Vietnam: State budget reserve and some must-know regulations

11:15, 31/07/2017

State budget reserve means an entry of the unallocated budget expenditure estimate which is decided by corresponding agencies in charge of the budget. According to the Law on State Budget 2015 of Vietnam, the reserve is 2% - 4% of total budget expenditure at each level.

State budget reserve is used for:

- Unplanned expenditures on prevention and recovery of natural disasters, response to epidemics, and famine relief; performance of crucial national defense and security objectives, and other objectives that are their liabilities;

- Provision of support for inferior budgets to perform the tasks mentioned above if the inferior budgets are still not able to complete such tasks after their reserve is used up;

- Provision of support for other local governments in disaster recovery.

The power to decide the use of state budget reserve:

Case	The power to decide the use of state budget reserve
Central government budget reserve
With regard to expenditures on capital expenditures and expenditures under management of the Ministry of Planning and Investment of greater than VND 3 billion associated with a specific objective	The Ministry of Planning and Investment shall take charge and cooperate with the Ministry of Finance and relevant agencies in requesting the Prime Minister for decision
With regard to other expenditures of greater than VND 3 billion associated with a specific objective	The Ministry of Finance and relevant agencies shall coordinate to submit to the Prime Minister for decision
With regard to expenditures which are not greater than VND 3 billion associated with a specific objective	The Ministry of Finance shall decide and make quarterly reports to the Prime Minister
For expenditures that are prescribed by policies and regimes and have been decided by competent authorities to spend from the central reserve budget	The Ministry of Finance shall decide, summarize and report the results of implementation to the Prime Minister
Local government budget reserve
Under one of the above-mentioned general regulations on the use of the reserve budget	People's Committees at all levels shall decide

View more details at the Law on State Budget 2015 of Vietnam and Decree No. 163/2016/NĐ-CP of Vietnam’s Government.

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