Resolution No. 27/2016/QH14 on the state budget estimate for 2017

RESOLUTION

ON THE STATE BUDGET ESTIMATE FOR 2017

_________________________

OF THE NATIONAL ASSEMBLY
SOCIALIST REPUBLIC OF VIET NAM

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

On the basis of The State Budget Law No. 83/2015/QH13 and Resolution No. 25/2016/QH14 dated November 9, 2016 of the National Assembly on the Five-Year Financial Plan for the period 2016-2020; On the basis of considering Report No. 467/BC-CP dated October 19, 2016 and No. 522/CP-KTTH dated November 9, 2016 of the Government; Report No. 183/BC-UBTCNS14 dated October 19, 2016 of the Committee for Finance and Budget; Report No. 54/BC-UBTVQH14 dated November 11, 2016 of the Standing Committee of the National Assembly and the opinions of National Assembly deputies,

Article 1. Approves the state budget estimate for 2017

RESOLUTION:

1. Total revenue of the state budget is

1,212,180 billion VND (one million two hundred twelve thousand one hundred eighty billion VND). 2. Total expenditure of the state budget is

1,390,480 billion VND (one million three hundred ninety thousand four hundred eighty billion VND). 3. The deficit of the state budget is

178,300 billion VND (one hundred seventy eight thousand three hundred billion VND), equivalent to Gross Domestic Product (GDP), including: 3,5% The central government's budget deficit is

172,300 billion VND (one hundred seventy two thousand three hundred billion VND), equivalent to GDP; 3,38% The local government's budget deficit is

6,000 billion VND (six thousand billion VND), equivalent to GDP. 0,12 %4. The total amount of borrowing of the state budget, including borrowing to cover the deficit and to repay the principal of the state budget debt is

340,157 billion VND (three hundred forty thousand one hundred fifty-seven billion VND). (Annexes 1, 2, 3, and 4 attached)

Article 2. Assigns the Government

1. To implement a strict fiscal policy; coordinate synchronously with monetary policy to support production and business development, continue to stabilize macroeconomic conditions, control inflation, and promote economic growth. Strengthen financial-discipline and budgetary discipline, implement the state budget estimate in accordance with the provisions of the law. Vigorously inspect, audit, and make public the use of the state budget, especially in areas prone to corruption and waste.

2. Direct the organization to effectively implement tax laws and promptly guide the conversion of certain fees into service prices in accordance with the provisions of the law. Enhance tax inspection and auditing work; combat tax evasion, smuggling, commercial fraud, production and sale of counterfeit goods, transfer pricing, and tax avoidance; detect and promptly handle cases of incorrect declaration, fraud, and tax evasion. Minimize the issuance of new policies that reduce state budget revenues.

3. From 2017, the revenue from road usage fees collected per vehicle and maritime security fees (after deducting collection costs) will be reflected in the state budget revenue, used for road maintenance and maritime safety assurance.

4. Implement the allocation of environmental protection tax revenue from gasoline and diesel products between the central government budget and local government budgets as stipulated by the State Budget Law.

5. In 2017, all special consumption tax revenue from gasoline at the Nghi Son Refinery will be transferred to the central government budget. From 2018, when the refinery operates stably, the mechanism will be reassessed according to the law.

6. Transfer 72% of the interest income from oil and gas royalties, profit shares from the Vietnam-Russia Joint Venture "Vietsovpetro," and incidental document reading fees generated in 2017 into the state budget; the remaining 28% will be reinvested in PetroVietnam in accordance with the law.

7. Guide localities to incorporate lottery revenue into the local government budget revenue and use the entire revenue for investment development as decided by the Provincial People's Council, prioritizing education, training, vocational training, healthcare,新农村发展规划和应对气候变化的项目。安排与地方食品安全管理相关的支出，对应地方财政上缴的食品安全行政处罚收入。

8. Ensure that the issuance of government bonds with terms of five years or longer accounts for at least 70% of the total volume of government bonds to meet the requirements of raising funds for the state budget, structuring the maturity profile of the debt portfolio, managing risks, and developing the bond market.

9. Manage state budget expenditures according to the approved estimates. Thoroughly economize on regular spending of each ministry, central agency, and locality; minimize conference, seminar, and ceremonial event expenses; limit travel and survey expenses abroad; limit the purchase of expensive vehicles and equipment; encourage the expansion of carpooling arrangements that are reasonable, efficient, and cost-effective. Vigorously reform administrative management of state budget expenditures. Only issue policies that increase state budget expenditures when truly necessary and with guaranteed funding sources. Strictly manage and minimize advance appropriations and reallocation of state budget expenditures to the following year. Do not convert loan capital into budgetary allocations or government guarantees. Strictly enforce the Law on Thrift and Combating Wastefulness; the Law on Anti-Corruption.

10. Adjust the minimum wage from 1.21 million VND/month to 1.3 million VND/month, adjust pensions and social insurance benefits and preferential allowances for war veterans by the same percentage as the increase in the minimum wage, effective from July 1, 2017.

Assign ministries, central agencies, and localities to allocate additional funding from their state budget estimates to increase the minimum wage.

The central government will ensure funding for pension adjustments, social insurance benefits (for those covered by the state budget), and preferential allowances; provide partial additional salary funding for some financially struggling localities as specified by the Government.

11. In 2017, issue 50,000 billion VND worth of government bonds to invest in important and urgent projects under the medium-term public investment plan. Allow the reallocation of unallocated government bond funds from the 2016 plan to 2017.

In 2017, issue VND 50 trillion worth of government bonds for investment in important and urgent projects under the medium-term state investment plan. Allow the transfer of unallocated funds from the 2016 government bond issuance plan to 2017.

Management of budget-funded development investment expenditures must comply with legal regulations. Enhance mobilization of domestic and foreign resources for development investment, improve the legal foundation to promote public-private partnerships, and create conditions for various economic sectors to participate in infrastructure construction, especially in agriculture, rural areas, and tourism.

Guide localities to prioritize using supplementary targeted funds to support housing for families of persons who have rendered meritorious service to the revolution.

12. From 2017, direct localities to proactively allocate funds for interest and principal debt repayment in accordance with the provisions of the State Budget Law.

13. Strictly control the budget deficit; during implementation, active measures should be taken to reduce the deficit. Strengthen inspection and supervision of borrowing, use of borrowed funds, and debt repayment, particularly for new loans and those guaranteed by the Government. Ensure that government debt, state debt, and national external debt remain within prescribed limits.

14. Direct ministries, central agencies, and localities to accelerate the implementation of the self-management mechanism for public service units in conjunction with the process of accurately pricing public services, thereby reducing direct subsidies to public service units and allocating more resources to support the poor, policy beneficiaries, and to reform salaries and purchase/maintenance expenses to enhance the quality of public services. Adjust prices of goods under state price management towards market levels to ensure reasonable cost recovery and attract investment from other economic sectors.

Article 3. Supervision of Implementation

The Standing Committee of the National Assembly, the Finance-Budget Committee, the Ethnic Council, and other Committees of the National Assembly, Delegations of National Assembly members, and National Assembly deputies shall supervise the implementation of this Resolution within their respective responsibilities and powers as stipulated by law.

This Resolution was adopted by the National Assembly of the Socialist Republic of Vietnam, the 14th term, at its second session on November 11, 2016.

 ANNEX NO. 1

STATE BUDGET BALANCE FOR 2017
(Issued together with Resolution No. 27/2016/QH14 dated November 11, 2016 of the National Assembly)

Unit: Billion VND

Note:

(1) Difference between local deficits and surpluses.

(2) Excluding principal repayment from increased revenue, reduced expenditure, surplus revenue, and deficit of the General Budget, the loan amount for principal repayment is approximately 156.537 billion VND.

 ANNEX NUMBER 2

BALANCE OF LOCAL AND CENTRAL BUDGETS' INCOME AND EXPENSES ESTIMATE FOR 2017
(Issued together with Resolution No. 27/2016/QH14 dated November 11, 2016 of the National Assembly)

Unit: Billion VND

ANNEX NUMBER 3

ESTIMATED NATIONAL BUDGET REVENUE BY SECTOR FOR 2017
(Issued together with Resolution No. 27/2016/QH14 dated November 11, 2016 of the National Assembly)

Unit: Billion VND

ANNEX NUMBER 4

ESTIMATED NATIONAL BUDGET EXPENDITURE, CENTRAL BUDGET EXPENDITURE, AND LOCAL BUDGET EXPENDITURE BY STRUCTURE FOR 2017
(Issued together with Resolution No. 27/2016/QH14 dated November 11, 2016 of the National Assembly)

Unit: Billion VND

Note:

(1) Includes targeted allocations to local budgets; excludes balance adjustments to local budgets.

(2) Includes 194.250 billion VND in balance adjustments from the Central Budget to the Local Budget; does not include targeted allocations from the Central Budget to the Local Budget.