Circular No. 119/2018/TT-BTC on the organization of implementing the state budget estimate for the year 2019

CIRCULAR

Regulations on the organization and implementation of the state budget for 2019

Pursuant to the State Budget Law dated June 25, 2015;

Pursuant to Resolution No. 70/2018/QH14 dated November 9, 2018 of the Fourteenth National Assembly on the state budget estimate for 2019;

Pursuant to Resolution No. 73/2018/QH14 dated November 14, 2018 of the Fourteenth National Assembly on the allocation of the central state budget for 2019;

Pursuant to Decree No. 87/2017/NĐ-CP dated July 26, 2017 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 163/2016/NĐ-CP dated December 21, 2016 of the Government detailing and guiding the implementation of certain provisions of the State Budget Law;

Implementing Decision No. 1629/QĐ-TTg dated November 23, 2018 of the Prime Minister on the allocation of the state budget estimate for 2019;

At the proposal of the Director of the State Budget Department;

The Minister of Finance issues this Circular regulating the organization and implementation of the state budget estimate for 2019.

PART I

GRADATION OF REVENUE SOURCES, EXPENDITURE TASKS AND ALLOCATION, ASSIGNMENT OF THE STATE BUDGET ESTIMATE FOR 2019

Article 1. Gradation of revenue sources and expenditure tasks of the state budget

1. Implement the mechanism for gradation of revenue sources and expenditure tasks between the central state budget and local state budgets as prescribed in Decree No. 163/2016/NĐ-CP dated December 21, 2016 of the Government detailing and guiding the implementation of certain provisions of the State Budget Law and Circular No. 342/2016/TT-BTC dated December 30, 2016 of the Ministry of Finance detailing and guiding the implementation of certain provisions of Decree No. 163/2016/NĐ-CP dated December 21, 2016 of the Government.

2. In 2019, which is the third year of the period of stable state budget (phase 2017-2020) as prescribed by the State Budget Law, maintain the stable percentage rate (%) of revenue distribution between the central state budget and local state budgets; for any additional balance adjustment to the state budget (if any), the central state budget will increase by 2% compared to the balance adjustment level of the state budget in 2017 decided by the National Assembly; supplement to the local state budget to implement the basic salary of 1,390,000 VND/month assigned by the Prime Minister to each locality in Decision No. 1629/QĐ-TTG dated November 23, 2018.

3. The gradation of revenue sources and expenditure tasks between the state budgets of various levels of local government authorities, the percentage rate (%) of revenue distribution among local state budgets shall be implemented strictly according to the resolutions of the People's Councils and decisions of the People's Committees at provincial level decided for the budget year during the period of stability. For 2019, based on the balancing capacity of the upper-level budget, the People's Committee at provincial level shall submit to the same-level People's Council for decision to increase the balance adjustment amount for the lower-level budget compared to the first year of the stability period. In special cases where new projects coming into operation generate significant additional revenue for the local budget, the People's Committee at provincial level shall submit to the same-level People's Council for decision in accordance with Clause 7, Article 9 of the State Budget Law.

Simultaneously, the provincial budget shall supplement the balance adjustment to the lower-level budget to implement salary reform according to the resolution of the provincial-level People's Council and the decision of the same-level People's Committee.

4. Implement the division and utilization of some specific revenue items as follows:

a) Revenue from environmental protection tax on gasoline and diesel products: In 2019, continue to stabilize the percentage (%) of environmental protection tax on gasoline and diesel products as in 2017, the first year of the 2017-2020 stable budget period. Accordingly: 37.2% of the revenue from environmental protection tax on gasoline and diesel products is divided between the central state budget and local state budgets; 62.8% of the revenue from environmental protection tax is fully allocated to the central state budget;

b) Continue to allocate 100% of the special consumption tax and value-added tax on gasoline and diesel products from the Nghi Son Refining and Petrochemical Plant to the central state budget;

c) Continue to allocate the revenue from water resource exploitation rights fees as prescribed in Decree No. 82/2017/NĐ-CP dated July 17, 2017 of the Government on the calculation method and fee rates for water resource exploitation rights, following the gradation regulations stipulated in Decree No. 203/2013/NĐ-CP dated November 28, 2013 of the Government on the calculation method and fee rates for mineral exploitation rights (for permits issued by central agencies, allocate 70% of the revenue to the central state budget and 30% to the local state budget; for permits issued by provincial People's Committees, allocate 100% of the revenue to the local state budget);

d) Collect the entire profit from oil and gas royalties and joint venture profits from the Vietnam-Russia Joint Venture (Vietsovpetro) to balance the state budget; the remaining profit shall be managed and used according to Article 34 of the Law on Management and Use of State Capital for Production and Business Investment in Enterprises of the Military Industry and Telecommunications Group (Viettel);

đ) As of January 1, 2019, all fines collected by market management forces for administrative violations shall be fully allocated to the central state budget;

e) Road usage fees and maritime security fees (after deducting collection costs) from vehicles and vessels shall continue to be paid into the central state budget for road maintenance and maritime safety. Specifically, the collection and use of maritime security fees for the Soai Rap channel shall be carried out in accordance with Document No. 9634/VPCP-KTTH dated November 9, 2016 and Document No. 8436/VPCP-KTTH dated August 10, 2017 of the Government Office;

g) Continue to implement the mechanism for balancing land use fees in the local state budget estimates for investment in economic and social infrastructure. Localities shall allocate revenues from land auction sales and land transfer fees (after compensating relocation and land clearance expenses) within their jurisdictions to the communal budget for implementing the new rural development program in accordance with Decision No. 1760/QĐ-TTG dated November 10, 2017 of the Prime Minister.

h) Continue to implement the mechanism for balancing revenue from lottery activities in the local budget estimate and use the entire revenue for investment spending, including allocating at least 60% of the estimated revenue from lottery activities decided by the Provincial People's Council in the Northern, Central, and Central Highlands provinces, and at least 50% in the Southeastern and Mekong Delta provinces for investment in education-training, vocational training, and healthcare. Localities allocate at least 10% of the revenue estimate to supplement capital for tasks under the National Target Program on New Rural Development. After ensuring funding for completed investment projects in the aforementioned fields approved by competent authorities, the remaining funds will be allocated for climate change response projects and other important projects funded by the local budget.

In the implementation process, if there is an increase in revenue compared to the estimate, localities shall proactively allocate funds for the execution of important tasks, prioritizing areas such as education-training, vocational training, healthcare, agriculture, rural development, and climate change response.

Article 2. Allocate the State Budget Revenue Estimate

1. Ministries, central agencies, provincial People's Committees, and centrally-administered city People's Committees shall implement the assignment of State budget revenue collection tasks for the year 2019 to subordinate units and lower-level authorities, ensuring that the minimum level is equal to the State budget revenue estimate assigned by the Prime Minister. In addition to assigning the State budget revenue estimate, ministries, central agencies, provincial People's Committees, and centrally-administered city People's Committees shall assign the task of collecting public service fees according to the provisions of the law to subordinate units (if applicable).

2. The allocation of the State budget revenue estimate for the year 2019 must be based on a thorough review, analysis, and evaluation of all sources of revenue generated and the results of State budget revenue collection in 2018; taking into account policies and laws on State budget revenue; forecasting economic growth rates for each industry and sector, business operations of taxpayers within their jurisdictions; strengthening tax inspection and anti-tax evasion efforts; preventing smuggling, commercial fraud, production and sale of counterfeit goods, transfer pricing, and tax evasion; actively urging the recovery of overdue taxes and applying coercive measures according to regulations to limit new arrears, recover tax amounts, penalties, and receivables as recommended by auditing bodies, concluded by supervisory bodies, and enforced by legal protection agencies.

Article 3. Allocation and Assignment of State Budget Expenditure Estimates

1. Allocation and Projection of Development Investment Expenditure:

a) Ministries, central agencies, and localities must allocate and assign the State budget revenue estimate for development investment in accordance with the provisions of the State Budget Law, Investment Law, and guiding documents. In cases where ministries and central agencies are assigned the State budget revenue estimate for construction investment from proceeds of land asset sales and land use rights transfers by the Prime Minister, they shall allocate and assign the estimates to projects and works that have been funded since 2016 to reflect revenues and expenditures in the State budget. The remaining portion shall be implemented in accordance with the Public Asset Management and Utilization Law and Decree No. 167/2017/ND-CP dated December 31, 2017 of the Government on the reorganization and handling of public assets.

b) The State budget revenue estimate for development investment shall be allocated to projects listed in the mid-term plan for State budget capital for the period 2016-2020, which have complete procedures as required, ensuring the allocation of funds to pay off 50% of the remaining outstanding construction debts and 30% of the advance capital from the State budget not yet recovered during the period 2016-2020; allocating funds to complete projects in the medium-term public investment plan within the prescribed time frame; focusing on accelerating the completion of important national programs, ongoing projects to be completed in 2019, counterpart funds for ODA programs and projects, and public-private partnership projects; after allocating sufficient funds for these tasks, if there are remaining resources, consider allocating them to newly initiated projects with complete investment procedures as stipulated by law, prioritizing urgent projects related to flood prevention, disaster relief, and environmental protection.

As of January 1, 2019, costs for planning, reviewing, deciding, approving, announcing, and adjusting plans using public investment funds shall be governed by the Planning Law, Resolution No. 11/NQ-CP dated February 5, 2018 of the Government on implementing the Planning Law, and laws on public investment.

d) In addition to the above allocation, distribution, and assignment of development investment expenditure estimates, provinces and centrally-administered cities need to pay attention to the following matters:

- Based on the development investment expenditure estimates assigned by the Prime Minister, the Ministry of Planning and Investment, and the Ministry of Finance, localities shall allocate corresponding surplus provincial budget revenues (if any) to repay principal loans due for repayment in 2019 and additional sources to repay interest on loans due in 2019 (if the allocated interest repayment budget is insufficient); the remaining funds shall be allocated for projects and works, ensuring adequate funding for projects and programs partially supported by the central budget to achieve specified objectives.

- The amounts of local loans refinanced from government loans for refinancing have been included in the total budget estimate for local development investment spending in 2019 as decided by the National Assembly, assigned by the Prime Minister, and allocated by the Ministry of Finance, including the total amount, program list, and project list for loaning. Based on the total foreign loan amount assigned and the anticipated disbursement capacity of signed loan agreements, localities allocate and assign budgets to each program and project, while only implementing disbursements within the scope of the assigned budget. In cases where projects have been assigned lower disbursement capital plans than the assigned budget, localities are permitted to allocate loan capital to new projects not yet listed in the project directory but must ensure that the total foreign loan capital for all programs and projects does not exceed the total loan budget assigned; at the same time, the loan capital for each program and project must not exceed the total loan budget approved for investment.

During the implementation process, based on the disbursement progress and borrowing capacity, localities may increase or decrease domestic loan sources and foreign loan sources for refinancing, but they must ensure that it does not exceed the total loan budget assigned (except for localities with outstanding debt exceeding the borrowing limit as stipulated by the State Budget Law).

- The allocation and assignment of funds for investment projects from local budget surplus (if any) must be consistent with the project implementation progress, borrowing capacity, and the assigned borrowing limit.

- Priority should be given to allocating funds from local development budgets for reforestation projects funded by taxes on natural forest timber resources as provided by law.

- Localities must allocate sufficient counterpart funds from their local budgets for ODA projects under their management as prescribed.

2. Allocation and assignment of regular expenditure budgets:

a) Ministries, central agencies, and localities must ensure that the allocation and assignment of regular expenditure budgets to budget-using units match the budgets assigned by the Prime Minister, guided by the Ministry of Finance, decided by the People's Council, and assigned by the People's Committee, both in terms of the total amount and detailed by each spending category; the budget allocation must comply with the timeframes specified, adhere to the established financial regulations and standards, and ensure adequate funding for implemented policies and systems, important tasks as prescribed by law, and tasks decided by authorized bodies. As of January 1, 2019, planning and evaluation costs will be included in the regular budget according to the Planning Law.

Simultaneously, the allocation and assignment of regular expenditure budgets must align with the progress and timeline for streamlining staffing, organizational restructuring, enhancing the autonomy of public service units, adjusting fees, etc., as stipulated by Party and State regulations (such as Resolution No. 18-NQ/TW dated October 25, 2017 on continuing reforms and restructuring the political system to enhance efficiency, Resolution No. 19-NQ/TW dated October 25, 2017 on improving the quality and efficiency of public service units, and Government Decrees on the autonomy mechanisms of public service units, etc.).

In addition to the above contents, ministries, central agencies, and localities must ensure the allocation of funds for inspection, testing, disposal of unsafe food products, and investment in technical equipment for agencies and units responsible for administrative violations related to food safety, corresponding to the revenue from fines collected according to the current state budget classification.

- For education and training services: Allocate and assign budget expenditures for subordinate agencies and units, and lower-level authorities, not less than the budget assigned by the Prime Minister.

- For science and technology services: Allocate and assign budget expenditures for subordinate agencies and units, and lower-level authorities, not less than the budget assigned by the Prime Minister, prioritizing funding for tasks concluding in 2019, transitional tasks, ensuring alignment with progress and disbursement capacity, and allocating remaining funds for new 2019 tasks. The allocation of science and technology activities funding by local budgets shall be carried out in accordance with the State Budget Law, Science and Technology Law, and guiding documents.

- For environmental protection services: Provincial People's Committees base their allocations on the budget guidelines issued by the Ministry of Finance, policy provisions, and the volume of tasks to be executed, submitting to the same-level People's Council for decision-making in line with the actual conditions of the locality. Funding for environmental protection services should not be allocated for construction projects with investment characteristics; priority should be given to funding environmental protection and restoration work in areas with mining activities; focusing on funding severe pollution control in public utility areas, school environments, waste disposal sites, and hotspots.

b) Based on the 2019 budget allocation, provinces and centrally-administered cities:

- Proactively allocate funds for the dissemination and education of laws as stipulated by the Law on Popularization and Education of Laws; grassroots dispute resolution work as provided by the Law on Grassroots Dispute Resolution; and the implementation of the overall plan to simplify administrative procedures, citizen documents, and related databases for population management during the 2013-2020 period.

- Prioritize allocating local budgets for population work as per Resolution No. 21-NQ/TW dated October 25, 2017 of the Sixth Plenary Session of the 12th Central Committee of the Communist Party of Vietnam on population work in the new situation.

- The central budget supports the local budget corresponding to 70% of the revenue from administrative fines for traffic safety violations that accrue to the central budget in each locality in 2017. The People's Committee at the provincial level shall submit to the People's Council at the same level for a decision on the use of the central budget support funds and local budget funds to implement tasks ensuring traffic order and safety, prioritizing the police force, transport inspectors, and addressing black spots and potential accident sites in accordance with the actual situation of the locality. The content and amount of expenditures shall be carried out in accordance with specific regulations of the Ministry of Finance.

- Localities manage and utilize supplementary targeted funds from the central budget allocated to the local budget from road usage fee revenues collected per vehicle, local budget funds, and other lawful financial sources to implement management and maintenance of roads under their responsibility according to the classification and authority levels.

- Proactively utilize local budget sources and central government budget support (if available) to implement legal aid policies for the poor and ethnic minority groups in poor districts, communes, and particularly difficult villages during the 2016-2020 period, and support complex litigation cases as stipulated in Decision No. 32/2016/QĐ-TTg dated August 8, 2016 of the Prime Minister; implement the Project to complete and modernize files, maps, administrative boundaries, and build databases on administrative boundaries as stipulated in Decision No. 874/QĐ-TTg dated May 25, 2016 of the Prime Minister.

- Allocate funds to implement central policies and systems up to the time of the state budget estimate for 2019. Based on the National Assembly's Resolution and the Prime Minister's Decision on the state budget estimate for 2019: For localities with expected surplus reform salary funds at the end of 2019 (after allocating funds for the 2019 salary reform according to the prescribed regulations), allocate and transfer funds from this source and targeted supplementary funds from the central budget to the local budget (if applicable) to implement social welfare policies issued by the central government, ensuring compliance with the provisions of Decision No. 579/QĐ-TTg dated April 28, 2017 of the Prime Minister regarding the principles of targeted support from the central budget to the local budget for implementing central social welfare policies during the 2017-2020 period. By the end of 2019, localities are responsible for compiling and reporting the results of implementing central social welfare policies, detailing the results for each social welfare policy and system, and any excess or shortfall compared to the 2019 budget estimate, which will be summarized by the Ministry of Finance and submitted to the competent authority for consideration and handling during the 2019 budget implementation process or in subsequent year budgets.

- Allocate and transfer the budget estimate to ensure the operation of local state agencies tasked with collecting fees. In cases where fee collection organizations apply financial mechanisms as prescribed in Decree No. 130/2005/NĐ-CP dated October 17, 2005, and Decree No. 117/2013/NĐ-CP dated October 7, 2013 of the Government on self-management and self-responsibility for the use of staffing and administrative management expenses for state agencies, they may retain collected fees according to the prescribed regulations to cover fee collection expenses.

- Allocate local budget resources to implement the overall development plan for e-commerce during the 2016-2020 period as stipulated in Decision No. 1563/QĐ-TTg dated August 8, 2016 of the Prime Minister; prioritize funding for the implementation of the Law on Information Technology, E-Government as stipulated in Resolution No. 36a/NQ-CP dated October 14, 2015 of the Government; land management funds to expedite the issuance of land use rights certificates as required; funds for surveying, demarcation, setting boundary markers, and creating land registry maps and issuing land use rights certificates for agricultural and forestry companies as stipulated in Decree No. 118/2014/NĐ-CP dated December 17, 2014 of the Government on the restructuring, reform, development, and improvement of the efficiency of agricultural and forestry companies; funds for surveying, creating land registry files, and issuing land use rights certificates as stipulated in Directive No. 144/CT-TTg dated August 24, 2011, Directive No. 05/CT-TTg dated April 4, 2013, and Decision No. 191/QĐ-TTg dated February 8, 2018 of the Prime Minister.

- For the 10 pilot provinces/cities (Bac Kan, Da Nang, Ha Giang, Ha Tinh, Lam Dong, Quang Ninh, Tay Ninh, Thai Binh, Ho Chi Minh City, and Tien Giang) implementing the merger of the Office of the Delegation of the National Assembly, the People's Council Office, and the People's Committee Office into the Office of the Delegation of the National Assembly, the People's Council, and the People's Committee as stipulated in Resolution No. 580/2018/UBTVQH14 dated October 4, 2018 of the Standing Committee of the 14th National Assembly: Ensure operational funds for the Office of the Delegation of the National Assembly, the People's Council, and the People's Committee in accordance with the provisions of Resolution No. 580/2018/UBTVQH14 dated October 4, 2018.

3. Allocation and transfer of budget estimates for national reserve expenditures:

Based on the Prime Minister's decision on the allocation and budget estimate for national reserves, the Minister of Finance allocates and transfers the budget estimate for purchasing goods for the national reserve to central ministries and agencies managing national reserve goods, ensuring alignment with the Prime Minister's allocated budget estimate. On this basis, heads of central ministries and agencies allocate and transfer plans to subordinate reserve units within the scope of the allocated budget and detail them according to each item category in accordance with the State Budget Law, the National Reserve Law, and decisions of the competent authority.

4. Allocation and transfer of budget estimates from targeted supplementary sources:

BASED ON Resolution No. 100/2015/QH13 dated November 12, 2015 of the National Assembly approving the investment orientation for national target programs during the period of 2016-2020, Resolution No. 73/NQ-CP dated August 26, 2016 of the Government approving the investment orientation for national target programs during the period of 2016-2020, Decision No. 41/2016/QĐ-TTg dated October 10, 2016 of the Prime Minister promulgating the management and operation regulations for implementing national target programs, and based on the budget estimates for implementing two national target programs, other national target programs, and certain tasks assigned by the Prime Minister; ministries, central agencies, provincial People's Committees under the Central Government:

a) Shall allocate and assign budgets to subordinate units and lower-level authorities in accordance with the objectives and legal provisions applicable to each program, project, and assigned task;

b) Based on actual circumstances, shall organize the implementation of support programs with specific targets from the central government budget, ensuring that local government budgets provide corresponding matching funds as prescribed, while simultaneously mobilizing other lawful resources as stipulated by law to implement the two national target programs and other national target programs;

c) In addition to the provisions at points a and b of this clause, ministries, central agencies, and localities shall allocate and assign detailed budgets for national target programs according to the content and component projects of each national target program for subordinate units in line with the content, objectives, and tasks of each program and project, and in accordance with current regulations. At the same time, allocate the budget for the New Rural Development National Target Program to implement the national criteria for new rural communes during the period of 2016-2020 as decided by the Prime Minister.

5. Allocation and assignment of expenditures from foreign loan and aid funds:

a) Ministries and central agencies shall allocate in detail to each fund user, itemized by each program and project, and ensure alignment with the total budget estimate and each expenditure category assigned by the Prime Minister;

b) Localities shall allocate in detail to each fund user, itemized by each program and project, and ensure alignment with the total budget estimate assigned by the Prime Minister.

6. Borrowing and repaying principal of provincial local government loans:

a) Localities may only borrow to cover deficits and repay principal within the limits determined by the National Assembly and assigned by the Prime Minister. For localities with budget estimates for borrowing to repay principal, after allocating funds for principal repayment as provided in subpoint c of this clause, the locality may borrow within the limit determined by the National Assembly and assigned by the Prime Minister (regardless of whether it is for principal repayment or deficit coverage), while the allocation and disbursement of funds for investment projects from such borrowing must be consistent with the schedule and permitted borrowing amount.

b) Allocate from surplus revenue; increase revenue, reduce expenditure; budget surplus to fully and timely repay principal debt due.

For localities that allocate from increased revenue, reduced expenditure; budget surplus to repay principal debt but actually have no source or insufficient allocation, they must reduce development investment capital in their local budget balance (increase surplus revenue) to fully and timely repay principal debt.

c) For localities with budget estimates for borrowing to repay principal: To ensure sufficient and timely sources for principal repayment, when allocating development investment capital, localities must proactively set aside funds to allocate for timely principal repayment and replenish development investment capital when actual borrowing is achieved according to plan; disburse and pay the investment capital only after achieving the planned borrowing. If borrowing is not achieved according to plan or only partially achieved, they must reduce development investment capital in their local budget balance (increase surplus revenue accordingly) to fully and timely repay principal debt.

7. Allocate contingency reserves for local government budgets in accordance with the State Budget Law to proactively use for the expenditure items specified in Clause 2, Article 10 of the State Budget Law.

8. During the process of deciding on budget revenue and expenditure allocations, if the People's Council decides on its own budget revenue higher than the upper level's allocation, then the additional budget expenditure allocation (excluding increases in expenditure from land use fees and lottery revenues) will correspondingly increase after reserving 50% of the additional revenue for salary reform as prescribed, the remainder should prioritize supplementing local government budget reserves, increasing financial reserve funds to proactively manage the budget process, and the remaining potential to achieve the newly allocated revenue budget to fund tasks, systems, social welfare policies decided by competent authorities, and settle construction works debts according to prescribed procedures.

9. Ministries, central agencies, and localities shall allocate investment capital plans to project owners in detail down to the Type and Item of the State Budget Classification System as prescribed in Circular No. 324/2016/TT-BTC dated December 21, 2016 of the Ministry of Finance regarding the State Budget Classification System.

Primary budget units shall prepare plans for allocating regular expenditures, national target program expenditures, and target program expenditures assigned to direct budget users, detailed down to the Type and Item and project code of the national target program and target program as prescribed in Circular No. 324/2016/TT-BTC dated December 21, 2016 of the Ministry of Finance regarding the State Budget Classification System.

10. For state agencies implementing the self-management mechanism, responsible for using staffing levels and administrative management expenses according to Decree No. 130/2005/NĐ-CP dated October 17, 2005, and Decree No. 117/2013/NĐ-CP dated October 7, 2013 of the Government amending and supplementing certain provisions of Decree No. 130/2005/NĐ-CP, the allocation and assignment of budgets shall be carried out in accordance with Circular Joint No. 71/2014/TTLT-BTC-BNV dated May 30, 2014 of the Ministry of Finance and the Ministry of Home Affairs on the self-management system and responsibility for using administrative management expenses for state agencies.

11. For public service organizations entrusted to implement the self-management mechanism in accordance with government decrees, resolutions, and decisions of the Prime Minister, the allocation and assignment of state budget revenue and expenditure shall be based on the assigned tasks for 2019, classification of public service organizations, state budget estimates ensuring regular operations during the first year of the stabilization period approved by the competent authority (for public service organizations fully self-financing regular expenditures and investment expenditures, fully self-financing regular expenditures, partially self-financing regular expenditures, and public service organizations fully financed by the State for regular expenditures); detailed estimates divided into two parts: part of the state budget estimate for regular expenditures, part of the estimate for non-regular tasks.

For public service organizations not yet entrusted by the competent authority to implement the self-management mechanism, the allocation and assignment of expenditures shall be included in the estimate for non-regular tasks.

For some public higher education institutions authorized by the competent authority to continue implementing the pilot reform mechanism stipulated in Resolution No. 77/NQ-CP dated October 24, 2014 of the Government, they shall implement comprehensive self-management and responsibility in accordance with the decision of the competent authority.

12. In addition to the allocation and assignment guidelines provided in this Circular, ministries, central agencies, and localities must also comply with other relevant provisions of the State Budget Law and guiding documents for the implementation of the State Budget Law.

Article 4. Implementation of mechanisms to create sources for salary and allowance systems in 2019

1. Ministries, central agencies, and localities shall continue to implement the mechanism to create sources for salary reform in conjunction with restructuring organizational structures, reducing staff establishments, enhancing financial autonomy of public service organizations, striving to increase revenues as prescribed to reserve funds to adjust the basic salary to VND 1,490,000 per month from July 1, 2019.

2. When ministries and central agencies allocate and assign budgets to subordinate units; when provincial and centrally-administered city people's committees allocate and assign local budgets to lower-level budgets, they must determine to save 10% of regular expenditures in 2019 (excluding salaries, allowances attached to salaries, items with the nature of salaries, and expenditures for personnel according to regulations) as prescribed to create sources for salary reform, ensuring that it is not less than the amount allocated by the Ministry of Finance.

People's committees at all levels shall not include 10% of regular expenditure savings mentioned in this clause (excluding public service organizations implementing financial mechanisms as prescribed in Decree No. 16/2015/NĐ-CP dated February 14, 2015 of the Government, Decree No. 54/2016/NĐ-CP dated June 14, 2016 of the Government on the self-management mechanism of public scientific and technological organizations and state agencies implementing the self-management mechanism responsible for using staffing levels and administrative management expenses according to Decree No. 130/2005/NĐ-CP dated October 17, 2005 of the Government and Decree No. 117/2013/NĐ-CP dated October 7, 2013 of the Government amending and supplementing certain provisions of Decree No. 130/2005/NĐ-CP) to implement salary reform in 2019.

3. Sources for salary reform in 2019 of localities include:

a) 50% of increased local budget revenue in 2018 compared to the estimate (excluding land use fees and lottery proceeds) assigned by the Prime Minister;

b) 50% of increased local budget revenue (excluding land use fees and lottery proceeds) estimated in 2018 compared to the estimate in 2017 assigned by the Prime Minister;

c) 50% of increased local budget revenue (excluding land use fees and lottery proceeds) estimated in 2019 compared to the estimate in 2018 assigned by the Prime Minister;

d) 50% of local budget funds reduced for regular activity support in the administrative sector (due to implementing staff reduction and reform, reorganization of the political system to be leaner, more effective, and efficient) and public service organizations (due to implementing reforms in the organizational structure and management system, improving quality and efficiency of public service organizations);

đ) Unutilized sources for salary reform in 2018 transferred over;

e) 10% of regular expenditure savings (excluding salaries, allowances attached to salaries, items with the nature of salaries, and expenditures for personnel according to regulations) estimated in 2017 assigned by the competent authority;

g) 10% of regular expenditure savings (excluding salaries, allowances attached to salaries, items with the nature of salaries, and expenditures for personnel according to regulations) additional estimated expenditure in 2018 compared to the estimate in 2017;

h) 10% of regular expenditure savings (excluding salaries, allowances attached to salaries, items with the nature of salaries, and expenditures for personnel according to regulations) additional estimated expenditure in 2019 compared to the estimate in 2018;

i) Using at least 40% of retained revenue under the regime in 2019. Specifically, for revenue from providing medical examination, treatment, preventive health care, and other health services by public health facilities, at least 35% shall be used. The scope of retained revenue shall be implemented according to the guidance of the Ministry of Finance regarding the needs and sources for salary reform in 2019.

4. The central budget supports additional salary adjustment needs for ministries, central agencies, and localities with difficult budgets after balancing the sources for salary adjustments that have not yet met the actual requirements for implementing the salary reform according to the prescribed regulations.

After balancing the sources to implement the salary reform mentioned in Clause 3 of this Article, localities proactively use their remaining salary reform funds to implement social welfare policies and systems issued by the central government (reducing the corresponding portion of the central budget support according to the regulations) as stipulated in Decision No. 579/QD-Ttg dated April 28, 2017 of the Prime Minister.

Article 5. Time for Allocation, Assignment of Budget Estimates, and Inputting Budget Estimates into the Tabmis System

1. Based on the approved revenue and expenditure budget estimates, ministries and central agencies decide on the allocation and assignment of budget estimates to each budget-using unit; People's Committees at all levels submit to the People's Councils at the same level for approval of the revenue budget estimate for state budget on their territory, the expenditure budget estimate for the local budget, and the allocation of budget estimates for their own level to ensure the time for assigning revenue and expenditure budget estimates for 2019 to each budget-using unit in accordance with the procedures, requirements, and deadlines specified in Articles 49 and 50 of the State Budget Law; organize the public disclosure of budget estimates in accordance with the State Budget Law, guiding documents for the implementation of the State Budget Law, and the guidance provided in Article 12 of this Circular.

2. Provincial People's Committees are responsible for reporting the results of the allocation and assignment of local budget estimates to the Ministry of Finance no later than five working days after the People's Council at the same level decides on the budget estimates; report the outstanding debt of raised capital up to December 31, 2018 and the borrowing and repayment plan for 2019 of the local budget to the Ministry of Finance before January 31, 2019; report revenue, expenditure, and the balance of the Financial Reserve Fund according to the specific regulations of the Ministry of Finance.

3. Based on the approved 2019 revenue and expenditure budget estimates assigned by the Prime Minister and People's Committees, primary budget estimate units of the central budget and local budget levels implement the allocation and assignment of revenue and expenditure budget estimates to subordinate budget-using units, send them to the financial authorities at the same level, and simultaneously send them to the State Treasury where transactions take place to comply with the provisions of Article 49, Article 50 of the State Budget Law, Article 31 of Decree No. 163/2016/NĐ-CP dated December 21, 2016 of the Government detailing some provisions of the State Budget Law, and Article 13 of Circular No. 342/2016/TT-BTC dated December 30, 2016 of the Ministry of Finance detailing and guiding the implementation of some provisions of Decree No. 163/2016/NĐ-CP of the Government. At the same time, if the financial authority agrees with the allocation and assignment of budget estimates by the primary budget estimate unit, the financial authority shall issue a notification to inform the primary budget estimate unit.

In case the primary budget estimate unit does not agree with the requirements of the financial authority, the primary budget estimate unit reports to the competent authority for consideration and handling in accordance with Clause 4 of Article 13 of Circular No. 342/2016/TT-BTC dated December 30, 2016 of the Ministry of Finance.

Additionally, in cases where tasks have not been clearly identified for execution in the annual budget estimates of primary budget estimate units at the locality level and anticipated contents that have not yet received approval from the People's Committee at the same level to allow implementation, based on the provisions of the State Budget Law and guiding documents for the Law and the actual situation at the locality, one of the following two options shall be implemented:

a) After the People's Committee assigns the budget estimates, primary budget estimate units at the locality level, based on the functions and responsibilities of subordinate units and anticipated tasks assigned to these units for execution, allocate budget estimates to subordinate units; at the same time, in the decision on the assignment of budget estimates, clearly record the anticipated contents that have not yet received approval from the People's Committee to allow implementation and can only be executed upon assignment by the competent authority. During the implementation process, if there is a surplus or shortage of funds in any unit, the primary budget estimate unit shall adjust the budget estimates between subordinate units in accordance with the State Budget Law and guiding documents.

b) The financial authority reports to the People's Committee at the same level that it has not assigned to primary budget estimate units for tasks that have not been clearly identified for execution in the annual budget estimates of primary budget estimate units and anticipated contents that have not yet received approval from the People's Committee to allow implementation. When such tasks arise and are decided by the competent authority, the financial authority shall report to the People's Committee at the same level to issue a decision to supplement the budget estimates for primary budget estimate units.

4. The inputting of budget estimates into the Tabmis system is carried out in accordance with the guidelines issued by the Ministry of Finance regarding the procedures and formalities for inputting budget estimates into the Tabmis system.

Chapter II

ORGANIZATION OF STATE BUDGET MANAGEMENT AND IMPLEMENTATION

Article 6. State budget revenue management organizations

1. Implement in accordance with the provisions of Article 55 of the State Budget Law. At the same time, pay attention to implementing the following contents:

a) Organize the effective implementation of legal regulations on tax that have been amended, supplemented, and come into effect.

b) Continue to implement key solutions to improve the business environment, enhance national competitiveness in 2018 and subsequent years as stipulated in Resolution No. 19-2018/NQ-CP dated May 15, 2018 of the Government. Continue to implement the interconnection of electronic documents from the Government to provincial, district, and commune levels as stipulated in Resolution No. 36a/NQ-CP dated October 14, 2015 on e-Government and Resolution No. 35/NQ-CP dated May 16, 2016 of the Government on supporting and developing enterprises until 2020; apply information technology to link with administrative reform, electronic declaration, payment, refund of taxes, and tasks and solutions to enhance competitiveness and improve the business environment.

2. Strictly organize the implementation of Directive No. 15/CT-TTg dated June 15, 2018 of the Prime Minister on organizing the effective implementation of the Law on Supporting Small and Medium Enterprises; Decree No. 119/2018/NĐ-CP dated September 12, 2018 of the Government on electronic invoices when selling goods and providing services and Directive No. 04/CT-BTC dated October 15, 2018 of the Minister of Finance on strengthening the management of debts and enforcement of tax recovery to reduce tax arrears under the management of the tax sector.

3. Tax and Customs authorities strengthen monitoring, inspection, and control over tax declarations by organizations and individuals in accordance with the law on tax, declaration of commodity names, codes, tax rates, value, quantity, etc., to promptly detect cases of incorrect, incomplete declarations, tax fraud. Strengthen tax inspection and audit work, debt collection, anti-smuggling, trade fraud, fake goods, tax evasion, transfer pricing, etc., ensuring timely and full collection of all taxes, fees, and other revenues into the state budget. Manage VAT refunds in accordance with the law, manage VAT refunds within the approved budget for 2019; at the same time, create favorable conditions for taxpayers; conduct pre- and post-refund inspections in accordance with the law and risk levels; promptly detect and strictly handle fraudulent activities, abuse of refund policies, and embezzlement of state funds. Review projects that have exceeded the period of tax exemption and reduction benefits; mineral exploitation permits to implement timely and full collection of revenues from mineral exploitation rights. Review and specifically identify entities currently receiving land allocation or lease from the state, especially those projects that have exceeded the period of benefit according to the Land Law 2013; environmental resources agencies complete land-related files and transfer them to the tax agency to determine financial obligations and urge timely and full payment of land-related revenues into the state budget.

4. Ministries, central agencies, localities fully and promptly implement the Law on Management and Use of Public Assets and detailed implementing regulations; strictly implement Directive No. 31/CT-TTg dated November 2, 2016 of the Prime Minister on strengthening management and enhancing the efficiency of public asset use. Organize reviews, inspections, and urging the implementation of plans for restructuring and handling of houses and lands that have been approved by competent authorities; ensure the reorganization and handling of vehicles, machinery, and equipment in accordance with standards and usage norms for public assets.

5. Localities shall not record service charges and fees transferred to service prices according to the Law on Fees and Charges into the state budget. Promptly implement cost allocation for operations or determine retained amounts for service activities conducted by public institutions and state-owned enterprises represented by provincial People's Committees. Only submit remaining fees and charges to the budget in accordance with the law on fees and charges and related laws as guided by Circular No. 6084/BTC-NSNN dated May 25, 2018 of the Ministry of Finance.

Article 7. Organization of budget expenditure management

Ministries, central agencies, localities, and budget users shall implement budget spending within the approved budget estimates; financial agencies and the State Treasury shall organize budget management within the approved estimates, strictly controlling expenditures in accordance with purposes, standards, norms, and regulations. In particular, note:

1. For ODA and preferential loan sources: Implement in accordance with the provisions of the Law on Public Debt Management and guiding documents of the Law on Public Debt Management, while in management, pay attention to implementing:

a) For centrally allocated funds: In case new loans are issued or disbursements exceed the approved budget estimate during the year, ministries, central agencies, and localities shall report to the Ministry of Planning and Investment (for development expenditure) and the Ministry of Finance (for regular expenditure if applicable) for consolidation and submission to the Prime Minister for reporting to the Standing Committee of the National Assembly for consideration and decision.

b) For government loans to be relented to provincial people's committees, disbursement shall be within the total loan and budget deficit estimates approved by the National Assembly (if applicable).

2. For non-reimbursable aid sources that have been approved for receipt:

In cases where there is an overrun of the budget or new occurrences arise: The Minister of Planning and Investment shall be responsible for handling, in coordination with relevant ministries and agencies, for foreign aid grants for programs and projects under investment development expenses; and the Minister of Finance shall be responsible for handling, in coordination with relevant ministries and agencies, for foreign aid grants directly supporting the state budget, supporting programs and projects under regular expenditure tasks, and non-project support, based on agreements already signed between the State, Government, and Vietnamese state agencies with donors to report to the Government to report to the Standing Committee of the National Assembly to supplement the 2019 budget with this aid funding; on this basis, the Ministry of Planning and Investment and the Ministry of Finance shall notify relevant ministries, equivalent agencies, government-affiliated agencies, provincial people's committees under central jurisdiction to implement accordingly.

3. Direct relevant agencies and units to proactively allocate funds from the beginning of the year for important projects and works according to prescribed regulations, especially projects for repairing embankment and water conservancy works, disaster prevention and control, disease control, flood aftermath recovery, and relocation from dangerous landslide areas, which have been decided by competent authorities.

4. Regularly organize inspections and evaluations of project implementation progress; for projects and works not being implemented according to schedule, timely decisions or reports to competent authorities for adjustment to transfer funds to projects with faster progress and potential for completion in 2019 but not yet fully funded.

5. The regular expenditure and national reserve fund budget for 2019 shall be assigned by the Ministry of Finance to ministries and central agencies, clearly stating expenditures in foreign currency. For equivalent funds of 500,000 USD or more annually, they shall be guaranteed to be spent in foreign currency according to the approved budget and consistent with the progress of tasks. During execution, the State Treasury will still monitor according to the allocated domestic currency budget for the unit. If due to exchange rate fluctuations, the domestic currency budget is exhausted but the foreign currency budget remains, the unit shall submit a document requesting the Ministry of Finance to consider and promptly handle supplementary domestic currency funds; for amounts less than 500,000 USD annually, central ministries and agencies may withdraw the foreign currency budget according to the accounting exchange rate at the time of transaction, but not exceeding the allocated domestic currency budget.

6. For centrally-administered provinces if there is a need to spend on wide-scale disaster prevention and control, disaster relief, epidemic control, national defense, security, and other urgent tasks outside the budget that remain insufficient even after rearranging the budget and using up the contingency fund, the provincial People's Committee shall decide to use the provincial financial reserve fund to meet these spending needs according to point b, Clause 2, Article 11 of the State Budget Law.

7. For land use revenue, lottery revenue, and other revenues tied to specific expenditure tasks, localities must base their management on the approved budget and actual collection progress; if projected revenue decreases compared to the budget and cannot be offset by increases in other revenues, they must proactively review, cut, or delay the implementation of projects and works funded from these revenues.

8. Direct relevant agencies and units to cooperate with financial agencies to regularly inspect the implementation of systems and policies in units and lower-level budgets; strictly manage state budget expenditures according to the allocated budget, disburse funds within the plan, borrow within the limit, and minimize advance budget appropriations; advance appropriations must comply with the provisions of the State Budget Law.

Implement thorough savings in regular expenditures, significantly reduce conference, seminar, ceremonial, research, and overseas survey expenses; allocate equipment procurement funds strictly and in accordance with regulations; promote the implementation of vehicle usage quotas; do not allocate budgets for unissued policies; only issue policies increasing state budget expenditures when truly necessary and with assured funding sources. Reform administrative procedures, expand information technology applications, ensure the construction of a modern national administration, seamless connectivity, and enhanced supervision in managing state budget expenditures. Proactively arrange regular expenditures, prioritizing important tasks, ensuring resources for social welfare policies and salary adjustments, and preventing arrears in civil servant salaries and social security policies.

In cases where levels and units using the budget improperly execute payments and expenditures contrary to policies and regulations, particularly those related to social security goals such as poverty alleviation, immediate measures must be taken to ensure policies and regulations are properly and effectively implemented.

Based on the results of implementing central-level social welfare policies, localities shall compile the total additional funding requirements to implement these policies (including subsidies for the use of public utility products and services under the Water Resources Law) and allocate sources as follows:

a) Additional funding requirements that the central budget must supplement in 2019 include:

- For social welfare policies that have been specifically defined with the ratio of support from the central budget to the local budget in each regulatory legal document issued by the Government or the Prime Minister (including the small-scale livestock farming policy pursuant to Decision No. 50/2014/QD-TTg dated September 4, 2014 of the Prime Minister and the guidance provided in Circular No. 205/2015/TT-BTC dated December 23, 2015 of the Ministry of Finance): Aggregate the demand for state budget funds to ensure, the additional funding demand, clearly identifying the portion of the central budget that must be supplemented to the local budget for the additional funding according to the ratio of support from the central budget to the local budget for each policy.

- For the remaining social welfare policies: Aggregate the demand for state budget funds to ensure, the additional funding demand, clearly identifying the portion of the central budget that must be supplemented to the local budget for the additional funding according to the ratio of support from the central budget to the local budget as stipulated in Clause 1, Article 1 of Decision No. 579/QD-TTg dated April 28, 2017 of the Prime Minister on the principle of targeted support from the central budget to the local budget to implement social welfare policies during the period 2017-2020.

b) In cases where localities still have surplus funds from salary reform (after ensuring the implementation of salary reform in the year), they shall reduce the corresponding portion of the central budget support mentioned in point a of this clause.

c) After offsetting between the additional state budget support funding needs mentioned in points a and b of this clause, if there is a shortfall, the central budget will supplement the difference for each locality as prescribed.

9. Accelerate the implementation of Resolution No. 18-NQ/TW dated October 25, 2017 on continuing to innovate and reorganize the organizational structure of the political system to be leaner, more effective, and efficient; Resolution No. 19-NQ/TW dated October 25, 2017 of the Central Committee of the Communist Party of Vietnam, the 12th tenure, on innovating the organizational system and management, improving the quality and efficiency of public service units. For localities, use the portion of state budget funds reduced due to implementing these Resolutions according to the following principles:

a) 50% to be added to the salary reform fund to cover the increased salary payments due to the increase in the basic salary level in each corresponding expenditure area;

b) The remaining 50% to be used to pay for social welfare policies issued by the locality and to increase funding for strengthening material infrastructure in the corresponding field. The decision on funding for each item shall be made by the locality in accordance with the provisions of the State Budget Law.

At the end of the 2019 fiscal year, the People's Committees of provinces and centrally-administered cities shall report to the Ministry of Finance on the results of reducing state budget expenditures detailed according to the provisions of points a and b of this clause.

10. Localities shall use the funds to implement Decision No. 102/2009/QD-TTg dated August 7, 2009 of the Prime Minister on direct support policies for poor households in difficult areas to pay on behalf of the central budget support for implementing social welfare policies in the social security field. The remainder, if any, shall be aggregated to pay on behalf of the central budget support for implementing other social welfare policies within their jurisdiction as stipulated in Decision No. 25/2018/QD-TTg dated June 6, 2018 of the Prime Minister.

11. The state budget shall not provide funding for the operation of state financial funds outside the state budget. Where state budget funding is provided for capital contributions in accordance with the law, it must be commensurate with the capacity of the state budget and only implemented when the following conditions are met: established and operating in accordance with the law; having independent financial capacity; having sources of revenue and expenditure tasks that do not overlap with those of the state budget.

12. Report on the implementation of the state budget estimate as prescribed.

Article 8. Implementation of disbursement and payment of funds

1. For budget-using units:

Based on the allocated state budget estimate, the budget-using unit shall withdraw the state budget estimate for expenditure according to the prescribed regulations and ensure compliance with the standards and norms of state budget expenditure issued by competent state agencies and the progress and volume of task implementation; ensuring the principle:

a) Expenditures for individual payments (salaries, allowances, social benefits, etc.) shall ensure monthly payment to individuals receiving salaries and social benefits from the state budget. Ministries, central agencies, and People's Committees of provinces and centrally-administered cities shall direct and organize the payment of salaries through bank accounts for individuals receiving salaries; the State Treasury shall closely cooperate with the State Bank and service providers to implement the payment of salaries through bank accounts for individuals receiving salaries from the state budget according to Directive No. 20/2007/CT-TTg dated August 24, 2007 of the Prime Minister;

b) Timely remit contributions (Social Insurance, Health Insurance, Unemployment Insurance, trade union fees) to the competent authority as prescribed by law;

c) Expenditures with seasonal characteristics or only occurring at certain times such as construction investment, procurement, repairs, and other non-recurring expenditures: implement payments according to the progress and volume of work for contracted expenditures and according to the prescribed regulations for non-contracted expenditures; ensure that state budget expenditures are within the scope of the state budget estimate allocated by the competent authority.

2. Ministries, central agencies, and localities shall withdraw the state budget estimate at the State Treasury for expenditures as stipulated in Article 18 of Circular No. 342/2016/TT-BTC dated December 30, 2016 of the Ministry of Finance.

3. Ministries, central agencies, and localities shall issue payment orders for disbursement tasks as prescribed in Article 19 of Circular No. 342/2016/TT-BTC dated December 30, 2016, issued by the Ministry of Finance. For Party agencies and national defense and security sectors, the issuance of payment orders for disbursements shall be carried out according to separate documents.

4. In cases where the local budget has been advanced from the central budget's targeted supplementary budget for capital investment, it must be recovered from the central budget's targeted supplementary budget for the local budget in 2019. The Ministry of Finance shall notify the State Treasury to deduct the advance amount from the initial budget allocated to the locality; the remaining portion shall be withdrawn according to regulations applicable to targeted supplementary budgets from the central budget to the local budget. The recovery of the advanced amount for the local budget shall be as follows:

a) For advances made in the form of payment orders, the recovery of such advances shall also be carried out in the form of payment orders from the central budget;

b) For advances made in the form of budget withdrawals, the State Treasury at the transaction location shall adjust the accounting from advances to actual expenditures from the central budget and actual receipts from the local budget supplemented from the central budget.

5. In cases where the higher-level budget advances the supplementary targeted budget for the following year's capital investment to the lower-level budget during the year, when withdrawing the budget and spending from the advance, the income and expenditure must be recorded in the following year's budget according to the regulations.

6. Regarding the targeted supplementary budget from the central budget to the local budget:

a) The level of withdrawal and the format of the withdrawal notice for the targeted supplementary budget from the central budget to the local budget shall be implemented in accordance with the provisions of Circular No. 342/2016/TT-BTC dated December 30, 2016, issued by the Ministry of Finance;

b) In cases where the targeted supplementary budget from the central budget to the local budget arises during the implementation of the budget (including advances for targeted supplementary capital investment from the central budget to the local budget), it shall be carried out as follows:

- The allocation and assignment of the additional budget must be completed no later than ten working days (counting from the date of receipt of the decision on additional budget allocation) in accordance with the provisions of Clause b, Paragraph 2, Article 50 of the State Budget Law.

- Supplementary targeted funds from the central budget to the local budget arising during the implementation of the budget for the purpose of carrying out tasks related to disaster prevention, mitigation, firefighting, disease control, or urgent and critical tasks: based on the decision of the competent authority, the Ministry of Finance shall issue a notice to supplement outside the budget for the local budget. Based on the notice from the Ministry of Finance, the Department of Finance shall withdraw the budget at the State Treasury transaction location.

- For advances for supplementary targeted capital investment from the central budget to the local budget: based on the decision of the competent authority, the Ministry of Finance shall issue a notice, and the Department of Finance shall withdraw the advance budget at the State Treasury transaction location. The Department of Finance shall prepare a notice to withdraw the advance budget for the following year according to the regulations.

- For advances from the central budget to the local budget, when withdrawing the advance amounts, temporary income and expenditure accounting shall be conducted and recovered according to the regulations (adjustment to actual income and expenditure accounting in cases where it becomes a supplementary amount for the local budget or reduction of temporary income for the local budget and reduction of temporary expenditure for the central budget in cases where it must be returned to the central budget).

7. Regarding the supplementary amount from the higher-level budget to the lower-level budget at the local level:

a) The level of withdrawal of the balanced supplementary budget from the higher-level budget to the lower-level budget: shall be implemented in accordance with the provisions of Clause 2, Article 18 of Circular No. 342/2016/TT-BTC dated December 30, 2016, issued by the Ministry of Finance;

b) The level of withdrawal of the targeted supplementary budget from the higher-level budget to the lower-level budget (including supplementary budgets outside the initial budget allocation for the year): shall be implemented in accordance with the provisions of Clause 3, Article 18 of Circular No. 342/2016/TT-BTC dated December 30, 2016, issued by the Ministry of Finance;

c) Accounting for supplementary amounts from the higher-level budget to the lower-level budget at the local level shall be carried out in accordance with the regulations applicable to supplementary amounts from the central budget to the local budget.

8. The review and verification of data on the withdrawal of supplementary balanced budget and targeted supplementary budget from the higher-level budget to the lower-level budget shall be carried out in accordance with the provisions of Clause 4, Article 18 of Circular No. 342/2016/TT-BTC dated December 30, 2016, issued by the Ministry of Finance.

Quarterly, the People's Committee of the province shall be responsible for compiling and reporting to the Ministry of Finance the situation of implementing the central budget's supplementary targeted funds to implement policies as specified in Appendix No. 01 attached to this Circular. In cases where the locality does not comply with the reporting system or reports inaccurately and incompletely, the Ministry of Finance will suspend the provision of supplementary funds to the locality until the locality provides complete reports.

9. The payment of state budget debts shall be carried out in accordance with the provisions of Article 21 of Circular No. 342/2016/TT-BTC dated December 30, 2016, issued by the Ministry of Finance.

Article 9. Implementation of Adjustments to the Budgetary Estimates of Units Using the Budget

1. In cases where the primary budget unit is assigned an additional budget by the competent authority to carry out emerging tasks, the primary budget unit must complete the allocation and assignment of the additional budget within no more than ten working days (counting from the date of receipt of the decision on additional budget allocation) in accordance with Articles 49 and 50 of the State Budget Law.

2. In cases where there is a request to adjust the budget estimate among subordinate budget-using units without changing the total amount and the detailed allocation for each spending category assigned, the first-level budget unit shall be responsible for examining the necessity, basis for adjustment, checking the remaining budget balance of related budget-using units, deciding on the budget adjustment, and simultaneously sending it to the same-level financial agency for inspection according to regulations and implementing the budget adjustment on the Tabmis system, while also sending it to the State Treasury at the transaction location as the basis for expenditure control and payment. If the financial agency checks and does not agree with the adjustment of the first-level budget unit or finds that there is no longer sufficient budget balance for adjustment, it shall notify the first-level budget unit to make adjustments again.

3. In cases where the budget estimate is adjusted from non-autonomous funds to autonomous funds; from non-recurring funds to recurring funds; from domestic currency expenditures to foreign currency expenditures; or adjusting the increase or decrease in the budget estimate of spending tasks within the allocated budget but which have been noted as funds for implementing spending tasks in the annual budget allocation decision or supplementary budget allocation decision of the competent authority during the year, the unit must obtain the agreement of the same-level financial agency to ensure the proper allocation of funds to implement the assigned tasks. The deadline for the unit to send the same-level financial agency a request for budget adjustment is no later than October 31 of the current year.

4. In cases where the budget estimate is adjusted between Vietnamese agencies abroad, it shall be carried out in accordance with the guidelines of the Ministry of Finance regarding the financial management system and asset management for Vietnamese agencies abroad.

5. The time for adjusting the allocated budget estimates for budget-using units to be completed before November 15 of the current year, and simultaneously sent to the same-level financial agency for inspection and adjustment on the Tabmis system according to regulations.

6. Adjustments to the development investment budget are implemented in accordance with the provisions of the Law on Public Investment, Decree No. 77/2015/NĐ-CP dated September 10, 2015 of the Government, and Decree No. 120/2018/NĐ-CP dated September 13, 2018 of the Government amending and supplementing certain articles of Decree No. 77/2015/NĐ-CP on the medium-term public investment plan and annual plans.

Article 10. Implementation of transfer to the next year's budget

Ministries, central agencies, and localities shall review and strictly manage the transfer of regular spending items to the following year, only transferring according to the provisions of Clause 3, Article 64 of the State Budget Law, Article 43 of Decree No. 163/2016/NĐ-CP dated December 21, 2016 of the Government detailing certain provisions of the State Budget Law, and other documents of the Government and the Prime Minister on state budget management in 2019.

Article 11. Practice thrift, combat waste; prevent and combat corruption

In addition to thoroughly implementing the savings on regular spending items as stipulated in Clause 7, Article 7 of this Circular, ministries, central agencies, and localities shall organize and direct the full implementation of the provisions of the Law on Anti-Corruption, and the Law on Thrift and Combating Wastefulness. At the same time, promptly and fully address any violations discovered through inspection, audit, and investigation work; clarify the responsibility of each organization and individual, and enforce accountability measures against the heads of budget-using units in managing and operating the budget when losses, wastefulness, or improper use of the budget occur.

Article 12. Implementation of Publicizing State Budgets

1. All levels of budget shall implement publicizing state budgets in accordance with Circular No. 343/2016/TT-BTC dated December 30, 2016 of the Ministry of Finance on guiding the implementation of publicizing state budgets at all levels.

The People's Committee of the province shall establish on the website/gateway of the People's Committee, and direct the Department of Finance and the People's Committee of the district (for districts that have websites/gateways) to set up special sections for publicizing budgets on the website/gateway to publicize data and explanatory reports on budgets as prescribed, including sub-sections for the following contents:

a) Local budget estimates submitted to the People's Council;

b) Local budget estimates decided upon by the People's Council;

c) Implementation status of local budget estimates during the year (quarter, six months, nine months, year);

d) Local budget final accounts approved by the People's Council;

đ) Summary of publicizing status.

2. Budgetary units and organizations supported by the state budget shall implement publicizing in accordance with Circular No. 61/2017/TT-BTC dated June 15, 2017 of the Ministry of Finance guiding the implementation of financial transparency regulations for budgetary units and organizations supported by the state budget, and Circular No. 90/2018/TT-BTC dated September 28, 2018 of the Ministry of Finance amending and supplementing certain provisions of Circular No. 61/2017/TT-BTC dated June 15, 2017 of the Ministry of Finance.

3. Agencies and units using state budget capital for basic construction investment shall implement publicizing in accordance with Circular No. 10/2005/TT-BTC dated February 2, 2005 of the Ministry of Finance guiding the implementation of financial transparency regulations for the allocation, management, and use of state budget capital for basic construction investment.

4. Agencies and units entrusted with managing funds sourced from the state budget and funds sourced from contributions of citizens shall implement publicizing in accordance with Circular No. 19/2005/TT-BTC dated March 11, 2005 of the Ministry of Finance on financial transparency for funds sourced from the state budget and funds sourced from contributions of citizens.

5. Agencies, units, and organizations entrusted with managing and using public assets shall implement publicizing in accordance with Section 2 Chapter XIV of Decree No. 151/2017/NĐ-CP dated December 26, 2017 of the Government detailing some provisions of the Law on Management and Use of Public Assets; Articles 9, 10, and 11 of Circular No. 144/2017/TT-BTC dated December 29, 2017 of the Ministry of Finance guiding certain contents of Decree No. 151/2017/NĐ-CP of the Government.

6. For direct state support to individuals and residents, publicizing shall be implemented in accordance with Circular No. 54/2006/TT-BTC dated June 19, 2006 of the Ministry of Finance on guiding the regulation on publicizing direct state budget support to individuals and residents.

7. Promote the publication of publicizing on mass media regarding cases of tax evasion, tax fraud, and delayed tax payment beyond the deadline as prescribed by the Law on Tax Administration.

Chapter III

IMPLEMENTATION

Article 13. Implementation Provisions

1. This Circular takes effect from January 20, 2019 and applies to the 2019 state budget year.

2. In cases where the legal normative documents cited for application in this Circular are amended, supplemented, or replaced by new documents, the new documents shall apply.

3. Ministries, central agencies, People's Committees of provinces and centrally-administered cities shall base their directives to subordinate agencies and units and lower-level local authorities to organize implementation according to this Circular. Any previous regulations conflicting with this Circular shall be implemented according to this Circular. In the process of organizing implementation, if there are any difficulties, they are requested to report promptly to the Ministry of Finance for coordination in resolution./.