Construction of the State Budget Estimate for 2020: What Requirements Must Be Met?

According to Circular 38/2019/TT-BTC, the year 2020 marks the final year for the implementation of the 10-year socio-economic development strategy for the period 2011-2020, the financial strategy up to 2020, the 5-year socio-economic development plan for the period 2016-2020, the 5-year national financial plan for the period 2016-2020, and other national target programs and target programs for the period 2016-2020. This year will be pivotal in determining the achievement of the socio-economic development and financial-budgetary objectives set by the authorities for the 10-year period 2011-2020 and the 5-year period 2016-2020. Specifically, the preparation of the 2020 state budget estimates needs to meet the following requirements:

Illustration (source: internet)

- The 2020 state budget estimates should be prepared in compliance with the State Budget Law and its guiding documents regarding procedures, deadlines, legal basis, calculation references, and explanations; ensure conformity with implementation progress by December 31, 2019; objectives and tasks of the 5-year plans for the period 2016-2020 as approved; align with developmental orientation and objectives set for 2020 as directed by the Prime Minister of the Government of Vietnam.- Ministries, central agencies, and localities should base their evaluations on the implementation of socio-economic development tasks in 2019, closely follow the socio-economic development goals and tasks for 2020 and the period 2016-2020 in their respective sectors and localities, and the 5-year public investment plan for the period 2016-2020 to identify key tasks for 2020. These should be aligned with budget restructuring objectives as per Resolution 07-NQ/TW, Resolution 25/2016/QH14, Resolution 26/2016/QH14, Resolution 71/2018/QH14, specific mechanisms and policies for certain localities as stipulated; implement resolutions from the 6th Central Conference (12th tenure), including Resolution 18-NQ/TW, Resolution 19-NQ/TW, and the 7th Central Conference (12th tenure), including Resolution 27-NQ/TW dated May 21, 2018 on wage policy reform for officials and public employees, armed forces, and employees in enterprises, and Resolution 28-NQ/TW dated May 23, 2018 on social insurance policy reform. Allocate expenditures proactively and prioritize tasks, programs, projects, and plans approved by competent authorities based on their urgency, importance, and feasibility for 2020, utilizing budget resources and other lawful mobilized funds.- The preparation of budget revenue and expenditure estimates for 2020 must comply with legal regulations on budget management; based on principles, criteria, and norms for budget allocation; strictly adhere to the guidelines on saving and preventing waste beginning at the budgeting phase.- Ministries and central agencies managing sectors and fields should consider thoroughly reviewing policies (particularly social welfare policies) to abolish or integrate overlapping, ineffective policies or propose to competent authorities to do so; avoid proposing policies that reduce revenue; only propose policies that increase expenditures when absolutely necessary and with guaranteed funding; proactively estimate full funding needs for newly authorized policies and tasks; do not allocate budget estimates for unapproved policies.

For further details, refer to Circular 38/2019/TT-BTC effective from August 12, 2019.

Thu Ba

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