Directive No. 13/2000/CT-TTg On the development plan for economic and social progress and state budget estimate for 2001

DIRECTIVE OF THE PRIME MINISTER

Regarding the development of the socio-economic plan and state budget estimate for 2001

The socio-economic situation in the first six months of 2000 has shown positive changes.

To build on the achieved results, address shortcomings and weaknesses, and successfully complete the socio-economic development tasks for 2000, the Prime Minister requests the heads of ministries, sectors, and localities to focus on implementing the economic and social development measures proposed in the resolutions of the regular meetings of the Government in 2000. At the same time, they should proceed with the construction of the 2001 plan with the following main requirements and contents:

I. GUIDING THOUGHTS AND MAIN TASKS OF THE SOCIO-ECONOMIC DEVELOPMENT PLAN FOR 2001

Successfully building and implementing the 2001 plan will be a favorable starting point to achieve the goals of the five-year plan from 2001 to 2005 and the ten-year socio-economic development strategy from 2001 to 2010. The Prime Minister requests that all ministries, sectors, and localities thoroughly understand the direction and tasks of the national five-year plan from 2001 to 2005 and concretely reflect them in the 2001 plan of their respective sectors and localities. They must focus on implementing the following main tasks:

1. Strive to achieve a higher rate of economic growth compared to 2000, ensuring stable and sustainable economic development, creating conditions to realize higher development goals in subsequent years.

a) Vigorously transform the structure of agricultural production and rural economy. Implement support measures for production and consumption of important agricultural products. Enhance the efficiency of agricultural production, encourage the widespread application of scientific and technological advances in agriculture, focusing investment on seed production, especially aquatic seeds, post-harvest technology, processing technology, and rural craft villages. Proactively respond to adverse weather conditions.

b) Maintain high-speed industrial development based on continued deep investment and technological equipment renewal, prioritizing investment in industrial products with market demand and export potential, and industrial processing serving agriculture. Emphasize the development of small and medium-sized enterprises that absorb many workers; actively seek and expand domestic markets, particularly rural, remote, and border areas. Implement measures to increase consumer purchasing power.

c) Develop various service forms, with particular emphasis on transportation, postal and telecommunications, tourism, finance, and banking services. Focus on resolving issues to develop the domestic market, especially rural, remote, and border markets. Implement measures to enhance consumer purchasing power.

2. Improve the effectiveness of foreign economic activities; create favorable conditions to attract foreign direct investment and ODA funds; maintain a high growth rate in exports, reduce trade deficits, and expand export markets, especially for products with potential but facing difficulties in sales.

3. Utilize national financial resources effectively. Continue restructuring the state budget to contribute to financial and monetary health; thoroughly implement cost-saving measures while enhancing the efficiency of state capital and asset usage. Strengthen and improve the quality of banking system operations.

Mobilize domestic capital sources to the maximum, rapidly increase disbursement capacity, and attract foreign capital to concentrate investment in effective projects impacting multiple industries with high export ratios; the state budget will support difficult regions, allocate a significant portion to education, training, science, environment, culture, and society.

4. Continuously reform and develop education and training, and the vocational training system. Implement the program to popularize lower secondary education, initially in areas with suitable conditions. Accelerate scientific and technological activities, quickly apply research results to production. Enhance environmental protection and improvement efforts.

5. Timely address pressing social issues, primarily employment for workers. Continue to effectively implement poverty reduction programs, gradually raising living standards for different population groups. Establish comprehensive mechanisms and policies to develop and improve the quality of cultural and social activities, education, healthcare, and promote socialization in these fields.

6. Consolidate national defense and security, combining national defense and security with socio-economic development.

7. Promote administrative reform, restructure, and modernize the state apparatus at all levels and sectors.

II. TASKS REGARDING THE STATE BUDGET FOR 2001

1. The state budget revenue estimate is based on accurately calculating all tax revenues according to the provisions of tax laws and current collection regulations, implementing management improvement measures, strengthening anti-evading and anti-smuggling efforts, and fully implementing existing incentive mechanisms for production, business, increased exports, and expanded markets; it must consider factors related to regional and global economic integration processes. Revenue estimates must ensure positivity and stability, striving for the state budget mobilization ratio in 2001 to reach 18-19% of GDP.

2. State budget expenditure estimates must adhere to the principle of thrift, ensuring a reasonable relationship between recurrent spending and developmental investment, and timely debt repayment.

State budget funds allocated for concentrated investment should target infrastructure projects without profit-making potential and non-recoverable capital, prioritizing key national projects, projects to be completed and put into use within the year, and projects with complete procedures.

Support for concentrated production and business activities shall be provided for key product and industry sectors; improving product quality, particularly export agricultural products; renovating and breeding plant and animal breeds; restructuring crop and livestock production; reforming and reorganizing state-owned enterprises; supporting export activities, expanding and seeking new markets, and providing market information.

The state budget will prioritize funding to cover price adjustments and salary reforms for individuals receiving salaries and allowances from the state budget for those who have contributed to the revolution, social allowances under the state budget; implementing poverty reduction programs; ensuring education, training, science, technology, and environmental affairs according to Resolution of the Central Committee II, cultural and information affairs according to Resolution of the Central Committee V, and fulfilling national defense and security tasks. Promoting socialization in education, healthcare, culture, and sports to mobilize additional social resources, reduce pressure on state budget spending in these areas, and contribute to changing the structure of state budget expenditures.

Implementing new financial-budget management mechanisms for certain revenue-generating public institutions; transferring some administrative and public service units that meet the conditions to operate under self-financing mechanisms. Research, healthcare, and training costs of state-owned enterprises shall be accounted for as part of production and business expenses according to prescribed regulations, without budget support from the state budget (except in cases where the Prime Minister has made a separate decision).

Allocating reserves and supplementary funds to the financial reserve fund at all levels of budget in accordance with current regulations.

3. Balancing the state budget based on tax and fee revenues must ensure reasonable regular expenditures, repay maturing debts, and accumulate funds for development investment.

The state budget deficit should be kept below 5% of GDP, consistent with domestic borrowing capacity and preferential foreign borrowing. No commercial foreign borrowing, no issuance, and limited short-term domestic borrowing at high interest rates to offset the deficit.

4. Regarding local government budgets:

Local government budgets shall be constructed on the principle of stability over three years (2000-2002), with the amount of supplementary funding from the central budget to local budgets expected to increase by 3% compared to the 2000 level (excluding targeted supplements to address difficulties in 2000). Budget expenditure tasks for 2001 should prioritize infrastructure construction, seedling improvement, and crop and livestock structure conversion.

Continuing to implement the mechanism for allocating expenditures corresponding to certain objectives from land tax revenues, land rental fees, land use fees, etc., according to current regulations. Transferring some target programs into local government budget expenditure tasks.

Rewards for exceeding revenue in 2001 shall be carried out in accordance with the State Budget Law.

III. Progress in developing plans and assignments for implementation

1. On progress

In July 2000, the Ministry of Planning and Investment will guide the framework plan for 2001 for ministries, sectors, and localities as a basis for developing plans.

By August 30, 2000, ministries, sectors, General Corporation 91, provincial people's committees, and centrally-administered city people's committees shall report their economic and social development plans and state budget estimates for 2001 to the Ministry of Planning and Investment and the Ministry of Finance for consolidation and submission to the Government.

The Ministry of Planning and Investment and the Ministry of Finance will organize meetings with ministries, sectors, and localities to promptly consolidate plans for submission to Party and State leadership agencies, while proposing allocation schemes for planning indicators and the budget to submit to the Standing Committee of the National Assembly.

2. On division of responsibilities for implementation

a) The Ministry of Planning and Investment: Shall take the lead in coordinating with the Ministry of Finance to calculate and develop major options and balances as a basis for guiding ministries, sectors, and localities in developing the 2001 plan; organizing guidance and consolidation of the 2001 economic and social development plan; taking the lead in coordinating with the Ministry of Finance to propose the development investment plan and capital allocation for construction projects; taking the lead in coordinating with the Ministry of Finance, relevant ministries, and related localities to evaluate the results of implementing national target programs during the 1996-2000 period; proposing tasks and programs for the 2001-2005 period, including programs previously implemented but incorporated into regular expenditure tasks of central ministries and agencies, provinces, and centrally-administered cities, to be submitted to the Prime Minister for decision-making by August 2000.

b) The Ministry of Finance: Shall guide ministries, central agencies, and localities in evaluating the implementation of the 2000 state budget estimate; constructing the 2001 budget estimate and announcing inspection figures for the 2001 state budget revenue and expenditure; determining the distribution ratio of various sources of income and the supplementary amount for provincial and municipal budgets to be submitted to the competent authority for decision-making; taking the lead in coordinating with the Ministry of Planning and Investment and relevant agencies in constructing and consolidating the 2001 state budget estimate; working with central ministries, agencies, and localities on the budget estimate; taking the lead in coordinating with relevant ministries to submit to the Prime Minister decisions regarding revenue-generating public institutions implementing new financial management mechanisms from 2001 to 2003; administrative and public service units operating under self-financing mechanisms, including salaries.

c) Ministries and state agencies shall coordinate with the Ministry of Planning and Investment and the Ministry of Finance in developing development tasks and budget estimates within their respective jurisdictions. Agencies managing national target programs shall coordinate with the Ministry of Planning and Investment and the Ministry of Finance to work with central ministries, agencies, and related localities on tasks and budget estimates for 2001 to implement programs within their jurisdiction, particularly those continuing to be managed under the national target program mechanism during the 2001-2005 period.

Each ministry and state agency shall, within their respective functions, based on calculations of exploitable resources, establish economic and social targets, propose solutions, mechanisms, policies, and new systems, or recommend amendments and supplements to existing systems and policies as a basis for budget planning and preparation, and notify the Ministry of Planning and Investment, the Ministry of Finance, and relevant ministries and agencies before the budget preparation period begins.

d) The People's Committees of provinces and centrally governed cities shall guide, organize, and direct the Provincial Departments of Planning and Investment and Provincial Departments of Finance and Prices to closely coordinate with other provincial departments, committees, and sectors in developing plans for economic and social development and state budgets to be submitted to the competent authority for decision-making./.