Decision No. 39/2021/QD-TTg stipulates the principles, criteria, and allocation quotas for central government budget capital and the local government budget counterpart funds for implementing the National Target Program on Socio-Economic Development in Ethnic Minority and Mountainous Areas for the period of 2021-2030, Phase I: from 2021 to 2025.

Pursuant to …;

Regulations on principles, criteria, and allocation standards for central budget capital and the matching ratio of local budgets to implement the National Target Program on Socio-Economic Development in Ethnic Minority and Mountainous Areas for the period of 2021-2030, Phase I: from 2021 to 2025

Pursuant to the Law on Organization of the Government dated June 19, 2015; the Law Amending and Supplementing Certain Provisions of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;

Pursuant to the Law on Public Investment dated June 13, 2019;

Pursuant to the State Budget Law dated June 25, 2015;

Pursuant to Resolution No. 120/2020/QH14 dated June 19, 2020 of the National Assembly approving the investment proposal for the National Target Program on Socio-Economic Development in Ethnic Minority and Mountainous Areas for the period of 2021-2030;

Pursuant to Resolution No. 973/2020/UBTVQH14 dated July 8, 2020 of the Standing Committee of the National Assembly stipulating the principles, criteria, and allocation standards for state budget capital for public investment during the period of 2021-2025;

At the proposal of the Minister, Head of the Committee for Ethnic Minorities;

The Prime Minister promulgates regulations on principles, criteria, and allocation standards for central budget capital and the matching ratio of local budgets to implement the National Target Program on Socio-Economic Development in Ethnic Minority and Mountainous Areas for the period of 2021-2030, Phase I: from 2021 to 2025.

Article 1. Scope of Regulation

This Decision stipulates the principles, criteria, and allocation standards for central budget capital and the matching ratio of local budgets to implement the National Target Program on Socio-Economic Development in Ethnic Minority and Mountainous Areas for the period of 2021-2030, Phase I: from 2021 to 2025 (hereinafter referred to as the Program);which serves as the basis for preparing medium-term and annual investment plans from the state budget for the Program for all levels, sectors, and units using state budget funds.); serves as the basis for establishing the medium-term and annual investment plans from the state budget for the Program at all levels, sectors, and units using the state budget funds.

Article 2. Applicability

2. Agencies and organizations participating in or related to the preparation of medium-term and annual investment plans from the state budget for the Program during the period of 2021-2025.

Article 3. Principles of Capital Allocation

1. Adhering to the provisions of the Law on Public Investment, the State Budget Law, Resolution No. 973/2020/UBTVQH14 dated July 8, 2020 of the Standing Committee of the National Assembly stipulating the principles, criteria, and allocation standards for public investment capital from the state budget during the period of 2021-2025, and other relevant legal documents.

2. Closely aligning with specific goals and targets of the Program for the period of 2021-2025 to achieve set objectives and targets; ensuring that total investment capital, recurrent expenditure, and the source structure of the Program do not exceed the approved limits by competent authorities.

3. Prioritizing the allocation of capital for key and important tasks consistent with the allocation of public investment capital during the period of 2021-2025, tasks approved in previous phases but lacking sufficient resources, integrated into the Program's content; prioritizing pilot projects approved by the Prime Minister or competent authorities; focusing on supporting the most difficult communes, villages, and hamlets, addressing urgent issues; prioritizing support for poor households and ethnic minority groups facing significant difficulties and special challenges; prioritizing areas lacking essential infrastructure; concentrating investment and support in the Program without dispersion, ensuring efficient use of investment capital.integrated into the Program's content; pilot projects approved by the Prime Minister or competent authorities; focusing on supporting the most difficult communes, villages, and hamlets, addressing urgent issues; prioritizing support for poor households and ethnic minority groups facing significant difficulties and special challenges; prioritizing areas lacking essential infrastructure; concentrating investment and support in the Program without dispersion, ensuring efficient use of investment capital.

5. Meeting the requirements of centralized and unified management regarding the Program’s objectives, mechanisms, and policies; enhancing decentralization at the grassroots level to create initiative and flexibility for localities, levels, and sectors in implementing the Program based on priority content, directions, and fields according to each locality's characteristics, conditions, potential advantages, as stipulated by law, ensuring transparency, ease of implementation.

8. Ensuring transparency, clarity, simplicity, ease of calculation, and applicability in allocating Program capital, contributing to administrative reform and strengthening anti-corruption efforts, thrift, and prevention of waste.

Article 4. Principles for allocating central state budget capital for the medium-term and annual periods

1. The total source of central state budget capital for the medium-term and annual periods to implement the Allocation Program shall be allocated to central agencies and localities in accordance with the State Budget Law, the Public Investment Law, and other guiding documents on this matter.

3. Annual allocations from the Program must be consistent with the medium-term plan approved by the competent authority and the annual budget balance capacity; priority should be given to allocate funds to complete programs and projects carried over from the previous year; priority should also be given to localities that disburse funds quickly to facilitate early completion of the Program's objectives and tasks.

Article 5. Criteria, Standards, and Methods for Allocating Central State Budget Capital

Criteria, standards, and methods for calculating and determining the amount of central state budget capital (investment capital and public service capital) allocated to ministries, central agencies, and localities implementing the Program are detailed in the 10 Appendices attached to this Decision.
The total capital allocated to locality k (Tx) is compiled from the capital allocated to each project, sub-project component i (Vki) of that locality:

- k is the kth province

Method for calculating and determining the capital allocation for locality (k) based on criteria for each project, sub-project component (i):
Where:

- Vk,i: Capital allocated to the ith project or sub-project for the kth locality.
- Xk,i: Number of points for the ith project or sub-project of the kth locality.
Qi: Standard capital for one point of the ith project or sub-project

Article 6. Provisions on the Matching Capital Ratio from Local Budgets for Implementing the Program

a) The total matching capital from local budgets of provinces and centrally-administered cities during the period 2021-2025 must comply with the level stipulated in Resolution No. 120/2020/QH14 dated June 19, 2020 of the National Assembly approving the investment orientation of the Program.

b) Localities must allocate sufficient local budget capital during the period 2021-2025 to implement the goals and tasks already approved by the competent authority. For localities that fail to allocate sufficient matching capital in the planned year according to regulations, when allocating the next year’s plan, the central budget will deduct correspondingly the shortfall in matching capital of the locality.

2. Specific provisions:

Localities receiving support from the central budget between 50% and less than 70%: Annually, the local budget must allocate a minimum of 10% of the total central budget support for implementing the Program.

Localities receiving support from the central budget below 50%, and the provinces of Quang Nam, Quang Ngai, and Khanh Hoa: Annually, the local budget must allocate a minimum of 15% of the total central budget support for implementing the Program.

c) The list of localities that can self-balance their budgets and the ratio of support from the central budget for these localities is based on the 2022 budget revenue and expenditure forecast of each locality decided by the National Assembly.

1. Responsibilities of the National Ethnic Minorities Commission

Article 7. Implementation Organization

a) To take the lead and coordinate with the Ministry of Planning and Investment, the Ministry of Finance, and relevant central ministries and agencies, as well as localities, to compile plans for allocating medium-term and annual development investment capital and public service capital from the central state budget to implement projects, sub-projects, and components of the Program for central ministries, agencies, and localities in accordance with the principles, criteria, and standards set out in this Decision.

c) In the process of implementation, if there are difficulties or obstacles, the National Ethnic Minorities Commission shall take the lead and coordinate with relevant ministries and sectors to propose amendments and supplements as appropriate.

a) To take the lead and coordinate with the Ministry of Finance and the National Ethnic Minorities Commission to propose a balancing plan and submit it to the competent authority for approval of annual development investment capital from the central state budget for the Program.

b) To compile the plan for allocating medium-term and annual development investment capital from the central state budget for the period 2021-2025 for central ministries, agencies, and localities implementing the Program based on the proposal of the National Ethnic Minorities Commission, ensuring compliance with the principles, criteria, and standards set out in this Decision.

a) To compile the plan for allocating annual public service capital from the central state budget for central ministries, agencies, and localities implementing the Program for submission to the competent authority for consideration and decision.

b) To coordinate with the Ministry of Planning and Investment to balance medium-term and annual development investment capital from the central state budget for the Program during the period 2021-2025.

4. Responsibilities of central ministries and agencies in charge of managing projects, sub-projects, and components of the Program

4. Responsibilities of the ministries, central agencies in charge of managing the projects, sub-projects, and components of the Program

b) Be responsible for the accuracy of information, data, and the level of allocated capital for projects and sub-project components managed by ministries and central agencies according to their chairmanship;

5. Responsibilities of the People's Committees of provinces

a) Based on the principles, criteria, and standards for allocating central state budget capital and the proportion of local budget matching funds as stipulated in this Decision, and taking into account the actual conditions of the locality, establish principles, criteria, and standards for allocating state budget sources for the medium-term and annual periods for sectors and levels within the locality, and submit them to the Provincial People's Council for decision;

b) Develop investment development capital plans and state budget funding plans for the medium-term and annual periods belonging to the Program in accordance with the principles, criteria, and standards established by the locality;

c) Be responsible for the accuracy of information, data, and the level of allocated capital for projects in the investment development capital plan and state budget funding plan for the medium-term and annual periods belonging to the Program managed by the locality;

Article 8. Effective Date

1. This Decision takes effect from the date of issuance.

2. The Ministers, Heads of ministerial-level agencies, Heads of government agencies, relevant central agencies, Chairmen of provincial and centrally-administered city People's Committees, and Heads of units using state budget capital implementing the Program during the 2021-2025 period shall be responsible for enforcing this Decision.