Vietnam: Allocation and assignment of state budget estimates for development investment

Vietnam: Allocation and assignment of state budget estimates for development investment (Illustrative image)

Circular 115/2008/TT-BTC stipulates the allocation and assignment of state budget estimates for development investment in Vietnam as follows:

Ministries and central authorities:

- Allocate and assign expenditure estimates for fundamental construction investment according to the sectoral structure allocated, ensuring to repay all advance budget funds to be recovered into the 2009 estimate according to the budget allocation decision by the Prime Minister of Vietnam; allocate funds to pay off fundamental construction debts for investment projects that have been completed and put into use but lack funding.

- Allocate sufficient counterpart funds for projects and constructions using ODA funds as committed; ensure funds for investment preparation.

- Allocate funds according to the progress for effective ongoing projects and constructions that can be completed and put into use in 2009, at the beginning of 2010, especially the critical and urgent projects and constructions.

- After allocating funds for tasks, allocate funds for new projects, with complete procedures and eligibility for allocation according to stipulated policies, focusing funds to avoid spreading.

Provinces and centrally-run cities:

- Allocate the assigned fundamental construction investment expenditure estimates to definitively pay off fundamental construction volume debts for constructions under budget investment objects according to stipulated policies, without letting new overdue debts arise.

- Allocate funds to repay central budget advances to be recovered into the 2009 budget estimate according to the budget allocation decision by the Prime Minister of Vietnam.

- Ensure allocation of sufficient counterpart funds from the local budget for projects and programs partially supported by the central budget to achieve project goals.

- For important local programs, projects, and tasks funded by targeted support from the central budget, allocate according to the correct objectives and assigned estimates.

- Focus funds on effective projects and constructions that can be completed and put into use.

- Allocate and assign development investment expenditure estimates for subordinate agencies, units, and local governments in the fields of education – training and vocational education, science, and technology at no less than the level assigned by the Prime Minister of Vietnam for these fields.

- After allocating funds for tasks, allocate funds for new projects with sufficient conditions for fund allocation according to stipulated policies, focusing funds to avoid spreading, giving priority to projects and constructions for the development of agriculture, farmers, and rural areas.- In case of necessity for capital mobilization to invest in socio-economic infrastructure constructions ensured by the provincial budget within the 5-year investment plan list.

More details can be found in Circular 115/2008/TT-BTC effective from December 31, 2008.

Ngoc Tai

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