Law on State Budget No. 01/2002/QH11

LAW

State budget

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PRESIDENT OF THE SOCIALIST REPUBLIC OF VIETNAM

To manage the national financial system uniformly, enhance the initiative and responsibility of agencies, organizations, and individuals in managing and utilizing the state budget, consolidate financial discipline, subject, organization, unit under the People's Committee of the commune level strengthen organization, individuals in managing and using the state budget, consolidate financial discipline, shall thrift, includes efficiency of the state budget and assets, increase accumulation to achieve industrialization and modernization of the country according to the socialist orientation, meet the requirements of economic - to communes is carried out according to the principle of 15% of the total loan amount from the International Development Association for the project investment in that commune. society, improve the effectiveness and efficiency of implementing policies and laws on fire prevention and fighting. people's living standards, ensure national defense, security, foreign relations,

WHEREAS EDUCATION based on the Constitution of the Socialist Republic of Vietnam in 1992 amended and supplemented by Resolution No. 51/2001/QH10 dated December 25, 2001 of the National Assembly, Term X, session ten,this Law stipulates on the establishment, implementation, inspection, audit, settlement of the state budget and on the tasks and powers of state agencies at all levels in the field of state budget.

The state budget consists of all revenues and expenditures of the State decided by competent state agencies and implemented within a year to ensure the performance of the State's functions and tasks.

PART I

GENERAL PROVISIONS

Article 1. 1. State budget revenue includes tax revenues, fees, charges; revenues from the State's economic activities; contributions from organizations and individuals; aid; other revenues as prescribed by law.

Article 2.

2. State budget expenditure includes expenditures for socio-economic development, ensuring national defense, security, operation of the State apparatus; debt payments; aid and other expenditures as prescribed by law.

The state budget is managed uniformly under the principle of democratic centralism, transparency, with division of management responsibilities and powers.

Article 3. The National Assembly decides the state budget estimate, allocates the central budget, approves the state budget settlement.

1. The state budget comprises the central budget and local budgets. Local budgets include those of administrative units at various levels having People's Councils and People's Committees.

Article 4.

2. The allocation of revenue sources, expenditure tasks, and the relationship between budgets at different levels shall be carried out according to the following principles:

a) The central budget and each level of local government budget are allocated specific revenue sources and expenditure tasks;

b) The central budget plays a leading role, ensuring the implementation of strategic and important national tasks and supporting regions that cannot balance their budget revenues and expenditures;

c) Local budgets are allocated revenue sources to ensure autonomy in performing assigned tasks; enhancing resources for communal budgets. Provincial People's Councils (referred to collectively as provincial level) decide on the allocation of revenue sources and expenditure tasks among local government budgets at various levels in accordance with economic, social, national defense, and security management decentralization and the management capacity of each level within their jurisdiction;

d) Expenditure tasks belonging to a certain budget level must be guaranteed by that level's budget; the issuance and implementation of new policies and systems increasing budget expenditures must have measures to ensure financial resources consistent with the balancing capacity of each budget level;

đ) In cases where a higher-level state management agency delegates a lower-level agency to perform its expenditure tasks, the higher-level budget must transfer funds to the lower-level budget to carry out such tasks;

e) Implementing proportional distribution percentages (%) for shared revenues between budget levels and supplementary transfers from higher-level budgets to lower-level budgets to ensure fairness and balanced development among regions and localities. The percentage (%) for distributing revenues and supplementary balancing amounts from higher-level budgets to lower-level budgets will remain stable for three to five years. Supplementary amounts from higher-level budgets are part of the lower-level budget's revenues;

g) During periods of stable budget, local budgets may use annual increased revenues to develop socio-economic conditions within their jurisdictions; after each period of stable budget, they must enhance their self-balancing capacity, develop local budgets, and implement reductions in supplementary transfers from higher-level budgets or increases in the percentage (%) of revenue remitted to higher-level budgets;

h) Apart from delegating expenditure tasks and supplementary revenue as specified in points đ and e of Clause 2 of this Article, the budget of one level cannot be used to fund tasks of another level, except in special cases as prescribed by the Government.

1. State budget revenue must be implemented in accordance with this Law and other relevant laws.

Article 5.

2. State budget expenditure can only be implemented when the following conditions are met:

a) It is included in the allocated state budget estimate, except as provided for in Articles 52 and 59 of this Law;

b) It complies with regulations, standards, and quotas set by competent state agencies;

c) It has been approved by the head of the unit using the budget or the person authorized to make such decisions.

In addition to the conditions stipulated in Clause 2 of this Article, for expenditures requiring bidding, such activities must be organized in accordance with the law on bidding.

3. Ministries, levels, and units are not allowed to establish revenues or expenditures contrary to the provisions of the law.

4. Heads of agencies, organizations, and units using the state budget are responsible for organizing thrift, combating waste, and corruption.

All revenues and expenditures of the state budget must be recorded in accounting books, settled fully, promptly, and in compliance with regulations.

Article 6. 1. The state budget fund consists of all funds of the State, including borrowed funds, held in the accounts of state budgets at various levels.

Article 7.

2. The state budget fund is managed by the State Treasury.

1. The state budget is balanced according to the principle that total tax, fee, and charge revenues must exceed total regular expenditures and contribute increasingly to investment development expenditures; in cases of deficit, the deficit amount must be less than investment development expenditures, moving towards budget revenue and expenditure balance.

Article 8.

1. The state budget shall be balanced based on the principle that the total revenue from taxes, fees, and charges must exceed the total recurrent expenditure and increasingly contribute to investment development expenditure; in cases where there is a deficit, the deficit amount must be less than the investment development expenditure, with the aim of achieving a balance between revenue and expenditure in the state budget.

2. The state budget deficit shall be covered by domestic and foreign loans. Loans to cover the state budget deficit must ensure the principle of not being used for consumption purposes, and can only be used for development purposes and ensuring that the budget is arranged to proactively repay all debts upon maturity.

3. In principle, local budgets shall be balanced with total expenditures not exceeding total revenues; in cases where provinces or centrally-administered cities have investment construction needs for infrastructure projects within the scope of provincial budget guarantees, included in the five-year investment plan decided by the Provincial People's Council, but exceed the provincial budget balance capacity in the projected year, they may mobilize domestic capital and must balance the provincial budget annually to proactively repay all debts upon maturity. The level of outstanding debt from mobilized capital shall not exceed 30% of the annual domestic basic construction investment capital of the provincial budget.

4. Ministries, ministerial-level agencies, agencies under the Government, other central agencies, People's Committees at all levels, organizations, and units responsible for organizing the implementation of state budget estimates within their assigned scope; strictly prohibit cases of borrowing, lending, and using the state budget contrary to the provisions of the law.

The Government, other central agencies, People's Committees at all levels, and organizations and units responsible for organizing the implementation of the state budget within their assigned scope; borrowing, lending, and using the state budget contrary to the provisions of the law are strictly prohibited.

Article 9.

1. Central government and local government budget expenditure estimates shall allocate a contingency reserve ranging from 2% to 5% of total expenditures for disaster prevention and mitigation, firefighting, important defense and security tasks, and urgent tasks outside the budget estimate; the Government decides on the use of the central government contingency reserve, regularly reports to the Standing Committee of the National Assembly, and reports to the National Assembly at the nearest session; the People's Committee decides on the use of the local government contingency reserve, regularly reports to the Standing Committee of the People's Council, and reports to the People's Council at the nearest session; for commune level, the People's Committee decides on the use of the commune budget contingency reserve, regularly reports to the Chairman and Vice-Chairman of the People's Council, and reports to the People's Council at the nearest session.

The Government shall stipulate the分级授权决定使用中央政府和地方政府预备费的权限。

2. The Government and provincial People's Committees may establish financial reserve funds from increased revenue sources, budget surpluses, and other financial sources as prescribed by law, which are allocated in the annual budget expenditure estimates. Financial reserve funds shall be used to meet expenditure needs when revenue sources have not yet been concentrated promptly and must be immediately repaid within the fiscal year; if the contingency reserve has already been fully utilized, the financial reserve fund may be used for expenditure according to the regulations of the Government, but not exceeding 30% of the fund surplus.

The maximum limit of the financial reserve fund at each level shall be stipulated by the Government.

Article 10The state budget ensures the balance of operating expenses for the Communist Party of Vietnam and political-social organizations. Operating expenses for socio-professional organizations, social organizations, and socio-professional organizations shall be implemented on the principle of self-sufficiency, with state budget support in specific cases as prescribed by the Government.

Article 11. All assets invested in or purchased from state budget sources and other state assets must be strictly managed in accordance with the prescribed regulations.

Article 12.

1. State budget revenue and expenditure shall be recorded in Vietnamese currency.

2. Accounting and settlement of the state budget shall be uniformly carried out in accordance with the state accounting system and the State Budget Item List.

3. Revenue and expenditure vouchers of the state budget shall be issued, used, and managed in accordance with the regulations of the Ministry of Finance.

Article 13.

1. State budget estimates, settlements, and audit results of state budget settlements at various levels, budgetary units, and organizations supported by the state budget must be publicly disclosed.

2. Procedures and formalities for collection, payment, exemption, reduction, refund of revenue items, disbursement, and settlement of the state budget must be clearly posted at transaction locations.

3. The Government shall specify the details of publicizing the state budget.

Article 14. The fiscal year begins on January 1 and ends on December 31 of the Gregorian calendar.

Chapter II

TASKS, POWERS OF THE NATIONAL ASSEMBLY, THE STATE PRESIDENT, THE GOVERNMENT, AND OTHER STATE AGENCIES, AND RESPONSIBILITIES AND DUTIES OF ORGANIZATIONS AND INDIVIDUALS REGARDING THE STATE BUDGET

Article 15. Tasks and powers of the National Assembly:

1. Enact and amend laws in the field of finance and budget;

2. Decide on national financial and monetary policies for economic and social development, ensuring the balance of state budget revenue and expenditure;

3. Decide on the state budget estimate:

a) Total state budget revenue, including domestic revenue, revenue from export and import activities, and non-repayable aid revenue;

b) Total state budget expenditure, including central government expenditure and local government expenditure, detailed by sectors such as investment development expenditure, regular expenditure, debt repayment and aid expenditure, supplementary financial reserve fund expenditure, and contingency reserve expenditure. Within investment development expenditure and regular expenditure, there are specific expenditure levels for education and training, science and technology sectors;

c) The state budget deficit level and sources of coverage;

4. Decide on the allocation of the central government budget:

a) Total amount and expenditure level for each sector;

b) Expenditure estimates for each ministry, ministerial-level agency, agency under the Government, and other central agencies by sector;

c) Supplementary amounts from the central government budget to each local government budget, including general balance supplementation and targeted supplementation;

5. Decide on national key projects and works funded from the state budget;

6. Decide on adjustments to the state budget estimate when necessary;

7. Supervise the implementation of the state budget, national financial and monetary policies, National Assembly resolutions on the state budget, national key projects and works, economic and social development programs, and other important basic construction projects;

8. Approve the state budget settlement.

9. Repeal documents issued by the President, Standing Committee of the National Assembly, Government, Prime Minister, Supreme People's Court, and Supreme People's Procuracy on financial-budget matters that contravene the Constitution, laws, and resolutions of the National Assembly.

Article 16. Duties and powers of the Standing Committee of the National Assembly:

1. Issue legal documents on financial-budget matters assigned by the National Assembly;

2. Provide opinions on draft laws, reports, and other projects on financial-budget matters submitted to the National Assembly by the Government;

3. Based on the resolution of the National Assembly regarding the state budget estimate and central budget allocation for the first year of the budget stabilization period, decide the percentage ratio (%) of division between the central budget and each local budget for revenues specified in Clause 2, Article 30 of this Law;

4. Issue regulations on the preparation, examination, and submission to the National Assembly for decision on the state budget estimate, central budget allocation plan, and approval of the state budget settlement;

5. Supervise the implementation of laws on the budget, financial policies, resolutions of the National Assembly, and Standing Committee of the National Assembly on financial-budget matters; suspend the implementation of documents on financial-budget matters issued by the Government and Prime Minister that contravene the Constitution, laws, and resolutions of the National Assembly, and submit to the National Assembly for decision on the annulment of such documents; revoke documents on financial-budget matters issued by the Government and Prime Minister that contravene ordinances and resolutions of the Standing Committee of the National Assembly; repeal resolutions of provincial People's Councils on financial-budget matters that contravene the Constitution, laws, resolutions of the National Assembly, ordinances, and resolutions of the Standing Committee of the National Assembly.

Article 17. Duties and powers of the Economic and Budget Committee of the National Assembly:

1. Examine draft laws, draft ordinances, and other projects on financial-budget matters assigned by the National Assembly and Standing Committee of the National Assembly;

2. Lead the examination of the state budget estimate, central budget allocation plan, and reports on the implementation of the state budget and state budget settlement submitted to the National Assembly by the Government;

3. Supervise the implementation of laws, resolutions of the National Assembly, ordinances, and resolutions of the Standing Committee of the National Assembly on financial-budget matters; supervise the implementation of the state budget and financial policies;

4. Supervise regulatory documents of the Government, Prime Minister, Ministers, Heads of Ministries, and joint regulatory documents among competent state agencies at the central level or between competent state agencies and central bodies of political-social organizations on financial-budget matters;

5. Propose issues related to the management of financial-budget matters.

Article 18. Duties and powers of the National Ethnic Committee and other Committees of the National Assembly:

1. Within their respective duties and powers, coordinate with the Economic and Budget Committee of the National Assembly to examine draft laws, ordinances, state budget estimates, central budget allocation plans, and other projects on financial-budget matters submitted to the National Assembly and Standing Committee of the National Assembly by the Government;

2. Supervise the implementation of laws and resolutions of the National Assembly on financial-budget matters within their respective areas of responsibility;

3. Propose issues related to financial-budget matters within their respective areas of responsibility.

Article 19. Duties and powers of the President:

1. Announce laws and ordinances on financial-budget matters;

2. Perform tasks and powers stipulated by the Constitution and laws in conducting negotiations and signing international treaties on behalf of the Socialist Republic of Vietnam with the heads of other states; submit international treaties directly signed to the National Assembly for approval; decide on the approval or accession to international treaties except in cases requiring the National Assembly's decision on financial-budget matters;

3. Request the Government to report on financial-budget work when necessary.

Article 20. Duties and powers of the Government:

1. Submit draft laws, ordinances, and other projects on financial-budget matters to the National Assembly and Standing Committee of the National Assembly; issue regulatory documents on financial-budget matters within its authority;

2. Prepare and submit to the National Assembly the state budget estimate and annual central budget allocation plan; prepare the adjusted state budget estimate when necessary;

3. Based on the resolution of the National Assembly on the state budget estimate and central budget allocation, decide on the assignment of revenue and expenditure tasks for each Ministry, agency equivalent to a ministry, and other central agencies under the provisions of Point b, Clause 4, Article 15 of this Law; revenue and expenditure tasks and the amount of supplementary funding from the central budget for each province and centrally-administered city under the provisions of Points a and b, Clause 3, and Point c, Clause 4, Article 15 of this Law; based on the resolution of the Standing Committee of the National Assembly, assign the percentage ratio (%) of division between the central budget and each local budget for shared revenues under the provisions of Clause 3, Article 16 of this Law; specify principles for the allocation and direct the implementation of the local budget estimate for certain expenditure areas decided by the National Assembly;

4. Uniformly manage the state budget, ensuring close coordination between sectoral management agencies and localities in implementing the state budget;

5. Organize and implement the state budget decided by the National Assembly, inspect the implementation of the state budget, report to the National Assembly and Standing Committee of the National Assembly on the implementation of the state budget, important national projects, economic and social development programs, and other important construction projects;

6. Decide on the use of budget reserves; specify the use of the financial reserve fund and other state financial reserve sources according to this Law.

6. Decide on the use of the state budget reserve; stipulate the use of the financial reserve fund and other state financial reserves in accordance with the provisions of this Law;

7. To provide regulations or delegate to competent state agencies to establish allocation quotas and financial systems, standards, and budget expenditure limits for state budgets as a basis for building, allocating, and managing state budgets uniformly throughout the country; for important allocation quotas and budget expenditure systems that have wide-ranging impacts and are related to the implementation of national economic and social tasks, defense, and security, report to the Standing Committee of the National Assembly for comments in writing before issuance.

8. To inspect resolutions of provincial People's Councils on state budget estimates, final accounts, and other issues within the financial and budgetary sector; in cases where provincial People's Council resolutions contravene the Constitution, laws, resolutions of the National Assembly, ordinances, resolutions of the Standing Committee of the National Assembly, and higher-level state agency documents, the Prime Minister shall suspend their implementation and propose to the Standing Committee of the National Assembly to revoke them.

9. To prepare and submit to the National Assembly for approval the final accounts of the state budget and final accounts of significant national projects decided by the National Assembly.

10. To issue regulations on examining and deciding state budget estimates and allocations at the local level, and to approve final accounts of local state budgets.

Article 21. Duties and powers of the Ministry of Finance:

1. To prepare draft laws, ordinances, and other projects in the financial and budgetary sector and to develop strategies and plans for domestic and foreign borrowing and repayment, to be submitted to the Government; to issue legal regulatory documents in the financial and budgetary sector within its authority.

2. To take the lead in coordinating with ministries, ministerial-level agencies, government agencies, central-level agencies, and provincial People's Committees in establishing allocation quotas and financial systems, standards, and budget expenditure limits for state budgets, accounting systems, final accounts, reporting systems, and financial transparency systems to be regulated uniformly throughout the country according to the Government's delegation.

3. To take the lead in coordinating with ministries, ministerial-level agencies, government agencies, central-level agencies, and provincial People's Committees in preparing the state budget estimate and central budget allocation plan; to organize the implementation of the state budget; to manage and direct tax, fee, and charge collection, other revenue sources of the state budget, international aid resources, and to implement state budget expenditures according to the approved estimate; to prepare the central final accounts; to compile and prepare the state final accounts to be submitted to the Government; to organize management and inspection of state asset usage.

4. To inspect financial and budgetary regulations of ministries, ministerial-level agencies, People's Councils, People's Committees, and Chairpersons of People's Committees at the provincial level; in cases where provisions in these documents contravene the Constitution, laws, resolutions of the National Assembly, ordinances, resolutions of the Standing Committee of the National Assembly, and higher-level state agency documents, it has the right to request the Minister or Head of a ministerial-level agency to suspend the implementation or revoke the provisions of the ministry or ministerial-level agency; to request the Prime Minister to suspend the implementation of provincial People's Council resolutions; to suspend the implementation or request the Prime Minister to revoke the provisions of provincial People's Committees and Chairpersons of People's Committees at the provincial level.

5. To centrally manage the State's borrowing and repayment activities of the Government and the nation.

6. To conduct financial and budgetary inspections, handle or recommend competent authorities to handle violations of financial management systems according to the law for ministries, ministerial-level agencies, government agencies, central-level agencies, localities, economic organizations, administrative units, public service units, and other entities obligated to pay into the state budget and use the state budget.

7. To manage the state budget fund, the state reserve fund, and other state funds as prescribed by law.

Article 22. Duties and powers of the Ministry of Planning and Investment:

1. To submit to the Government the project for the national socio-economic development plan and the main balances of the national economy, including financial, monetary, and basic construction investment balances, as a basis for developing the financial and budgetary plan.

2. To coordinate with the Ministry of Finance in preparing the state budget estimate. To prepare the central budget allocation plan in the sectors under its responsibility according to the Government's assignment.

3. To coordinate with the Ministry of Finance and relevant ministries and sectors in inspecting and evaluating the effectiveness of investment capital for basic construction projects.

Article 23. Duties and powers of the State Bank of Vietnam:

1. To coordinate with the Ministry of Finance in developing strategies and plans for domestic and foreign borrowing and repayment, and in formulating and implementing plans to borrow to offset the state budget deficit.

2. To temporarily advance funds to the state budget to address temporary shortages in the state budget fund according to the Prime Minister's decision.

Article 24. Duties and powers of ministries, ministerial-level agencies, government agencies, and central-level agencies:

1. To prepare the annual state budget estimate for their own agencies.

2. To coordinate with the Ministry of Finance during the process of preparing the state budget estimate, central budget allocation plan, and final accounts of the sectors and fields under their responsibility.

3. To inspect and monitor the implementation of the state budget in the sectors and fields under their responsibility.

4. To report on the implementation and results of using the state budget in the sectors and fields under their responsibility according to the prescribed system.

5. To coordinate with the Ministry of Finance in developing financial systems, standards, and budget expenditure limits in the sectors and fields under their responsibility.

6. To manage, organize the implementation, and settle accounts for the allocated budget; to ensure effective use of assigned state assets.

Article 25. Duties and powers of People's Councils at all levels:

1. Based on the budget revenue and expenditure tasks assigned by superiors and the actual situation in the locality, to decide:

a) The state budget revenue estimate on the local territory, including domestic revenue, export and import revenue, and non-reimbursable aid revenue.

b) The local state budget revenue estimate, including local state budget revenue items that the locality enjoys 100%, the portion of the local state budget derived from revenue items shared according to a percentage rate (%), and additional revenue from higher-level budgets;

c) The local state budget expenditure estimate, including expenditures of the local state budget at its own level and lower levels, detailed by investment development expenditure areas, recurrent expenditure, debt repayment expenditure, and supplementary financial reserve fund expenditure. Within the investment development expenditure and recurrent expenditure, specific allocations are made for education and training, science and technology areas;

2. Decision on the allocation of the local state budget estimate at its own level:

a) Total amount and expenditure level for each sector;

b) The expenditure estimate of each agency and unit under its own level by each area;

c) The amount of additional funding for each lower-level local state budget, including balanced funding and targeted funding;

3. Approval of the final account of the local state budget;

4. Decision on policies and measures to implement the local state budget;

5. Decision to adjust the local state budget estimate when necessary;

6. Supervise the implementation of the budget decided by the People's Council;

7. Repeal normative legal documents on finance-budget of the People's Committee at the same level and the directly subordinate People's Councils that are contrary to the Constitution, laws, resolutions of the National Assembly, ordinances, resolutions of the Standing Committee of the National Assembly, and documents of higher-level state agencies;

8. For provincial People's Councils, in addition to the tasks and powers stipulated in Clauses 1, 2, 3, 4, 5, and 6 of this Article, they also have the following tasks and powers:

a) Decide on the classification of revenue sources and expenditure responsibilities for each level of budget in the locality as provided for in Point c Clause 2 Article 4 of this Law;

b) Decide on the percentage rate (%) of division between the budgets of various levels of local government regarding the portion of the local state budget derived from revenue items specified in Clause 2 Article 80 of this Law and revenue items divided among various levels of the local budget;

c) Decide on the collection of fees, charges, and contributions from the people as prescribed by law;

d) Decide on specific budget allocation standards, systems, and expenditure rates as prescribed by the Government;

đ) Decide on the level of capital mobilization as prescribed in Clause 3 Article 8 of this Law.

Article 26. Tasks and powers of People's Committees at all levels:

1. Prepare the local state budget estimate and the budget allocation plan at its own level according to the indicators stipulated in Clause 1 and Clause 2 Article 25 of this Law; prepare the adjusted local state budget estimate when necessary, submit it to the same-level People's Council for decision, and report to the administrative state agencies and higher-level financial agencies;

2. Prepare the final account of the local state budget, submit it to the same-level People's Council for approval, and report to the administrative state agencies and higher-level financial agencies;

3. Inspect the resolutions of lower-level People's Councils on finance-budget;

4. Based on the resolutions of the same-level People's Council, decide on the assignment of revenue and expenditure tasks for each agency and unit under its direct jurisdiction; the revenue and expenditure tasks, the amount of additional funding for lower-level budgets, and the percentage rate (%) of division between various levels of the local budget for revenue items divided; specify principles for allocating and directing the implementation of the budget estimate for certain expenditure areas decided by the People's Council as stipulated in Point c Clause 1 Article 25 of this Law;

5. Organize and supervise the implementation of the local state budget;

6. Coordinate with higher-level state agencies in managing the state budget within their jurisdiction;

7. Report on the state budget according to the provisions of the law;

8. For provincial People's Committees, in addition to the tasks and powers stipulated in Clauses 1, 2, 3, 4, 5, 6, and 7 of this Article, they also have the task of preparing and submitting to the same-level People's Council for decision on matters prescribed in Clause 8 Article 25 of this Law;

9. Direct the local financial agency to take the lead in coordinating with relevant agencies to assist the People's Committee in performing its tasks as stipulated in Clauses 1, 2, 3, 4, 5, 6, 7, and 8 of this Article.

Article 27. Tasks and powers of budgetary units:

1. Organize the preparation of revenue and expenditure estimates within their management scope, implement the budget allocation assigned by the competent authority to subordinate units, and adjust the budget allocation within their authority;

2. Organize the implementation of the allocated revenue and expenditure estimates; pay all taxes, fees, charges, and other amounts due to the budget in full and on time as prescribed by law; spend according to regulations, for intended purposes, for designated recipients, and economically; manage and use state assets of subordinate units according to prescribed regulations;

3. Guide and inspect the implementation of revenue and expenditure by subordinate units;

4. Comply with the provisions of the law on accounting and statistics; report, settle accounts, and disclose the budget according to the provisions of the law; approve the settlement accounts of subordinate budgetary units;

5. For budgetary units that are public service organizations, in addition to the tasks and powers stipulated in Clauses 1, 2, 3, and 4 of this Article, they may independently use proceeds from public services to develop and improve the quality and efficiency of their operations as prescribed by the Government.

Article 28. Organizations and individuals with responsibilities and obligations:

1. Pay all taxes, fees, charges, and other amounts due to the budget in full and on time as prescribed by law;

2. If they receive state subsidies, capital, and funds according to the allocated budget, they must manage and use these funds for their intended purposes, according to regulations, economically, effectively, and settle accounts with the financial agency;

3. Comply with the provisions of the law on accounting, statistics, and budget disclosure.

Article 29. The Minister, Head of a Ministry-equivalent agency, member of the Government, and Chairperson of People's Committees at all levels shall organize the implementation of their assigned tasks and powers in the field of finance-budget and be responsible for any violations within their management scope..

Chapter III

SOURCES OF REVENUE AND EXPENDITURE RESPONSIBILITIES OF BUDGETS AT VARIOUS LEVELS

Article 30. Revenue sources of the central budget include:

1. Central budget revenue items that the central government enjoys 100%:

a) Value-added tax on imported goods;

b) Export tax, import tax;

c) Special consumption tax on imported goods;

d) Corporate income tax of units under full industry accounting;

đ) Other tax and revenue items from oil and gas as prescribed by the Government;

e) Capital recovery funds of the central budget at economic organizations, capital recovery for loans from the central budget (both principal and interest), revenue from the central financial reserve fund, income from state contributions;

g) Non-reimbursable aid from governments of other countries, international organizations, other organizations, and individuals abroad to the Government of Vietnam;

h) Various fees and charges paid into the central budget;

i) Central budget surplus revenue;

k) Other revenues as prescribed by law;

2. Revenues divided between the central budget and local budgets according to a percentage ratio (%):

a) Value-added tax, excluding value-added tax on imported goods as specified in point a, Clause 1, Article of this Law;

b) Corporate income tax, excluding corporate income tax of units under full industry accounting as specified in point d, Clause 1, Article of this Law;

c) Income tax on high-income individuals;

d) Tax on profit repatriation, excluding tax on profit repatriation from the oil and gas sector as specified in point đ, Clause 1, Article of this Law;

đ) Special consumption tax collected from domestic goods and services;

e) Fuel and oil fees.

Article 31. The expenditure responsibilities of the central budget include:

1. Development investment expenditures:

a) Investment in construction of economic and social infrastructure projects that cannot recover costs managed by the central government;

b) Investment and support for enterprises, economic organizations, state financial organizations; contributing capital shares or joint ventures in enterprises in sectors requiring state participation;

c) Supplementary national reserves;

d) Other expenditures as prescribed by law;

2. Recurrent expenditures:

a) Activities of public services in education and training, health, social welfare, culture and information, literature and art, sports, science and technology, environment, and other public service activities managed by central agencies;

b) Economic public service activities managed by central agencies;

c) National defense, security, and public order, excluding parts assigned to localities;

d) Activities of central state agencies, the Communist Party of Vietnam, and political-social organizations;

đ) Price subsidies according to state policy;

e) National programs implemented by the central government;

g) Supporting the Social Insurance Fund as prescribed by the Government;

h) Subsidies for social policy beneficiaries managed by the central government;

i) Support for political-social-professional organizations, social organizations, and social-professional organizations at the central level as prescribed by law;

k) Other expenditures as prescribed by law;

3. Repayment of principal and interest on loans made by the Government;

4. Aid disbursements;

5. Loans as prescribed by law;

6. Supplementary central financial reserve fund;

7. Supplementary funding for local budgets.

Article 32. Revenue sources of local budgets include:

1. Local budget revenues receiving 100%:

a) Property tax;

b) Resource tax, excluding resource tax from oil and gas;

c) Business license tax;

d) Land transfer tax;

đ) Agricultural land use tax;

e) Land use fee;

g) Land rental fee;

h) Rental and sale proceeds from state-owned housing;

i) Stamp duty;

k) Revenue from lottery activities;

l) Recovery of local budget capital at economic organizations, revenue from local financial reserve funds, income from local contributions;

m) Non-reimbursable aid from international organizations, other organizations, and individuals abroad directly to localities;

n) Fees, charges, and revenue from public service activities and other revenues paid into local budgets as prescribed by law;

o) Revenue from public land and other public benefits;

p) Mobilization from organizations and individuals as prescribed by law;

q) Voluntary contributions from organizations and individuals both domestically and internationally;

r) Local budget surplus revenue as stipulated in Article 63 of this Law;

s) Other revenues as prescribed by law;

2. Revenues divided between the central budget and local budgets according to the provisions of Clause 2, Article 30 of this Law;

3. Additional revenue from the central budget; 4. Revenue from mobilizing investment in construction of economic and social infrastructure projects as prescribed in Clause 3, Article 8 of this Law.

4. Revenue from mobilizing investment in constructing infrastructure projects as provided for in Clause 3, Article 8 of this Law.

Article 33. Expenditure responsibilities of local budgets include:

1. Development investment expenditures:

a) Investment in construction of economic and social infrastructure projects managed by localities;

b) Investment and support for enterprises, economic organizations, state financial organizations as prescribed by law;

c) Other expenditures as prescribed by law;

2. Recurrent expenditures:

a) Economic public service activities, education and training, health, social welfare, culture and information, literature and art, sports, science and technology, environmental activities, and other public service activities managed by localities;

b) National defense, security, and public order (parts assigned to localities);

c) Activities of state agencies, the Communist Party of Vietnam, and political-social organizations at the local level;

d) Support for political-social-professional organizations, social organizations, and social-professional organizations at the local level as prescribed by law;

đ) Implementation of social policies for beneficiaries managed by localities;

e) National programs managed by localities as assigned by the Government;

g) Price subsidies according to state policy;

h) Other expenditures as prescribed by law;

3. Repayment of principal and interest on loans raised for investment as prescribed in Clause 3, Article 8 of this Law;

4. Supplementary provincial financial reserve fund;

5. Supplementary funding for lower-level budgets.

Article 34.

1. Based on the revenue sources and expenditure responsibilities of local budgets as stipulated in Articles 32 and 33 of this Law, the People's Council of the province shall decide on specific revenue allocation and expenditure responsibilities for each level of the local government budget according to the following principles:

a) In accordance with the分级任务经济-社会，国防，安全的特性，以及每个领域的经济，地理和人口特点及地方管理能力；

b) Among the sources of revenue for the commune and town budgets, the commune and town budgets shall enjoy at least 70% of the revenue from land transfer taxes; real estate taxes; business license fees collected from individuals and households engaged in business operations; agricultural land use taxes collected from family households; and registration fees for real estate;

c) Among the sources of revenue for the district and provincial city budgets, the district and provincial city budgets shall enjoy at least 50% of the revenue from registration fees, excluding registration fees for real estate;

d) In the allocation of expenditure responsibilities for districts and provincial cities, there must be responsibilities for expenditures on constructing state-owned general education schools at all levels, street lighting, water supply and drainage, urban transportation, urban sanitation, and other public welfare projects;

2. Based on the percentage ratio assigned to revenue distribution by the Prime Minister and the full revenue sources enjoyed by local government budgets, the Provincial People's Council shall determine the percentage ratio for revenue distribution among local government budgets at various levels;

Article 35. In addition to the revenue allocation as stipulated in Article 34 of this Law, the commune, town, district, and provincial city authorities may mobilize contributions from organizations and individuals to invest in building infrastructure projects in communes, towns, districts, and provincial cities on a voluntary basis. The mobilization, management, and use of these contributions must be transparent, subject to inspection and supervision, and ensure compliance with their intended purposes and relevant regulations;

Article 36.

1. Local government budgets shall utilize 100% of the revenue they receive, the revenue allocated according to the percentage ratio, and supplementary balanced funds from higher-level budgets to balance revenues and expenditures, ensuring the fulfillment of economic and social tasks, national defense, and security assignments;

2. The percentage ratio for revenue allocation and supplementary balanced funds shall be determined based on calculations of revenue sources and expenditure responsibilities as specified in Articles 30, 31, 32, and 33 of this Law, following budget revenue collection systems, budget allocation standards, and budget expenditure standards and norms, taking into account population size, natural conditions, and socio-economic conditions in each region, paying special attention to remote areas, revolutionary bases, ethnic minority regions, and other difficult areas;

3. Higher-level supplementary budgets with specific objectives shall be provided to support lower-level budgets when important tasks arise that cannot be met even after reallocating the budget and utilizing contingency reserves;

Chapter IV

PREPARATION OF THE STATE BUDGET ESTIMATE

Article 37.

1. The annual State budget estimate shall be prepared based on the tasks of economic and social development and national defense and security;

2. Revenue items in the State budget estimate must be determined based on economic growth, related indicators, and laws governing budget revenue;

3. Expenditure items in the State budget estimate must be determined based on the goals of economic and social development and national defense and security. For investment development expenditures, the preparation of the estimate must be based on approved plans, programs, and projects, prioritizing adequate funding consistent with the implementation schedule. For regular expenditures, the preparation of the estimate must be based on tax, fee, and registration fee revenues and comply with established standards and norms. For debt repayment, the estimate must be based on debt obligations for the budget year;

4. Decisions on policies, systems, and significant tasks, approval of programs and projects funded by the State budget must align with the annual budget capacity and the five-year financial plan;

5. The State budget estimate shall be organized and compiled from revenue collection agencies and budget users, ensuring timely submission and adherence to prescribed formats;

Article 38.

1. Annually, the Prime Minister decides on the planning for economic and social development and the State budget estimate for the following year;

2. Based on the Prime Minister's decision, the Ministry of Finance provides guidance on requirements, contents, and deadlines for preparing the State budget estimate; it also announces the total and sector-specific revenue and expenditure check figures for ministries, agencies at ministerial level, government agencies, and central-level agencies, as well as total revenue and expenditure figures and key expenditure sectors for each province and centrally-administered municipality;

3. Based on the Prime Minister's decision and the Ministry of Finance's guidance, the provincial People's Committee guides the preparation of local budget estimates at various levels;

Article 39.

1. Agencies and units responsible for budget revenue and expenditure must organize the preparation of budget revenue and expenditure estimates within their assigned tasks, report to higher-level management agencies, which then review and consolidate the reports to submit to the same-level finance agency;

2. The provincial People's Committee prepares the local budget estimate, submits it for consideration and comments by the Standing Committee of the provincial People's Council, and sends it to the Ministry of Finance and relevant agencies for consolidation and preparation of the State budget estimate to be submitted to the Government;

Article 40.

1. The Ministry of Finance is responsible for reviewing and verifying the budget estimates of ministries, agencies at ministerial level, government agencies, and central-level agencies, as well as local budget estimates; it actively coordinates with sectoral management agencies in consolidating and preparing the State budget estimate and the central budget allocation plan based on the criteria set out in Clauses 3 and 4 of Article 15 of this Law, to be submitted to the Government;

2. Local finance agencies at various levels are responsible for reviewing the budget estimates of same-level agencies and subordinate local budget estimates; they actively coordinate with relevant agencies in consolidating and preparing local budget estimates and their own budget allocation plans based on the criteria set out in Clauses 1 and 2 of Article 25 of this Law, to be reported to the provincial People's Committee for submission to the provincial People's Council.

Article 41. During the process of consolidating and preparing the state budget estimate, financial authorities at all levels shall be responsible for:

1. Working with agencies and units at the same level to adjust points deemed necessary in the state budget estimate;

2. Working with the People's Committees of the directly subordinate levels to adjust points deemed necessary in the local budget estimate for the first year of the budget stabilization period; for subsequent years of the budget stabilization period, the financial authority shall organize work with the People's Committees of the directly subordinate levels when such committees request it;

3. In the process of preparing the state budget estimate and formulating the central budget allocation plan, if there are differing opinions between the Ministry of Finance and other ministries, ministerial-level agencies, government agencies, central-level agencies, and localities, the Ministry of Finance must submit those differing opinions to the Government or the Prime Minister for decision within their respective authority. This principle also applies during the preparation of the local budget estimate and the formulation of the local budget allocation plan.

Article 42. The state budget estimate and the central budget allocation plan submitted by the Government to the National Assembly must be accompanied by the following documents:

1. The implementation status of the state budget in the previous year, the bases for building the state budget estimate and the central budget allocation plan, the main contents and solutions to implement the state budget estimate;

2. State budget expenditure tasks, including the important goals, programs of the national economy and major policies of the Party and the State related to the state budget;

3. State budget revenue tasks, along with measures to mobilize revenue for the state budget;

4. The state budget deficit and sources to cover it; the ratio of the deficit to the gross domestic product;

5. Reports on state debts, including the amounts due for repayment, overdue amounts, interest payable in the year, additional debt arising from borrowing to cover the state budget deficit, the ability to repay debt in the year, and the total debt at the end of the year;

6. Specific policies and measures to stabilize finance and the state budget;

7. Lists, progress, and annual investment estimates for projects and significant national works funded by the state budget as decided by the National Assembly;

8. Budget expenditures of each ministry, ministerial-level agency, government agency, and other central-level agencies by sector; revenue and expenditure tasks, the percentage (%) distribution of shared revenues, and the amount of supplementary funding from the central budget for each province and centrally-administered city;

9. Other documents to clearly explain the state budget revenue and expenditure estimates and the central budget allocation plan;

Article 43. The state budget estimate and the central budget allocation plan for the next year must be sent to National Assembly deputies at least ten days before the opening date of the last session of the National Assembly in the current year;

Article 44. Necessary documents to accompany the local budget estimate submitted to the People's Councils shall be specified by the Government;

Article 45.

1. The National Assembly decides the state budget estimate and the central budget allocation plan for the next year before November 15 of the current year;

2. Based on the National Assembly's resolution on the state budget estimate and the central budget allocation plan, and the Standing Committee of the National Assembly's resolution on the percentage (%) distribution of shared revenues, the Prime Minister assigns revenue and expenditure tasks to each ministry, ministerial-level agency, government agency, and other central-level agencies, revenue and expenditure tasks, the percentage (%) distribution of shared revenues, and the amount of supplementary funding from the central budget for each province and centrally-administered city. Based on the assigned state budget revenue and expenditure tasks, the People's Committees at all levels shall be responsible for preparing the local budget estimate and the local budget allocation plan to submit to the People's Councils at the same level for approval and report to the administrative agencies and financial authorities of the directly superior level;

3. The Provincial People's Council decides the local budget estimate and the provincial budget allocation plan for the next year before December 10 of the current year. The People's Councils at lower levels decide the local budget estimate and the budget allocation plan for the next year of their own level no later than ten days after the People's Council of the directly superior level decides the budget estimate and allocation plan;

4. In cases where the state budget estimate and the central budget allocation plan have not been decided by the National Assembly, the Government shall prepare again the state budget estimate and the central budget allocation plan to submit to the National Assembly at the time determined by the National Assembly;

5. In cases where the local budget estimate and the budget allocation plan of their own level have not been decided by the People's Council, the People's Committee shall prepare again the local budget estimate and the budget allocation plan of their own level to submit to the People's Council at the time determined by the People's Council, but not later than the deadline set by the Government;

Article 46. During the discussion and decision-making on the state budget estimate and budget allocation at the National Assembly and People's Councils, when deciding to increase expenditure items or add new expenditure items, the National Assembly and People's Councils simultaneously consider and decide on measures to ensure budget balance;

Article 47. The Prime Minister has the right to request the Provincial People's Council to adjust the budget estimate if the local budget allocation does not comply with the National Assembly's decision;

The Chairman of the People's Committee has the right to request the lower-level People's Council to adjust the budget estimate if the local budget allocation does not comply with the decision of the higher-level People's Council;

Article 48. Based on the resolutions of the National Assembly and People's Councils on the budget estimate and budget allocation, the Government decides measures to organize and manage the state budget and the central budget, while the People's Committees decide measures to organize and manage the local budget and their own budget;

Article 49. Adjustments to the budget estimate shall be carried out according to the following provisions:

1. In cases where there are significant changes in the budget compared to the allocated estimate, the Government must adjust the overall budget and submit the adjusted state budget estimate to the National Assembly; the People's Councils must submit the adjusted local budget estimate to the People's Councils according to the procedures for preparing and deciding on the budget as stipulated in this Law.

2. In urgent cases concerning national defense, security, or due to objective reasons necessitating adjustments to the revenue and expenditure tasks of certain agencies, units, or localities without significantly affecting the overall structure of the budget, the Government shall submit to the Standing Committee of the National Assembly for a decision on adjusting the state budget estimate and report to the National Assembly; the People's Councils shall submit to the People's Councils for a decision on adjusting the local budget estimate.

Chapter V

IMPLEMENTATION OF THE STATE BUDGET

Article 50.

1. After being assigned the state budget estimate by the Prime Minister and the People's Councils, central and local state agencies, and budgetary units have the responsibility to allocate and assign the state budget estimate to subordinate budget-using units, ensuring compliance with the assigned total amount and detailed estimates for each spending area, and simultaneously sending it to the same-level financial agency. The financial agency has the responsibility to check; if it does not comply with the assigned state budget estimate, policies, regulations, standards, and norms, it must request corrections.

2. The allocation and assignment of the state budget estimate to budget-using units must be completed before December 31 of the previous year, except in cases provided for in Clauses 4 and 5 of Article 45 of this Law.

Article 51.

1. In necessary cases, agencies, organizations, and units assigned the state budget estimate by the Prime Minister and the People's Councils may adjust the budget estimate for their subordinate units within the total amount and detailed estimates for each area assigned, after reaching agreement with the same-level financial agency.

2. Apart from the authorized budget-granting agencies, no organization or individual may change the assigned budget tasks.

Article 52. In cases where, at the beginning of the fiscal year, the state budget estimate and the budget allocation plan have not been decided upon by the competent state agencies as stipulated in Clauses 4 and 5 of Article 45 of this Law, financial agencies at all levels are permitted to temporarily allocate funds for non-deferrable needs until the state budget estimate and the budget allocation plan are decided upon.

Article 53.

1. Agencies and organizations within their respective duties and powers are responsible for formulating necessary measures to ensure the successful completion of assigned revenue and expenditure tasks, implementing thrift, combating waste, and corruption; strictly adhering to financial discipline.

2. All organizations and individuals must fulfill their obligations to pay taxes according to the provisions of the law; use state budget funds for their intended purposes, in accordance with regulations, thriftily, and effectively.

Article 54.

1. Only financial agencies, tax agencies, customs agencies, and other agencies entrusted by the State with the task of collecting the state budget (collectively referred to as collection agencies) are authorized to organize the collection of the state budget.

2. Collection agencies have the following responsibilities and authorities:

a) Cooperating with relevant state agencies to organize lawful collections; subject to the direction and inspection of the People's Councils and the supervision of the People's Councils regarding budget collection work at the local level; coordinating with the Vietnam Fatherland Front and its member organizations to publicize and mobilize organizations and individuals to strictly fulfill their tax payment obligations under this Law and other legal provisions;

b) Organizing the management and implementation of tax collection and other amounts payable to the state budget by organizations and individuals;

c) Inspecting and supervising sources of state budget revenue; inspecting the compliance with and handling violations related to the collection and payment of the state budget according to the provisions of the law.

3. All state budget revenues must be directly deposited into the State Treasury. In special cases, collection agencies may organize direct collections but must deposit them fully and on time into the State Treasury as prescribed by the Minister of Finance.

Article 55.

1. At all levels, collection agencies within their respective duties and powers are responsible for urging and inspecting organizations and individuals obligated to pay the state budget to make full and timely payments of amounts payable to the state budget.

2. If organizations or individuals are unable to make timely payments due to objective reasons, they must report to the competent authority and can only make late payments with permission from the competent authority. If

organizations or individuals make late payments without permission, based on the requirements of the collection agencies, banks and the State Treasury must deduct from the accounts of the late-paying organizations or individuals to pay the state budget or apply other administrative measures to collect for the state budget.

Article 56. Based on the assigned state budget estimate and the requirements to implement tasks, the head of the budget-using unit decides on expenditures to send to the State Treasury. The State Treasury checks the legality of the required documents according to the law and implements budget expenditures when all conditions stipulated in Clause 2 of Article 5 of this Law are met through direct payment methods. The Minister of Finance shall provide specific guidance on these payment methods in accordance with actual conditions.

Article 57.

1. Regular recurrent expenses are arranged for funding throughout the year for disbursement; expenses with seasonal characteristics or large purchases are arranged within the quarterly budget for implementation.

2. Development investment expenditures must ensure sufficient funding and timely progress within the scope of the assigned budget.

8. For urgent projects or tasks that require advance funding before the budget estimate is finalized for implementation.

Article 58.

1. The heads of budget-using units shall be responsible for managing and using the state budget and state assets in accordance with policies, regulations, standards, quotas, and budgets allocated; violations will be handled according to Article 73 of this Law. Financial and accounting personnel at budget-using units shall be responsible for implementing financial management and state accounting systems; conducting regular inspections to detect, prevent, and recommend to the unit head or the same-level financial authority to handle any violations.

2. The head of the State Treasury has the right to refuse payment for expenditures that do not meet the conditions stipulated in Clause 2 of Article 59 of this Law and shall bear responsibility for their decisions.

Financial authorities shall be responsible for allocating resources to promptly implement expenditures according to the budget, inspecting expenditure implementation, and having the right to temporarily halt expenditures exceeding permitted sources or violating policies, regulations, and standards; they have the right to request budget-granting agencies to adjust tasks and expenditure budgets of subordinate units to ensure budget execution in accordance with set goals and schedules.

Article 59. During the process of executing the state budget, if there are changes in revenue and expenditure, the following shall apply:

1. Any increase in revenue and savings compared to the allocated budget shall be used to reduce deficit spending, increase debt repayment, increase investment spending, supplement the financial reserve fund, and increase budget reserves. The Government shall propose usage plans for each expenditure task, report to the Standing Committee of the National Assembly for comments before implementation; the People's Council shall propose usage plans for each expenditure task, reach consensus with the Standing Committee of the People's Council before implementation; for commune level, the People's Council shall reach consensus with the Chairman and Vice-Chairman of the People's Council before implementation;

2. In cases where revenue does not meet the budget approved by the National Assembly and People's Councils, the Government shall report to the Standing Committee of the National Assembly, the People's Council shall report to the Standing Committee of the People's Council, and for commune level, the People's Council shall report to the People's Council to adjust and reduce corresponding expenditure items;

3. In cases of urgent expenditures outside the budget but cannot be delayed and the budget reserve is insufficient, the Prime Minister and the Chairman of the People's Council must rearrange within the allocated budget or use reserve funds to meet such urgent needs as provided in Clause 2 of Article 9 of this Law;

4. If there are significant fluctuations in revenue and expenditure compared to the approved budget requiring overall adjustments, the Government shall submit to the National Assembly, and the People's Council shall submit to the People's Council at the same level to decide on adjusting the budget as provided in Clause 1 of Article 49 of this Law;

5. Annually, in cases where central government revenue exceeds the budget from shared revenue sources between the central and local budgets, the Government shall decide to allocate up to 30% of the excess revenue to the local budget, but not exceeding the increase over the previous year's actual revenue;

Based on the bonus amount decided by the Government, the Provincial People's Council shall report to the same-level People's Council to decide on using the excess revenue bonus for infrastructure construction, important tasks, and bonuses for lower-level budgets;

6. Periodically, the Government shall report to the Standing Committee of the National Assembly, the People's Council shall report to the Standing Committee of the People's Council; for commune level, the People's Council shall report to the People's Council on the implementation of provisions in Clauses 1, 2, 3, and 5 of this Article;

7. In cases of temporary shortfalls in the state budget fund, it may be temporarily borrowed from the financial reserve fund and other lawful financial sources; for the central budget, if the financial reserve fund and other lawful financial sources are insufficient, the State Bank shall temporarily lend to the central budget based on the Prime Minister's decision. Borrowings from the State Bank must be repaid within the fiscal year, except in special cases decided by the Standing Committee of the National Assembly.

Article 60.

1. Organizations and individuals obligated to pay into or use the state budget shall periodically report on the implementation of budget revenues and expenditures, accounting reports, final accounts, and other financial reports as prescribed by law.

2. Same-level financial authorities have the right to temporarily suspend budget payments from organizations and individuals who fail to comply with accounting, final account, and other financial reporting requirements and shall be responsible for their decisions.

Chapter VI

ACCOUNTING, AUDITING AND FINAL ACCOUNTS OF THE STATE BUDGET

Article 61.

1. Organizations and individuals responsible for collecting and disbursing the state budget shall organize accounting records, reporting, and final accounts in accordance with the state's accounting system.

2. The State Treasury shall organize the accounting of the state budget; regularly report on the implementation of budget revenue and expenditure forecasts to the same-level financial authority and relevant state agencies.

The Minister of Finance shall specify the state budget accounting system and financial reporting system.

Article 62.

1. At the end of the fiscal year, the Minister of Finance shall guide the closing of accounting books and the preparation of final accounts reports in accordance with the contents recorded in the allocated annual budget and the State Budget Appendix.

All revenues belonging to previous years' budgets submitted in the following year shall be accounted for in the following year's budget. Expenditures not completed or fully disbursed by December 31st, if authorized to continue in the following year, shall be accounted for in the adjustment period of the previous year's final accounts and included in the previous year's budget expenditures; if transferred to the next year's budget, they shall be accounted for in the following year's budget.

Article 63. Responsibilities of the Ministry of Science and Technology The surplus of the central budget and provincial budget shall be allocated 50% to the financial reserve fund, 50% to the next year's budget; if the financial reserve fund is already at its limit, the remaining amount shall be transferred to the next year's budget revenue.

The surplus of budgets at other levels in the locality shall be transferred to the revenue budget for the following year.

Article 64.

1. On the basis of the guidelines of the Minister of Finance, heads of units responsible for collecting and spending the budget shall prepare the final accounts of their unit's revenue and expenditure and submit them to the superior management agency.

2. For investment projects, at the end of the fiscal year, the project sponsor must prepare a report on the final settlement of the use of state budget funds during the year; upon completion of the project, they must prepare and report the final settlement of the project according to the law.

3. The figures in the final accounts must be verified and confirmed by the State Treasury where transactions take place.

4. Heads of higher-level budgetary units have the responsibility:

a) To check and approve the final accounts of revenue and expenditure of subordinate units and bear responsibility for the approved final accounts. Prepare the final accounts of revenue and expenditure within their jurisdiction and submit them to the same-level financial agency;

b) To inspect the procurement, management, and use of state assets by subordinate units;

c) For large-scale projects or tasks, propose the State Audit Agency to audit or use auditing services to have additional grounds for reviewing the final accounts according to the Government's regulations.

Article 65.

1. Financial agencies at all levels in the locality shall examine the final accounts of revenue and expenditure of agencies at the same level and lower-level budgets, compile, and prepare the final accounts of the local budget to submit to the People's Council at the same level for consideration and approval by the People's Council, and report to the administrative state agency and the higher-level financial agency directly.

2. The Ministry of Finance shall examine the final accounts of revenue and expenditure of Ministries, agencies equivalent to ministries, government agencies, and other central agencies, and local budgets; compile and prepare the final accounts of the state budget to submit to the Government.

3. During the examination of the final accounts, if errors are found, the financial agency has the right to request the approving agency to correct them, and at the same time handle or propose handling violations according to the law. In case of errors in the final accounts of the local budget, the higher-level financial agency has the right to request the People's Council to submit to the People's Council for correction, and at the same time handle or propose handling violations according to the law.

Article 66.

1. The State Audit Agency shall conduct audits to determine the accuracy and legality of the final accounts of the state budget at all levels and related agencies according to the law.

2. When performing its duties, the State Audit Agency has the right to operate independently and is responsible before the law for its audit conclusions; when necessary, the State Audit Agency may request relevant agencies to cooperate in carrying out its assigned tasks.

3. The State Audit Agency is responsible for reporting audit results to the National Assembly, the Standing Committee of the National Assembly, the Government, and other agencies as prescribed by law; conducting audits when requested by the National Assembly, the Standing Committee of the National Assembly, or the Government.

4. The audit of final accounts shall be carried out before the National Assembly or People's Council approves the final accounts; in cases where the audit is conducted after the National Assembly or People's Council has approved the final accounts, it shall be carried out according to the law.

Article 67.

1. The National Assembly shall approve the final accounts of the state budget not later than eighteen months, and the Provincial People's Council shall approve the final accounts of the local budget not later than twelve months after the end of the fiscal year; the Provincial People's Council shall specify the deadline for the People's Council at the lower level to approve the final accounts but not later than six months after the end of the fiscal year.

2. In cases where the final accounts of the budget have not been approved by the National Assembly or People's Council, the Government, People's Council within their respective duties and powers, and the State Audit Agency which has audited must continue to clarify issues required by the National Assembly or People's Council to submit to the National Assembly or People's Council at the time decided by the National Assembly or People's Council.

Article 68. In the process of preparing, approving, and examining the final accounts of revenue and expenditure, the following requirements must be ensured:

1. Revenue that does not comply with the provisions of the law must be refunded to organizations and individuals who have paid; amounts due but not yet collected must be fully recovered for the state budget;

2. Expenditure that does not comply with the provisions of the law must be fully recovered for the state budget.

Chapter VII

INSPECTION, AUDIT, REWARD, AND DISCIPLINARY ACTION FOR VIOLATIONS

Article 69. Within their respective duties and powers, state management agencies and budgetary units have the responsibility to inspect the implementation of revenue and expenditure systems and state budget management, and state asset management.

Article 70.

1. The Financial Inspectorate has the duty to inspect compliance with laws on revenue and expenditure and state budget management, and state asset management by organizations and individuals.

When conducting inspections, the Financial Inspectorate has the right to require organizations and individuals to present relevant documents and materials; if violations are discovered, they have the right to recommend competent authorities to recover into the state budget expenditures made in violation of regulations and amounts due according to the provisions.

Depending on the nature and degree of violation, the Financial Inspectorate has the right to handle or recommend competent state authorities to handle according to the law against organizations and individuals who violate.

The Financial Inspectorate is responsible for the inspection conclusions.

2. The Government shall specify the tasks, powers, and responsibilities of the Financial Inspectorate in inspecting the management and use of the budget and state assets.

Article 71.

1. Organizations and individuals who have achievements in implementing the state budget shall be rewarded according to the law.

2. Effective and economical management of the budget, increased investment in development, increased revenue, increased redistribution to higher-level budgets, and reduced supplementary balancing from higher-level budgets are the bases for evaluation and reward.

Article 72. The following actions are violations of the law on the budget:

1. Concealing sources of revenue, delaying or failing to fulfill the obligation to pay into the state budget;

2. Granting exemptions, reductions, delayed payments of budget contributions, and using revenue sources contrary to regulations or beyond authority.

3. Exploiting positions and powers to embezzle, causing damage to state budget revenues and state assets;

4. Collecting in violation of laws;

5. Expenditure in violation of regulations, not for intended purposes, not in accordance with the assigned state budget estimates;

6. Approving final accounts in violation of laws;

7. Accounting in violation of state accounting regulations and the State Budget Schedule;

8. Organizations and individuals permitted to self-declare, self-pay taxes, or request tax refunds who declare incorrectly, pay incorrectly;

9. Managing invoices and vouchers in violation of regulations; buying, repairing, forging invoices and vouchers; using illegal invoices and vouchers;

10. Delaying state budget expenditures, finalizing state budget accounts;

11. Other acts contrary to this Law and related legal documents.

Article 73. Organizations and individuals committing violations of state budget laws may be subject to disciplinary action, administrative penalties, or criminal prosecution depending on the nature and severity of the violation; if damage is caused, compensation must be made according to the provisions of the law.

Article 74. Organizations and individuals have the right to lodge complaints, report violations, and initiate lawsuits against violations of state budget laws. Complaints, reports, and lawsuits, as well as their resolution, shall be conducted in accordance with the provisions of the law.

Chapter VIII

IMPLEMENTING PROVISIONS

Article 75. Based on the provisions of this Law, the Government shall stipulate management and use of the state budget and state assets for certain activities in the defense and security sectors; establish special financial-budget mechanisms for Hanoi and Ho Chi Minh City; submit these regulations to the Standing Committee of the National Assembly for comments before implementation, and report to the National Assembly at the nearest session.

Article 76. This Law takes effect from the 2004 state budget year. This Law replaces the State Budget Law of 1996 and the Law Amending and Supplementing Certain Provisions of the State Budget Law of 1998. Previous provisions inconsistent with this Law are hereby abolished.

The collection, expenditure, and finalization of state budget accounts, and issues arising from the implementation of the state budget prior to the effective date of this Law, shall be governed by current laws.

Article 77. The Government shall provide detailed regulations and guidance for the implementation of this Law./.