Prime Minister of Vietnam's directive on developing the five-year financial plan for the period 2026-2030

Prime Minister of Vietnam's directive on developing the five-year financial plan for the period 2026-2030 (Internet image) 

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Prime Minister of Vietnam's directive on developing the five-year financial plan for the period 2026-2030

The Prime Minister of Vietnam has instructed ministries, ministerial agencies, State agencies, and Other central agencies (hereinafter referred to as ministries and central agencies) at the province and centrally-run cities to implement the development of the five-year financial plan for the period 2026-2030 with the following content:

During the implementation of the assessment of the five-year financial plan for the period 2021-2025, the Ministry of Finance, ministries, central agencies, People's Committees of province and centrally-run cities (hereinafter referred to as People's Committees of province), and relevant agencies will focus on analyzing and evaluating the following key aspects:

* Evaluation of the implementation of the national five-year financial plan for the period 2021-2025:

(1) The context of implementing tasks, favorable factors, challenges in the implementation process, including attention to political and socio-economic issues, and objective factors (such as pandemics, conflicts, etc.) that impact the financial and budgetary sector.

(2) The organization of implementing tasks related to improving institutions, policies, administrative procedure reforms, and key tasks in the financial and budgetary sector of the state.

(3) Based on the implementation situation during the period 2021-2024 and the projected plan for 2025, evaluate the overall and specific objectives, mainly in the financial and budgetary sector for the period 2021-2025, including:

- Revenue, structure of state budget revenue (by sector, tax categories, and decentralization); sustainability of revenue sources, structure of the state budget, and the dominant role of the central budget.

- Expenditure, structure of budget spending for investment and development (ensuring the investment budget from the central budget according to the medium-term public investment plan for the period 2021-2025 approved by competent authorities), regular expenditures, debt interest payments, national reserves, etc.; according to the economic function within the state budgetary sector and its hierarchical levels.

- Implementation of budget restructuring goals based on Party Resolutions and National Assembly directives.

- Budget overspending.

- Public debt, government debt, external debt of the country.

- Mobilization of domestic and foreign borrowing.

- Development of financial markets and services.

- State-owned enterprise privatization and restructuring.

- Implementation of orientations, tasks, and proposed solutions.

The evaluation should focus on clarifying the achieved and unachieved indicators, the results of implementing objectives, the financial resources that have an impact and are associated with the results and effectiveness of implementing objectives, programs/schemes/tasks in the sectors assigned for management.

(4) Evaluation of the mobilization and allocation of financial resources during the five-year period of 2021-2025, including clarifying the implementation of budget allocation and utilization in connection with the results and the ability to achieve the targets of the 2021-2025 breakthrough objectives, financial plans, medium-term investments, national target programs, programs, and projects approved by competent authorities during the entire period of 2021-2025 or until 2030; implementation of policy reforms on wages, pensions, allowances for meritorious people, social security policies; the budget reduction/expenditure associated with streamlining the public administrative apparatus and reducing direct expenditures from the state budget linked to the implementation process of the autonomy mechanism of public service units; results of rearranging and innovating state-owned enterprises, effectiveness of state financial funds outside the state budget.

(5) Detailed evaluation of the implementation of each task and proposed solution during the planning period to achieve the objectives and tasks of the five-year plan, taking into account external objective factors such as the impact of the Covid-19 pandemic, the implementation of programs for economic recovery and development, military conflicts in certain areas, which have an impact on economic growth, markets, prices, inflation, and the coping measures in the management process to achieve the highest possible achievement of the set objectives.

(6) Based on the above, clarify the achieved and unachieved aspects, limitations, difficulties, and obstacles in the implementation process; analyze objective and subjective causes and draw lessons from the experience.

* Evaluation of the implementation of the five-year financial plan for provinces and centrally-governed cities in the period 2021–2025:

In addition to the general evaluation content mentioned in point a above, the specific evaluation of the following issues under the local authority is requested as follows:

(1) Evaluation of the issuance of regulations and policies regarding revenue and expenditure under the authority; the amount of revenue and expenditure for these regulations and policies in each year and the 2021–2025 period.

(2) Evaluation of the key results related to state finance and budget, including:

- Total revenue and budget structure at the local level for each year and the 2021–2025 period; the portion of local budget revenue received through decentralization, including detailed revenue from land use fees, lottery revenue, dividends, and post-tax profit; factors affecting state budget revenue at the local level, and policy and revenue management solutions implemented to mobilize state budget revenue.

- Total fees and charges collected; the amount of expenditure from fee revenue allocated to agencies; and the amount of fees and charges paid to the state budget.

- Implementation of state-owned enterprise equitization and divestment within the local management scope in the 2021–2025 period.

- Total expenditure and budget structure at the local level; including detailed expenditure for development investment and the structure of development investment based on capital sources (Concentrated basic construction sources, land use sources, lottery sources, and local budget surplus), regular expenditure, debt interest payments, restructuring of local budget expenditure, the amount of budget reduction/allocation associated with streamlining the administrative apparatus, reducing direct expenditure from the state budget linked to the autonomy mechanism of public service units, and the utilization of this financial source in each year and the past five years; total local salary fund and salary reform sources.

- Excessive local budget expenditure for each year and the average for the 2021-2025 period; local mobilization scale for each year and the 2021-2025 period, detailed by mobilized capital sources and purpose of use; local government debt at the end of each year and the debt structure by capital source; mobilization (issuance of local government bonds, borrowing ODA funds, borrowing foreign preferential loans from the Government, borrowing from the State Treasury, borrowing from the Vietnam Development Bank, borrowing from commercial banks, and other loans); repayment of principal and sources of repayment for each year and the past five years.

(3) Implementation of specific financial mechanisms and local plans linked to the 2021–2025 5-year financial plan at the local level.

(4) The evaluation should focus on clarifying the achieved and unachieved indicators; the results of implementing objectives, the financial resources associated with the results and effectiveness of achieving economic and social objectives, and specific programs/projects/tasks at the local level. Based on that, analyze the limitations, difficulties, and obstacles in the implementation process; objective and subjective causes, and draw lessons from the experience.

More details can be found in Directive 18/CT-TTg, issued on May 28, 2024.

Nguyen Ngoc Que Anh

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