Duties of the Department of State Budget in Vietnam

Duties of the Department of State Budget in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Position and functions of the Department of State Budget in Vietnam

The Department of State Budget in Vietnam is a unit under the Ministry of Finance, with the function of advising and assisting the Minister of Finance in performing state management tasks regarding the state budget (hereinafter abbreviated as State Budget) according to regulations of the Law.

(Article 1 of Decision 998/QD-BTC 2019)

2. Duties of the Department of State Budget in Vietnam

Duties of the Department of State Budget in Vietnam are specified in Article 2 of Decision 998/QD-BTC in 2019, including:

- Submit to the Minister of Finance:

+ Projects, drafts of legal documents, and other documents on state budget management;

+ Long-term and medium-term strategies and plans for the state budget; orientation, goals, and main solutions to implement state budget tasks;

+ State budget estimates, annual central budget allocation plans, 05-year financial plans, 03-year state financial and budget plans according to the provisions of the State Budget Law.

- Organize and guide, inspect, and supervise the implementation of strategies, plans, and legal documents under the Department's management.

- Participate in developing national financial policy and national financial strategy; coordinate to build major balances on borrowing, debt repayment, outstanding public debt, outstanding Government debt, outstanding national foreign debt, balancing development investment capital sources, balancing state foreign currency,
balance funds inside and outside the budget; budget collection policies and regimes; regimes, policies, standards, and budget expenditure norms; accounting regimes; state budget accounting; and other financial and budgetary regimes.

- Regarding building strategies, planning, and plans for socio-economic development:

+ Preside and participate in strategies, planning, and socio-economic development plans associated with the implementation of financial and state budget tasks;

+ Preside and participate with central and local agencies on strategies, planning, and plans for the socio-economic development of regions, territories, and each locality;

+ Coordinate and participate with units under the Ministry on strategies, planning, and development plans of industries and fields.

- Regarding 5-year financial planning:

+ Guide provinces and centrally run cities to develop 5-year financial plans; Participate in giving opinions on the 5-year financial plan and plans to adjust the 5-year financial plan of provinces and centrally run cities;

+ Preside over synthesizing and preparing the national 5-year financial plan and plans to adjust the national 5-year financial plan in case of necessity according to the provisions of law; Prepare reports and explanations on the national 5-year financial plan as assigned by the Minister of Finance;

+ Chair and coordinate with units under the Ministry to balance state budget resources to implement national target programs and target programs and a number of programs and projects implementing similar mechanisms to the Target Program for each 5-year period in accordance with the national 5-year financial plan and 5-year medium-term public investment plan.

- Regarding financial planning - state budget for 03 years:

+ Guide ministries, central agencies, and People's Committees (People's Committees) of provinces and centrally-run cities to develop 3-year financial and state budget plans;

+ Preside and coordinate with units under the Ministry to determine the expected revenue and regular expenditure ceiling of the state budget (including expenditure ceilings for National Target Programs, Target Programs and a number of programs and projects implementing mechanisms similar to Target Programs); ceiling for balanced and targeted supplementation from the central budget to the local budget during the 3-year planning period;

+ Preside and coordinate with units to submit to the Ministry for comments with the Ministry of Planning and Investment on expected main socio-economic indicators as a basis for building a framework to balance the state budget during the 3-year planning period; Participate in the proposed budget expenditure ceiling for development investment for ministries, central agencies, and People's Committees of provinces and centrally run cities and target additional spending on development investment from the central budget to the local budget;

+ Preside and coordinate with units to synthesize and prepare financial plans - state budget for 03 national years; Prepare reports and explanations on the national 3-year state budget and financial plan as assigned by the Minister of Finance.

- Regarding preparing state budget estimates and plans to adjust state budget estimates:

+ Preside over submitting to competent authorities to decide on principles, criteria, and norms for allocation of regular state budget expenditure estimates; coordinate to give opinions with the Ministry of Planning and Investment on allocation norms for development investment expenditure estimates;

+ Coordinate with the General Department of Taxation, the General Department of Customs, and relevant units to develop state budget revenue estimates and annual state budget revenue check numbers for ministries, central agencies, and People's Committees of provinces and centrally run cities;

+ Preside over submitting to the Ministry for comments with the Ministry of Planning and Investment on the number of checks on development investment expenditure from the budget sources of ministries, central agencies, and People's Committees of provinces and centrally run cities;

Preside over submitting to the Ministry the notification of annual state budget revenue and expenditure checks for ministries, central agencies, and People's Committees of centrally-run provinces and cities, including the National Target Program, the Target Program, and a number of programs and projects implementing similar mechanisms to the Target Program;

+ Organize work with provinces and centrally run cities on local budget estimates; Coordinate with units under the Ministry to work with ministries and central agencies on annual budget estimates;

+ Preside over synthesizing and preparing state budget revenue and expenditure estimates and plans for annual central budget allocation, including plans for allocating funds to implement national target programs; some programs and projects implement similar mechanisms to the Target Program and explain the differences (if any); Report and explain questions from National Assembly delegates about the state budget as assigned by the Minister of Finance;

+ Preside over submitting to competent authorities the annual state budget estimates to ministries, central agencies, and People's Committees of provinces and centrally run cities; develop solutions and measures to implement state budget estimates decided by the National Assembly;

+ Synthesize and develop plans to adjust budget estimates in necessary cases according to the provisions of the law.

- Organize and manage annual state budget estimates:

+ Preside over summarizing decision results and assigning annual state budget estimates to localities; Coordinate with units under the Ministry to check allocation plans and assign estimates to units using the budget under the ministries and central agencies; synthesize the results of allocation and allocation of budget estimates by ministries and central agencies (including additional amounts during the year);

Coordinate with units under the Ministry to check the plan for allocating expenditure estimates for the National Target Program, the Target Program, and a number of programs and projects implementing similar mechanisms to the Target Program;

+ Organize and operate the central budget according to estimates decided by competent authorities; Chair and coordinate to submit to the Ministry for decision or submit to competent authorities to decide on allocation and allocation of funds for spending tasks included in the budget estimates approved by the National Assembly but have not been allocated or assigned in detail right from the beginning of the year to Ministries, Central agencies, and People's Committees of provinces and centrally run cities as assigned by the Minister of Finance;

Preside over submitting to the Ministry additional estimates from central budget reserves; Supplement or temporarily provide regular expenditure to localities according to regulations; Coordinate with units under the Ministry to submit to the Ministry additional or temporary regular expenditures for ministries and central agencies and advance development investment expenditure estimates according to regulations;

+ Coordinate with the General Department of Taxation and the General Department of Customs to monitor and urge the concentration of revenues into the state budget;

+ Coordinate with the State Treasury at the central level in managing state budget funds (including funds in Vietnamese dong and foreign currencies); Coordinate and organize the implementation of domestic and foreign loans from the State budget;

+ Preside over submitting to the Ministry for advances from the central financial reserve fund, the State Bank and other legal financial sources when the central budget fund is temporarily in short supply. Coordinate with the Department of Finance to submit banks and financial institutions to competent authorities to decide on advances from the State Bank to the central budget according to regulations;

+ Preside and coordinate with units under the Ministry to periodically prepare reports assessing the implementation of the state budget and recommending measures to ensure the balance of the state budget and the progress of state budget revenues and expenditures according to the estimate decided by the National Assembly;

+ Preside over submitting to the Ministry for submission to competent authorities to decide on a plan to use central budget revenues exceeding estimates; central budget expenditure savings; adjustments to central budget expenditure estimates (if any);

+ Check the implementation of state budget revenue and expenditure estimates, publicize the state budget, the situation of revenue and use of financial funds, the situation of borrowing to offset overspending and debt repayment of the local budget, compliance with local state budget management policies, and the debt situation of the local budget;

Coordinate with units under the Ministry to inspect the implementation of state budget revenue and expenditure estimates, state budget disclosure, and compliance with state budget management policies and regulations of ministries and central agencies.

- Organize guidance, appraisal, synthesis, and budget settlement:

+ Coordinate with the State Treasury to develop a system of State Budget Table of Contents, reporting targets for State budget revenues and expenditures;

+ Coordinate with the State Treasury to guide ministries, central agencies, and localities to handle the year-end budget and prepare the annual state budget settlement according to the provisions of law;

+ Coordinate with units under the Ministry to review and appraise budget revenue and expenditure settlement reports of ministries and central agencies;

+ Preside over synthesizing reports on the settlement of local budget revenues and expenditures in provinces and centrally run cities;

+ Coordinate with the State Treasury to synthesize, prepare, and explain the annual state budget settlement and report it to the Government for submission to the National Assembly for approval.

- Coordinate with units under the Ministry to manage public debt, Government debt, and national foreign debt.

- Participate in negotiations with foreign countries and international organizations on loans, aid, and commitment targets related to finance and budget; organize the implementation of foreign cooperation projects in the field of state budget as assigned by the Minister of Finance.

- Carry out statistics and analysis of state budget forecasts; provide statistics and state budget forecasts for domestic and foreign organizations and agencies according to the regulations of the Minister of Finance.

- Preside and coordinate with units to synthesize and evaluate the situation and results of the implementation of financial and budget policy mechanisms and the efficiency of state budget spending; Coordinate to inspect the budget implementation situation and evaluate the effectiveness of budget expenditures by ministries, central agencies, branches, and fields.

Take the lead in advising and helping the Ministry participate with ministries and central agencies on financial mechanisms for key economic regions and socio-economic regions; preside over the development of specific financial and budgetary mechanisms for localities according to the provisions of law.

- Perform data entry on the budget management system (TABMIS) for level 0 and level 0 to level 1 central budget expenditure estimates (both estimates at the beginning of the year and additional amounts during the year).

- Publicize the state budget according to the provisions of the law.

- Take the lead in participating with ministries and branches on the overall salary reform project; take charge of developing resource plans to implement salary reform.

- Preside and coordinate with organizations and units under the Ministry in handling and resolving conclusions and recommendations of the State Audit, inspection agencies, and investigation agencies in the budget field under the management of the Department; Coordinate with the State Treasury to synthesize, explain, and evaluate the results of implementing the State Audit's recommendations on the State budget to report to the Government for submission to the National Assembly.

- Preside or coordinate with relevant units to organize information, propaganda, dissemination of laws, consolidation of documents, legalization of documents, and examination of documents for areas falling within the functions and tasks of the Department.

- Organize scientific research or cooperate in scientific research with units inside and outside the industry according to plans and content approved by competent authorities.

- Perform other tasks and powers assigned by the Minister of Finance and according to the provisions of the law.

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