, local budget deficit, and loans of local budget. Increasing inspection and examination of loan application, use of loans, and loan repayment, especially in regard to new loan agreements, foreign loan, loan under Government guarantee; assessing and forecasting loan default risk, solvency in order to adopt effective solutions for managing and coordinating state budget; actively implementing solutions for restructuring public debt in accordance with the Law on Public Debt Management; ensuring effectiveness and efficiency when repurchasing, swapping, or selling Government bonds; governing expenditure on issuing, repurchasing, swapping, and selling Government bonds within the expenditure estimates on interest repayment of central budget in 2023 decided by the Government.

7. Providing specific guidance on implementation of Clause 1 and Clause 2 Article 3 hereof.

Article 5. Supervision and audit of implementation of state budget estimates

1. The National Assembly Standing Committee, Finance and Budget Committee, Council for Ethnic Affairs, and other Committees of the National Assembly, the National Assembly deputies’ delegations, National Assembly deputies, Vietnamese Fatherland Front, and member organizations, within their tasks and powers, shall supervise the implementation of this Resolution.

2. State Audit Office, within their tasks and powers, shall audit the implementation of this Resolution to ensure compliance with the law.

This Resolution was passed on November 11, 2022, by the XV^th National Assembly of the Socialist Republic of Vietnam at its 4^th session.

Chairman of the National Assembly of Vietnam

VUONG DINH HUE

Appendix I

STATE BUDGET BALANCE IN 2023

(Issued together with Resolution No. 69/2022/QH dated November 11, 2022 of the National Assembly)

Unit: Billion VND

Note:

(1) Not including the expected use of approximately 47 thousand billion VND of salary reform sources of central budget and local budget allocated from previous years.

(2) The difference between deficit of provinces with local budget deficits and surplus of provinces with local budget surpluses.

(3) Including loans for covering central budget deficit and loans for covering local budget deficit.

Appendix II

FIELD-BASED STATE BUDGET REVENUE ESTIMATES IN 2023

(Issued together with Resolution No. 69/2022/QH dated November 11, 2022 of the National Assembly)

Unit: Billion VND

Note: (1) Including revenues from foreign suppliers that are not based in Vietnam.

Appendix III

REVENUE AND EXPENDITURE BALANCES OF CENTRAL BUDGET AND LOCAL BUDGET IN 2023

(Issued together with Resolution No. 69/2022/QH dated November 11, 2022 of the National Assembly)

Unit: Billion VND

Note: (1) The difference between deficit of provinces with local budget deficits and surplus of provinces with local budget surpluses