Guidelines for development of a 5-year financial plan for provinces and centrally-run cities in Vietnam for the period 2026–2030

Guidelines for development of a 5-year financial plan for provinces and centrally-run cities in Vietnam for the period 2026–2030 (Image from the internet)

Development of a 5-year financial plan for provinces and centrally-run cities in Vietnam for the period 2026-2030

The guidelines for development of a 5-year financial plan for provinces and centrally-run cities in Vietnam for the period 2026–2030 are as follows:

- Forecast the economic and financial situation, major socio-economic indicators at the local level (such as the growth of Gross Regional Domestic Product - GRDP), consumer price index, growth of production sectors, industries, and prices of key products and goods that affect the ability to mobilize and utilize local financial resources and budgets during the 5-year period from 2026 to 2030.

- Determine the overall objectives of the local 5-year financial plan, the objectives, mobilization directions, and allocation of local resources during the 5-year planning period.

- Define specific and main objectives; balance the financial aspect and budget of the local area based on current policies and regulations, including:

+ Revenue collection and budget structuring in the local area in accordance with the authorized orientation and goals for local socio-economic development in the same period; local budget revenue received through decentralization (details of land use fees, lottery revenue, dividends, and post-tax profits); factors affecting state budget revenue in the local area; and policies and management solutions to mobilize state budget revenue, especially from enterprises and sectors with significant revenue.

Projected recovery of local budget capital invested in economic organizations under the local management scope during the 5-year period from 2026 to 2030.

+ Local budget spending, including: total expenditure and budget structure based on mechanisms and policies in 2025, specifying investment expenditure (including the structure of investment expenditure according to the nature of concentrated basic construction resources, land use resources, lottery resources, and excess local budget spending), regular expenditure, interest payment expenditure, and total local salary fund expenditure; factors affecting local budget spending; policies and management solutions to ensure a rational and sustainable expenditure structure; and enhancing the effectiveness of local budget spending.

Projected sources for implementing new policies as regulated and sources of increased revenue, cost savings, and resources from organizational restructuring and streamlining (if any).

+ Balancing the local budget: excessive expenditure or excessive revenue of the local budget; increasing the borrowing level of the local budget, including borrowing to compensate for excess expenditure and borrowing to repay the principal of the local budget.

- Indicators for local debt management, including: borrowing limits, outstanding debts of local governments; projected borrowing, and debt repayment.

- Forecasting risks that impact the balance of the local budget and indicators for debt management by local governments.

- Other financial solutions to implement the 5-year financial plan for provinces and centrally governed cities.

More details can be found in Directive 18/CT-TTg in 2024.

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