Which expenditures are included in the state budget expenditures in Vietnam? Is tax included in the state budget revenues in Vietnam?

Which expenditures are included in the state budget expenditures in Vietnam?

Based on Clause 2, Article 5 of the 2015 State Budget Law (guided by Article 3 of Decree 163/2016/ND-CP), the state budget expenditures includes the following items:

(1) Development investment expenditure includes:

- Expenditure on basic construction investment for projects in fields specified in Clause 3 of this Article;

- Investment and capital support for enterprises providing public products and services ordered by the State; economic organizations; central and local financial institutions; investment of state capital into enterprises as prescribed by law;

- Other development investment expenditures as prescribed by law.

(2) National reserve expenditure.

(3) Regular expenditures for the following fields:

- Defense;

- Security and public order, social safety;

- Educational - training and vocational development;

- Scientific and technological development;

- Healthcare, population, and family development;

- Cultural information development;

- Broadcasting, television, and news services development;

- Sports development;

- Environmental protection;

- Economic activities;

- Activities of state agencies, Vietnamese Communist Party agencies, and socio-political organizations, including: Vietnam Fatherland Front Committee, Vietnam General Confederation of Labor, Ho Chi Minh Communist Youth Union, Vietnam Veterans Association, Vietnam Women's Union, Vietnam Farmers' Association; support for activities of socio-political-professional organizations, social organizations, and social-professional organizations as prescribed by law;

- Social security expenditures, including support for implementing social policies as prescribed by law;

- Other regular expenditures as prescribed by law.

(4) Interest payment, fees, and other expenses arising from funds borrowed by the Government of Vietnam, local provincial governments.

(5) Aid expenditure from the central budget to foreign governments and organizations.

(6) Lending expenditure as prescribed by law.

(7) Financial reserve fund supplementation.

(8) Transfer of funds from the previous year's budget to the following year's budget.

(9) Budget balancing supplementation, targeted supplementation from higher-level budgets to lower-level budgets.

Which expenditures are included in the state budget expenditures in Vietnam? (Image from the Internet)

Is tax included in the state budget revenues in Vietnam?

According to Article 2 of Decree 163/2016/ND-CP, the state budget revenue includes:

State Budget Revenue

1. Taxes paid by organizations and individuals as stipulated by tax laws.

2. Fees paid by organizations and individuals as stipulated by law.

3. Charges collected from service activities performed by state agencies; in cases where operating costs are budgeted, deductions are allowed.

4. Charges collected from service activities performed by public service providers and state-owned enterprises, after deducting the portion offsetting costs as stipulated by law.

5. Payments to the state budget from the economic activities of the State, including:

a) Dividends shared with the host country and other revenues from the exploration and extraction of oil and gas;

b) Recovered state investments in economic organizations;

c) Dividends, profits shared in joint-stock companies, limited liability companies with two or more members having state capital contribution;

d) Remaining post-tax profits after allocating funds of state-owned enterprises;

dd) Excess of revenue over expenditure of the State Bank of Vietnam;

e) Recovering state loans (including principal and interest), excluding loans from foreign capital by the Government of Vietnam.

6. Contributions mobilized from agencies, organizations, individuals as prescribed by law.

7. Proceeds from selling state assets, including proceeds from transferring land use rights, changing land use purposes managed by state agencies or organizations.

8. Land use fees; land and water surface rental fees; maritime domain usage fees; rental and sale of state-owned housing.

9. Revenues from state-owned assets; licensing fees for mineral exploitation, water resource exploitation.

10. Fines, administrative penalties, and other confiscations as prescribed by law.

11. Voluntary contributions from domestic and foreign organizations and individuals.

12. Non-refundable aid from foreign governments, organizations, and individuals to the State, Government of Vietnam, local state agencies.

13. Revenue from the financial reserve fund as stipulated in Article 11 of the State Budget Law.

14. Other revenues as prescribed by law.

Thus, tax is one of the sources of state budget revenue.

What are the conditions for implementing state budget revenues and expenditures in Vietnam?

According to Article 12 of the 2015 State Budget Law, the conditions for implementing state budget revenue and expenditure are as follows:

- State budget revenue must be implemented in accordance with the 2015 State Budget Law, tax laws, and other legal regulations on state budget revenue.

- State budget expenditure is only implemented when it is included in the approved budget estimate, except for cases stipulated in Article 51 of the 2015 State Budget Law; approved by the head of the budget-using unit, the investor, or the authorized person and meets the conditions in the following cases:

+ For basic construction investment expenses, it must meet conditions prescribed by public investment and construction laws;

+ For regular expenses, it must adhere to policies, standards, and spending norms stipulated by competent state agencies; in cases where agencies are authorized to implement self-control mechanisms, the internal expenditure regulations should be followed and match the authorized budget estimate;

+ For national reserve expenditures, it must meet the conditions prescribed by national reserve laws;

+ For packages requiring bidding to select service providers, procurement of goods, construction projects must be organized according to bidding laws;

+ For expenses involving State-ordered tasks or projects must follow price or fee regulations issued by competent authorities.