Principles of supporting local budgets to implement social security policies

Principles of supporting local budgets to implement social security policies (Illustration image)

Accordingly, the principle of targeted support from the central budget to local budgets to implement social security policies promulgated by the central government in the period 2022-2025 is specified as follows:

(1) Targeted support from the central budget for local budgets is made on the basis of the ability to balance the central budget and the budget balance of each locality; at the same time, requesting localities in the process of implementing budget estimates to strive to increase revenue, save local budget expenditures and other lawful financial sources to implement social security policies. Accordingly, the central budget supports up to:

- 100% of additional funding needs for localities receiving additional budget balance from the central budget;

- 80% of additional funding needs for localities have the rate of regulation of revenues distributed to the central budget of 20% or less; (*)

- 50% of additional funding needs for localities have the rate of regulation of revenues distributed to the central budget from over 20% to 60%; (**)

- The remaining localities are guaranteed by the local budget. In case of necessity, the Prime Minister shall decide.

(2) Basis for determining the locality receiving additional budget balance from the central budget, the locality that has a regulating ratio of the revenues distributed to the central budget:

- In 2022, determined according to the 2022 estimate decided by the National Assembly.

- The period of 2023-2025, determined according to the 2023 estimate decided by the National Assembly.

(3) For the localities specified in (*), (**) above, local budgets must be used to cover part of the funding needs for implementing social security policies issued by the Central Government. According to regulations: after the locality has used 50% of the local budget reserve estimate assigned by the Prime Minister and 70% of the provincial financial reserve fund, but there is still a shortage of resources, the central budget shall supplement add the missing difference.

In case of administration, according to regulations of competent authorities, localities must mobilize 50% of the local budget reserve estimates assigned by the Prime Minister and 70% of the provincial financial reserve fund to compensate for the loss. offset and reduce local budget revenue (excluding land use levy, lottery collection, equitization and divestment of state-owned enterprises under local management - if any) or mobilizing for implementation. perform unexpected expenditure tasks according to the regulations of the Government and the Prime Minister (such as disease prevention and control);

Assign the Ministry of Finance to specifically determine to reduce the portion of localities that have used reserve sources and financial reserves to compensate for the decrease in revenue and balance of local budgets and unexpected expenditure tasks as prescribed when determining the level of expenditure. Localities can further mobilize from the local financial reserves and reserves to implement the social security policies promulgated by the Central Government in the period of 2022-2025 (if any).

Decision 127/QD-TTg takes effect from January 24, 2022 and applies to the period 2022 - 2025.

Jewel

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