What are highlights of the budget estimate of the State budget for 2024 in Vietnam?

Is it correct that the estimated total expenditure of the State budget for 2024 is over 2 sextillion VND?

Recently, the National Assembly has issued Resolution 104/2023/QH15 on the budget estimate for the 2024 state budget.

According to Article 1 of Resolution 104/2023/QH15, the budget estimate for the 2024 state budget is as follows:

Approval of the state budget estimate for 2024

1. Total revenue of the state budget is VND 1,700,988 billion (one million, seven hundred thousand, nine hundred eighty-eight billion dong).

2. The remaining transfer revenue from salary reform of local budgets by the end of 2023 transferred to the budget estimate for 2024 of some localities is VND 19,040 billion (nineteen thousand, four hundred forty billion dong) to implement the basic salary of VND 1.8 million/month.

3. Total expenditure of the state budget is VND 2,119,428 billion (two million, one hundred nineteen thousand, four hundred twenty-eight billion dong).

4. The level of budget deficit is VND 399,400 billion (three hundred ninety-nine thousand, four hundred billion dong), equivalent to 3.6% of gross domestic product (GDP), including:

Central budget deficit is VND 372,900 billion (three hundred seventy-two thousand, nine hundred billion dong), equivalent to 3.4% of GDP.

Local budget deficit is VND 26,500 billion (twenty-six thousand, five hundred billion dong), equivalent to 0.2% of GDP.

5. Total borrowing of the state budget is VND 690,553 billion (six hundred ninety thousand, five hundred fifty-three billion dong).

As regulations above, the National Assembly met and approved the state budget estimate with a state budget expenditure of over 2 sextillion VND.

In addition, the state budget estimate also includes the following items:

[1] State budget revenue is estimated at 1,700,988 billion VND.

[2] The remaining transfer revenue for salary reform from local budgets by the end of 2023 is transferred to the 2024 budget of some localities for the implementation of the basic salary of 1.8 million VND/month, estimated at 19,040 billion VND.

[3] The state budget deficit is estimated at 399,400 billion VND.

[4] The total amount of government borrowing is estimated at 690,553 billion VND.

What are highlights of the budget estimate of the State budget for 2024 in Vietnam? - Source: Internet

Is it official that all special incomes will be abolished when the salary reform takes effect from July 1, 2024 in Vietnam?

According to Clause 2, Article 3 of Resolution 104/2023/QH15 on the implementation of the salary policy, the following applies:

[1] From January 1, 2024 to June 30, 2024:

- The monthly salary and additional income calculated based on the basic salary of 1.8 million VND/month under the special regime must not exceed the monthly salary and additional income enjoyed in December 2023 (excluding the portion of salary and additional income due to the adjustment of the salary coefficient, grade when upgrading the grade, and upgrading the grade in 2024).

- If calculated based on the above principle, if the monthly salary and additional income in 2024 under the special regime is lower than the salary under the general regulations, then only the salary regime under the general regulations will be implemented to ensure the rights of workers.

[2] From July 1, 2024:

All financial management mechanisms and special incomes of administrative agencies and units will be abolished; a unified salary, allowance, and income regime will be applied.

The current special mechanisms will no longer be applied to the regular budget under the special financial management mechanism (operating costs, capacity building, modernization, ensuring professional activities, etc.) of administrative agencies and units. The Government will organize the implementation and report to the National Assembly at the 8th session.

Permission to transfer the budget estimates of the state budget for the implementation of 03 national target programs to 2024 in Vietnam to continue implementation

According to Article 2 of Resolution 104/2023/QH15 on the management of the state budget for 2023, the following applies:

[1] The National Assembly of Vietnam has approved the proposal to allow the use of 145.9 billion VND of recovered funds that were temporarily allocated in 2022 to some localities to implement the policy of supporting housing rent for workers. The remaining funds will be transferred to localities that still lack resources to implement the policy and to settle the budget year 2023.

[2] The National Assembly has also approved the proposal to allow the transfer of all 13,796 billion VND of increased revenue, cuts, and savings from the central budget in 2021 to allocate the annual investment plan for 2023, 2024, and 2025 for the Ministry of Transport and 8 localities to implement 3 important national projects under Resolution 58/2022/QH15, Resolution 59/2022/QH15, and Resolution 60/2022/QH15.

[3] The National Assembly has also approved the proposal to allow the transfer of the budget estimates of the state budget for the implementation of 3 national target programs in 2023 to 2024 to continue implementation.

[4] The Government is responsible for reviewing and allocating detailed tasks for each specific unit of expenditure for each ministry, central agency, and locality according to Government Report 586/TTr-CP in 2023. The Government is also responsible for ensuring the accuracy of the data, the necessity, completeness, legality, compliance with standards, norms, expenditure regimes, and other additional conditions, as well as the allocation of budgets and disbursements in accordance with the State Budget Law and relevant legal regulations.

For the remaining unallocated capital, based on the provisions of Resolution 70/2022/QH15, the Government must urgently review and report to the National Assembly or the Standing Committee of the National Assembly for consideration and decision. If the capital is not allocated within the specified period of time under the law, the budget will be canceled.

[5] The Government will consider and decide to allocate from the reserve fund of the central budget in 2023 to ensure compliance with the law to continue implementing, complete early, and put into use the Nam Mo River embankment project, section passing through blocks 4 and 5 of Muong Xen town, Ky Son district, Nghệ An province, according to Government Report 569/BC-CP dated October 19, 2023.

Best regards!