Guidance on Developing a 5-Year Financial Plan

Circular 69/2017/TT-BTC applies to the subjects specified in Clause 1, Article 2 of Decree 45/2017/ND-CP of the Government of Vietnam.

Agencies and organizations that do not have regular relations with the state budget (NSNN) are not subject to the application of this circular, including: agencies and organizations that receive one-time support from the NSNN or are ordered to provide public utility products and services; socio-political-professional organizations, social organizations, and socio-professional organizations supported by the NSNN according to state-assigned tasks; economic organizations and financial organizations invested in and supported by the state according to legal regulations.

The procedure for preparing the 5-year financial plan (KHTC) follows the provisions at Article 9, Decree 45/2017/ND-CP of the Government of Vietnam. Specifically, the national level 5-year financial plan is implemented according to Clause 1, Article 9 of this Decree. In the case of provincial 5-year financial plans, they are implemented according to Clause 2, Article 9 of the Decree.

Accordingly, before May 15 of the fourth year of the previous 5-year financial plan, the Provincial People's Committee directs the Department of Finance to cooperate with the Department of Planning and Investment (KH&DT) and relevant agencies in the locality to make a preliminary assessment of the implementation of the objectives and tasks of the previous 5-year financial plan and outline the key principles to be considered for the next 5-year financial plan.

Based on that, a directive document on the preparation of the next 5-year financial plan for the locality will be issued.

Before November 30 of the fourth year of the previous 5-year financial plan, the Provincial People's Committee directs the Department of Planning and Investment to take the lead, in cooperation with relevant agencies and units in the locality, to determine the orientations and key indicators for the local socio-economic development over the next 5-year period. Thus, the next 5-year financial plan is prepared and submitted to the Provincial People's Committee for its opinion to be reported to the Standing Committee of the People's Council of the same level.

Before December 31 of the fourth year of this plan, the Provincial People's Committee directs the Department of Finance to revise the next 5-year financial plan for the locality, seeking the opinions (first round) of the Ministry of Finance and the Ministry of Planning and Investment for supplementation and completion, serving the 10-year socio-economic development strategy and the 5-year socio-economic development plan for the next period.

Before July 20 of the fifth year, the local Department of Finance cooperates with the Department of Planning and Investment, the Tax Department, and other relevant local agencies, based on the objectives and tasks of the local 5-year socio-economic development for the next period and updates on new developments that may arise in the early months of the last year of the previous 5-year financial plan, to continue finalizing the draft of the next 5-year financial plan for the locality, and seek the opinions (second round) of the Ministry of Finance and the Ministry of Planning and Investment.

Finally, the next 5-year financial plan is completed and submitted to the Provincial People's Committee to be reported to the People's Council of the same level for consideration and decision, along with the submission of the budget estimate for the first year of the next 5-year financial period.

This circular also provides guidance on the preparation of the national 3-year financial plan and state budget (NSNN). The content of the national 3-year financial plan and NSNN follows the provisions of Clause 1, Article 15, Decree 45/2017/ND-CP of the Government of Vietnam.

The procedure for preparing this plan is implemented according to the provisions of Article 16, Decree 45/2017/ND-CP of the Government of Vietnam. The timetable for preparing the plan follows the provisions of Clauses 2, 3, 4, 6, 7, 8, and 9, Article 18, Decree 45/2017/ND-CP of the Government of Vietnam.

This circular is applicable from the 2017 budget year.

Source: Vietnam Financial Times

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