Decision No. 16/2026/QĐ-TTg Regulating Principles, Criteria, and Ceiling for Allocation of Central Budget and Proportion of Local Matching Funds for the Program on Rural New Life Construction, Poverty Reduction, and Socio-Economic Development in Ethnic Minority Areas and Mountainous Regions During the Period 2026-2030

 

 

DECISION

To specify principles, criteria, and allocation levels for central government budget and local counterpart funding for the implementation of the National Program on New Rural Development, Poverty Reduction, and Socio-Economic Development in Ethnic Minority Areas and Mountainous Regions during the period 2026-2030
BASED ON:
The Law on Organization of the Government No. 63/2025/QH15;
The Law on Organization of Local Administration No. 72/2025/QH15;
The Law on Public Investment No. 58/2024/QH15; the Law Amending and Supplementing Certain Provisions of the Bid Law, Public-Private Partnership Investment Law, Customs Law, Value Added Tax Law, Export and Import Tax Law, Investment Law, Public Investment Law, State Asset Management and Utilization Law No. 90/2025/QH15;

 

The Law on State Budget No. 89/2025/QH15;

The Resolution No. 257/2025/QH15 of the National Assembly approving the investment program for the National Program on New Rural Development, Poverty Reduction, and Socio-Economic Development in Ethnic Minority Areas and Mountainous Regions during the period 2026-2035;

The Resolution No. 70/2025/UBTVQH15 of the Standing Committee of the National Assembly on principles, criteria, and allocation levels for public investment funds from the state budget during the period 2026-2030;

The Decree No. 358/2025/NĐ-CP of the Government on mechanisms for managing and implementing national program targets;

In accordance with the proposal by the Minister of Agriculture and Environment;

THE PRIME MINISTER ISSUES THIS DECISION TO SPECIFY PRINCIPLES, CRITERIA, AND ALLOCATION LEVELS FOR CENTRAL GOVERNMENT BUDGET AND LOCAL COUNTERPART FUNDING FOR THE IMPLEMENTATION OF THE NATIONAL PROGRAM ON NEW RURAL DEVELOPMENT, POVERTY REDUCTION, AND SOCIO-ECONOMIC DEVELOPMENT IN ETHNIC MINORITY AREAS AND MOUNTAINOUS REGIONS DURING THE PERIOD 2026-2030.

CHAPTER I

GENERAL PROVISIONS

Article 1. Scope of Application

 

This Decision specifies principles, criteria, and allocation levels for the central government budget and local counterpart funding for the implementation of the National Program on New Rural Development, Poverty Reduction, and Socio-Economic Development in Ethnic Minority Areas and Mountainous Regions during the period 2026-2030 (hereinafter referred to as "the Program"), applicable to fiscal years from 2026 to 2030.

Article 2. Applicability

 

1. Ministries, agencies at the same level as ministries, and subordinate agencies of the Government; central-level units; provinces and cities (hereinafter referred to as "localities") and entities using state budget funds for the implementation of the Program.

2. Entities, organizations, and individuals involved in or related to the preparation, approval, organization, and implementation of medium-term and annual investment plans, annual state budget estimates for the Program.

CHAPTER II

SPECIFIC PROVISIONS

Section 1

 

PRINCIPLES, CRITERIA, AND ALLOCATION LEVELS FOR THE ALLOCATION OF CENTRAL GOVERNMENT BUDGET FUNDING

Article 3. Allocation Principles

1. Prioritize and focus on effective, sustainable investment; allocate the central government budget at the highest possible level to particularly difficult communes, villages in ethnic minority areas and mountainous regions, safe zones, border areas, and islands to create clear changes in socio-economic development, new rural construction, poverty reduction.

2. Ensure unified management of goals, mechanisms, policies, criteria, and allocation levels.

 

3. Based on the state budget estimate for 2026 approved by the National Assembly, the central government budget will support local budgets in implementing the Program according to the following principles:

a) The central government budget will only support localities that receive additional balancing from the central government budget, prioritizing those receiving more than 70% of such additional funding;

b) Localities responsible for balancing their own budgets shall allocate local budget funds to achieve the goals and tasks of the Program within their jurisdictions.

4. The annual allocation of the central government budget for ministries, agencies at the central level, and localities implementing the Program must be based on the ability to balance the budget and the results of evaluating the implementation, utilization, and disbursement of the central and local budgets during the period 2021-2025 or the preceding years.

a) The central budget shall support localities receiving supplementary balancing from the central budget, prioritizing those receiving more than 70% of such supplementation;

b) Localities responsible for balancing their own budgets shall allocate local budget funds to implement the objectives and tasks of the program within their territory.

4. The allocation of the central budget to ministries, central agencies, and localities for the implementation of the annual program must be based on the ability to balance the budget and the results of evaluating the implementation, utilization, and disbursement of the central and local budgets during the period from 2021 to 2025 or the preceding years.

Article 4. Criteria for Allocating Central Budget Funds to Localities

1. Criteria and Allocation Coefficient Based on Objectives of Communes, Villages

The criteria for allocating central budget funds to localities under this article are determined based on the number of extremely poor communes in ethnic minority and mountainous areas (hereinafter referred to as DTTS&MN) villages and the number of communes (including: Class I, II, III communes in DTTS&MN areas, safe zones communes (hereinafter referred to as ATK), border communes, island communes, special zones, and other communes). The allocation amount for each locality under this criterion is determined by multiplying the allocation coefficient specified in this clause with the corresponding number of communes and villages of the locality, specifically as follows:

a) Extremely poor communes in DTTS&MN areas: Coefficient 1;

b) Class III communes in DTTS&MN areas, ATK communes, border communes, island communes, special zones: Coefficient 50;

c) Class II communes in DTTS&MN areas: Coefficient 40;

d) Class I communes in DTTS&MN areas: Coefficient 30;

e) Other communes: Coefficient 25;

In the case where a commune simultaneously belongs to two or more of the objects specified in points b, c, d and e of this clause, only one highest allocation coefficient corresponding to any one of these objects shall be applied; no addition, multiplication, or duplication of coefficients for the same commune.

2. Criteria and Priority Coefficient for Localities Belonging to Priority Objects

The criteria for prioritizing the allocation of central budget funds are determined based on the proportion of supplementary balanced expenditure/total expenditure in the local budget of 2026 of each locality. The priority allocation amount for each locality is determined by multiplying the priority coefficient specified in this clause with the total number of communes in the locality as of March 31, 2026, specifically as follows:

a) Localities where the proportion of supplementary balanced expenditure/total expenditure in the local budget from 70% and above: Coefficient 0.4;

b) Localities where the proportion of supplementary balanced expenditure/total expenditure in the local budget from 50% to less than 70%: Coefficient 0.2;

c) Localities where the proportion of supplementary balanced expenditure/total expenditure in the local budget is below 50%: No application of the priority coefficient specified in this clause; the allocation of central budget funds shall be determined according to the criteria specified in Article 1, Paragraph 1.

3. Method for Determining the Allocation Amount of Central Budget Funds to Localities

a) Determine the total score based on the allocation criteria for each locality

Total score based on the allocation criteria for provinces and cities i is determined as follows:

Ti = (1 x TDKi) + (50 x XK3i) + (40 x XK2i) + (30 x XK1i) + (25 x XCLi) + (Hi x Ni)

Where:

Ti: Total allocation score of locality i;

TDKi: Number of extremely poor communes in DTTS&MN areas of locality i;

XK3i: Number of Class III communes, ATK communes, border communes, island communes, special zones in the DTTS&MN area of locality i;

XK2i: Number of Class II communes in the DTTS&MN area of locality i;

XK1i: Number of Class I communes in the ethnic minority and mountainous areas of locality i;

XCLi: Number of other communes of locality i;

Ni: Total number of communes of locality i;

Hi: Priority coefficient of locality i, determined according to the provisions in Paragraph 2, Article 4 of this Decision.

b) Determine the total allocation score for the entire country

The total allocation score for all localities is determined by summing up the allocation scores of each locality, specifically as follows:

Where:

TQG: Total allocation score for the entire country;

n: Total number of provinces and cities allocated central budget funds under this Decision.

c) Determine the value of one (1) allocation point

The value of one (1) allocation point is determined by the following formula:

Where:

G: Value of one (1) allocation point (VND/point);

VTW: Total central budget funds allocated for the implementation of the program according to the planning period.

d) Determine the amount of central budget funds allocated to each locality

The amount of central budget funds allocated to locality i is determined as follows:

Vi = Ti x G

Where:

Vi: Amount of central budget funds allocated to locality i;

Ti: Total allocation score of locality i;

G: Value of one (1) allocation point.

4. Basis for Determining Data

a) The number of communes in the locality is determined based on the Resolutions of the Standing Committee of the National Assembly on the reorganization of commune-level administrative units in 34 provinces, cities;

b) The number of extremely poor communes and Class I, II, III communes in DTTS&MN areas as announced by the Ministry of Ethnic Affairs and Religion according to the provisions at point c, clause 2, Article 13 of Decree No. 272/2025/NĐ-CP dated October 16, 2025 of the Government on defining DTTS&MN areas for the period 2026 - 2030;

c) The number of borderland communes and sea-border communes according to Appendices I and II as specified in Decree No. 299/2025/NĐ-CP dated November 17, 2025 of the Government amending and supplementing certain provisions of Government Decrees on border defense and national borders;

d) The number of island communes (including special zones), ATK communes as announced and recognized by the provincial people's committee according to the provisions in paragraph 3, Article 5 and point d, paragraph 3, Article 8 of Decision No. 40/2025/QĐ-TTg dated October 31, 2025 of the Prime Minister on criteria, procedures, and formalities for recognizing island communes and ATK communes during the period of resistance against France and the United States;

e) List of self-balancing localities and support ratio from central budget to localities: Based on the list of provinces, cities that are self-balancing and the support ratio from the central budget to localities as specified in Appendix V annexed to Resolution No. 246/2025/QH15 dated November 14, 2025 of the National Assembly on allocating central budget for 2026.

Article 5. Criteria for Allocating Central Budget Funds to Central Ministries and Agencies

1. The central budget funds allocated to ministries and agencies to implement the Program shall be based on the following criteria:

a) The tasks of the Program assigned to ministries and agencies to be implemented according to the decision of the competent authority approving such tasks; priority allocation of funds for unfinished projects from the 2021-2025 period of the Ministry of Education and Training to complete in the 2026-2030 period as per regulations;

b) The volume of tasks, implementation schedule, and funding requirements to implement the Program according to the medium-term investment plan, annual plans, and central budget estimates approved by the competent authority or adjusted in accordance with legal provisions;

c) The content, nature, and scope of the task are consistent with the functions and capabilities of ministries and agencies; ensuring no duplication in expenditure items and beneficiaries with tasks delegated to localities, national target programs, other programs or projects, or other budget allocation tasks within the annual central government budget of ministries and agencies;

d) The results of implementing the task and disbursement of funds by ministries and agencies during the 2021-2025 period or the preceding years.

2. Based on the criteria stipulated in Clause 1 of this Article, the Ministry of Agriculture and Environment shall take the lead in synthesizing and proposing specific allocation schemes for the medium-term investment plan and central budget estimates to implement the Program from 2026-2030 and annually, sending them to the Ministry of Finance for consolidation and submission to the competent authority for examination and decision-making according to regulations.

Article 6. Allocation Standards for Central Budget Funds

1. The allocation standards for central budget funds to ministries, agencies, and localities

Based on the total amount of central budget funds allocated by the competent authority and the principles and criteria specified in this Decision to allocate such funds to ministries, agencies, and localities to achieve the objectives and tasks of the Program;

2. Allocation standards for central budget funds at central ministries and agencies

Based on the total budget estimates and medium-term investment plans allocated by the Prime Minister for the Program, central ministries and agencies shall allocate such funds to units using state budgetary resources to manage, direct, guide, organize, and implement national-level program contents, regional-scale tasks, special tasks, important defense and security tasks, and other tasks assigned by the competent authority; ensuring no duplication in expenditure items or beneficiaries with national target programs, projects, and other budget allocation tasks.

3. Allocation standards for central budget funds at localities

Based on the total budget estimates and medium-term investment plans allocated by the Prime Minister for the Program; the provincial People's Council’s resolution specifying principles, criteria, and allocation standards for state budgetary resources of the Program and actual conditions in the locality, the provincial People's Committee shall develop a plan to allocate central budget funds and integrated resources at the provincial and commune levels to achieve the objectives and tasks of the Program within the locality; ensuring priority allocation of central budget funds to particularly difficult communes, ethnic minority villages, ATK areas, border regions, and islands; avoiding duplication in expenditure items or beneficiaries with national target programs, other projects, and tasks implemented on the same territory.

 

Part 2

PROVISIONS ON THE LOCAL FUND MATCHING RATIO FOR THE STATE BUDGET OF LOCALITIES

 

Article 7. Principles for Allocating Local Fund Matching for the State Budget of Localities to Implement the Program for the Period 2026-2030

1. The total local fund matching for the state budget to implement the program for the period 2026-2030 must ensure the level specified in Point a, Clause 4, Article 1 of Resolution No. 257/2025/QH15 dated December 11, 2025, of the National Assembly approving the investment program.

2. Localities receiving support from the central state budget shall allocate their local state budget for a five-year period and balance their annual budgets to fully implement the objectives and tasks of the Program, ensuring that it does not fall below the matching fund ratio specified in Article 8 of this Decision. Localities not receiving support from the central state budget shall allocate their local state budget and other legal sources to implement the Program within their jurisdiction, ensuring the completion of the assigned objectives and tasks.

3. Localities are responsible for allocating their local state budget funds and mobilizing other lawful resources to implement the contents of the Program without using central state budget funds, including:

a) Supporting wards in implementing poverty reduction policies and preferential support policies for ethnic minority and mountainous area residents; supporting wards in region III, particularly difficult areas, to exit extreme difficulty status; implementing new rural construction in wards according to the criteria specified in Appendix III of Decision No. 51/2025/QĐ-TTg dated December 29, 2025, issued by the Prime Minister on national standards for new rural areas for the period 2026-2030;

b) Supporting communes that have achieved the standard of a new rural area to strive for modern new rural status (excluding funds from the state budget already provided to communes to achieve the standard: new rural);

c) Implementing construction in provinces and cities to complete the tasks of new rural construction;

d) Supporting the implementation of other contents at the provincial or commune level as determined by the People's Council of the province to fulfill the objectives and tasks of the Program.

Article 8. Criteria for Determining the Local Fund Matching Ratio

1. For localities that self-balance their budgets (including: Hanoi City, Quang Ninh Province, Hai Phong City, Da Nang City, Ho Chi Minh City, Dong Nai Province, Tay Ninh Province): 100% of the funds for implementing the Program are allocated from the local state budget and other lawful resources.

2. For localities receiving support from the central state budget:

The minimum matching ratio of the local state budget to the total central state budget funds supporting the locality to implement the Program is determined based on the total score for each locality, according to the following criteria:

a) Score Based on the Proportion of Supplementary Balancing Funds to Total Balanced Expenditure

The score is determined based on the proportion of supplementary balancing funds received from the central state budget in 2026 for provinces and cities. Specifically, as follows:

A locality receiving supplementary balancing funds at 80% or more: 20 points;

A locality receiving supplementary balancing funds between 70% to less than 80%: 40 points;

A locality receiving supplementary balancing funds between 60% to less than 70%: 60 points;

A locality receiving supplementary balancing funds between 50% to less than 60%: 80 points;

A locality receiving supplementary balancing funds between 40% to less than 50%: 120 points;

A locality receiving supplementary balancing funds between 30% to less than 40%: 130 points;

A locality receiving supplementary balancing funds between 20% to less than 30%: 140 points;

A locality receiving supplementary balancing funds below 20%: 150 points.

b) Score Based on the Scale of Number of Communes (as of March 31, 2026)

The score is determined based on the total number of communes in provinces and cities as of March 31, 2026. Specifically:

A locality with 100 or more communes: -5 points;

A locality with between 80 to less than 100 communes: -4 points;

A locality with between 60 to less than 80 communes: -3 points;

A locality with between 40 to less than 60 communes: -2 points;

A locality with fewer than 40 communes: 0 points.

c) Score Based on the Proportion of Multidimensional Poverty

The score is determined based on the multidimensional poverty rate in 2025 for provinces and cities. Specifically:

A locality with a multidimensional poverty rate at 30% or more: -5 points;

A locality with a multidimensional poverty rate between 20% to less than 30%: -3 points;

A locality with a multidimensional poverty rate between 10% to less than 20%: 0 points;

A locality with a multidimensional poverty rate between 5% to less than 10%: 3 points;

A locality with a multidimensional poverty rate below 5%: 5 points.

d) Score Based on the Scale of Ethnic Minority Population

The score is determined based on the ethnic minority population in the locality as of the end of 2025. Specifically:

A locality with an ethnic minority population at 1,000,000 or more: -5 points;

A locality with an ethnic minority population between 700,000 to less than 1,000,000: -3 points;

A locality with an ethnic minority population between 500,000 to less than 700,000: 0 points;

A locality with an ethnic minority population between 200,000 to less than 500,000: 3 points;

A locality with an ethnic minority population below 200,000: 5 points.

3. Method for Determining the Total Score and Local Fund Matching Ratio

The total score of each province or city is determined by summing the scores according to the criteria specified in Points a, b, c, and d of Clause 2 of this Article using the following formula:

T = A + B + C + D = Where: + T: Total score for the locality; + A: Score based on the proportion of supplementary balancing funds to total balanced expenditure as specified in Point a, Clause 2, Article of this Decision; + B: Score based on the scale of number of communes as specified in Point b, Clause 2, Article of this Decision;

C: Score based on the proportion of multidimensional poverty as specified in Point c, Clause 2, Article of this Decision;

D: Score based on the scale of ethnic minority population as specified in Point d, Clause 2, Article of this Decision.Localities with a higher total score will apply a higher minimum matching ratio for their local state budget; localities with a lower total score will apply a lower minimum matching ratio.

4. Basis for Determining Data a) The multidimensional poverty rate of the locality in 2025 is determined based on the results of the household survey for poverty and near-poverty households in 2025 conducted by the Ministry of Agriculture and Rural Development according to Article 4 of Decree No. 07/2021/NĐ-CP dated January 27, 2021, of the Government;

b) The ethnic minority population of provinces and cities is determined based on the current status as of the end of 2025 provided by the People's Committee at the provincial level. Point in accordance with the criteria for the scale of communes as specified in point b of clause 2 of this Article;

C: Point in accordance with the criteria for the multidimensional poverty ratio as specified in point c of clause 2 of this Article;

D: Point in accordance with the criteria for the scale of ethnic minority population as specified in point d of clause 2 of this Article;

The locality with a higher total score shall apply a higher minimum matching fund ratio from the local budget; the locality with a lower total score shall apply a lower minimum matching fund ratio from the local budget.

4. Determination of data

a) The multidimensional poverty ratio of the locality in 2025 shall be determined based on the results of the household survey for poor and near-poor households in 2025 conducted by the Ministry of Agriculture and Environment according to the provisions of Article 4 of Decree No. 07/2021/NĐ-CP dated January 27, 2021, of the Government;

b) The ethnic minority population in the province or city shall be determined based on the current status as of the end of 2025 provided by the People's Committee at the provincial level.

 

Chapter III

PROVISIONS FOR IMPLEMENTATION

 

Article 9. Implementation

1. Responsibilities of the Ministry of Agriculture and Environment:

a) To take the lead, coordinate with the Ministry of Ethnic Affairs and Religion, central government ministries and agencies relevant to develop and propose allocation schemes for the medium-term and annual investment plans using central budgetary funds from 2026 to 2030, in accordance with the principles and criteria specified in this Decision for central government ministries and localities, submit such proposals to the Ministry of Finance for consolidation and reporting to competent authorities in line with the provisions of the state budget law and public investment law;

b) To take the lead, coordinate with the Ministry of Finance to consolidate and evaluate the implementation, utilization, and disbursement of central budgetary funds used in the previous year's program by central government ministries and localities as a basis for developing annual allocation schemes for central budgetary funds in accordance with regulations;

c) To take the lead in consolidating and proposing solutions for transferring, recovering, and handling unallocated state budget and medium-term public investment plans from central budgetary funds that have not been detailedly distributed to agencies, units, and subordinate levels by central government ministries and localities to ensure implementation within the stipulated time frame, submit such proposals to the Ministry of Finance for consolidation and submission to competent authorities for examination and decision-making;

d) To take the lead, coordinate with the Ministry of Ethnic Affairs and Religion, central government ministries and agencies, and localities in consolidating results of mobilization, allocation, and utilization of state budget funds (including targeted central budgetary support and local budget) implementing the program from 2026 to 2030 and annually for reporting to the Prime Minister;

d) To take the lead, coordinate with the Ministry of Ethnic Affairs and Religion in guiding central government ministries and agencies, and localities in implementing medium-term and annual investment plans using central budgetary funds; annual state budget forecasts that have been allocated by competent authorities.

2. Responsibilities of the Ministry of Ethnic Affairs and Religion:

a) To take the lead, coordinate with the Ministry of Agriculture and Environment, central government ministries and agencies in guiding localities to develop allocation schemes for state budget funds for program contents and policies applicable to ethnic minority areas ensuring they are consistent with actual conditions and current regulations;

b) To coordinate with the Ministry of Agriculture and Environment, relevant central government ministries and agencies in developing allocation schemes for medium-term and annual investment plans using central budgetary funds from 2026 to 2030, annually, and state budget forecasts for central government ministries and localities to implement program components under their jurisdiction.

3. Responsibilities of the Ministry of Finance

a) Based on proposals from the Ministry of Agriculture and Environment, consolidate and submit to competent authorities for balancing and allocating total central budgetary resources and allocation schemes for medium-term and annual investment plans using central budgetary funds from 2026 to 2030, annually, and state budget forecasts (including development investments and regular expenditures) for implementation by central government ministries and localities in accordance with the provisions of the state budget law, public investment law, and related laws;

b) Based on proposals from the Ministry of Agriculture and Environment, consolidate and report to competent authorities solutions for transferring, recovering, and handling unallocated state budget and medium-term public investment plans that have not been detailedly distributed by central government ministries and localities to agencies, units, and subordinate levels for implementation within the stipulated time frame.

4. Responsibilities of central government ministries and agencies tasked with leading program components and participating in its implementation

To develop medium-term investment plans, annual capital budget forecasts to implement program contents and activities serving the guidance, coordination, direction, guidance, and execution of the program, submit such plans to the Ministry of Agriculture and Environment for consolidation according to regulations.

5. Responsibilities of People's Committees of Provinces and Municipalities

a) Based on actual conditions, study and develop principles, criteria, and expenditure standards for allocating state budget funds implementing the program from 2026 to 2030 for decision by the same level People's Council;

b) To develop medium-term investment plans, annual capital budgets, and detailed annual state budget forecasts ensuring alignment with actual needs; consistent with the ability to balance, allocate, and utilize central and local budgets and mobilize other legal resources to fully achieve program goals on their territory, striving to meet the approved targets of the program without causing delays in basic construction, waste, or mismanagement of state budget funds;

c) To manage, supervise, inspect, and audit the utilization of medium-term and annual state budget funds implementing the program ensuring cost-effectiveness, transparency, and accountability; promptly identify, rectify, and address any irregularities in allocation, management, and use of funds (if applicable) and be responsible for providing explanations according to regulations;

d) To report regularly or on an ad hoc basis to the Ministry of Agriculture and Environment, the Ministry of Ethnic Affairs and Religion, and relevant central government ministries and agencies on the distribution, utilization, and disbursement of state budget funds implementing the program in their territory in accordance with regulations.

Article 10. Enforceability

This Decision shall come into force on the date of issuance.

Article 11. Implementation Responsibility

The Ministers, Heads of agencies at the same level as ministries, Chairmen of People's Committees of provinces and cities, and Heads of agencies and units using state budget funds under the Program for the period 2026-2030 shall bear the responsibility for implementing this Decision.