Circular No. 326/2016/TT-BTC on the organization of implementing the state budget estimate for 2017

CIRCULAR

REGULATIONS ON THE ORGANIZATION AND IMPLEMENTATION OF THE STATE BUDGET ESTIMATE FOR 2017

Pursuant to the State Budget Law No. 83 dated June 25, 2015;

Pursuant to Resolution No. 27/2016/QH14 dated November 11, 2016 of the Fourteenth National Assembly on the state budget estimate for 2017;

Pursuant to Resolution No. 29/2016/QH14 dated November 14, 2016 of the Fourteenth National Assembly on the allocation of the central state budget for 2017;

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013, promulgated by the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 163/2016/NĐ-CP dated December 21, 2016 of the Government detailing and guiding the implementation of certain Articles of the State Budget Law;

Implementing Decision No. 2309/QĐ-TTg dated November 29, 2016 of the Prime Minister on the allocation of the state budget estimate for 2017;

At the proposal of the Director of the State Budget Department;

The Minister of Finance promulgates this Circular regulating the organization and implementation of the state budget estimate for 2017.

PART I
CLASSIFICATION OF REVENUE SOURCES, EXPENDITURE RESPONSIBILITIES, AND ALLOCATION AND ASSIGNMENT OF THE STATE BUDGET ESTIMATE FOR 2017

Article 1. Classification of revenue sources and expenditure responsibilities of the state budget

1. The classification of revenue sources between the central state budget and local state budgets shall be carried out in accordance with the provisions of the State Budget Law and the guiding documents for the implementation of the State Budget Law, which are detailed in Appendix No. 1 attached to this Circular.

2. Based on the revenue sources classified according to Clause 1 of this Article and the expenditure responsibilities delegated to local state budgets under the State Budget Law, the People's Committee at provincial level shall submit to the People's Council at the same level for decision the classification of revenue sources and expenditure responsibilities among local government budgets in line with the actual situation in the locality during the new period of budget stability, while ensuring that the percentage (%) of revenue sharing between the central state budget and local state budgets when allocated to local government budgets does not exceed the percentage decided by the National Assembly and assigned by the Prime Minister to each province and centrally-administered city.

3. The distribution of environmental protection tax revenue from gasoline and diesel products between the central state budget and local state budgets shall be implemented in accordance with the provisions of the State Budget Law based on the domestic production and sales volume of gasoline and diesel products during the planning period compared to the planned sales volume of gasoline and diesel products by the main enterprises. The ratio (%) of domestic production and sales volume of gasoline and diesel products in 2017 compared to the total consumption volume of gasoline and diesel products on the market in 2017 is 37.2%, the distribution of revenue between the central state budget and local state budgets shall be carried out according to the adjustment ratio decided by the National Assembly; the ratio (%) of imported gasoline and diesel products in 2017 compared to the total consumption volume of gasoline and diesel products on the market in 2017 is 62.8%, all revenue shall be adjusted to the central state budget.

4. From 2017 onwards, the revenue from road usage fees collected per vehicle and maritime security fees (after deducting collection costs) paid into the central state budget shall be used for road maintenance and maritime safety assurance.

5. The central state budget shall adjust 100% of the special consumption tax revenue from gasoline products produced by the Nghi Son oil refinery.

6. The period of local budget stability is four years, from 2017 to 2020. The percentage (%) of revenue sharing between the central state budget and local state budgets will remain stable throughout the 2017-2020 budget stability period. In cases where new projects entering operation during the budget stability period generate significant additional revenue for the local budget, the increased revenue must be remitted to higher-level budgets and used in accordance with Point d, Clause 7, Article 9 of the State Budget Law.

7. Implement a mechanism to balance land use fee revenues in the local state budget estimates for investment in economic and social infrastructure; at the same time, localities may use part of the land use fee revenues to carry out land planning and management work, and complete the issuance of land use right certificates in accordance with regulations.

Based on the annual land use plan, the People's Committee at provincial level shall submit to the People's Council at the same level for decision the amount of state budget capital to establish the Land Development Fund, and the specific annual amount to replenish the Land Development Fund, in line with the actual conditions of the locality.

8. From 2017 onwards, lottery revenue is a balanced revenue source for the local state budget and is entirely used for development investment, including: Northern, Central, and Central Highlands provinces allocate a minimum of 60%, Southern provinces and the Mekong Delta allocate a minimum of 50% of the lottery revenue budget determined by the Provincial People's Council to invest in education and training, vocational training, and healthcare. Localities allocate a minimum of 10% of the revenue budget to supplement capital for tasks under the National Target Program for New Rural Development. Any remaining revenue (if any) is allocated for climate change response projects and other important projects funded by the local state budget. In the implementation process, if lottery revenue exceeds the budget set by the Provincial People's Council, the People's Committees at various levels shall develop a plan to allocate investment funds for important local projects, prioritizing education and training, vocational training, healthcare, agriculture, rural areas, and climate change response, report to the Standing Committee of the People's Council for decision, and report the results of implementation at the nearest session of the People's Council.

Article 2. Allocation of State budget revenue estimates

1. Ministries, central agencies, provincial People's Committees, and centrally-run city People's Committees shall implement the allocation of State budget revenue collection tasks for the year 2017 to subordinate units and lower-level authorities, ensuring that they are at least equal to the State budget revenue collection estimates assigned by the Prime Minister. In addition to allocating State budget revenue estimates, ministries, central agencies, provincial People's Committees, and centrally-run city People's Committees shall assign public service revenue collection tasks to subordinate units in accordance with the provisions of the Law, if applicable.

2. The allocation of State budget revenue estimates for the year 2017 must be based on a thorough review, analysis, and evaluation of all sources of revenue generated and the results of State budget revenue collection in 2016; taking into account policies and laws on State budget revenue collection; forecasting economic growth rates for each sector and field, production and business conditions of taxpayers within their jurisdictions; strengthening tax inspection and audit work to prevent revenue loss; preventing smuggling, commercial fraud, fake goods production and trading, profit shifting, and tax evasion; intensifying efforts to collect overdue taxes and enforce tax collection, limiting new arrears, and promptly recovering discovered tax penalties through inspections and audits.

Article 3. Allocation and Assignment of State Budget Expenditure Estimates

1. Allocation and Projection of Development Investment Expenditure:

a) Ministries, central agencies, and localities must allocate and assign State budget development expenditure estimates in compliance with the provisions of the State Budget Law and guiding documents for the State Budget Law, Investment Law, Resolution No. 1023/NQ-UBTVQH13 dated August 28, 2015 of the Standing Committee of the National Assembly on principles, criteria, and allocation standards for State budget development funds for the 2016-2020 period, Decree No. 77/2015/NĐ-CP dated September 10, 2015 of the Government on medium-term and annual investment plans, Decision No. 40/2015/QĐ-TTg dated September 14, 2015 of the Prime Minister on principles, criteria, and allocation standards for State budget development funds for the 2016-2020 period. Funds should be allocated for projects listed in the proposed medium-term State budget development fund allocation plan for the 2016-2020 period, which have full investment decisions, prioritizing the acceleration of progress and completion of important national programs and unfinished critical projects; counterpart funds for Official Development Assistance (ODA) programs and projects invested under Public-Private Partnership (PPP) models; funds to settle outstanding construction debts up to December 31, 2014 that have not yet been settled. No allocation of 2017 capital plans will be made for projects that have disbursed less than 30% of the 2016 capital plan by September 30, 2016, except in cases of objective reasons. Additionally, for local government development expenditure budgets, after allocating funds according to the aforementioned priorities, if there are remaining resources, consideration may be given to allocating funds for newly initiated projects that have completed the required investment procedures in accordance with the law.

b) In addition to implementing the allocation and allocation of funds for development expenditure as mentioned above, provinces and centrally-run cities need to pay attention to the following matters:

- Based on the development expenditure estimates assigned by the Prime Minister, the Ministry of Planning and Investment, and the Ministry of Finance, localities should arrange sufficient funds for interest, fee payments, and other incidental expenses from borrowed funds according to commitments and reserve corresponding surplus provincial State budget revenues (if any) to repay the principal of provincial government loans due for repayment in 2017; the remainder can then be allocated for projects and programs, including adequate funding for those supported by the central government to achieve specified objectives.

- Localities should allocate and assign funds from the central government's re-lending sources included in the total development expenditure estimates assigned by the Prime Minister, the Ministry of Planning and Investment, and the Ministry of Finance, in accordance with the total amount and content of the loan program or project based on signed agreements, and only disburse funds within the allocated estimate.

If a locality's allocated estimate includes domestic borrowing and re-lending from the central government's borrowed funds, and during implementation there is no need or insufficient demand for domestic borrowing, it is permitted to disburse additional funds from the central government's re-lending to the locality, but not exceeding the total loan estimate allocated.

Example: Province A has a total loan estimate of 500 billion VND for 2017, including 400 billion VND from domestic sources and 100 billion VND from the central government's re-lending. In practice, the actual demand for disbursement from the central government's re-lending is 200 billion VND, an increase of 100 billion VND compared to the estimate, while the demand for domestic borrowing is only 300 billion VND, a decrease of 100 billion VND compared to the estimate. At this point, the locality is allowed to disburse 200 billion VND from the central government's re-lending and borrow 300 billion VND from domestic sources.

- The allocation and assignment of funds for investment projects from budget surpluses (if any) must ensure alignment with the progress and allowable loan limits.

- Priority should be given to allocating local government development funds for forest regeneration projects funded by annual taxes on natural timber resources in accordance with the law.

- Adequate counterpart funds should be allocated from the local government budget for ODA projects managed by the locality in accordance with regulations.

2. Allocation and assignment of regular expenditure budgets:

a) Ministries, central agencies, and localities must allocate and assign regular expenditure estimates to budget-using units in accordance with the estimates assigned by the Prime Minister, guided by the Ministry of Finance, decided by the People's Council, and assigned by the People's Committee, both in terms of the total amount and detailed by each spending category; the allocation of expenditure estimates must comply with the prescribed budget expenditure regulations, standards, and quotas set by competent state agencies, ensuring sufficient funding for implemented policies and systems, important tasks stipulated by law, and tasks decided by authorized bodies.

- For educational and vocational training services: Allocate and assign budget estimates for subordinate agencies and units, lower-level authorities not less than the budget estimate for regular expenditures assigned by the Prime Minister; Reduce state budget support for regular expenditures of higher education institutions and vocational training institutions that partially self-fund their regular expenditures according to the schedule for adjusting tuition fees as prescribed in Decree No. 86/2015/NĐ-CP dated October 2, 2015 of the Government.

At the same time, localities shall develop plans to determine the portion of the state budget in 2017 expected to reduce support for regular activities of higher education institutions and vocational training institutions that partially self-fund their regular expenditures to directly support students belonging to policy targets; create resources to implement salary reform when the State adjusts the basic salary level; increase funding for urgent matters in the education sector.

- For scientific and technological services: Allocate and assign budget estimates for subordinate agencies and units, lower-level authorities not less than the budget estimate for regular expenditures assigned by the Prime Minister; the allocation of funds for scientific and technological services in 2017 for scientific and technological activities of local budgets shall be carried out in accordance with the Law on State Budgets, the Law on Science and Technology, and guiding documents. County and commune budgets do not have the task of funding scientific research and technology, but can fund tasks related to applying and transferring technology.

- For medical services: Allocate and assign regular state budget support for public health service units performing medical examination and treatment tasks according to the schedule for adjusting medical service prices towards reducing state budget support for expenditures included in medical service prices and the ability of each unit to self-fund regular expenditures from its own revenue.

At the same time, localities shall develop plans to determine the portion of the state budget in 2017 expected to reduce support for regular activities of public health service units performing medical examination and treatment tasks to purchase and support the purchase of health insurance cards for specified groups under the Health Insurance Law; implement policies to support poor people and policy targets using public health services; create resources to implement salary reform when the State adjusts the basic salary level; increase funding for preventive healthcare; increase funding for other urgent matters in the healthcare sector.

- For environmental protection services: The People's Committee of the province shall base on the budget estimate assigned by the Minister of Finance, policies, and the volume of tasks to be implemented, submit to the People's Council at the same level for decision-making in line with the actual situation of the locality. Among these, priority should be given to allocating funds to support environmental protection work in areas with mineral extraction activities; concentrate on arranging funds to handle medical waste, environmental sanitation in schools, waste disposal sites, purchasing equipment for waste collection, and addressing hotspots in environmental issues.

b) Based on the 2017 budget estimate, provinces and centrally-administered cities:

- Allocate funding for food safety management and assurance work at the local level corresponding to the amount of administrative fines for food safety violations paid into the local budget to invest in technical equipment and inspection, testing, and disposal of unsafe food for agencies and units tasked with handling administrative violations related to food safety at the local level.

- Proactively allocate funds to implement legal awareness dissemination and education work according to the Law on Legal Awareness Dissemination and Education, grassroots dispute resolution work according to the Law on Grassroots Dispute Resolution, and the implementation of the overall project to simplify administrative procedures, citizen documents, and related databases on population management for the period 2013-2020; implement tasks to handle administrative violations in fields under local responsibility according to the delegation (including the task of ensuring traffic order and safety).

- Proactively use local government budgets and central government support budgets (if any) to implement legal aid policies for poor people and ethnic minorities in poor districts, communes, and particularly difficult villages and hamlets during the period 2016-2020, and support complex litigation cases according to Decision No. 32/2016/QĐ-TTg dated August 8, 2016 of the Prime Minister; implement the project to complete and modernize files, maps, administrative boundaries, and build databases on administrative boundaries according to Decision No. 874/QĐ-TTg dated May 25, 2016 of the Prime Minister.

- Allocate funds to implement central policies and systems issued up to the time of assigning the 2017 budget estimate, especially funding for social welfare policies so that beneficiaries can enjoy the policies from the beginning of 2017. Policies and systems calculated in the first year of the 2017 budget stabilization period will not change funding (due to increased levels or expanded beneficiary groups), localities shall proactively allocate local budgets to implement them; in cases where there is excess or shortage of funding compared to the 2017 budget estimate, based on reports of local implementation results, the Ministry of Finance will propose the competent authority to allocate the 2018 budget estimate for localities to have resources to implement.

For the policies and benefits issued by the central government that have not been included in the regular budget allocation standard for the year 2017 as set out in Decision No. 46/2016/QĐ-TTg dated October 19, 2016 of the Prime Minister on the regular budget allocation standard for the year 2017 (additional policies based on multi-dimensional poverty criteria and state budget support when there are beneficiaries such as fee exemptions and study support funds; electricity subsidies for poor households and social policy households; health insurance for near-poor households and members of farming, forestry, fishery, and salt production households with average living standards), localities shall proactively review the beneficiaries, particularly for poverty reduction and social security policies where the beneficiaries are poor households, initially applying to poor households according to income criteria and using local budget resources to implement them, while promptly reporting to the Ministry of Finance to supplement funding for localities during the fiscal year 2017 as prescribed.

For special local policies, benefits, and expenditure tasks decided by the Provincial People's Council within their authority, apart from the expenditure regulations, standards, and norms issued by the central government to fulfill economic and social development tasks and ensure public security and social order, which are consistent with the local budget balance capacity, the central budget will not provide support. Specifically, for expenditure items related to salaries, wages, and allowances, prior to making decisions, opinions from the Ministry of Finance, the Ministry of Home Affairs, the Ministry of Labor, Invalids and Social Affairs, and other relevant ministries and sectors must be obtained.

- From July 1, 2017, the basic salary level will be adjusted from VND 1,210,000 per month to VND 1,300,000 per month. Therefore, from January 1, 2017 to June 30, 2017, localities shall proactively use local budget resources to continue paying the difference in salary for individuals with a coefficient of 2.34 or lower who have already received additional salary according to Decree No. 17/2015/NĐ-CP dated February 14, 2015 of the Government, where the total salary according to rank, grade, position, title, and any allowances calculated at the basic salary level of VND 1,210,000 per month is lower than the total salary according to rank, grade, position, title, any allowances, and additional salary according to Decree No. 17/2015/NĐ-CP calculated at the basic salary level of VND 1,150,000 per month. At the same time, this amount should be aggregated into the actual demand for implementing the salary reform in 2017, and the central budget will provide support according to the prescribed regulations.

- Allocate local budget resources to implement the overall plan for developing e-commerce from 2016 to 2020 as per Decision No. 1563/QĐ-TTg dated August 8, 2016 of the Prime Minister; funds for implementing the electronic government as per Resolution No. 36a/NQ-CP dated October 14, 2015 of the Government; funds for surveying, measuring, marking boundaries, creating land registry maps, and issuing land use rights certificates for agricultural and forestry companies as per Decree No. 118/2014/NĐ-CP dated December 17, 2014 of the Government on restructuring, modernizing, and enhancing the efficiency of agricultural and forestry companies; funds for surveying, creating land registry files, and issuing land use rights certificates as per Directive No. 144/CT-TTg dated August 24, 2011 and Directive No. 05/CT-TTg dated April 4, 2013 of the Prime Minister.

3. Allocation and assignment of the budget for national reserve purchases: Based on the Prime Minister's decision regarding the allocation and budget for the national reserve, the Minister of Finance shall allocate and assign the budget for purchasing goods for the national reserve to relevant central ministries and agencies managing national reserve goods, ensuring alignment with the Prime Minister's assigned budget. On this basis, heads of relevant central ministries and agencies shall allocate and assign plans to subordinate reserve units within the scope of the assigned budget and detailed by each item according to the provisions of the State Budget Law, National Reserve Law, and decisions of competent authorities.

4. Allocation and assignment of the budget for targeted supplementary funding: Based on Resolution No. 100/2015/QH13 dated November 12, 2015 of the National Assembly approving the investment programs and projects for the period 2016-2020, Resolution No. 73/NQ-CP dated August 26, 2016 of the Government approving the investment programs and projects for the period 2016-2020, Decision No. 41/2016/QĐ-TTg dated October 10, 2016 of the Prime Minister promulgating the management and implementation regulations for national target programs, and based on the budget for implementing two national target programs, relevant programs, and certain tasks assigned by the Prime Minister, the ministries, central agencies, and provincial people's committees directly under the Central Government:

a) Implement the allocation and assignment of budgets to subordinate units and lower-level authorities in accordance with the objectives and legal regulations for each program and project assigned by the competent authority;

b) Targeted supplementary funding from the central budget for housing support for families of those who have rendered meritorious service to the revolution shall be used to support housing for those who have rendered meritorious service to the revolution;

c) Based on the actual situation, decide on the organization and implementation of targeted support programs from the central budget to ensure matching local budget contributions as required by law; simultaneously mobilize other resources reasonably in accordance with the law to implement the two national target programs.

d) In addition to the provisions set forth in points a, b, and c of this clause, ministries, central agencies, and localities shall allocate and assign detailed budgets for national target programs according to the content and component projects of each national target program to subordinate units in accordance with the content, objectives, and tasks of each program and project, and in accordance with current regulations. At the same time, allocate the budget for the new rural development national target program to implement the national criteria for new rural communes during the period from 2016 to 2020 as stipulated in Decision No. 1980/QĐ-TTg dated October 17, 2016 of the Prime Minister (including food safety indicators).

5. Allocation and assignment of authorized expenditure budgets: Where a state management agency at a higher level authorizes a state management agency at a lower level to perform its own spending tasks, it shall allocate and assign the budget to the authorized lower-level agency to carry out such spending tasks. The agency receiving the authorized funds must settle accounts with the authorizing agency regarding these funds.

6. Allocation and assignment of budgets for expenditures from foreign loans and aid:

a) Ministries and central agencies shall allocate in detail to each using unit, in detail according to each program and project, and ensure that the total budgeted amount and each area of expenditure match those assigned by the Prime Minister;

b) Localities shall allocate in detail to each using unit, in detail according to each program and project, and ensure that the total budgeted amount of expenditure matches that assigned by the Prime Minister.

7. Borrowing and repaying principal on local government provincial budget loans:

a) Localities may only borrow to cover deficits and to repay principal within the limits determined by the National Assembly and assigned by the Prime Minister;

b) Allocate from surplus revenue; increase revenue, reduce expenditure; and budget surplus to fully and timely repay principal debts due.

For localities that allocate from increased revenue, reduced expenditure; and budget surplus to repay principal debt but actually have no source or insufficient allocation, they must reduce investment development capital in their local budget balance (increase surplus revenue) to fully and timely repay principal debt.

c) For localities that budget borrowing to repay principal: To ensure sufficient sources to fully and timely repay principal, when allocating capital for investment development, localities must proactively reserve funds to pay off due principal; simultaneously, disburse payments only after borrowing has been completed. If borrowing is not achieved according to plan or only partially achieved, then reduce investment development capital in the local budget balance (increase corresponding surplus revenue) to fully and timely repay principal debt.

Example 1: Province A (borrowing to cover deficit and borrowing to repay principal) budgets investment development expenditure in the 2017 budget balance at 1,200 billion VND, of which investment development from surplus revenue is 200 billion VND. In 2017, the province must repay interest and fees on loans at 10 billion VND; repay principal at 100 billion VND (of which 70 billion VND is from borrowed funds).

Therefore, the maximum amount allocated at the beginning of the year for investment development projects and works is 920 billion VND (1,200 billion VND - 200 billion VND from surplus revenue - 10 billion VND for interest and fees - 70 billion VND for principal repayment from borrowed funds).

During the implementation of the budget, localities must develop plans for borrowing and specifically allocate these borrowed funds to projects and works according to the borrowing schedule. If borrowing is achieved according to plan, an additional 270 billion VND will be allocated (including 200 billion VND borrowed to cover deficit + 70 billion VND borrowed to repay principal); if borrowing is not achieved, then the total investment development of Province A in 2017 will only be 920 billion VND, with 70 billion VND in investment capital reserved for timely repayment of due principal and without a deficit in the 2017 budget.

Example 2: Province B (no borrowing to cover deficit but borrowing to repay principal) budgets investment development expenditure in the 2017 budget balance at 1,000 billion VND. In 2017, the province must repay interest and fees on loans at 10 billion VND; repay principal at 100 billion VND (of which 70 billion VND is from borrowed funds).

Therefore, the maximum amount allocated at the beginning of the year for investment development projects and works is 920 billion VND (1,000 billion VND - 10 billion VND for interest and fees - 70 billion VND for principal repayment from borrowed funds).

During the implementation of the budget, localities must develop plans for borrowing and specifically allocate these borrowed funds to projects and works. If borrowing is achieved according to plan, an additional 70 billion VND will be allocated; if borrowing is not achieved, then the total investment development of Province B in 2017 will only be 920 billion VND, with 70 billion VND in investment capital reserved for timely repayment of due principal.

8. Allocate contingency reserves for local government levels in accordance with the State Budget Law and not less than the contingency reserve assigned by the Prime Minister to proactively use for the expenditure items specified in Clause 2, Article 10 of the State Budget Law.

9. During the process of deciding on the allocation of budget revenue and expenditure forecasts, where the People's Council decides on the budget revenue forecast for its own level higher than the upper level's allocation, the corresponding additional expenditure budget should be increased (excluding increases from land use revenue and lottery revenues), after reserving 50% for salary reform as prescribed, the remainder should prioritize supplementing local government contingency reserves, increasing financial reserve funds to be proactive in budget management operations, and the remaining potential to achieve the newly allocated revenue forecast to implement tasks, systems, social welfare policies decided by competent authorities, and handle settlement of construction work volume debts according to prescribed regulations.

10. Ministries, central agencies, and localities shall allocate capital investment plans to project sponsors in detail to the Type and Item of the State Budget Classification according to Decision No. 33/2008/QĐ-BTC dated June 2, 2008 of the Ministry of Finance, project codes according to Decision No. 90/2007/QĐ-BTC dated October 26, 2007 of the Ministry of Finance, Decision No. 51/2008/QĐ-BTC dated July 14, 2008 of the Ministry of Finance, and supplementary guidance documents of the Ministry of Finance (if any).

The primary budget unit shall develop a plan for allocating regular expenditures, national target program expenditures, and program-target expenditures assigned to subordinate budget units, detailing down to Type, Clause, and the project code of the National Target Program, as stipulated in Decision No. 33/2008/QD-BTC dated June 2, 2008, and subsequent supplementary documents issued by the Ministry of Finance (if any).

11. For state agencies implementing the self-management mechanism, being responsible for staffing and administrative management expenses according to Decree No. 130/2005/NĐ-CP dated October 17, 2005, and Decree No. 117/2013/NĐ-CP dated October 7, 2013, which amends and supplements certain Articles of Decree No. 130/2005/NĐ-CP, the allocation and assignment of budgets shall be carried out in accordance with Circular Joint Circular No. 71/2014/TTLT-BTC-BNV dated May 30, 2014, issued by the Ministry of Finance and the Ministry of Home Affairs, regarding the self-management system and responsibility for administrative management expenses for state agencies.

12. For public service organizations implementing financial self-management and responsibility according to Decree No. 16/2015/NĐ-CP dated February 14, 2015, Decree No. 43/2006/NĐ-CP dated April 25, 2006, and other decrees of the Government on specific fields' self-management mechanisms for public service organizations, the allocation and assignment of state budget revenue and expenditure forecasts shall be based on the tasks assigned in 2017, classification of public service organizations, and the state budget forecast ensuring regular operations in the first year of the stable period approved by the competent authority (for public service organizations that self-fund regular expenses and investment, self-fund regular expenses, partially self-fund regular expenses, and public service organizations fully funded by the State for regular expenses). The detailed budget will be divided into two parts: the state budget forecast for regular expenses and the detailed budget for non-regular tasks.

For public service organizations not yet granted self-management and financial responsibility rights by the competent authority, the allocation and assignment of expense budgets will be included in the non-regular task budget forecast.

For some public higher education institutions authorized by the competent authority to implement pilot reform mechanisms for operational systems as stipulated in Resolution No. 77/NQ-CP dated October 24, 2014, they shall implement comprehensive self-management and responsibility as prescribed by the competent authority's decision.

13. In addition to the budget allocation and assignment guidelines provided in this Circular, Ministries, central agencies, and localities must also comply with other relevant provisions of the State Budget Law and its implementing regulations.

Article 4. Implementation of mechanisms to generate resources for salary and allowance systems in 2017

1. Ministries and central agencies within their allocated state budget forecasts shall rearrange expenditure tasks and strive to increase revenue from public services to balance the sources for adjusting the base salary in 2017. The central government budget will not supplement additional funds outside the forecasted budget for these ministries and central agencies to fulfill this task.

2. Provincial People's Committees when allocating and assigning budgets to lower-level budgets must ensure to reserve 10% of regular expenditures in 2017 (excluding salaries and salary-like payments) as stipulated to create resources for salary reform, ensuring it does not fall below the level set by the Ministry of Finance.

When provincial-level People's Committees allocate and assign budgets to subordinate units, they should not include the 10% regular expenditure savings mentioned in Clause 2 of this Article (excluding public service organizations operating under financial mechanisms as stipulated in Decree No. 16/2015/NĐ-CP dated February 14, 2015, Decree No. 54/2016/NĐ-CP dated August 1, 2016, concerning the self-management system for public scientific and technological organizations, and state agencies implementing self-management and responsibility for staffing and administrative management expenses according to Decree No. 130/2005/NĐ-CP dated October 17, 2005, and Decree No. 117/2013/NĐ-CP dated October 7, 2013, which amends and supplements certain Articles of Decree No. 130/2005/NĐ-CP) to implement salary reform in 2017.

3. The sources for implementing salary reform in 2017 for localities include:

a) 50% of the increased local budget revenue in 2016 compared to the forecast, assigned by the Prime Minister;

b) 10% of the regular expenditure savings (excluding salaries and salary-like payments) in the 2017 budget already assigned by the competent authority;

c) A portion of the revenue retained under the 2017 regime that must be set aside to create resources for salary reform as prescribed;

d) Unutilized sources for salary reform from previous years up to 2016.

4. The central government will only provide partial support for increased salaries for financially struggling localities after balancing the sources mentioned in Clause 3 of this Article and still failing to meet the requirements for implementing salary reform according to the prescribed regime.

Article 5. Time for Allocation, Transfer of Budget Estimates and Inputting Budget Estimates into the Tabmis System

1. Based on the budget revenue and expenditure estimates assigned by the competent authority, ministries and central agencies (for the central budget) shall decide to allocate and transfer budget estimates to each budget-using unit; People's Committees at all levels (for local budgets) shall submit to the People's Councils at the same level to decide on the state budget revenue estimate on their territory, local budget expenditure estimate, and allocation of their own budget estimate to ensure that the time for transferring revenue and expenditure budget estimates for 2017 to each budget-using unit is in accordance with the procedures, requirements, and deadlines stipulated in Articles 49 and 50 of the State Budget Law; organize the public disclosure of the budget estimates in accordance with the State Budget Law, guiding documents for implementing the State Budget Law, and the provisions in Point 12 of this Circular.

2. Provincial People's Committees are responsible for reporting the results of allocating and transferring local budget estimates to the Ministry of Finance no later than five working days after the People's Council at the same level decides on the budget estimates; report the outstanding debt of raised capital up to December 31, 2016, and the plan for borrowing and repaying debts in 2017 of the local budget to the Ministry of Finance before January 31, 2017; report revenue, expenditure, and the balance of the Financial Reserve Fund according to the specific regulations of the Ministry of Finance.

3. Based on the 2017 budget revenue and expenditure estimates assigned by the Prime Minister and People's Committees, primary budget estimate units of the central budget and local budgets at all levels shall implement the allocation and transfer of budget revenue and expenditure estimates to subordinate budget-using units in accordance with Article 50 of the State Budget Law and guiding documents. Among which, note the following points:

a) Primary budget estimate units shall allocate and transfer budget estimates to subordinate budget-using units and budget units under lower-level budgets in cases where they have been authorized to perform expenditure tasks, send the relevant financial authorities at the same level (along with explanations of the basis and allocation reports), while sending to the State Treasury office handling the transaction to implement.

b) Within ten working days from the date of receiving the explanatory documents and allocation reports from primary budget estimate units, the relevant financial authorities at the same level shall check the budget estimates allocated by primary budget estimate units to budget-using units. In case of discovering incorrect allocations not in accordance with the total amount and details by field and task of the assigned budget estimates; not in accordance with policies and regulations; incomplete explanatory documents, then request primary budget estimate units to adjust and supplement the documents.

The time for primary budget estimate units to adjust and supplement documents shall be no later than seven working days from the date of receiving the request from the financial authority.

c) In case primary budget estimate units do not agree with the requirements of the relevant financial authorities at the same level, primary budget estimate units shall report to the Prime Minister (for primary budget estimate units at the central level) and People's Committees (for primary budget estimate units at the local level) for consideration and decision. During the waiting period for the decision of the Prime Minister or People's Committee, the units shall not be allowed to spend on contents that the financial authorities do not agree with.

d) In case after December 31, 2016, primary budget estimate units have not completed the allocation of the year-end assigned budget estimates to budget-using units, primary budget estimate units must report to the relevant financial authorities at the same level for consideration and decision on allowing an extension of the budget allocation time. By June 30, 2017, regular expenditures already included in the budget but not yet allocated or allocated but not yet implemented, not approved, not approved procurement plans, shall be firmly reduced to supplement the budget reserve, except for special cases decided by the Prime Minister.

e) When allocating and transferring budget estimates to budget-using units, primary budget estimate units must allocate to repay amounts temporarily advanced and amounts to be recovered according to the decisions of the competent authorities; in case primary budget estimate units do not allocate budget estimates for these amounts to be recovered, the financial authority shall issue a notice to relevant agencies and units to reallocate, and simultaneously notify the State Treasury office at the same level to temporarily refrain from disbursing funds until receiving the reallocation in accordance with the above regulations.

During the process of managing the budget, ministries, central agencies, and localities need to urgently allocate and use the supplementary funding for targeted purposes in a timely manner.

4. The inputting of budget estimates into the Tabmis system shall be carried out in accordance with Circular No. 107/2008/TT-BTC dated November 18, 2008, and Circular No. 123/2014/TT-BTC dated August 27, 2014, issued by the Ministry of Finance.

Chapter II
ORGANIZATION OF STATE BUDGET MANAGEMENT AND IMPLEMENTATION

Article 6. Management of Budget Revenue Collection

1. Implement in accordance with Article 55 of the State Budget Law. At the same time, pay attention to implementing the following contents:

a) Organize the effective implementation of laws on taxes that have been amended and supplemented and come into effect;

b) Effectively implement the main tasks and solutions to improve the business environment and enhance national competitiveness in 2016-2017, with a view to 2020, as stipulated in Resolution No. 19-2016/NQ-CP dated April 28, 2016, of the Government. Continue to implement the interconnection of electronic documents from the Government to provincial, district, and commune levels in accordance with Resolution No. 36a/NQ-CP dated October 14, 2015, on the Digital Government, and Resolution No. 35/NQ-CP dated May 16, 2016, of the Government on supporting and developing enterprises until 2020; apply information technology to link with administrative reform, electronic tax declaration, payment, refund, and other tasks and solutions to enhance competitiveness and improve the business environment;

c) Organize the strict implementation of Directive No. 33/2008/CT-TTg dated November 20, 2008, of the Prime Minister and Directive No. 05/CT-BTC dated December 21, 2011, of the Minister of Finance regarding the strict implementation of fiscal policy and the conclusions and recommendations of auditing and inspection agencies.

2. The Tax Authority and Customs shall strengthen monitoring, inspection, and control over tax declarations made by organizations and individuals in accordance with the Law on Taxation, including the declaration of goods names, item codes, tax rates, values, quantities, etc., to promptly detect cases of incorrect, incomplete declarations, and tax fraud. Strengthen tax inspection and audit work, handle overdue tax debts, combat smuggling, commercial fraud, counterfeit goods, tax evasion, transfer pricing, etc., to ensure timely collection of all taxes, fees, and other revenues into the State budget. Manage VAT refunds strictly in accordance with the provisions of the Law, manage VAT refunds within the budget estimate allocated by the competent authority for 2017; at the same time, create conditions for taxpayers; conduct pre- and post-refund inspections according to the Law and risk levels; promptly detect and strictly deal with fraudulent activities, abuse of refund policies, and embezzlement from the State budget. Review mineral exploitation permits to implement timely and full collection of revenue from mineral exploitation rights. Review and specifically identify entities currently granted land use rights or leased land by the State, especially projects that have exceeded the period of enjoying incentives under the Land Law 2013, instruct the natural resources and environment agency to complete land-related documents, transfer them to the tax authority to determine financial obligations and urge timely and full payment of land-related revenues into the State budget.

3. Ministries, central agencies, localities shall strictly implement Directive No. 31/CT-TTg dated November 2, 2016, of the Prime Minister on strengthening management and enhancing the efficiency of public asset utilization. Vigorously reorganize and dispose of state-owned real estate assets in accordance with Decision No. 09/2007/QD-TTg dated January 19, 2007, Decision No. 140/2008/QD-TTg dated October 21, 2008, and Decision No. 71/2014/QD-TTg dated December 17, 2014, of the Prime Minister; review, inspect, and urge implementation of approved reorganization and disposal plans.

Article 7. Organization of State Budget Expenditure Management

Ministries, central agencies, localities, and budget-using units shall carry out budget expenditures within the allocated budget estimates; financial authorities and the State Treasury shall organize budget management within the approved estimates, strictly controlling expenditures to ensure compliance with purposes, standards, norms, and regulations. In particular:

1. Expenditures from loan and aid funds shall be disbursed and controlled according to the following principles:

a) For budget expenditures from loan and aid funds in cash: Implement according to the allocated estimate and operate like domestic funds (except where agreements provide otherwise).

b) For budget expenditures from loan and aid funds through the national budget recording method:

- Expenditures from loan funds: Carry out within the allocated estimate. If there is a need to supplement the national budget expenditure estimate from ODA and preferential loans, ministries, central agencies, and localities shall report to the Ministry of Planning and Investment (for investment development loans) and the Ministry of Finance (for public service loans) for consolidation and submission to the Prime Minister before reporting to the Standing Committee of the National Assembly for consideration and decision.

- Expenditures from aid funds: Implement based on actual disbursements.

2. Direct relevant agencies and units to cooperate with financial authorities to allocate capital for important projects right from the beginning of the year according to established procedures, particularly projects for repairing embankments, water conservancy works, disaster prevention, disease control, flood recovery, and relocation from dangerous landslide areas, as decided by competent authorities.

3. Regularly organize inspections and evaluations of project progress; for projects not meeting deadlines, promptly decide or report to competent authorities for decisions to adjust funding to projects with faster progress and potential for completion in 2017 but lacking sufficient funding.

4. In the regular expenditure budget for 2017 allocated to ministries and central agencies, the Ministry of Finance shall clearly inform units about foreign currency expenditures. For equivalent funds of $500,000 or more annually, foreign currency expenditures will be guaranteed according to the allocated budget. During implementation, the State Treasury will still monitor expenditures according to the allocated domestic currency budget. If exchange rate fluctuations lead to the domestic currency budget being exhausted while the foreign currency budget remains, the unit shall notify the Ministry of Finance to promptly address additional domestic currency funding; for amounts less than $500,000 annually, ministries and central agencies may withdraw foreign currency budgets at transaction exchange rates without exceeding the allocated domestic currency budget.

5. For centrally-administered provinces if they require expenditures for wide-scale disaster prevention, mitigation, epidemic control, defense, security, and other urgent tasks outside the budget that remain insufficient even after budget rearrangement and using contingency reserves, the provincial People's Councils may decide to use the provincial Financial Reserve Fund according to point b, Clause 2, Article 11 of the State Budget Law.

6. For land use fee revenues, lottery revenues, and other revenues tied to specific expenditures, localities must base their operations on allocated estimates and actual collection progress; if projected revenues are expected to decrease compared to estimates and local budgets cannot offset this shortfall with other increased revenues, they must proactively review, cut, or delay the implementation of projects funded from these revenues.

7. Direct relevant agencies and units to cooperate with financial authorities to regularly inspect the implementation of regulations and policies at units and subordinate levels; strictly control the budget estimates for state spending, especially on conference, meeting, seminar, reception, domestic and foreign travel, festivals, car purchases, and expensive equipment of ministries, central agencies, and localities in accordance with the spirit of thorough thrift; expand the implementation of assigned vehicle costs for certain positions. Promote administrative reform in managing state budget spending; proactively arrange regular expenditures, prioritize important tasks, ensure resources for implementing social welfare policies and salary adjustments, and prevent arrears in salaries for civil servants, public officials, and social security payments according to regulations.

In cases where levels and units using the budget do not comply with regulations and policies, particularly those related to the implementation of social welfare policies, poverty reduction,... timely measures must be taken to ensure that policies and regulations are correctly applied to the intended beneficiaries and are effective.

8. Accelerate the implementation of the self-management mechanism for public service units linked to the pricing mechanism for public services; reduce direct state support for public service units based on adjusted public service prices, using most of the reduced spending to increase support for poor people and policy targets participating in public services, creating sources for salary reform and purchasing and repairing to improve the quality of public services. Based on the results of implementing Decree No. 16/2015/NĐ-CP dated February 14, 2015 of the Government on the self-management mechanism for public service units and related legal documents, provincial People's Committees shall report to the Ministry of Finance the results of reducing state budget support for public service units. The Ministry of Finance will coordinate with provincial People's Committees to determine the plan for using the reduced state budget to supplement the implementation of centrally issued policies and regulations.

9. Report on the implementation of the state budget estimate as prescribed.

Article 8. Implementation of disbursement and payment of funds

1. For budget-using units:

Based on the allocated state budget estimate, budget-using units shall withdraw expenditure estimates according to established budget expenditure standards and the progress and volume of tasks; ensuring the principle:

a) Personal payment items (salaries, allowances, social benefits,...) must ensure monthly payments to individuals receiving salaries and benefits from the state budget. Ministries, central agencies, and provincial People's Committees shall instruct and organize the payment of salaries through bank accounts for recipients; State Treasury shall closely cooperate with the State Bank and service providers to strictly implement salary payments through bank accounts for recipients from the state budget according to Directive No. 20/2007/CT-TTg dated August 24, 2007 of the Prime Minister;

b) Timely remit contributions (Social Insurance, Health Insurance, Unemployment Insurance, trade union fees) to the Social Insurance Authority as stipulated by law;

c) Payments for seasonal or occasional expenses such as basic construction investment, major procurement and repairs, and other non-recurring items shall be made according to the progress and volume of work within the allocated budget estimate and in accordance with established regulations.

2. Ministries, central agencies, and localities shall withdraw budget estimates at the State Treasury for specific tasks as prescribed by the Ministry of Finance.

3. Ministries, central agencies, and localities shall issue payment orders for specific tasks as prescribed by the Ministry of Finance.

Upon receipt of the application for disbursement, within five working days, the finance authority shall check and review whether all conditions for payment are met and issue a payment order on the Tabmis system (central budget by the Ministry of Finance, provincial budget by the Provincial Finance Department, district budget by the District Finance Office). Within two working days, the State Treasury shall print the payment order recovered from the system and make payments to the budget beneficiaries according to the content on the payment order and in accordance with established regulations. For village budgets, the Village People's Committee shall send a paper copy of the payment order to the State Treasury branch. If the conditions for payment are not fully met but the nature and progress of the work require immediate action, the finance authority may temporarily disburse according to established regulations, or according to the decision of the Minister of Finance (for central budget tasks) and the Chairman of the People's Committee (for local budget tasks).

The State Treasury is responsible for verifying the legality and validity of the payment order; based on the content of the payment order, it shall draw down the budget, transfer funds to accounts, or provide cash according to established regulations to pay and settle with organizations and individuals entitled to the budget within the time frame specified by regulations. If the documents are incomplete, invalid, or do not match the prescribed tasks, the State Treasury must notify the finance authority within one day (from the date of receipt of the documents) to handle the situation.

4. In cases where local budgets have been advanced from the central budget for targeted investment capital, they need to be recovered from the central budget supplementary target for the local budget in 2017, the Ministry of Finance shall notify the State Treasury to deduct the advance amount from the initial budget allocation for the locality; the remaining budget shall be evenly distributed throughout the year for withdrawal. The amount advanced to the local budget shall be recovered as follows:

a) For advance payments made through the Order to Pay money method, the recovery of such advance payments shall also be carried out through the Order to Pay money method from the central budget;

b) For advance payments made through the withdrawal from the budget estimate method, the State Treasury at the transaction location shall adjust the accounting from advance payment to actual expenditure from the central budget and actual collection of the local budget supplemented from the central budget.

5. In the case where the upper-level budget advances supplementary estimates with investment capital targets for the following year to the lower-level budget within the fiscal year, when withdrawing the advance estimate, the revenue and expenditure must be recorded in the following year's budget according to the regulations.

6. Regarding the amount of supplementary funding with specific targets from the central budget to the local budget:

a) The level of withdrawal from the budget estimate and the form for withdrawing supplementary funding with specific targets from the central budget to the local budget shall be regulated separately by the Ministry of Finance.

The Department of Finance shall aggregate the demand for withdrawing supplementary funding with specific targets from the central budget to the local budget and send it to the State Treasury at the transaction location to withdraw supplementary funding with specific targets from the central budget to the local budget, while bearing responsibility for the withdrawal of supplementary funding with specific targets from the central budget to the local budget; in cases where the budget estimate is withdrawn but not fully utilized or used incorrectly, it must be returned to the central budget within a maximum of 30 days. Payment and disbursement to project sponsors and beneficiaries of policies and systems (operating expenses) from state budget funds shall be carried out according to current regulations.

b) In cases where supplementary funding with specific targets from the central budget to the local budget arises during the implementation of the budget estimate (including pre-supplying supplementary funding with specific targets from the central budget to the local budget, and advancing supplementary investment capital from the central budget to the local budget), it shall be implemented as follows:

- Supplementary funding with specific targets from the central budget to the local budget arising during the implementation of the budget estimate to carry out tasks related to preventing, combating, and mitigating the consequences of natural disasters, fires, epidemics, or urgent and important tasks: based on the decision of the competent authority, the Ministry of Finance shall issue a notification to supplement outside the budget estimate for the local budget. Based on the notification from the Ministry of Finance, the Department of Finance shall withdraw the budget estimate at the State Treasury at the transaction location.

- For the advance supply of supplementary funding with specific targets from the central budget to the local budget for the following year (including advance investment capital from the central budget to the local budget): Based on the decision of the competent authority, the Ministry of Finance shall issue a notification to the Department of Finance to withdraw the advance budget estimate (advance). The Department of Finance shall prepare a form for withdrawing the advance budget estimate (advance) for the following year according to the regulations.

- For central government provisional advances to the local budget, when withdrawing the provisional advance budget estimates, temporary receipts and expenditures shall be recorded and recovered according to the regulations (adjustment to actual receipts and expenditures in the case of becoming supplementary funding for the local budget, or reduction of provisional receipts from the local budget and reduction of provisional expenditures from the central budget in the case of returning provisional advances to the central budget).

7. Regarding supplementary funding from the upper-level budget to the lower-level budget at the local level:

a) For balancing supplementary funding from the upper-level budget to the lower-level budget:

Based on the ability to generate revenue and the requirements for expenditure, the People's Committee of the upper level shall stipulate the monthly level of withdrawal from the budget estimate of the lower level to suit the actual situation of the locality.

b) Supplementary funding with specific targets from the upper-level budget to the lower-level budget (including supplementary funding outside the initial budget allocation for the year) shall be implemented according to separate regulations of the Ministry of Finance.

c) Accounting for supplementary funding from the upper-level budget to the lower-level budget at the local level shall be carried out according to the regulations for supplementary funding from the central budget to the local budget.

8. Monthly, no later than the 15th day of the following month, the State Treasury (for the central budget) and the provincial and district State Treasuries (for the local budget) shall aggregate and report to the corresponding financial authorities on the results of withdrawing supplementary balancing and targeted supplementary budget estimates from the upper-level budget to the lower-level budget in the previous month according to current regulations. In cases where localities withdraw supplementary balancing and targeted supplementary budget estimates improperly, the local State Treasury shall notify the corresponding financial authority and temporarily suspend the withdrawal of improperly withdrawn supplementary balancing and targeted supplementary budget estimates.

Quarterly, the Provincial People's Committee shall be responsible for aggregating and reporting to the Ministry of Finance the implementation of central budget supplementary funding for policy implementation. In cases where localities fail to comply with the reporting system or report inaccurately and incompletely, the Ministry of Finance will temporarily suspend the provision of supplementary funding until the locality provides a complete report.

9. Payments for national budget debts shall be carried out according to the specific guidelines of the Ministry of Finance.

Article 9. Implementation of Budget Adjustment for Budgetary Units

1. In cases where it is necessary to adjust budgets among subordinate budgetary units without changing the total amount and details according to each spending area assigned, the primary budget unit shall be responsible for explaining the necessity, basis for adjustment, issuing the adjustment decision, sending it to the same-level financial agency for verification of the basis, remaining budget balance, and implementing the budget adjustment in Tabmis, while also sending it to the State Treasury at the transaction location as the basis for controlling expenditures, disbursing, and paying.

For budgetary units required to reduce their budgets, the State Treasury at the transaction location shall check and confirm the remaining budget balance, confirm the adjustment so that the unit can report to the primary budget unit (fax copy) to notify other budgetary units eligible for increased budget adjustments. For budgetary units eligible for increased budgets, the financial agency shall check and confirm the remaining budget balance, confirm the reduction adjustment of related budgetary units before increasing the budget for the unit as requested by the primary budget unit. In cases where there is no longer sufficient balance for adjustment, the budgetary unit shall report to the primary budget unit to make adjustments again.

2. In cases where the primary budget unit is authorized by the competent authority to supplement the budget to implement newly arising tasks, within the latest 10 working days (from the date of receiving the decision on supplementary budget allocation), the primary budget unit must complete the allocation and transfer of the budget in accordance with Articles 49 and 50 of the State Budget Law.

3. In cases where the budget is adjusted from non-autonomous regime funds to autonomous regime funds, from non-recurring funds to recurring funds, or adjusting expenditure tasks within the scope of non-autonomous and non-recurring funds but already noted in the expenditure tasks in the annual budget allocation decision or the supplementary budget allocation decision of the Prime Minister, the Minister of Finance, the unit must have the agreement of the financial agency to ensure the allocation of funds to fulfill the assigned tasks.

4. In cases where the budget is adjusted between Vietnamese agencies abroad, it shall be carried out in accordance with the Financial Management Regulations for Vietnamese Agencies Abroad as prescribed by the Ministry of Finance.

5. The time for budget adjustments allocated to budgetary units to complete and send to the same-level financial agency must be before November 15 of the current year.

Article 10. Implementation of transfer to the next year's budget

Ministries, central agencies, and localities strictly manage the transfer of funds to the following year in accordance with the provisions of Clause 3, Article 64 of the State Budget Law, guiding documents for the implementation of the State Budget Law, and government documents and prime ministerial directives on state budget management in 2017.

Article 11. Practice thrift, combat waste; prevent and combat corruption

In addition to implementing savings on regular expenses as stipulated in Point 7, Article 7 of this Circular, ministries, central agencies, and localities must organize and direct the full implementation of regulations under the Anti-Corruption Law and the Law on Thrift and Prevention of Waste. At the same time, they must promptly and fully address any violations discovered through inspection, audit, and review activities, clarify the responsibility of each organization and individual, and enforce accountability measures against the heads of state budgetary units when losses, waste, or improper use of the budget occur.

Article 12. Implementation of financial transparency and state budget

1. All levels of budget shall implement financial and state budget transparency in accordance with the State Budget Law and its guiding documents.

2. Budgetary units shall implement public disclosure in accordance with Circular No. 21/2005/TT-BTC dated March 22, 2005, issued by the Ministry of Finance, guiding the implementation of financial transparency regulations for budgetary units and organizations supported by the state budget.

3. State-owned enterprises shall implement public disclosure in accordance with Circular No. 29/2005/TT-BTC dated April 14, 2005, issued by the Ministry of Finance, guiding the implementation of financial transparency regulations for state-owned enterprises.

4. Organizations and units using state budget development capital shall implement public disclosure in accordance with Circular No. 10/2005/TT-BTC dated February 2, 2005, issued by the Ministry of Finance, guiding the implementation of financial transparency regulations for the allocation, management, and use of state budget construction investment capital.

5. Organizations and units managing funds sourced from the state budget and funds from people's contributions shall implement public disclosure in accordance with Circular No. 19/2005/TT-BTC dated March 11, 2005, issued by the Ministry of Finance, regarding financial transparency for funds sourced from the state budget and funds from people's contributions.

6. Organizations and units using state assets shall implement public disclosure in accordance with Decision No. 115/2008/QĐ-TTg dated August 27, 2008, issued by the Prime Minister, concerning the public disclosure of state asset management and use at state agencies, public service units, and organizations entrusted with state asset management and use.

7. Promote the publication of public information on mass media about tax evasion, tax fraud, and delayed tax payment in violation of the Tax Administration Law.

8. Publicize expenditures for ceremonial events, conferences, seminars, festivals, groundbreaking ceremonies, and overseas trips; every six months and annually, ministries, central agencies, and localities shall report the situation of fund usage (allocated budget, distributed funds, usage, number of overseas delegations) to the Ministry of Finance for consolidation and reporting to the competent authority.

Chapter III
IMPLEMENTATION

Article 13. Implementation Provisions

1. This Circular takes effect from January 1, 2017, and applies to the 2017 fiscal year.

2. Abolish the provision at Clause 5, Article 4 of Circular No. 153/2013/TT-BTC dated October 31, 2013 of the Ministry of Finance regarding procedures for collecting, remitting fines, fine receipts, and state budget funds ensuring the operation of administrative penalty forces which have been amended and supplemented by Circular No. 105/2014/TT-BTC dated August 7, 2014 of the Ministry of Finance.

3. In cases where legal normative documents cited for application in this Circular are amended, supplemented, or replaced by new documents, apply according to the new documents.

4. Ministries, central agencies, People's Committees of provinces and centrally governed cities shall base on the provisions of this Circular to direct subordinate agencies and local authorities to organize implementation. Previous regulations that conflict with the provisions of this Circular shall be implemented according to the guidance provided in this Circular. Any difficulties encountered during the implementation process should be promptly reported to the Ministry of Finance for coordination and resolution.

 

 

ANNEX NO. 01

(Attached: Circular No. 326/2016/TT-BTC dated December 23, 2016 of the Ministry of Finance on organizing the implementation of the state budget estimate for 2017)

DETAILS OF REVENUES TO BE DIVIDED BETWEEN THE CENTRAL BUDGET AND LOCAL BUDGETS IN 2017

1. Revenues to the central budget amounting to 100% (including late payment penalties under the Law on Tax Administration), including:

a) Value-added tax collected from imported goods;

b) Export tax, import tax;

c) Special consumption tax from imported goods, including special consumption tax on imported goods sold domestically by businesses and special consumption tax on gasoline products from the Nghi Son oil refinery;

d) Environmental protection tax collected from imported goods;

đ) Natural resource tax, corporate income tax, value-added tax, dividends paid to host countries, rental fees for water surfaces, taxes, fees, and other revenues from exploration and exploitation activities of oil and gas;

e) Non-reimbursable grants from governments of other countries, international organizations, other organizations, and individuals abroad to the Government of Vietnam;

g) Fees from services provided by central government agencies, if authorized to allocate operating costs, such fees can be deducted; fees from services provided by public service units and state-owned enterprises at the central level, after deducting the portion allocated to cover costs as prescribed by law. The deductible portion and the allocation to cover costs as prescribed by law do not fall within the scope of budget revenue and expenditure;

h) Fees collected by central government agencies; excluding business registration fees as stipulated at point g and real estate transfer tax as stipulated at point h below;

i) Penalties and fines from administrative violations, confiscations, and other revenues as prescribed by law decided by central government agencies to implement penalties and confiscations;

k) Revenues from selling state assets, including revenues from transferring land use rights attached to assets on the land, changing land use purposes by state agencies, political organizations, political-social organizations, public service units, limited liability companies wholly owned by the state, and enterprises with central-level participation before privatization and restructuring, and other units and organizations under central management;

l) Revenues from assets established as state property by central-level agencies and organizations after deducting costs as prescribed by law;

m) Recovered capital of the central budget invested in economic organizations (including principal and interest); dividends and profits distributed at joint-stock companies and limited liability companies with two or more shareholders having state capital represented by ministries, ministerial-level agencies, government agencies, and other central-level agencies; remaining post-tax profits of state-owned enterprises after setting aside reserves as prescribed by law represented by ministries, ministerial-level agencies, government agencies, and other central-level agencies;

n) Revenues from granting mineral exploitation rights as prescribed by law (70% of the revenue from licenses issued by the central government as prescribed in Decree No. 203/2013/NĐ-CP of the Government); o) Revenues from granting water resources exploitation rights as prescribed by law;;

p) Revenue from using sea areas under the authority of the central government;

q) Surplus revenue of the State Bank of Vietnam exceeding expenditures;

r) Revenues from the central financial reserve fund;

s) Central budget surplus;

t) Transferred revenue from previous years to the central budget;

u) Other revenues as prescribed by law, including revenues transferred up from lower levels of government budgets.

2. Revenues to be divided between the central budget and local budgets at a certain percentage (%), including:

a) Value-added tax, including value-added tax from subcontractors arising from service activities supporting oil and gas exploration and exploitation; excluding value-added tax as stipulated at point a and point đ of item 1 above;

b) Corporate income tax, including corporate income tax from subcontractors arising from service activities supporting oil and gas exploration and exploitation (including income tax from capital transfers in oil and gas activities); excluding corporate income tax as stipulated at point đ of item 1 above;

c) Personal income tax;

d) Special consumption tax, excluding special consumption tax as stipulated at point c of item 1 above;

đ) Environmental protection tax, excluding environmental protection tax as stipulated at point d of item 1 above.

3. Revenues to the local budget amounting to 100% (including late payment penalties under the Law on Tax Administration), including:

3. Local state budget revenues enjoying 100% (including late payment fees under the Law on Tax Administration), including:

a) Mineral resources tax, excluding mineral resources tax collected from oil and gas exploration and exploitation activities;

b) Agricultural land use tax;

c) Non-agricultural land use tax;

d) Land use fee, excluding the land use fee prescribed at point 1 item 1 and point k item 1 mentioned above;

đ) Land lease and water surface lease fees, excluding land lease and water surface lease fees from oil and gas exploration and exploitation activities;

e) Fees for leasing and selling state-owned housing;

g) Business registration fee;

h) Stamp duty;

i) Revenue from lottery activities, including electronic lottery activities;

k) Capital recovery amounts from local budget investments in economic organizations (including both principal and interest); dividends and profits distributed at joint-stock companies and limited liability companies with two or more members having state capital represented by provincial People's Committees; remaining post-tax profits after setting aside funds according to regulations, owned by state enterprises represented by provincial People's Committees;

l) Revenue from the sale of state assets, including revenue from transferring land use rights attached to property on the land, changing land use purposes carried out by state agencies, political organizations, political-social organizations, public service units, wholly state-owned companies, and enterprises with local budget participation before implementing shareholding reform and reorganization, and other units and organizations under local management;

m) Non-reimbursable aid from international organizations, other organizations, and individuals abroad directly to localities;

n) Fees from local government agencies' service activities, where costs are allocated by authorized bodies, can be deducted; fees from service activities conducted by local public service units and state-owned enterprises, after deducting the portion retained to cover costs as stipulated by law. The deductible and retained portions for cost coverage as stipulated by law do not fall within the scope of budget revenue and expenditure;

o) Fees implemented by local government agencies;

p) Revenue from administrative fines, penalties, and other confiscations as prescribed by law decided by local government agencies to impose penalties and confiscations;

q) Revenue from assets established as state ownership by local agencies, units, and organizations, after deducting costs as prescribed by law;

r) Revenue from the local budget share of mining rights fees (30% of revenues from central-issued permits, 100% of revenues from provincial People's Committee-issued permits as stipulated in Decree No. 203/2013/NĐ-CP of the Government); (30% of revenues from permits issued by the central government, 100% of revenues from permits issued by provincial People's Committees as stipulated in Decree No. 203/2013/NĐ-CP of the Government);

s) Revenue from the local budget share of water resource exploitation rights as prescribed by law;

t) Marine area use fees for cases where marine areas within local authority jurisdiction are assigned;

u) Revenue from public utility land funds and other public asset income;

v) Contributions from organizations and individuals as prescribed by law;

y) Voluntary contributions from organizations and individuals inside and outside the country;

x) Revenue from the local financial reserve fund;

aa) Local budget surplus revenue;

ab) Other revenues as prescribed by law, including compensation payments to the state for damages caused in land management and use, land protection and development funds, and lower-level budget transfers.