Decision No. 390/QD-TTg on managing the investment construction plan and state budget expenditure for the year 2008 to serve the goal of curbing inflation.

Pursuant to …;

On managing the investment plan for basic construction and state budget expenditure in 2008 to serve the goal of curbing inflation

PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;
Pursuant to Decree No. 179/2007/NĐ-CP dated December 3, 2007 of the Government promulgating the Operational Regulations of the Government;
Pursuant to the Resolution of the Government's regular meeting in March 2008;
Considering the proposals of the Ministers of Finance, Planning and Investment, Industry and Trade; Governor of the State Bank of Vietnam,

DECISION:

Article 1. Continue implementing savings of 10% on regular expenditures in the state budget for 2008

1. The budget for regular expenditures to implement the 10% savings under this Decision does not include the following items:

- Salaries, allowances with salary nature, and other expenses for personnel according to regulations;

- Funds paid to international organizations, and expenses for Vietnamese agencies abroad;

- Regular expenditures already implemented in the first four months of the year;

- The 10% savings from regular expenditures to create resources for salary reform as planned at the beginning of the year.

2. The Ministry of Finance shall allocate the 10% savings target for regular expenditures of the remaining months of the state budget for 2008 that have been assigned by the Prime Minister to Ministries, agencies equivalent to Ministries, government agencies, and other central agencies and provinces directly under the Central Government.

3. Based on the savings targets specified in Clause 2 of this Article, the Ministers, Heads of agencies equivalent to Ministries, Heads of government agencies, and Chairmen of People's Committees of provinces directly under the Central Government shall allocate the savings targets for regular expenditures to subordinate budget units and lower-level units.

4. To fulfill the assigned tasks under the conditions of saving regular expenditures as stipulated in this Decision, Ministries, agencies equivalent to Ministries, government agencies, and other central agencies and provinces directly under the Central Government need to implement the following tasks:

a) Temporarily suspend the purchase of cars, equipment, and other assets with high value; major repairs of office premises;

b) Minimize expenditures for conferences, seminars, festivals, summaries, reviews, award ceremonies, and commemorative events, and delegations (domestic and foreign) using state budget funds;

c) Maximize savings in the use of electricity, water, telephone, office supplies, gasoline, and diesel (at least 10% savings);

d) Cease expenditures for non-urgent tasks and unnecessary contents.

5. The funds saved at each level of the budget shall be retained at that level to reduce the deficit and supplement the budget reserve for the following priorities:

a) Ensuring social welfare;

b) Preventing, combating, and mitigating natural disasters, epidemics, and handling urgent tasks outside the allocated state budget.

Article 2. Reorganizing and reallocating the development investment plan for 2008

I. FOR PROJECTS FUNDED BY THE STATE BUDGET:

1. Do not adjust the total amount of state budget investment capital for 2008 already allocated to Ministries, central agencies, and localities based on the new price level. Ministries, central agencies, and localities shall proactively review and reorganize the 2008 basic construction investment plan in the following directions:

a) Postpone the commencement of projects not included in approved master plans, lacking necessary procedures, facing many procedural investment issues, incomplete land clearance,...;

b) Stop the implementation of other non-urgent projects that do not yield significant benefits;

c) Postpone the commencement of projects to build offices, conference halls, museums, cultural houses scheduled for 2008 but not yet started. For essential and important projects, only allocate funds for preparatory work;

d) Delay the progress of construction for the following projects: - Projects approved for completion and use before 2007, but insufficient funding has led to extended construction periods (including Group A projects), where by the end of 2007, less than 50% of the project volume was actually funded; - Projects still facing many procedural investment and land clearance issues.

đ) The funds obtained from the above measures shall be reallocated to effective, urgent projects to be completed in 2008-2009 after adjusting the budget estimates in accordance with state regulations.

2. Do not temporarily allocate funds to Ministries, sectors, and localities that have not reviewed and reorganized their investment capital as stipulated in this Decision.

II. FOR INVESTMENTS FUNDED BY GOVERNMENT BONDS

1. Ministries, central agencies, and localities shall review the allocation of funds for projects and determine the capital needs for 2008, sending them to the Ministry of Planning and Investment. The Ministry of Planning and Investment shall submit to the Prime Minister specific proposals to cut approximately 25% of the 2008 investment plan from government bond funds.

2. Ministries, central agencies, and localities should focus on accelerating the implementation of projects already approved in the list and meeting all investment conditions.

3. To avoid wastage due to interest payments, the Ministry of Finance should mobilize government bonds according to the progress of projects and works of Ministries, central agencies, and localities.

III. FOR INVESTMENTS FUNDED BY PREFERRED LOANS FROM THE STATE

The Ministry of Finance urgently completes the draft amendment and supplementation of Decree No. 151/2006/NĐ-CP on state investment loans and export loans, removing projects in production and business areas or those capable of recovering capital to prioritize social welfare programs and social infrastructure projects (education, healthcare...).

IV. FOR INVESTMENTS FUNDED BY STATE ENTERPRISES

The Chairman of the Board of Directors and General Director of state enterprises are responsible for reviewing the 2008 investment plan to ensure effective investment; cutting down purely office construction projects; focusing on investing in projects and programs directly serving the main production and business activities of the enterprise.

V. Regarding guarantees for borrowing for projects and programs

In 2008, the Ministry of Finance took measures to restrict guarantees for projects that do not belong to urgent and essential sectors of the economy.

Article 3. This Decision shall take effect from the date of signing.

1. Ministries, ministerial-level agencies, government agencies, other central agencies, and provincial and centrally-administered city agencies shall promptly implement this Decision and report initial results to the Ministry of Finance and the Ministry of Planning and Investment before May 20, 2008 for consolidation and reporting. The Prime Minister before May 30, 2008.

2. The Ministry of Finance and the Ministry of Planning and Investment shall organize inspections and supervision of the implementation of this Decision; at the same time, consolidate and report. The Prime Minister the results of implementation monthly and quarterly, and propose specific remedial measures.

Article 4. Ministers, heads of ministerial-level agencies, heads of government agencies, Chairmen of People's Committees of provinces and centrally-administered cities, State Economic Groups, State Corporations, and heads of related agencies are responsible for enforcing this Decision./.