Vietnam: Through which program are the central budget and the national bond capital provided for localities?

Specifically, according to Article 14 of Decree No. 77/2015/NĐ-CP of Vietnam’s Government, the central budget, capital from national bond and capital from government bond are provided for localities through the targeted programs:

- To be allocated capital based on the principles, criteria and norms of allocation of development investment capital from the state budget, national bond and government bond specified in the Standing Committee of the National Assembly and the Decision of the Prime Minister;

- Newly-commenced projects under the targeted programs from the plan 2016 only focusing on providing assistance for major, key and disseminated projects which shall promote the local social-economic development, the interprovincial or inter-regional projects with investment scale from group B or higher, but in special cases, the urgent projects related to the prevention and control of natural disaster, diseases, security, national defense and handling of the most pressing problems of the localities shall be decided by the Prime Minister.

- The newly-commenced projects specified under Point b of this Clause shall be allocated capital by 100% from the central budget, national bond and government bond for implementation. In case of necessity and able to balance the budget, the localities may allocate the balancing capital of the local budget or other legal capital sources to prepare the investment, compensation for site clearance,....for some specific projects.

Moreover, for the national targeted programs, the capital from the central budget, national bond and government bond to be allocated to the projects shall comply with the provisions specified in the Resolutions of the National Assembly approving the investment policies; the Resolution of the Standing Committee of the National Assembly on principles, criteria and norms for allocation of investment capital and Decisions of the Prime Minister for each program.

Note: The balancing capital of local budget which is allocated to the projects under the management of localities specified under Point b, Clause 1, Article 63 of this Decree and the projects not subject to the assistance from the central government.

View full text at Decree No. 77/2015/NĐ-CP of Vietnam’s Government, effective from November 01, 2015.

Thu Ba

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