Classification code for the state budget index according to “Program, objective, and national project of Vietnam” modified to 5 characters per Circular 84/2024/TT-BTC?

Classification code for the state budget index according to “Program, objective, and national project of Vietnam” modified to 5 characters per Circular 84/2024/TT-BTC?

Recently, on November 26, 2024, the Ministry of Finance officially issued Circular 84/2024/TT-BTC amending Circular 324/2016/TT-BTC which regulates the state budget classification index system, as previously revised by Circular 93/2019/TT-BTC and Circular 51/2022/TT-BTC.

Download Circular 84/2024/TT-BTC (effective from January 10, 2025)

Circular 84/2024/TT-BTC amended Clause 2, Article 5 of Circular 324/2016/TT-BTC, which specifies the code for classifying the state budget index content according to "Program, objective, and national project of Vietnams" from 4 characters to 5 characters, formatted as follows: NX1X2X3X4.

Among which:

- N is the character that tracks detailed funding sources for the Program, objective, and national project of Vietnam. Specifically:

- N = 1 reflects central government budget funding (including central government budget supplements with objectives for local government budgets).

- N = 2 reflects provincial-level budget funding (including provincial budget supplements with objectives for district budgets).

- N = 3 reflects district-level budget funding (including district budget supplements with objectives for commune budgets).

- N = 4 reflects commune-level budget funding.

- The format regulation of X1X2X3X4 is retained according to Point b, Clause 2, Article 5 of Circular 324/2016/TT-BTC.

Example: The project "Livelihood diversification, poverty reduction model development" under the National Target Program for Sustainable Poverty Reduction for the period of 2021-2025, is allocated specific funding parts:

- For the central government budget supplementary funding for local government budgets: reflected with code 10472.

- For provincial-level budget funding: reflected with code 20472.

- For district-level budget funding: reflected with code 30472.

- For commune-level budget funding: reflected with code 40472.

Classification code for the state budget index according to “Program, objective, and national project of Vietnam” modified to 5 characters per Circular 84/2024/TT-BTC? (Image from the Internet)

Is state budget revenue conducted in accordance with the tax laws in Vietnam?

Based on Clause 1, Article 12 of the 2015 Law on State Budget, which provides conditions for implementing state budget revenue and expenditure as follows:

Conditions for implementing state budget revenue and expenditure

1. State budget revenue must be conducted in accordance with this Law, the tax laws, and other legal provisions related to state budget revenue.

2. State budget expenditure shall only be conducted when it is included in the allocated budget estimate, except for cases prescribed in Article 51 of this Law; it must be approved by the head of the budget-using unit, the investor, or the authorized person and meet the specific conditions in each case:

...

Thus, state budget revenue must be conducted in accordance with the tax laws, the 2015 Law on State Budget, and other relevant legal provisions on state budget revenue.

What taxes are wholly retained by central government budget of Vietnam?

Based on Clause 1, Article 35 of the 2015 Law on State Budget, regulations on taxes that are wholly retained by central government budget:

- Value-added tax from imported goods;

- Export tax, import tax;

- Special consumption tax from imported goods;

- Environmental protection tax from imported goods;

- Natural resource tax, corporate income tax, shared profit with the host country, and other revenues from oil and gas exploration and exploitation activities.

What is the principle of revenue source division and expenditure tasks among local government budget levels in Vietnam?

Based on Article 39 of the 2015 Law on State Budget, the principle of revenue source division and expenditure tasks among local government budget levels is as follows:

(1) Based on local government budget revenues and expenditures as prescribed in Articles 37 and 38 of the 2015 Law on State Budget, the Provincial People's Council decides on the specific division of revenue sources and expenditure tasks among local government budget levels according to the following principles:

- Align with the allocation of socio-economic, national defense, and security tasks for each field and the economic, geographic, demographic characteristics, and management level of each region and locality;

- Commune and commune-level town budgets are allocated revenue sources from the following: non-agricultural land use tax; license tax from individuals, businesses; agricultural land use tax from households; registration fees for housing and land;

- District and commune-level budgets are not tasked with research and development of science and technology;

- In the division of expenditure tasks for district-level towns and cities under provincial control, tasks must include investment in constructing public schools of all levels, street lighting, water supply and drainage, urban traffic, urban sanitation, and other public welfare projects.

(2) Based on the percentage (%) of revenue sharing assigned by the Government of Vietnam and local government budget revenues retained at 100%, the Provincial People's Council decides on the percentage (%) of revenue sharing among local government budget levels.