Principles of allocation of recurrent expenditure estimates from the State budget of Vietnam to provinces and cities

According to the Decision, the norms of allocation of recurrent expenditure estimates for provinces and centrally-run cities comply with a number of principles and criteria, for example:

- Population criterion is the main criterion divided into four regions (remaining extremely difficult areas, disadvantaged areas, urban areas and the rest); combine additional criteria suitable to the reality and specificity of each locality.

- The allocation norms of the local budget are established for the expenditure fields in accordance with the provisions of the State Budget Law (State Budget) of Vietnam, ensuring the payment of salaries, allowances, and contributions under the regime and base salary levels of 1,490,000 VND/month, activities of state administrative agencies, public non-business units and funding for implementation of regimes and policies promulgated by the State up to the time the Standing Committee of the National Assembly promulgates Decree...

From the 2022 budget year, the promulgation and implementation of a new regime that increases state budget expenditures shall comply with Clause 4, Article 9 of the State Budget Law of Vietnam. The central budget will provide support to localities after using sources of revenue growth, spending savings and other lawful financial sources but have not yet balanced enough resources for implementation.

For details, see Decision 30/2021/QD-TTg of Vietnam effective from October 10, 2021.

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