10 contents to be evaluated to amend the Law on State budget in Vietnam

10 contents to be evaluated to amend the Law on State budget in Vietnam (Internet image)

The Ministry of Finance issued Official Dispatch 142/BTC-NSNN dated January 4, 2023, on the request to research, review, evaluate, and propose amendments and supplements to the Law on State budget.

The evaluation content to supplement and amend the Law on State budget includes:

1. Content of general provisions of the Law on State budget in Vietnam

Evaluate the general provisions of the Law on State budget (review and specifically evaluate each regulation, clearly stating the benefits, difficulties, and problems), including:

- Regarding the scope of regulation and subjects of application; explain the words.

- Regarding the state budget system, state budget levels (central budget; local budget, province, district, commune): Assess the advantages and disadvantages of the current state budget system in financial management - state budget; in carrying out socio-economic development tasks of the whole country and each locality; in carrying out the tasks of each industry and field and handling content of regional and inter-regional nature;...

- Regarding the scope of the state budget (state budget revenues and expenditures, determining the revenue sources left for units, etc.); Delineate development investment and recurrent spending tasks (procurement tasks; major repairs; IT applications;...).

- In principle: balance the state budget (Central - Local); state budget management; decentralization of revenue sources; expenditure tasks and relationships between budget levels; period of budget stability.

- Regulations on budget reserves and financial reserve funds.

- Conditions for implementing budget revenues and expenditures; accounting; budget revenue; and expenditure settlement.

2. Contents of functions and tasks of agencies, organizations, and individuals regarding the State Budget in Vietnam

Evaluate the provisions of the Law on State budget on the functions and tasks of agencies and the responsibilities and obligations of organizations and individuals regarding the state budget (review and evaluate the completeness, legality, reasonableness, and overlapping contents of functions and tasks between agencies, between the Central Government and localities in the provisions of the Law on State budget and of the Law on State budget with other Laws; between industry and field management and regional and territorial management; between stages in the budget process).

3. Content of decentralization of revenue sources and expenditure tasks according to the provisions of the Law on State budget in Vietnam

Evaluate the results of decentralization of revenue sources and expenditure tasks according to the provisions of the Law on State budget between the central budget and the local budget; between budgets of local governments at all levels (review and specifically evaluate the basis and suitability with reality in regulating the budget stabilization period on decentralization of revenue sources and budget expenditure tasks between the Central and local governments, and between local government levels; methods of determining balanced and targeted additional amounts from the central budget to local budgets and between local budget levels);... inadequacies and causes for each issue. In addition, for localities that are piloting without organizing district-level People's Councils, assess the advantages, disadvantages, and shortcomings and propose solutions. For localities that are implementing specific financial mechanisms, evaluate them according to the implemented policy mechanisms).

4. Evaluate the preparation, decision, and allocation of the annual state budget in Vietnam

Evaluate the preparation, decision, and allocation of the annual state budget (Review and evaluate each specific content), including:

- Regulations on bases and requirements for preparing budget estimates and on assigning numbers to check state budget revenues and expenditures.

- Regulations on instructions for preparing and developing estimates, synthesizing, deciding, allocating, and assigning state budget estimates.

- Regulations on the responsibilities of agencies, organizations, and units in preparing state budget estimates.

- Regulations on methods of discussion and decision on state budget estimates and state budget allocation plans.

- Documents submitted to state budget estimates and budget allocation plans.

- Regulations on the time and process of preparing, summarizing, deciding, and allocating state budget estimates.

5. Evaluate regulations on developing financial plans in Vietnam

Evaluate regulations on developing financial plans - 03-year state budget and 05-year financial plans (review and specifically evaluate the legality, basis for establishment, time, targets, decision authority, implementation ability and effectiveness,...).

6. Evaluate the organization implementing the state budget in Vietnam

- Evaluate the form of funding allocation to budget-using units (withdrawal of estimates/spending orders): budget spending regime and norms as a basis for spending and controlling expenditures; documents and procedures for withdrawing money at the State Treasury; Responsibilities of Heads of budget-using units in approving expenditures to prepare estimate withdrawal papers at the State Treasury; or prepare documents to request money in the form of a payment order at a financial agency; expenditure control work of the State Treasury agency; information on budget revenues and expenditures to serve the budget management of competent agencies.

- Evaluate the organization and implementation of revenue, expenditure, and budget fund management at all levels to ensure proactive revenue sources and loan mobilization to meet spending and balancing needs at ministries, central agencies, and localities:

Current regulations on state budget revenue and expenditure management, state budget fund management; ability to meet spending needs from revenue sources; annual state budget expenditure estimates (shortage/excess...); borrowing to offset overspending and principal repayment (mobilization level; use of mobilization sources; forms of mobilization; ability to repay debt); handling temporary shortages to ensure smooth spending tasks (authority, processing resources,...); The relationship between the central treasury and the treasury at financial agencies at all levels at the central and local levels with tax authorities, customs, and state treasury agencies in implementing state budget revenue and expenditure activities.

- Evaluation of the targeted supplementation mechanism from the upper level budget to the lower level budget, the results achieved, limitations, and directions for modification and overcoming with the following contents: scope and target additional objects; basis for determining targeted supplementation; management mechanisms, processes, procedures, and additional targeted records; volume, time, and progress of granting and receiving additional budget; related to the management of state budget funds at all levels.

- Regarding adjusting estimates at the budget level, estimates assigned to budget-using units during the year: documents, procedures, and time for adjusting estimates; responsibility for coordination between agencies and units in adjusting annual state budget estimates.

- Regarding temporary grants, advances, and advance estimates during the year: documents, procedures, and time for advance payments and advance estimates; and refunding advances and advances to state budget estimates; Responsibility for coordination between agencies and units.

- Handling increases and decreases in revenues and expenditures compared to estimates during the process of complying with the state budget: Documents, procedures, time of advances, and estimates; and refunding advances and advances to state budget estimates; Responsibility for coordination between agencies and units.

- Evaluate the information and reporting regime: Request the number of indicators and forms that have been implemented; Report quality requirements, difficulties, and obstacles in implementation; the relationship between financial agencies and the State Treasury in exchanging operating information; Time for submitting and sending monthly, quarterly, and annual accounting reports to superior units and superior financial agencies.

- Evaluate the use of provisions, financial reserves, and the allocation and use of sources to increase revenue and save budget expenditures: Content of use of provisions and financial reserve funds (for budget level); Authority to decide on the use of provisions, reserves, and plans for allocation and use to increase budget revenue; Time limit for preparing reports on revenue increases, cost savings, accountability, etc.

- Evaluate the budget management and use of the budget-using unit; affiliated units in completing assigned political tasks; timeliness of management, allocation, and use of state budget funding; effectiveness, efficiency, economy, and anti-wastefulness in using the budget of the industry, management field, and at agencies and units.

7. Evaluate the annual state budget settlement work in Vietnam

- Regarding the handling of year-end revenues and expenditures:

Time for finalizing settlement, transferring sources, and handling the state budget balance; Contents and subjects of handling residuals, source transfers, and incorrect payments; obligations, responsibilities, and authority of relevant parties; Report and evaluate the handling of problems, reduce the number of revenue and expenditure items allowed to be transferred at budget levels to agencies and units using the budget for the next year, minimize the need to transfer sources, and ensure effective use of budget and loan capital according to recommendations of inspection, examination, auditing agencies, National Assembly agencies, and the National Assembly.

- Regarding settlement work:

Contents of accounting reports and final settlement; accounting report and final settlement forms; settlement approval form; process, procedures, order, and time for preparing, sending, and reviewing state budget revenue and expenditure finalization reports for estimate units; Procedures for preparing, appraising, reviewing, approving, and sending annual state budget revenue and expenditure settlement reports of government budgets at all levels.

- Authority, responsibility, and time in preparing, reviewing, appraising, and approving the annual settlement of state budget revenues and expenditures; the roles of relevant parties in the preparation, approval, and appraisal of the annual state budget settlement.

- Accountability for budget settlement of lower levels to higher levels; level I budgeting units to financial agencies at the same level and before the National Assembly, inspection, examination, and auditing agencies; People's Committees at all levels; people's councils at all levels; and the National Assembly and People's Councils.

- Time to submit monthly, quarterly, and annual settlement reports.

8. Evaluate the inspection and audit of the state budget in Vietnam

- Regulating the length of time, process, documents, and procedures for checking, inspecting, and auditing the use and settlement of the state budget at agencies and units.

- Request to provide records, documents, and explanations from inspection, examination, and audit agencies.

- Accountability; Implement and correct recommendations and violations after inspection, examination, and audit.

9. Evaluate regulations on retained revenues and financial funds outside the state budget in Vietnam

- Evaluate the regulations on revenue sources left outside the state budget for state management agencies (such as fees, professional revenues of state management agencies),... It clarifies the advantages and disadvantages of management.

- Evaluate regulations on revenue sources left for public service units. It clarifies the advantages and disadvantages of industry and field management and summarizes them (not included in budget estimates). It clarifies the advantages and disadvantages.

- Evaluate regulations on off-budget financial funds (concept, position, role, function of off-budget financial funds; results and efficiency of use of off-budget financial funds;...).

Assess existing limitations, difficulties, and problems; Causes of limitations; Proposed Solutions.

10. Evaluate the implementation of the budget disclosure regime in Vietnam

- Organizing propaganda and dissemination of public regulations, organizing implementation, and urging public implementation. In addition to central regulations, what measures have localities taken (expressed in any documents) to organize public implementation in the area?

- Evaluate the implementation of the disclosure regime according to the guiding documents of the Ministry of Finance (objects of disclosure, content, time, forms, forms of disclosure, and reporting regime) specifically at budget levels;

Organizations supported by the state budget; Agencies and units that manage/use state budget capital (investment, regular);

Revenue agencies and financial agencies at all levels.

- Evaluate the synthesis, inspection, and urging of public implementation of budgets at district and commune levels.

In the process of evaluating the above contents, it is recommended to carefully analyze the causes, results, and problems in order to specifically propose amendments and supplements to the Law on State budget.

More details can be found in Official Dispatch 142/BTC-NSNN dated January 4, 2023.

Ngoc Nhi

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