Vietnam: When is the annual public investment plan disbursement period allowed to be extended according to the Law on Public Investment 2024?
Vietnam: When is the annual public investment plan disbursement period allowed to be extended according to the Law on Public Investment 2024?
Pursuant to Clause 2, Article 72 of the Law on Public Investment 2024 (effective from January 1, 2025) regarding the timeline for execution and disbursement of the annual public investment plan as follows:
Timeline for Execution and Disbursement of the Annual Public Investment Plan
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- The Prime Minister of the Government of Vietnam shall decide on the central budget funds, while the Chairperson of the People's Committee at each level shall decide on the local budget funds managed by their level, allowing the extension of the execution and disbursement period of the annual public investment plan, but not beyond December 31 of the following year in the following cases:
a) Nationally important projects;
b) Projects involving compensation, support, resettlement, land clearance;
c) Projects allocated a capital plan to be completed and put into use within the plan year but not allocated for the following year;
d) Projects affected by timeline delays due to natural disasters, catastrophes, epidemics, other unforeseen and unresolvable objective reasons;
đ) Projects of representative agencies and other agencies of Vietnam abroad;
e) Ministries, central and local agencies that have only one project in the plan year or cannot adjust the plans;
g) Other necessary, urgent cases as decided by the Prime Minister of the Government of Vietnam.
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Thus, the Law on Public Investment 2024 stipulates that the extension of the annual public investment plan disbursement period is permitted in the following cases:
- Nationally important projects;
- Projects involving compensation, support, resettlement, land clearance;
- Projects allocated capital to be completed and utilized within the plan year but not for the following year;
- Projects affected by timeline delays due to natural disasters, catastrophes, epidemics, or other unforeseen and unresolvable objective reasons;
- Projects of representative and other agencies of Vietnam abroad;
- Ministries, central and local agencies that have only one project in the plan year or cannot adjust the plans;
- Other necessary, urgent cases as decided by the Prime Minister of the Government of Vietnam.
Vietnam: When is the annual public investment plan disbursement period allowed to be extended according to the Law on Public Investment 2024? (Image from the Internet)
Vietnam: Does the source of funds for the public investment plan include tax and fee revenue?
Based on Article 4 of the Law on Public Investment 2024 (effective from January 1, 2025), which provides interpretations of terms in the document as follows:
Interpretation of Terms
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- Public investment is state-invested activities in programs, tasks, projects, and other public investment subjects as stipulated by this Law.
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- A public investment plan is a set of objectives, orientations, lists of programs, and public investment projects; it includes the balancing of public investment capital, allocation plans, mobilization solutions, and implementation deployment.
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- Public investment capital includes state budget capital for public investment; legal revenue from state agencies and public service providers dedicated to investment as prescribed by law.
- Central budget capital is capital for public investment from the central budget according to the provisions of the State Budget Law.
- Local budget capital is capital for public investment from the local budget according to the provisions of the State Budget Law.
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Simultaneously, based on Clause 1, Article 5 of the State Budget Law 2015, which specifies the scope of the state budget as follows:
Scope of the State Budget
- State budget revenue includes:
a) All tax and fee revenues;
b) All fees collected from service activities performed by state agencies, with expense allocation allowed by law to be deducted; fees from service activities performed by public service providers and state enterprises paid to the state budget as prescribed by law;
c) Non-refundable aid from governments of other countries, organizations, and individuals abroad to the Government of Vietnam and local authorities;
d) Other revenues as prescribed by law.
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Thus, the source of funds for the public investment plan will include all tax and fee revenues.
What are the other tax-related revenues managed by the tax authority encompassed in the state budget of Vietnam?
According to Clause 2, Article 3 of the Tax Administration Law 2019, the other tax-related revenues managed by the tax authority include:
- Fees and charges according to the Law on Fees and Charges;
- Land use fees submitted to the state budget;
- Land and water surface rental fees;
- Fees for mineral exploration rights;
- Fees for water resource exploitation rights;
- Revenue paid to the state budget from asset sales on land, land use rights transfer as prescribed by the Law on the Management and Use of Public Property;
- Revenue from administrative violation fines according to the law on administrative violation fines in the fields of tax and customs;
- Late payment fees and other revenues as prescribed by law.
