04 Requirements for Building the 2021 State Budget Estimate

04 requirements for constructing the 2021 State Budget Estimates (Illustrative Image)

Circular 71/2020/TT-BTC stipulates that 2021 is a particularly significant year, marking the beginning of the implementation of the resolutions of the 13th National Congress, the execution of the 5-year socio-economic development plan 2021-2025, and the 10-year socio-economic development strategy 2021-2030. Resolution 122/2020/QH14 of the National Assembly extends the 2017-2020 State Budget stability period to 2021 and postpones the issuance of principles, criteria, and norms for allocating regular expenditure estimates to a new budget stability period in 2021. The preparation of the 2021 State Budget Estimates must ensure the following requirements:

Firstly, the 2021 State Budget Estimates must be constructed in accordance with the State Budget Law and guiding documents concerning the process, deadlines, explanation of legal bases, calculation bases, justifications, relevant legal documents, and directions from competent authorities. It must be consistent with the objectives of restructuring the budget according to Resolution 07-NQ/TW and specific mechanisms and policies for the development of certain localities. Also, it should promote the implementation of tasks to execute Resolutions 18-NQ/TW and 19-NQ/TW of the 6th Central Committee Conference (session XII).

Secondly, based on the evaluation of the implementation in 2020 and the 2016-2020 period, development orientations, socio-economic objectives and plans for the 2021-2025 period, and the targets and tasks of the 2021 socio-economic development plan, as directed by the Prime Minister, ministries, central agencies, and local authorities must determine key tasks to be performed in 2021, proactively arrange expenditures and prioritize the implementation of tasks, programs, projects, and schemes approved by competent authorities according to their necessity, importance, and feasibility of implementation in 2021, based on the State Budget sources allocated and other legitimate mobilized sources. This must be done with a thorough plan to save costs and prevent wastefulness right from the budget estimation stage.

Thirdly, when formulating the budget estimates, ministries, central agencies managing sectors, and fields must consider comprehensively reviewing all policies (especially social security policies) to abolish, or consolidate according to their authority, or submit to competent authorities for abolishment or consolidation of overlapping, duplicated, and inefficient policies. They should not propose policies that reduce budget revenues, and should only propose the issuance of policies that increase budget expenditures when truly necessary and when there is a guaranteed source of funding. They must proactively foresee the full financial needs to implement new policies and tasks decided by competent authorities and must not allocate budget estimates for policies not yet issued.

Fourthly, for central agencies and units applying special financial management mechanisms as regulated by competent authorities, the budget revenue and expenditure estimates for 2021 must be drafted based on uniform regulations for state administrative management agencies according to the conclusions of the Standing Committee of the National Assembly in Announcement No. 3530/TB-TTKQH, dated March 30, 2020, from the Office of the National Assembly.

Details are available at Circular 71/2020/TT-BTC, effective July 30, 2020.

Ty Na

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