Decision No. 266/2016/UBTVQH14 Issuing Principles, Criteria, and Allocation Standards for the 2017 State Budget Regular Expenditure Budget Estimate

RESOLUTION

Issuing principles, criteria, and allocation standards for the annual regular budget expenditure plan of the State budget for 2017

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 THE STANDING COMMITTEE OF THE NATIONAL ASSEMBLY

SOCIALIST REPUBLIC OF VIET NAM

 On the basis of the Constitution of the Socialist Republic of Vietnam;

Pursuant to the Law on State Budget No. 83/2015/QH13;

Considering the Government's Report No. 311/TTr-CP dated September 8, 2016, the Review Report No. 102/BC-UBTCNS14 dated September 12, 2016, and the Report on Adoption and Explanation No. 131/BC-UBTCNS14 dated September 27, 2016 of the Committee for Finance and Budget regarding the principles, criteria, and allocation standards for the annual regular budget expenditure plan of the State budget for 2017,

RESOLUTION:

Issuing principles, criteria, and allocation standards for the annual regular budget expenditure plan of the State budget for 2017.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Resolution stipulates the principles, criteria, and allocation standards for the annual regular budget expenditure plan of the State budget applicable for the 2017 fiscal year, the first year of the stable budget period from 2017 to 2020 as prescribed by the Law on State Budget. For the years within the stable budget period from 2017 to 2020, implementation shall be carried out according to the provisions of the Law on State Budget and the regulations applicable for the stable budget period as stipulated in this Resolution.

Article 2. Applicability

1. Ministries, ministerial-level agencies, agencies under the Government, other central agencies, provinces, centrally governed cities (hereinafter referred to as ministries, central agencies, and localities).

2. Agencies, organizations, and individuals related to the preparation, allocation, and execution of the annual regular budget expenditure plan of the State budget.

Chapter II

PRINCIPLES, CRITERIA, AND ALLOCATION STANDARDS FOR THE ANNUAL REGULAR BUDGET EXPENDITURE PLAN OF THE STATE BUDGET IN 2017

Article 3. Principles for allocating the annual regular budget expenditure plan of the State budget

1. Contributing to the realization of political development goals and tasks in economic and social development, ensuring national security and defense at both the national level and each ministry, central agency, and locality up to 2020; prioritizing funding for education, training, vocational training, science and technology, environment, health, and areas with high mountains, islands, mountainous regions, and ethnic minority areas with difficult conditions.

2. Being consistent with the State budget balance capacity; promoting gradual improvement in the efficiency of State budget utilization, striving to reduce the proportion of regular expenditures to restructure the State budget based on organizational restructuring, reduction of staff establishment, thorough thrift, prevention of waste, and enhancement of operational efficiency and income for workers.

3. Contributing to accelerating reform in the public service sector in conjunction with the adjustment of prices and fees towards full cost recovery, combining budget restructuring based on reducing direct support from the State budget to public service units, increasing direct support for policy beneficiaries; encouraging socialization and mobilizing social resources to develop the economy and society.

4. The criteria for the allocation standards of the annual regular budget expenditure plan must be clear, simple, easy to understand and implement, and verify; ensuring fairness, transparency, and promoting administrative reform.

5. Incorporating as many regular expenditures as possible into the management administrative expenditure standard of ministries and central agencies with the requirement of thorough thrift; reducing expenditures for conferences, seminars, and overseas delegations; prioritizing the allocation of funds for judicial bodies, the National Audit Office, and the Government Inspectorate.

6. The allocation standards for regular expenditures of the local budget must comply with the following additional principles:

a) Population criteria divided into four (4) regions (urban; delta; mountainous areas, ethnic minority areas in the delta, remote areas; highlands-islands) is the main criterion; combining supplementary criteria suitable to the actual situation and characteristics of each locality.

b) Including all funding requirements for implementing central policies issued until May 31, 2016 (excluding additional policies due to multidimensional poverty criteria and State budget support policies when there are participants such as tuition fee exemptions and study support costs; electricity subsidies for poor households and social policy households; health insurance for near-poor households, members of households engaged in agriculture, forestry, fisheries, and salt production with average living standards).

c) The total regular expenditure budget of localities and the regular expenditure budget of the education-training and vocational training sectors, science and technology sectors, shall be calculated according to the principles, criteria, and allocation standards for the annual regular budget expenditure plan as stipulated in this Resolution and ensure that they are not lower than the regular expenditure budget for 2016 decided by the National Assembly.

Article 4. Criteria and allocation standards for the annual budget of regular expenditures of the state budget for ministries and central agencies

1. Allocation of the annual budget for administrative management expenses:

a) Criteria:

Based on the number of staff positions assigned by the competent authority using the diminishing scale method (decreasing standard for the number of assigned staff positions). In addition to the regular expenditure budget allocated according to the number of staff positions, ministries and central agencies are allocated funds to ensure salary payments and allowances with salary characteristics as prescribed and funds to ensure specific special tasks of each Ministry and central agency.

b) Allocation standards based on staffing criteria:

2. Allocation of the annual budget for public service units:

Based on the degree of autonomy of public service units, regular expenditure support is provided to these units in accordance with the relevant laws on the autonomous mechanism of public service units.

Ministries and central agencies should accelerate the delegation of autonomy to public service units, promote the pricing of public services according to the established schedule, thereby reducing direct subsidies from the state budget for this sector to increase funding for poverty alleviation policies and access to public services for policy beneficiaries, increase spending on procurement and repairs, and investment development.

3. Allocation of the annual budget for defense and security expenses:

For defense and security tasks of the central budget, based on the financial needs to implement policies and systems for personnel, special defense and security tasks, and the ability to balance the central budget annually, the Government shall submit to the National Assembly for decision.

Article 5. Criteria and allocation standards for the annual budget of regular expenditures of the state budget for provinces and centrally governed cities

1. Criteria and allocation standards for educational service expenses:

a) Criteria for allocating based on the population aged from 1 to 18 years old and additional criteria stipulated in point c, Clause 1 of this Article.

b) Allocation standards based on the population aged from 1 to 18 years old:

Unit: dong/person/year

On the basis of the standards set out herein, if the proportion of regular expenditure for teaching and learning activities (excluding salaries and salary-like allowances) is less than 18% of total educational service expenditure, it will be supplemented to ensure that the salary, allowance, and salary-like allowances (social insurance, health insurance, unemployment insurance, trade union fees) maximum 82%, teaching and learning activities minimum 18% (excluding tuition revenue). This ratio only applies to 2017, the first year of the 2017-2020 period for stabilizing the budget between the central government and local governments; each year during the 2017-2020 stabilization period, the Provincial People's Councils decide in accordance with their budget capacity and actual conditions.

c) Allocation based on additional criteria, including regimes and policies: Lunch allowance for children aged 3-5; education policy for persons with disabilities; support for high school students in particularly difficult economic and social conditions; support for study costs for ethnic minority students studying at higher education institutions, implemented in accordance with the provisions of the law.

2. Criteria and allocation standards for training and vocational education service expenses:

a) Criteria for allocating based on the population (excluding those aged 1-18 years old).

b) Allocation standards based on population criteria (excluding those aged 1-18 years old):

Unit: dong/person/year Allocation standard Urban

3. Criteria and allocation standards for healthcare service expenses:

a) Criteria for allocating based on the population and additional criteria stipulated in point c, Clause 3 of this Article.

b) Allocation standards based on population criteria:

Unit: dong/person/year Allocation standard Urban

c) Allocation based on additional criteria, including regimes and policies: Health insurance card purchase regime for certain groups (children under 6 years old; people in poor households, ethnic minorities living in economically and socially disadvantaged areas, people living in particularly disadvantaged areas, people living in island communes and counties; people who have donated organs according to the law; people receiving monthly social assistance; students and pupils; former combatants; people directly participating in the resistance war against America to save the country; people participating in wars to protect the country and international missions in Cambodia and helping Laos; young volunteers; fireline civilians) implemented in accordance with the provisions of the law.

4. Criteria and allocation standards for administrative management expenses:

a) Criteria for allocating based on the population, district-level administrative units, commune-level administrative units, and specialized agencies; allocate based on salaries, allowances, and salary-like allowances.

b) Allocation standards for administrative management expenses (excluding salaries, allowances, and salary-like allowances): Allocation standards based on population criteria:

Unit: dong/person/year Allocation standard Urban

Allocation standards based on the number of district-level administrative units and commune-level administrative units:

Unit: million dong/district/commune/year

For provinces and centrally governed cities permitted by the competent authority to establish specialized agencies, an additional amount of 2,040 million dong/unit will be provided.

c) Salaries, allowances, and salary-like allowances (social insurance, health insurance, trade union fees) are calculated according to current regulations.

d) In cases where the administrative management expense budget calculated based on the standards specified in point b, Clause 4 of this Article (excluding salaries, allowances, and salary-like allowances) is less than 25% of total administrative management expenses, it will be supplemented to ensure a minimum of 25%, with the salary, allowance, and salary-like allowances ratio not exceeding 75%.

5. Criteria and allocation standards for cultural and information service expenses:

a) Criteria for allocation based on population and additional criteria specified in point c clause 5 of this Article.

b) Allocation standards based on population criteria:

Unit: dong/person/year Allocation standard Urban

c) Allocation according to additional criteria: Additional allocation for provinces and centrally governed cities having professional art troupes (public service units); mobile information teams; national tourist areas and sites.

6. Criteria and allocation standards for public service expenditure on broadcasting and television:

a) Criteria for allocation based on population and additional criteria specified in point c clause 6 of this Article.

b) Allocation standards based on population criteria:

Unit: dong/person/year

c) Allocation according to additional criteria: Additional allocation for provinces and centrally governed cities having mountainous districts - ethnic minority areas in plains, remote, highland, and island regions with relay stations for broadcasting and television.

7. Criteria and allocation standards for public service expenditure on physical culture and sports:

a) Criteria for allocation based on population and additional criteria specified in point c clause 7 of this Article.

b) Allocation standards based on population criteria:

Unit: dong/person/year

c) Allocation according to additional criteria: Provinces and centrally governed cities having athletes achieving high-level national achievements and disabled athletes participating in central-level competitions shall be allocated training funds according to the prescribed regime for athletes.

8. Criteria and allocation standards for public service expenditure on social security:

a) Criteria for allocation based on population and additional criteria specified in point c clause 8 of this Article.

b) Allocation standards based on population criteria:

Unit: dong/person/year

c) Allocation according to additional criteria: Monthly social assistance benefits for social welfare beneficiaries; monthly allowances for retired village cadres; direct support for poor households in difficult areas as stipulated by law. Additional allocation for provinces and centrally governed cities at a rate of 500,000 VND per family under policy to provide additional funding for visiting and encouraging families under policy during holidays and festivals.

9. Criteria and allocation standards for defense expenditure:

a) Criteria for allocation based on population and additional criteria specified in point c clause 9 of this Article.

b) Allocation standards based on population criteria:

Unit: dong/person/year

c) Allocation according to additional criteria: Additional allocation for provinces and centrally governed cities having land borders, island districts, and island communes.

10. Criteria and allocation standards for security expenditure:

a) Criteria for allocation based on population and additional criteria specified in point c clause 10 of this Article.

b) Allocation standards based on population criteria:

Unit: dong/person/year

c) Allocation according to additional criteria: Additional allocation for provinces and centrally governed cities having land borders, island districts, and island communes.

11. Allocation standards for public service expenditure on science and technology: The Government shall submit to the National Assembly the allocation level for public service expenditure on science and technology in local budgets for the year 2017.

12. Level of allocation for economic activities:

a) General allocation level, equal to 10% of recurrent expenditure in the fields of expenditure (from clause 1 to clause 11 of this Article).

b) For special cities (Hanoi, Ho Chi Minh City), additional allocation at 70% according to the standard determined in point a clause 12 of this Article to implement important urban traffic tasks.

c) Allocation for provinces and centrally governed cities having administrative urban areas at a rate of 76.5 billion VND/district, type I city (in province)/year; 46.5 billion VND/type II city/year; 12.75 billion VND/type III city/year; 8.5 billion VND/type IV city/year; 5 billion VND/type V city/year. In the period of budget stabilization, if a locality is recognized by competent authorities at the central level for upgrading its urban status, the central government will support the localities receiving additional balance from the central budget according to the urban support standard specified in point c clause 12 of this Article.

d) Allocation according to additional criteria: Water resource fee exemption fees; production subsidy fees for rice-growing areas with large rice cultivation areas. Support for island districts and island communes to offset electricity losses, subsidize water-carrying ships, essential goods, and maintain water tanks and seawater filtration systems.

13. Criteria and allocation standards for public service expenditure on environmental protection:

a) Criteria for allocation based on urban population and population density; industrial output value; area of natural conservation zones and natural forests.

b) Allocation standards: Based on the total budget estimate for environmental public services of the state budget, allocate

14. Level of allocation for other recurrent expenditures in local budgets:

a) Allocation according to proportion (0.5%) of the total recurrent expenditures calculated according to allocation standards (from clause 1 to clause 13 of this Article).

b) Allocation according to additional criteria: Additional allocation for provinces and centrally governed cities having border communes.

15. For provinces and centrally governed cities facing difficulties or having low populations, additional allocation according to percentage (%) of expenditure calculated according to population standards as follows:

Localities in the Mekong Delta region shall receive additional allocation of 9%; localities with a population below 400,000 shall receive additional allocation of 16%; localities with a population from 400,000 to less than 600,000 shall receive additional allocation of 14%; localities with a population from 600,000 to 900,000 shall receive additional allocation of 12%. In case a locality meets two or more criteria, it shall only be allocated according to the highest support criterion.

For provinces and centrally governed cities with an average population per district below 85,000, additional allocation of 5% of expenditure calculated according to population standards.

16. For provinces and centrally governed cities with a budget redistribution ratio to the central budget, additional allocation according to percentage (%) of expenditure calculated according to population standards as follows: Hanoi and Ho Chi Minh City shall receive additional allocation of 70%; remaining centrally governed cities (Haiphong, Da Nang, Can Tho) shall receive additional allocation of 45%; provinces contributing over 40% to the central budget shall receive additional allocation of 40%; provinces with a redistribution ratio to the central budget from 15% to less than 40% shall receive additional allocation of 35%; provinces with a redistribution ratio to the central budget remaining shall receive additional allocation of 30%.

17. Budget reserve: The Government shall submit to the National Assembly the level of allocation for local budget reserves for the year 2017 as stipulated by the State Budget Law.

18. For years during the period of budget stabilization:

a) The Government shall submit to the National Assembly:

Increase the supplementary balance from the central budget for localities compared to the first year of the budget stabilization period as stipulated by the State Budget Law.

Plan for handling exceptional cases where new projects coming into operation generate significant additional revenue for local budgets.

Support for localities based on the central budget's balancing capacity in cases where special tasks related to security and defense arise.

b) When a new administrative unit is established according to the Resolution of the Standing Committee of the National Assembly, support from the central budget to the local budget shall be provided at the following levels:

For newly established cities, towns, and districts, the support amount is 17,000 million VND/unit/year.

For newly established counties: those located in highland and island areas will receive support of 17,000 million VND/unit/year; those in mountainous and ethnic minority areas in plains and remote regions will receive support of 13,600 million VND/unit/year; counties in other regions will receive support of 10,200 million VND/unit/year.

For newly established communes, wards, and towns: those located in highland and island areas will receive support of 3,400 million VND/unit/year; those in mountainous and ethnic minority areas in plains and remote regions will receive support of 2,720 million VND/unit/year; communes, wards, and towns in other regions will receive support of 2,380 million VND/unit/year.

Chapter III

IMPLEMENTING PROVISIONS

Article 6. Implementation Organization

The Government and the Prime Minister:

1. Organize and direct ministries, central agencies, and localities to implement this Resolution.

2. Report on the implementation of this Resolution to the National Assembly and the Standing Committee of the National Assembly as required.

3. In cases where additional or amended principles, criteria, and allocation standards for the regular budget expenditure plan of the state budget for the year 2017 are needed beyond the provisions of this Resolution, the Government shall submit to the Standing Committee of the National Assembly for decision.

4. Specify detailed allocation standards for each criterion, timeframes, and agencies providing data as the basis for determining the regular budget expenditure plan of the state budget for the year 2017 and subsequent years during the 2017-2020 fiscal stability period.

5. Provide detailed regulations for implementing this Resolution.

Article 7. Effective Date

This Resolution takes effect from the 2017 fiscal year and throughout the 2017-2020 fiscal stability period as stipulated in the State Budget Law.

Article 8. Oversight of the Implementation of the Resolution

The Standing Committee of the National Assembly, the Committee on Finance and Budget, the Committee for Ethnic Minorities, and other committees of the National Assembly, within their respective duties and powers, shall oversee the implementation of this Resolution in accordance with the law.