To strengthen financial discipline and improve efficiency in the use of state budget in Vietnam

To strengthen financial discipline and improve efficiency in the use of state budget in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

On November 13, 2023, the Ministry of Finance issued Official Dispatch 12374/BTC-KBNN implementing Resolution 91/2023/QH15 on approving the 2021 state budget settlement.

To strengthen financial discipline and improve efficiency in the use of state budget in Vietnam

Specifically, the Ministry of Finance requests ministries, ministerial-level agencies, Government agencies, other central agencies, and provincial-level People's Committees to focus on implementing the following contents:

- Implement drastic and synchronous measures to strengthen discipline, administrative discipline, management, use, and settlement of the state budget as stated in Directive No. 22/CT-TTg above, not to repeat problems and limitations that have lasted for many years.

- In 2023, continue to implement unfinished resolutions in the Resolutions of the National Assembly and the National Assembly Standing Committee related to state budget settlement.

- Review and have solutions to thoroughly overcome violations occurring in the process of preparing and implementing state budget estimates and finalization as stated in Resolution 91/2023/QH15 of the National Assembly, Acceptance and explanation report No. 497/BC-UBTVQH15, Verification report No. 1242/BC-UBTCNS15, and audit report No. 38/BC-KTNN of the State Audit (attached).

- Strictly handle violations. Review and clarify the responsibilities of heads, collectives, and individuals of ministries, central agencies, and People's Committees at all levels and units that manage and use the state budget who have committed violations in preparing and executing estimates, managing, and using the state budget.

- Strengthen the preparation and appraisal of state budget revenue estimates and state budget revenue implementation estimates to ensure accuracy and strictly handle violations. Continue to focus on forecasting and estimating land use fee collection to ensure adherence to land use planning and plans for each period and implementation ability. Strictly manage and use increased state budget revenue to ensure efficiency and avoid loss or waste.

- Prepare state budget expenditure estimates to ensure compliance with requirements and implementation ability. Pay attention and focus on investment preparation, allocation, delivery of estimates, organization, and implementation of investment projects. Accelerate payment for completed volumes and settlement of programs and projects.

The Ministry of Planning and Investment reviews and accurately determines outstanding debt data for capital construction from the state budget as of December 31, 2022, and reports to the National Assembly when evaluating the mid-term public investment plan for the period 2021–2025.

- Continue to control state budget overspending and public debt to ensure national financial security and macroeconomic stability. Strictly manage the mobilization and use of loans to offset overspending and repay the principal of the state budget. - Transferring state budget sources:

+ Strictly manage expenditures transferred from the state budget and completely handle cases of advances that exceed the prescribed time limit and last for many years.

+ In 2023: (i) Maximum recovery of advances from 2021 and earlier beyond the prescribed deadline; (ii) Continue to review expenditures transferred from the state budget from 2021 to 2022, clarifying the expenditures transferred from the source accounted for in the subsection "Other expenditures as prescribed by law" at localities and environmental non-business funding allocated to the central budget estimate in 2021 (phase 2).

Cancel and recover from the state budget funds transferred that are not in accordance with regulations, have no need for use, or are past the prescribed disbursement time; Recover all central budget supports for localities in 2022 and 2021 and earlier that were managed and used improperly or expired when disbursed to cut central budget overspending.

+ Do not transfer to the 2023 central budget support amounts for localities that are managed or used incorrectly, or when the disbursement period expires, the estimate must be canceled and returned to the central budget.

+ Review and report in detail the amount of expenditure transferred from 2022 to 2023 to ensure compliance with regulations in Clause 3, Article 64 of the Law on State Budget, and as permitted by competent authorities; advances under the regime beyond the prescribed time limit; unused salary policy reform resources of each Ministry, central agency, and locality as of December 31, 2022.

More details can be found in Official Dispatch 12374/BTC-KBNN, dated November 13, 2023.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE