Directive No. 16/2001/CT-TTg on the development plan for economic and social progress and state budget estimate for 2002.

DIRECTIVE

Regarding the development of plans for economic and social development and budget estimatefor the State in 2002. 

Implementing the Resolution of the National Assembly on tasks and the State budget estimate for 2001, the Government has issued new mechanisms and policies to enhance internal resources and focus on addressing bottlenecks in specific activities, so that in the first six months of 2001, the economy maintained a relatively high growth rate, cultural and social activities made significant progress, political stability was maintained, and social safety was secured.

However, the situation of the socio-economic sector still faces many difficulties and complex developments, with remaining tasks for the last months of 2001 being extremely heavy. To complete the tasks of the 2001 plan, the Prime Minister requests that Ministries, sectors, localities, and bases concentrate on implementing well the Resolutions of the National Assembly, economic and social development solutions proposed in the Resolutions at regular meetings of the Government in 2001 and Resolution No. 05/2001/NQ-CP dated May 24, 2001 of the Government on supplementing some management measures for the 2001 economic plan; while simultaneously initiating the construction of the 2002 plan with the following main requirements and contents:

I. Main contents and tasks of the 2002 plan

1. Guiding ideology and main tasks of the 2002 plan

The year 2002 is the second year of implementing the orientation and tasks of the five-year socio-economic development plan from 2001 to 2005, which was approved by the Ninth National Congress of the Communist Party of Vietnam. The construction of the 2002 plan must be carried out concurrently with the construction of the five-year plan from 2001 to 2005. The five-year plan must be implemented and concretized in the content of the 2002 plan of each Ministry, sector, locality, and General Corporation 91.

When constructing the 2002 plan, the Prime Minister requests that Ministries, sectors, localities, and General Corporations 91 focus on the following main tasks:

a) Strive to achieve an economic growth rate not lower than 7.5%. Ensure stable and sustainable economic development, creating conditions to achieve higher growth rates in subsequent years.

- Continue transforming the structure of agricultural production and rural economy. Strive to increase the value of agricultural, forestry, and fishery production by more than 4.8%. Establish specialized commodity production areas suitable to the potential and advantages of each region. Apply science and technology to production, especially agriculture. Link agriculture with industrial processing, production with consumption markets. Continue researching and issuing support policies for production and consumption of important agricultural products with high economic value, competitive ability, and market demand. Develop rural industries and infrastructure to transfer agricultural labor to non-agricultural professions. Improve the living standards of rural residents. Proactively respond to adverse weather conditions.

- Develop industry with a high growth rate, linked to product consumption markets. Strive to increase the value of industrial production by more than 13%, focusing on deep investment, equipment renewal, and advanced technology application. Develop competitive industries, processing industries, export-oriented manufacturing industries, high-tech industries, particularly information technology, telecommunications, electronics. Encourage various economic components to invest in industrial production at different scales and levels. Encourage the development of small and medium-sized enterprises suitable to regional and local advantages. Implement the privatization schedule of state-owned enterprises properly, while creating favorable conditions for privatized enterprises to stabilize production.

Resolve obstacles to ensure smooth circulation of goods in the domestic market, especially in rural and mountainous regions. Implement measures to further increase consumer purchasing power. Diversify service types. Strive to increase the value of service industries by more than 7.5%. Improve the quality of service activities; develop tourism, continue building tourism infrastructure; develop postal and telecommunications services, transportation, finance, banking, auditing, legal consultation, scientific and technical services...

b) Enhance the effectiveness of foreign economic relations. Vigorously promote trade promotion activities, consolidate traditional markets; while expanding and developing new markets, enhancing the competitiveness of goods to rapidly increase export turnover. Only import essential materials and equipment necessary for production and business. Create favorable conditions to attract foreign direct investment, especially in export-oriented manufacturing industries, agricultural processing industries, high-tech industries, new materials, electronics; into industrial zones, export processing zones, high-tech parks. Attract and effectively utilize ODA funds.

c) Continue restructuring the State budget towards increasing State budget spending on development investment; thoroughly economize while improving the efficiency of capital and State asset utilization. Have reasonable tax policies to ensure revenue targets while fostering revenue sources. Continue consolidating and improving the quality of banking system operations.

Develop policies to mobilize domestic capital resources to the maximum, accelerate disbursement capacity and attract foreign capital; concentrate investment in projects with high socio-economic benefits, affecting multiple economic sectors, and having high export ratios. Support State budget capital for difficult regions, allocate a considerable portion for education, training, science and technology, environment, and cultural and social activities.

d) Continue to reform and develop education and training, develop the vocational training system. Gradually adjust the scale and structure of training to be consistent with the demand for human resource development to serve the tasks of industrialization and modernization. Implement the reform of educational programs at the secondary level. Roll out the implementation of the universal secondary education program, initially in areas with favorable conditions. Mobilize and use all resources effectively for education and training. Strengthen scientific and technological activities, have mechanisms to quickly apply scientific and technological achievements to production. Enhance environmental protection work.

đ) Effectively address pressing social issues, primarily employment issues. Continue to implement national target programs well, especially the poverty reduction program, infrastructure construction for poor regions and poor communes; gradually raise the living standards of different strata of the population. Have comprehensive policies and mechanisms to ensure the development and improvement of cultural and social activities, education, and healthcare. Promote socialization in education, healthcare, culture, and sports fields to mobilize additional social resources and develop these sectors.

e) Consolidate national defense and security, combine national defense with economic development. Ensure order and discipline in economic and social activities.

g) Vigorously promote administrative reform, restructure and innovate state management machinery at various levels and sectors.

In addition to the above tasks, it is necessary to continue perfecting the five-year plan formulation process to submit to the National Assembly for approval at its tenth session. Ministries, sectors, localities, and State-owned enterprises under the 91 Program must thoroughly implement Directive No. 26/2000/CT-TTg dated December 13, 2000, of the Prime Minister on improving the quality of five-year socio-economic development plan formulation from 2001 to 2005 at ministries, sectors, and localities. Ministries, sectors, localities, and State-owned enterprises under the 91 Program need to closely follow the Socio-Economic Development Strategy for 2001-2010 and the orientation of the five-year plan from 2001 to 2005 approved by the Ninth National Party Congress, fully forecast the ability to exploit resources of ministries, sectors, localities, and State-owned enterprises under the 91 Program, set goals, tasks, key indicators, and measures to implement the plan.

2. Tasks related to the state budget

a) The state budget revenue estimate must ensure resources to fulfill important national tasks, while implementing policies to encourage accumulation, create conditions for the business sector to develop, and generate long-term stable revenues according to the spirit of the Resolution of the Ninth National Party Congress. The state budget revenue estimate must be determined based on analyzing and forecasting factors such as economic growth, market conditions, prices, fully considering the impacts of policy and tax regime adjustments (income tax for high-income individuals, fees and charges...); fully implementing regulations on encouraging production, business, increasing exports, expanding markets; implementing measures to improve revenue management, strengthen anti-evading taxes, smuggling, and commercial fraud; implementing commitments of regional and global economic integration processes; the state budget revenue estimate must be positive, solid, highly feasible; build the state budget revenue estimate for 2002 at a mobilization effort rate of 20% - 21% of GDP, including tax and fee revenue at 18 - 19% of GDP. The state budget revenue estimate of ministries and localities should increase by a minimum of 10% compared to the estimated actual performance in 2001.

b) The state budget expenditure estimate focuses on implementing tasks for socio-economic development, ensuring national security and defense; while adhering to the principle of thrift, ensuring a reasonable relationship between regular spending and investment development spending; allocate increased reserves to proactively deal with natural disasters, floods, and handle urgent tasks that arise.

- State budget capital for concentrated investment in economic and social infrastructure projects, prioritizing key national projects with significant importance for socio-economic development during 2001-2005, projects to be completed and put into use within the year; allocate capital for preparation of investment for important projects scheduled to start in the coming years. Allocate sufficient counterpart funds for foreign-invested projects; projects under the Government's Program 135.

- Implement support for production and business activities focused on: producing key products and industries; technological innovation, improving product quality, particularly export agricultural products; improving and developing crop and livestock breeds; changing crop and livestock structures; supporting trade promotion activities, expanding and seeking new markets, providing market information, promoting exports; supporting restructuring state-owned enterprises; supporting the state budget to carry out the task of credit for investment development, post-investment interest rate support.

- The state budget allocates funds to implement salary reform for those receiving salaries from the state budget, provide allowances for people who have contributed to the revolution, allowances for social policy beneficiaries under the state budget; implement staff reduction in administrative agencies and public service units; implement cadre and civil servant training and development; increase investment in the poverty reduction program; invest in economic and social development in mountainous, remote, and difficult areas; ensure funding for educational, training, scientific, technological, and environmental affairs according to the Resolution of the Ninth National Party Congress; ensure the fulfillment of national defense and security tasks.

- For National Target Programs: Implement according to Decision No. 71/2001/QĐ-TTg dated May 4, 2001, of the Prime Minister on National Target Programs for the period 2001-2005.

- Implement the mechanism of revenue and expenditure quotas for public service units with revenues (including additional salary increases due to salary reform), the state budget will support the difference (if any) between expenditures and revenues of the unit and stabilize this level of support for three years; expand the application of quota mechanisms for staffing and administrative expenses for central and local administrative agencies.

c) Balance the state budget based on tax and fee revenues to ensure reasonable regular spending, guarantee repayment of maturing debts, and accumulate funds for development investment. The state budget deficit should be consistent with domestic borrowing capacity and preferential foreign borrowing.

d) Regarding the local budget estimate:

In accordance with the State Budget Law, localities shall prepare the 2002 state budget estimate based on the principles of preparing the budget during the stabilization period (2000-2002). Localities shall base their budget balance and 2002 local budget expenditure estimates on the distribution ratio of revenue sources, the supplementary amount from the central budget to the local budget (if any) assigned by the Prime Minister in 2001, and the 2002 revenue estimate within their jurisdiction. Among these, the supplementary balance from the central budget to the local budget is expected to increase by 3% compared to the supplementary amount in 2001, including both targeted supplementary amounts with a regular nature and supplementary amounts for implementing the increased salary system in 2001. The budget expenditure estimate for 2002 should prioritize infrastructure construction tasks, prioritize investments in canal and rural road reinforcement, increase funding for crop and livestock improvement and development tasks, accelerate structural changes in crop and animal husbandry, trade promotion activities, expanding and seeking export markets, ensuring funding for education and training, science, technology, environmental, health, cultural... development tasks; increase investment in poverty reduction, job creation, social evil prevention tasks; allocate local budget reserves according to the State Budget Law and current guiding regulations.

- Continue to implement the mechanism of allocating budget estimates for certain objectives corresponding to the entire or part of the agricultural land use tax revenue, land rental fees, land use fees, etc., as stipulated currently.

- Implement the investment mechanism for infrastructure construction in border economic zones from local state budget revenues according to Decision No. 53/2001/QĐ-TTg dated April 19, 2001 of the Government on policies for border economic zones.

- In 2002, along with implementing the surplus revenue reward mechanism as prescribed by the State Budget Law, continue to implement the surplus revenue reward mechanism for shared revenue items as in 2001.

II. Progress in developing plans and division of responsibilities for implementation 

1. On progress

As the 2002 plan is being developed concurrently with the completion of the 2001-2005 five-year plan, ministries, sectors, and localities must ensure the following schedule:

a) Ministries, sectors, and localities complete their five-year plans according to the guidelines issued by the Ministry of Planning and Investment and submit them to the Ministry of Planning and Investment before August 30, 2001, for consolidation and submission to the National Assembly in October 2001.

b) Before July 2001, the Ministry of Planning and Investment and the Ministry of Finance provide guidance on the framework of the 2002 budget and its allocation to ministries, sectors, and localities as a basis for planning.

c) Before September 2001, provincial people's committees, municipal people's committees directly under the Central Government, and General Corporation 91 report their socio-economic development plans and 2002 state budget estimates to the Ministry of Planning and Investment and the Ministry of Finance.

d) The Ministry of Planning and Investment and the Ministry of Finance organize meetings with some ministries, sectors, and localities regarding the 2002 plan to consolidate it for submission to Party and State leadership bodies, while also proposing allocation schemes for key indicators and budgets to be submitted to the Standing Committee of the National Assembly.

2. On division of responsibilities for implementation

a) The Ministry of Planning and Investment, in coordination with the Ministry of Finance, calculates and develops various options and major balances as a basis for guiding ministries, sectors, and localities in preparing the 2002 plan.

b) The Ministry of Planning and Investment guides the preparation and consolidation of socio-economic development plans and works with ministries, sectors, and localities on these plans; takes the lead and coordinates with the Ministry of Finance to propose development investment plans and allocate capital for basic construction projects for central ministries and agencies.

c) The Ministry of Finance issues guidelines on the 2002 state budget revenue and expenditure estimates and guides ministries, sectors, and localities in preparing the state budget estimates; takes the lead and coordinates with the Ministry of Planning and Investment to work with provinces and cities on local state budget revenue and expenditure estimates, and works with central ministries and sectors on proposals for regular expenditure allocations and consolidation of state budget revenue and expenditure estimates.

d) Other ministries and sectors coordinate with the Ministry of Planning and Investment and the Ministry of Finance to develop socio-economic development tasks and budget estimates within their respective fields. Management agencies of national programs 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 2002 to implement programs within their respective fields.

đ) State agencies, based on their functions, calculate available resources and develop socio-economic targets and solutions, including special mechanisms and policies, new systems and policies, or proposals to amend and supplement existing systems and policies as a basis for calculating plans and budget estimates, which they shall notify the Ministry of Planning and Investment, the Ministry of Finance, and relevant ministries and agencies before the budget estimate preparation deadline.

e) the People's Committees of provinces and centrally governed cities shall guide, organize, and direct the Departments of Planning and Investment, the Departments of Finance and Prices to closely coordinate with other departments, agencies, and sectors to develop plans for socio-economic development and state budget estimates to be submitted to the People's Councils for decision.

The Prime Minister requests the Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairmen of the People's Committees of provinces and centrally governed cities, and General Directors of the 91 State-owned Corporations to implement this Directive.