Under the 2015 Law on State Budget, is the Vietnam Ministry of Finance required to issue Circular(s) providing guidelines for making state budget estimates for 2025 before June 1, 2024?
Is the Vietnam Ministry of Finance required to issue Circular(s) providing guidelines for making state budget estimates for 2025 before June 1, 2024?
According to Article 22 of Decree 163/2016/ND-CP guiding Article 44 of the 2015 State Budget Law as follows:
Time for providing instructions on making, aggregating, deciding, and giving state budget estimates
1. Before May 15, the Prime Minister shall promulgate regulations on making socio-economic development plans and state budget estimates of the next year.
2. Before June 1, the Ministry of Planning and Investment shall:
a) Promulgate Circular(s) on guidelines for formulation on socio-economic development plan, development investment plan of the next year;
b) Communicate checked estimate of expenditure on development investment of State budget in the next year to each of Ministries, ministerial-level agencies, Governmental agencies, other agencies of central government and provinces;
c) Communicate checked estimate of expenditure on development investment of State budget of the next year on execution of national target programs, target programs to each of Ministries, and agencies in charge of national target programs or target programs.
3. Before June 1, the Ministry of Finance shall:
a) Promulgate Circular(s) on guidelines for making of state budget estimates of the next year;
b) Communicate checked estimate of state budget with the whole revenue and each revenue, expenditure on national reserve, recurrent expenditure for the next year to each of Ministries, ministerial-level agencies, Governmental agencies, and other agencies of central government;
c) Communicate checked estimate of particular recurrent expenditures according to each field in the next year on execution of national target programs, target programs to each of Ministries, and agencies in charge of national target programs or target programs;
d) Communicate checked estimate of total State budget revenue in administrative divisions, total State budget expenditures and some important expenditures to each of provinces and central-affiliated cities (hereinafter referred to as provinces).
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Thus, the Vietnam Ministry of Finance will issue Circular(s) providing guidelines for making state budget estimates for 2025 before June 1, 2024.
At the same time, the Vietnam Ministry of Finance will:
- Communicate checked estimate of state budget with the whole revenue and each revenue, expenditure on national reserve, recurrent expenditure for the next year to each of Ministries, ministerial-level agencies, Governmental agencies, and other agencies of central government;
- Communicate checked estimate of particular recurrent expenditures according to each field in the next year on execution of national target programs, target programs to each of Ministries, and agencies in charge of national target programs or target programs;
- Communicate checked estimate of total State budget revenue in administrative divisions, total State budget expenditures and some important expenditures to each of provinces and central-affiliated cities (hereinafter referred to as provinces).
What are the requirements for making an annual state budget estimate in Vietnam?
According to the provisions of Clause 1, Article 42 of the 2015 State Budget Law, the requirements for making an annual state budget estimate in Vietnam are specified:
- State budget estimate must be sorted by revenue, expenditure, ratio of expenditure on development investment, recurrent expenditure, expenditure on national reserve, repayment of loans and aid, additional contribution to financial reserve funds, and budget reserve.
-. Budget estimates of budget estimate units at various levels must contain all revenues and expenditures in accordance with the form and schedule prescribed by competent authorities. The budget estimate contains:
+ Budget revenue estimate based on forecast about macroeconomic indicators and relevant criteria, regulations of law on taxes, fees, charges, and collection of budget revenues;
+ Estimate of expenditure on development investment based on planning, plans, programs/projects approved by competent authorities; 5-year financial plans, plans for midterm investment of state budget, ability to balance resources in the budget year, regulations of law on public investment, construction, and relevant regulations of law;
+ Estimate of recurrent expenditures based on given tasks and objectives approved by competent authorities, policies, standards, and limits on expenditures imposed by competent authorities. Regulations of the government shall apply to budget estimates made by regulatory agencies exercising financial autonomy; public service agencies exercising autonomy in terms of task performance, organizational structure, personnel, and finance;
+ Estimate of budget expenditure on education, vocational training, science and technology at the ratio prescribed by relevant regulations of law.
+ Estimate of expenditures on execution of National target programs based on the list of programs and total expenditure in each period decided by the National Assembly; targets, contents, objectives, and details of component projects of each National target program;
+ Estimate of expenditure on repayment of debts that are due in the budget year;
+ Estimate of loans for covering state budget deficit based on state budget balance, capacity of each source, solvency, and safety limits under the National Assembly’s Resolution.
What are the cases of remaking a state budget estimate in Vietnam?
Under the provisions of Article 48 of the 2015 State Budget Law, cases of remaking a state budget estimate in Vietnam are as follows:
Remaking state budget estimate
1. Before the state budget estimate and plan for allocation of central government budget are decided by the National Assembly of Vietnam, the government may remake and submit them to the National Assembly of Vietnam at the time decided by the National Assembly of Vietnam.
2. Before the estimate or allocation plan of a local government budget is decided by the People’s Council, the People’s Committee may remake and submit them to the People’s Council at the time decided by the People’s Council, which must not be later than the deadline prescribed by the government.
Thus, before the state budget estimate and plan for allocation of central government budget are decided by the National Assembly of Vietnam, the government may remake and submit them to the National Assembly of Vietnam at the time decided by the National Assembly of Vietnam.
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