Directive of the Prime Minister on increasing savings in state budget spending in Vietnam

Directive of the Prime Minister on increasing savings in state budget spending in Vietnam

To increase savings on regular expenses; promote the restructuring of state budget expenditures, gradually reducing the proportion of regular expenditures associated with innovating the regular spending allocation mechanism, ensuring spending on people, social security, health, environment, defense, security, and the fields of education - training, science - technology, etc., according to the regulations of the Law.

The Prime Minister requested the Ministry of Finance to preside and coordinate with ministries, central agencies, and localities:

- Continue to promote the restructuring of state budget expenditures in a sustainable direction, reducing the proportion of regular expenditures; increase the proportion of development investment spending and debt repayment in total state budget expenditures; and reduce the state budget deficit according to the provisions of Resolution 23/2021/QH15 of the National Assembly; ensuring that in the period 2021–2026, the average proportion of regular expenditures is about 62–63% of total state budget expenditures, striving to reduce the proportion of regular expenditures to less than 60%.

- Synthesize, prepare, and submit to competent authorities for decision on annual state budget expenditure estimates and plans to compensate for revenue reduction for localities (if any) according to the balancing ability of the central budget according to the provisions of the Law on State Budget, relevant legal documents, and guiding documents, ensuring strictness, savings, and efficiency, and aiming to balance the annual and medium-term state budget.

- Proactively manage state budget expenditure estimates, thoroughly save regular expenses, review and cut tasks that are not really necessary, are slow to deploy,...devoting resources to socio-economic recovery and development, preventing and overcoming the consequences of natural disasters, epidemics, and climate change, performing social security spending tasks, ensuring security, national defense, and reforming salary and social insurance policies in the spirit of Resolution 27-NQ/TW and Resolution 28-NQ/TW of the 12th Central Executive Committee.

More details can be found in Directive 01/CT-TTg, issued on January 4, 2024.

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