Vietnam: Local authorities consider budget balancing for 2014

Vietnam: Local authorities consider budget balancing for 2014 (Illustrative image)

According to Article 11 of Circular 90/2013/TT-BTC, provinces and municipalities shall make local budget estimates based on local budget revenues and supplementary balances (if any) from the central budget to the local budget at a stable level as the 2013 estimates assigned to localities by the Prime Minister of Vietnam. At the same time, for localities receiving supplementary balances from the central budget, specifically propose urgent support amounts for the locality as stipulated in Point 20, Section II of the norms for allocating recurrent expenditure estimates of the state budget for 2011 issued together with Decision 59/2010/QD-TTg dated September 30, 2010, of the Prime Minister of Vietnam.

For provinces and municipalities in need of mobilizing additional capital to enhance development investment, budget estimates must be prepared conformable to Clause 3, Article 8 of the State Budget Law, ensuring that the mobilized debt level (including the projected mobilization for 2013) does not exceed 30% (for Hanoi and Ho Chi Minh City, it is 100%) of the province-level budget's capital investment expenditure estimates. Additionally, funds must be allocated for the timely repayment of due debts (both principal and interest).

For local authorities piloting without People's Councils, the preparation of budget estimates for 2013 shall follow the provisions of this Circular; the procedures and time shall follow Circular 63/2009/TT-BTC dated March 27, 2009, of the Ministry of Finance on the preparation, organization, and settlement of district, ward, and commune-level budgets where People's Councils are not organized.

More details may be found in Circular 90/2013/TT-BTC effective from August 14, 2013.

Le Vy

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