Vietnam’s specific regulations on formulation of finance plans in the Law on State Budget

According Decree No. 45/2017/ND-CP of Vietnam’s Government, five-year finance plans are finance plans drawn up to serve the performance of objectives and tasks of national and local socio-economic development plans in each five- year planning period; set forth primary finance-state budget objectives and targets in each five-year planning period; and play the role as orientations for three-year finance-state budget plans and annual state budget estimates.

The Ministry of Finance shall assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment and related ministries and central agencies in, formulating national five-year finance plans and reporting them to the Government for submission to the National Assembly for consideration and decision. Provincial-level People’s Committees shall direct provincial-level Finance Departments to assume prime responsibility for, and coordinate with provincial-level Planning and Investment Departments and other related local agencies in, formulating provincial-level five-year finance plans and reporting them to provincial-level People’s Councils for consideration and decision.

Decree No. 45/2017/ND-CP requires that the formulation of five-year finance plans must be conformable with the objectives, tasks and solutions set in the national socioeconomic development strategy; strategies on finance, public debts and tax system reform; and with national and local socio-economic development objectives, targets and orientations in each five-year planning period; be conformable with forecasts about the socio-economic situation, capacity of balancing state budget revenue sources, raising funds and repaying debts, and requirements on national financial safety limits in each five-year planning period; being conformable with the principles of balancing, management and assignment of state budget revenue sources and spending tasks and principles of public debt management; prioritize the allocation of state budget funds for implementation of major guidelines and policies of the Party and State in each period.

Three-year finance-state budget plan means a finance-state budget plan formulated annually by the successive method for three consecutive years, including the year of budget estimation and two following years. Three-year finance-state budget plans shall be formulated annually serving the implementation of five-year finance plans, specifying major contents on the state budget balancing framework and ceiling budget expenditures of ministries, agencies, units and localities in three consecutive years, taking into account current developments in the socioeconomic and finance-budget situation as well as forecasts for the three-year planning period, and serving as a basis for making, considering and deciding on annual state budget estimates.

Decree No. 45/2017/ND-CP stipulates that the three-year finance-state budget planning must conform with the practical implementation of five-year and annual objectives, targets and orientations for socio-economic development and finance, and with forecasts for the three planning years; fully reflect state budget revenues and other revenues as prescribed by law; and budget expenditures estimated according to the structure of fields and major expenditures not exceeding the ceiling budget expenditure notified by a competent agency; comply with the principles of budget balancing, management and assignment, and public debt management prescribed by the Law on the State Budget and the Law on Public Debt Management, etc.

Source: Bao Tin tuc

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