Ho Chi Minh city’s financial reserve fund

1. The financial reserve fund shall be derived from the following sources:

- Amounts set aside within the annual budget of expenditures;

- Budget residue or surplus;

- Increased amounts of budget revenues;

- Interest on deposits into the financial reserve fund;

- Other financial sources prescribed by laws.

2. Financial reserve funds are used in the following cases:

- Advance funding to cover necessary expenditures according to the budget expenditure estimate before aggregating enough revenue. Such amount must be returned within the budget year;

- In case state budget revenues or loans taken to cover budget deficit fail to reach the estimate decided by the National Assembly or the People’s Council, budget reserve is used up but still not sufficient for disaster recovery, response to widespread and serious epidemics, performance of tasks related to national defense and security, and other urgent tasks that are unplanned, the financial reserve fund may be used. However, the amount used in the year must not exceed 70% of the opening balance of the fund.

- People’s Committee of Ho Chi Minh city shall be entitled to use an advance given by the city's reserve fund for investing in significant infrastructure projects that are defined in the city’s budget of expenditures but for which financing within the scope of the mid-term public investment proposal has not been arranged. The duration of that advance shall not exceed 36 months from the date of grant of such advance.

View more details at the Law on State budget 2015 and Decree No. 48/2017/ND-CP of Vietnam’s Government.

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