Principles for allocating estimates, managing use, and settling operating expenses of the State Budget of Vietnam

Principles for allocating estimates, managing use, and settling operating expenses of the State Budget of Vietnam

Article 4 of Decree 138/2024/ND-CP stipulates the principles for allocating estimates, managing usage, and settling regular expenditure funds from the state budget of Vietnam as follows:

(1) The allocation of regular expenditure funds from the state budget to perform tasks such as purchasing assets, equipment; renovating, upgrading, expanding, and constructing new project categories in projects that have been invested in construction is done based on the principle of non-duplication with tasks of the same content of the unit that have been arranged in the medium-term public investment plan according to legal provisions on public investment. These need to be executed within the budget year to ensure the regular operation of agencies and units and must be approved by the competent authority for tasks and cost estimates following legal regulations  in Vietnam.

Agencies and units are responsible for reviewing and proposing to ensure compliance with principles and bear full responsibility for the proposal documents for allocating regular expenditure funds to perform tasks as specified in Decree 138/2024/ND-CP.

(2) The preparation, allocation, management of usage, and settlement of regular expenditure funds for purchasing assets, equipment; renovating, upgrading, expanding, and constructing new project categories in projects that have been invested in are conducted according to legal provisions on the state budget, public asset management, construction, and related laws, in which:

- For asset and equipment purchase tasks, the criteria and usage norms of machinery and equipment serving the operation of the agency, unit must be based on the legal provisions on public asset management and the relevant sector, field laws. The tasks must be approved by the competent authority, and the approved plan should be used to prepare estimates for the competent authority's consideration and decision; the allocation of regular expenditure funds to perform tasks must not exceed the total regular expenditure estimate assigned to the agency, unit in the budget year.

- For tasks involving renovation, upgrading, expanding, and constructing new project categories in projects that have been invested in, they must be based on the usage standards and norms of working offices and operational facilities according to legal provisions on public asset management and relevant sector, field laws to prepare estimates for the competent authority's consideration and decision, not exceeding VND 15 billion per task; the allocation of regular expenditure funds to perform tasks must not exceed the total regular expenditure estimate assigned to the agency, unit in the budget year.

- Agencies and units are responsible for managing, using, and disbursing funds to perform tasks within the framework of the Decree in the budget year efficiently and economically; fund transfer for task execution (if any) is conducted according to Clause 3, Article 64 of the State Budget Law 2015 and guiding documents.

(3) The allocation of regular expenditure funds from the state budget to perform tasks such as purchasing assets, equipment; renovating, upgrading, expanding, and constructing new project categories in projects that have been invested in is secured by the corresponding budget level.

More details can be found in Decree 138/2024/ND-CP which takes effect in Vietnam  from October 24, 2024.

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