Circular No. 41-TC/NSNN guiding the preparation of the state budget plan for 1993

CIRCULAR

Circular guiding the preparation of the state budget plan for 1993

_______________________

In order to ensure the preparation and consolidation of the state budget plan for 1993 to implement the economic and social goals set out in the five-year plan from 1991 to 1995 and for 1993, the Ministry of Finance guides the preparation of the state budget plan for 1993 as follows:

I. SOME MAJOR GOALS OF THE STATE PLAN FOR 1993

To effectively implement the goals set out in the five-year plan from 1991 to 1995, the remaining tasks for the years 1993-1995 and for 1993 are extremely arduous, requiring both overcoming difficulties and existing problems from previous years to achieve stability, and also achieving high growth rates to compensate for the slow development in recent years, the allocation of the 1993 plan must ensure the following objectives:

- To leverage the results of 1992, strive to increase the overall indicators of the national economy compared to 1992: gross social product by 6-7%, national income production by 6.4-7.3%, total value of industrial and small-scale industry output by 9-10%, total value of agricultural output by 3.7-4%.

- To rapidly increase export turnover to have sufficient foreign currency to import materials and equipment to meet domestic production and consumption needs, striving to reach an export turnover of 2.8 billion to 3 billion US dollars (an increase of about 25% compared to 1992), including: crude oil 6-6.5 million tons, rice 1.5 million tons, coal 2.5 million tons, tin 3,500 tons, coffee 95,000 tons, tea 25,000 tons, rubber 80,000 tons, seafood 330-350 million US dollars, light industrial goods 250-300 million US dollars, handicrafts 100-120 million US dollars. In addition to the current list of prohibited exports, from 1993, the export of roundwood and sawn timber harvested from natural forests will be temporarily suspended.

- To control and curb inflation, striving to bring the inflation rate down to 1.5-2% per month (20-30% annually); prevent price surges, especially for foodstuffs, gold, and the US dollar.

- To concentrate capital investment on key construction projects that the State is currently building, and start construction on some key projects in the five-year plan from 1991 to 1995.

Continue to reform the economic structure, promote the reorganization of state-owned enterprises, accelerate the process of shareholding of enterprises, etc., to generate funds for production and business development.

- To address the improvement of living standards for workers and stabilize social conditions, complete the basic reform of salary policy, continue to solve employment issues for workers.

II. OBJECTIVES AND REQUIREMENTS FOR PREPARING THE 1993 STATE BUDGET PLAN

Based on the goals of the state plan outlined in Part I, the requirements for preparing the 1993 state budget plan are:

- Revenue calculations must comprehensively and thoroughly exploit all sources of revenue; actively collect and prevent revenue loss; accurately calculate all revenue items according to the Law on Taxation and current regulations on state budget revenue.

- The allocation of state budget expenditures must be based on revenue results, using economic and social effectiveness as a measure for allocating expenditure items, with clear priorities for each expenditure item and each task, and thoroughly economize on expenditures to concentrate funds for key targets: completing key construction projects of the State, starting construction on key projects in the five-year plan from 1991 to 1995, implementing salary policy reforms, investing in job creation, and reasonably allocating funds for domestic and foreign debt repayment to create conditions for new borrowing.

- Reduce the budget deficit in absolute terms and as a percentage compared to 1992; contribute to stabilizing prices, controlling and reversing inflation. Implement measures to borrow from the public to offset the budget deficit.

III. SPECIFIC CONTENTS IN CALCULATING REVENUE AND EXPENDITURE ITEMS

FOR THE 1993 STATE BUDGET

The budget revenue and expenditure forecast for 1993 should be conducted based on a correct assessment of production results and revenue and expenditure of the state budget in 1992.

+ Regarding revenue: Assess and analyze the implementation of major indicators:

+ Total output value

+ Production and consumption volume of main products (for the distribution and circulation sector: purchase volume, sales volume, import and export turnover; for the transportation business sector: cargo and passenger volume (transported volume, circulated volume)).

+ For banking activities: It is necessary to assess the situation of capital mobilization, overdue loans, interest rates on deposits and loans, ability to recover debts, capital efficiency; foreign exchange and gold trading situation.

+ Evaluate the actual status and results of fulfilling the task of submitting state budget revenue compared to capacity and requirements (by tax type, collection level); determine each factor contributing to increases and decreases in state budget revenue and the extent of revenue loss and outstanding revenue in each field.

+ Analyze the main factors affecting production and business operations and state budget revenue.

+ Expenditure: Assess and analyze the tasks recorded in the annual plan, achievements made, and unresolved issues. Analyze the effectiveness of each type of activity; for banking activities, specifically indicate the proportion of each expenditure item (interest payments, management and business operation expenses, etc.) relative to total operational expenses; calculate the efficiency of investment and the results of mobilizing construction and development investment funds. Clearly identify shortcomings in management such as waste, inefficiency, etc., and propose recommendations for revising and supplementing budget expenditure regulations and policies for 1993.

A. CALCULATION OF THE BUDGET REVENUE PLAN.

When calculating the budget revenue plan for 1993 regarding the collection indicators of the state budget, attention should be paid.

1/ For the state-owned economic sector.

a. Turnover tax:

Turnover tax is determined as:

Where, taxable turnover and the turnover tax rate are determined according to specific guidelines in Decree No. 351/HĐBT dated October 2, 1990 of the Council of Ministers and Circular No. 45 TC/TCT dated October 4, 1990 of the Ministry of Finance, and subsequent supplementary guidance documents:

- Decree No. 325/HĐBT dated October 18, 1991 of the Council of Ministers; Circular No. 59 TC/TCT dated November 2, 1991 of the Ministry of Finance providing supplementary amendments to the turnover tax rate for certain business sectors in the turnover tax table and certain items in the special consumption tax table.

- For production processing activities of goods subject to taxation, refer to Circular No. 886 TC/TCT dated May 19, 1992 of the Ministry of Finance.

- For asset transfer activities, remittance services, trade businesses operating on the basis of price differences, and production units with retail outlets... refer to Circular No. 26 TC/TCT dated July 14, 1992 of the Ministry of Finance.

b. Special consumption tax:

According to Articles 6, 7, and 8 of the Special Consumption Tax Law, it is provided that:

The taxable price must be based on the actual price in the fourth quarter of 1992 and forecast the rate of inflation for each group of goods in 1993 to determine the taxable price for 1993.

Regarding the tax rate, it must be calculated at the correct level of the special consumption tax rate amended and supplemented by Resolution No. 472 NQ/HĐNN dated September 10, 1991 of the State Council, Decree No. 325/HĐBT dated October 19, 1991 of the Council of Ministers, and Circular No. 59 TC/TCT dated November 2, 1991 of the Ministry of Finance.

In addition, for products subject to special consumption tax where the special consumption tax on raw materials already paid at the previous stage can be deducted, the determination when calculating the plan is as follows:

c. Income tax:

The basis for calculating income tax includes:

- Total taxable income from all main and ancillary activities throughout the year, both regular and irregular.

- The income tax rate.

For total annual taxable income determined according to the provisions of Circular No. 47 TC/TCT dated October 4, 1990 of the Ministry of Finance, which has specific guidelines for each industry (production, construction, transportation, commerce, tourism, services, banking...).

When calculating and determining taxable income, note the reasonable and legitimate expenses as prescribed and guided in Document No. 789 TC/TCT dated June 14, 1991 of the Ministry of Finance; Among which there are three additional points as follows:

- Depreciation costs of fixed assets are determined based on the original cost of fixed assets taking into account the capital preservation factor according to Decision No. 332/HĐBT dated October 23, 1991 of the Council of Ministers. Thus, fixed assets purchased before 1992, after adjusting the original cost according to the exchange rate of 10,000 VND/USD as stipulated in Circular No. 05 TC/CN dated March 24, 1992 of the Ministry of Finance, it is necessary to estimate the capital preservation factor for 1992 according to the provisions of Circular No. 82 TC/CN dated December 31, 1991 of the Ministry of Finance to determine the planned original cost for 1993.

- Regarding meal allowances during work shifts, they cannot be recorded as production and business expenses to reduce taxable income according to the provisions of Joint Circular No. 05 TT/LB dated July 1, 1991 of the Ministry of Finance and the Ministry of Labor, Invalids, and Social Affairs.

- Specifically for joint ventures, the calculation of the income tax revenue plan is based on Document No. 1152 TC/TCT dated August 22, 1991 of the Ministry of Finance.

d. Revenue from capital utilization:

Based on data on state budget capital (fixed capital and working capital) determined when reviewing the financial settlement for 1991, the increase or decrease in capital in 1992 (including the increase in capital due to implementing the capital preservation system according to Circular No. 82 TC/CN dated December 31, 1991 of the Ministry of Finance) to calculate the revenue plan from capital utilization in 1993.

The revenue from capital utilization is calculated according to the provisions of Circular No. 12 TC/TCT dated February 28, 1991 of the Ministry of Finance.

e. Basic depreciation:

According to Decision No. 135 TC/ĐT dated April 25, 1992 of the .

e. Basic depreciation:

According to Decision No. 135/CT dated April 25, 1992 of the Council of Ministers and Circular No. 14 TC/ĐT dated May 14, 1992 of the Ministry of Finance, basic depreciation extracted from fixed assets belonging to state budget capital for all enterprises must be fully submitted to the state budget. When calculating the revenue from basic depreciation, the provisions of Decision No. 332/HĐBT dated October 23, 1991 of the Council of Ministers must be implemented to determine the original cost of fixed assets for depreciation purposes (including the preservation of capital).

g. Additionally, when calculating the revenue plan for 1993 in the state-owned economic sector, attention should be paid to the characteristics of production and business operations in certain industries such as: units under the Defense Department - calculated according to Joint Circular No. 08 TT/LB dated May 18, 1992 of the Ministry of Finance and the Ministry of Defense; units under the Interior Department - calculated according to Circular No. 20 TC/TCT dated June 12, 1992 of the Ministry of Finance and the Ministry of Interior.

For the banking industry with its own unique characteristics, therefore, when building the plan for 1993, it is necessary to unify according to the principle: units that have independently accounted for economic activities and have the obligation to directly pay to the state budget must establish their own plans and report the plans to the Ministry of Finance (such as the Vietnam Bank for Foreign Trade, the Vietnam Commercial Bank, the Vietnam Investment and Development Bank, the Vietnam Gold and Jewelry Company, the State Bank of Vietnam). The State Bank will develop the financial plan for the State Bank (including the training plan for the banking school system and the financial plan for dependent industrial complexes); at the same time participate in reviewing the plans of state-owned commercial banks and gold and jewelry companies (as the superior management unit).

2/ Revenue from crude oil sales.

Based on the forecast of the State Planning Commission regarding the crude oil production volume in 1993 of approximately 6 million to 6.5 million tons, referring to the agreements signed between the two states and Circular No. 334 TC/TCT dated March 3, 1992 of the Ministry of Finance on the regulations and supplementary guidance on the collection and payment of taxes for the Vietnam-Soviet joint venture oil enterprises and the average crude oil selling price in the fourth quarter of 1992 to determine the revenue plan from crude oil sales in 1993. The temporary conversion rate to Vietnamese currency is set at 11,000 VND/USD.

3/ For enterprises with foreign investment.

- Evaluate the production and business situation, state budget revenue of enterprises with foreign investment in 1992 according to the following key indicators:

+ Number of enterprises granted licenses

+ Statutory capital, contributed capital

+ Number of workers in enterprises with foreign investment.

+ Number of enterprises engaged in production and business operations, results of production and business operations.

+ Number of enterprises paying taxes, amount of taxes paid according to each type of tax and each category of revenue.

+ Existing issues and recommendations

- Based on analyzing the revenue results of 1992 and forecasting the production plan for 1993 of units with foreign investment to calculate the revenue plan for 1993.

- Regarding the collection system:

+ BASED ON THE COLLECTION REGIME FOR ENTERPRISES WITH FOREIGN INVESTMENT CAPITAL AS PROVIDED FOR IN DECREE NO. 28/HĐBT OF FEBRUARY 6, 1991, ISSUED BY THE COUNCIL OF MINISTERS, AND CIRCULAR NO. 55 TC/TCT OF OCTOBER 1, 1991, ISSUED BY THE MINISTRY OF FINANCE.

+ SPECIFICALLY, FOR JOINT VENTURE ENTERPRISES IN THE VIETSO OIL AND GAS SECTOR, CALCULATIONS SHALL BE MADE ACCORDING TO DOCUMENT NO. 1698 TC/TCT OF NOVEMBER 16, 1991, ISSUED BY THE MINISTRY OF FINANCE.

4/ TAXES FROM THE PRIVATE SECTOR, INDIVIDUAL HOUSEHOLDS, AND NON-GOVERNMENT SERVICES:

a. REGARDING VALUE ADDED TAX AND INCOME TAX:

- FOR LARGE HOUSEHOLDS ENGAGED IN BUSINESS THAT HAVE IMPLEMENTED BOOKKEEPING SYSTEMS (PRIVATE ENTERPRISES, PRIVATE COMPANIES, JOINT STOCK COMPANIES, LIMITED LIABILITY COMPANIES, LARGE INDIVIDUAL HOUSEHOLDS, ETC.), THE RESULTS OF AUDITS OF THEIR ACCOUNTING RECORDS SHALL BE USED TO DETERMINE THEIR BUSINESS OPERATIONS AND REVENUE SUBMITTED TO THE STATE BUDGET IN 1992; PROJECTED DEVELOPMENT DIRECTIONS FOR BUSINESS OPERATIONS IN 1993 SHALL BE CONSIDERED, ALONG WITH APPLICABLE TAX POLICIES UNDER LAWS, TO CALCULATE THE 1993 TAX PLAN.

- FOR SMALL AND MEDIUM-SIZED HOUSEHOLDS IMPLEMENTING A COMBINED PAYMENT SYSTEM: BASED ON THE MANAGEMENT RESULTS OF TAX COLLECTION IN 1992, SURVEY DATA ON ACTUAL BUSINESS CONDITIONS SHALL BE USED TO PROJECT SALES VOLUMES FOR THE 1993 TAX PLAN, AIMING TO MANAGE TAX COLLECTION AT A MINIMUM OF 75-80% OF ACTUAL BUSINESS VOLUMES.

THE PROJECTED TAX PLAN FOR TRADING ACTIVITIES SHALL BE BASED ON ROOT CAUSE MANAGEMENT, AIMING TO MANAGE 60-70% OF ACTUAL TRADING VOLUMES.

TAX COLLECTION FOR THE PRIVATE SECTOR, INDIVIDUAL HOUSEHOLDS, AND NON-GOVERNMENT SERVICES IN 1993 MUST BE CONDUCTED WITH ACTIVE MEASURES TO EFFECTIVELY INCORPORATE ALL BUSINESS OPERATIONS INTO TAX MANAGEMENT, PREVENTING LOSS OF REVENUE TO INCREASE STATE BUDGET INCOME.

b. Special consumption tax:

FOR GOODS SUBJECT TO SPECIAL CONSUMPTION TAXES SUCH AS TOBACCO, ALCOHOL, FIREWORKS, ETC., ACTUAL PRODUCTION AND CONSUMPTION SITUATIONS IN LOCALITIES AND MANAGEMENT RESULTS FROM 1992 SHALL BE USED TO PROJECT THE 1993 TAX PLAN, FOCUSING ON PREVENTING LOSS OF REVENUE AND MANAGING FROM THE SOURCE OF PRODUCTION.

c. BORDER TRADE TAXES:

BASED ON THE EVALUATION OF TAX COLLECTION MANAGEMENT RESULTS FOR THE LAST 9 MONTHS OF 1992, ANALYSIS OF THE LEVEL OF TAX COLLECTION ACCORDING TO REGULATED PROCEDURES; PROJECT THE QUANTITY OF GOODS SUBJECT TO BORDER TRADE TAXES IN THE 1993 PLAN; CONSIDER THE ACTUAL LEVEL OF BUSINESS AND ABILITY TO PREVENT LOSS TO PROJECT THE 1993 TAX PLAN.

CALCULATE BORDER TRADE TAX REVENUES BASED ON DECISION NO. 115/HĐBT OF APRIL 9, 1992, ISSUED BY THE COUNCIL OF MINISTERS, AND CIRCULAR NO. 09 TC/TCT OF APRIL 10, 1992, ISSUED BY THE MINISTRY OF FINANCE.

d. STAMP DUTY:

BUILD THE TAX PLAN ACCORDING TO CURRENT COLLECTION REGIMES (DECREE NO. 222/HĐBT OF DECEMBER 5, 1987, AND LETTER NO. 1309 TC/TCT OF JULY 20, 1992, ISSUED BY THE MINISTRY OF FINANCE, PROVIDING GUIDANCE ON THE COLLECTION OF STAMP DUTY FOR CASES OF LAND USE RIGHTS TRANSFER) - CHARGE 5% OF THE ASSET VALUE FOR PURCHASE, SALE, OR EXCHANGE TRANSACTIONS, AND 3% FOR INHERITANCE.

THE OBJECTS INCLUDE:

- REAL ESTATE, INCLUDING OWNERSHIP AND MANAGEMENT RIGHTS TO HOUSING AND USE RIGHTS TO LAND.

- VARIOUS TYPES OF MOTOR VEHICLES.

- Motorbikes

- SHIPS AND BOATS.

- OTHER ASSETS AND EQUIPMENT, ETC.

5/ AGRICULTURAL TAX:

THE BASIS FOR CALCULATING THE 1993 AGRICULTURAL TAX PLAN INCLUDES:

- THE AGRICULTURAL TAX ORDINANCE AND CURRENT GUIDING DOCUMENTS ISSUED BY THE COUNCIL OF MINISTERS AND THE MINISTRY OF FINANCE.

- THE RESULTS OF ESTABLISHING THE 1992 AGRICULTURAL TAX REGISTER, ANALYZING FACTORS OF AREA INCREASES AND DECREASES, AND LAND CLASSIFICATION ADJUSTMENTS IN 1992; ESPECIALLY THE RESULTS OF INSPECTIONS ON THE USE OF AGRICULTURAL LAND IN MILITARY FARMS, ETC., TO BE INCLUDED IN THE 1993 TAX PLAN ACCORDING TO REGULATED REQUIREMENTS.

- THE TAXABLE PRICE IS THE MARKET PRICE IN THE LOCALITY IN THE FOURTH QUARTER OF 1992 AND THE PROJECTED SPECIFIC PRICES FOR EACH HARVEST IN THE 1993 PLAN.

- ADDITIONALLY, SIGNIFICANT OUTSTANDING AMOUNTS FROM PRIOR PERIODS SHOULD BE INCLUDED IN THE 1993 PLAN.

6/ PERSONAL INCOME TAX:

BASED ON THE NUMBER OF PERSONS SUBJECT TO PERSONAL INCOME TAX AND THE TAX REVENUE FROM 1992, PROJECT THE CHANGES AND DEVELOPMENT LEVELS OF PERSONS SUBJECT TO TAX IN 1993 TO BUILD THE TAX PLAN.

NOTE, IN ADDITION TO CALCULATING PERSONAL INCOME TAX ACCORDING TO THE ORDINANCE, VIETNAMESE INDIVIDUALS WORKING IN INTERNATIONAL ORGANIZATIONS AND FOREIGN AGENCIES IN VIETNAM MUST ALSO PAY ADDITIONAL INCOME ADJUSTMENT FEES ACCORDING TO DECREE NO. 119/HĐBT OF APRIL 17, 1991, ISSUED BY THE COUNCIL OF MINISTERS, AND CIRCULAR NO. 60 TC/TCT OF NOVEMBER 2, 1991, ISSUED BY THE MINISTRY OF FINANCE.

7/ FOR OTHER INCOME SOURCES:

BASED ON A DETAILED ANALYSIS OF EACH INCOME SOURCE IN 1992, PROJECT THE 1993 PLAN WITH THE PRINCIPLE OF FULL EXPLOITATION OF INCOME SOURCES, PREVENTING LOSS AND MAXIMIZING INCOME FOR THE STATE BUDGET.

SPECIFICALLY, FOR FEES AND CHARGES, THE COUNCIL OF MINISTERS HAS ISSUED DECISION NO. 276/CT OF JULY 28, 1992, "UNIFIED MANAGEMENT OF FEES," WHICH PROVIDES THAT ALL GOVERNMENT AGENCIES ARE COLLECTING FEES AND CHARGES. ALL MINISTRIES, SECTORS, LOCALITIES, AND ORGANIZATIONS MUST REGISTER WITH THE SAME-LEVEL TAX AUTHORITY AND USE RECEIPTS ISSUED BY THE GENERAL DEPARTMENT OF TAXATION (MINISTRY OF FINANCE). THE FUNDS COLLECTED MUST BE SUBMITTED TO THE STATE BUDGET ACCORDING TO THE GUIDANCE OF THE MINISTRY OF FINANCE. THEREFORE, IT IS NECESSARY TO REVIEW AND STATISTICALLY ANALYZE EACH INCOME SOURCE AND THE AMOUNT COLLECTED IN 1992, RECALCULATE THE AMOUNT COLLECTED ACCORDING TO THE GUIDANCE OF THE MINISTRY OF FINANCE, AND FULLY REFLECT THIS IN THE 1993 BUDGET.

FOR INCOME SUBMITTED IN FOREIGN CURRENCY, FOLLOW DECISION 218/CT OF THE CHAIRMAN OF THE COUNCIL OF MINISTERS, SOME ITEMS FOLLOW CIRCULAR NO. 05 TC/LĐ-TBXH OF MARCH 7, 1992, ISSUED BY THE MINISTRY OF LABOUR, WAR INVALIDS, AND SOCIAL AFFAIRS, AND CIRCULAR NO. 10 TC/NT OF APRIL 28, 1988, ISSUED BY THE MINISTRY OF FINANCE; FOREIGN CURRENCY FEES SUCH AS AIRCRAFT OVERFLIGHT FEES, PORT ENTRY AND EXIT FEES, PETROLEUM CONTRACT COMMISSIONS, FOREIGN INVESTMENT FEES, FOREIGN REPRESENTATIVE OFFICE LICENSE FEES, IMMIGRATION FEES, TRADEMARK REGISTRATION FEES, ETC., AND PENALTIES, ETC., MINISTRIES, SECTORS, AND LOCALITIES SHALL PROJECT THE TASKS OF SUBMITTING TO THE STATE BUDGET FOR 1993 BASED ON THE ESTIMATES FOR THE ENTIRE YEAR OF 1992.

UNITS WITH NEEDS FOR EXPENSES MUST CALCULATE AND DETERMINE THE EXPENSE PLAN FOR EACH SPECIFIC TASK ACCORDING TO ASSIGNED TASKS AND POLICIES.

8/ REAL ESTATE TAX:

SPECIFIC CALCULATIONS MUST BE MADE FOR THE TAX TO BE COLLECTED FROM EACH TAXPAYER, THE TAX RATE, AND THE TAXABLE VALUE BASED ON NATIONAL REGULATIONS AND GUIDANCE FROM THE MINISTRY OF FINANCE.

9/ FOR INCOME FROM GRANTS:

Units, sectors, localities that have received foreign aid or used borrowed funds from such aid must thoroughly analyze all grants and loans received and utilized in 1992, including payment situations, revenue collection, and repayment to the State Budget (amounts paid, repaid, and amounts still owed), itemized by each grant and source. Fully estimate the amount of foreign currency and quantity of goods expected to be received in 1993 and temporarily convert them to Vietnamese dong at the exchange rate of 11,000 VND/USD. When calculating, analyze and determine according to each project, program, and specific goal (construction projects, education development programs, healthcare, culture, population...), and reflect these in the State Budget's income and expenditure for management purposes.

B/ ON EXPENSES

1/ Construction Expenses: The State Budget will allocate funds only for key projects decided by the State and infrastructure projects such as: transportation, irrigation, hydropower, storage reserves, agricultural seeds, upstream forests, urban construction projects, urban water supply, medical facilities, educational institutions, training centers, cultural-social activities, scientific research, state management, and defense-security infrastructure.

In planning calculations, attention should be given to:

- Projects scheduled for investment in 1993 must have complete procedures for construction investment (economic and technical justification, design, approved budget estimates).

- For new projects such as headquarters buildings, office spaces..., strictly comply with Directive No. 75/CT of the Council of Ministers.

- Prioritize and concentrate on key national projects, projects that can be completed and put into use quickly and yield high efficiency.

- Clearly define domestic capital, foreign currency capital, and forecast sources of investment for each specific project.

2/ Regarding working capital: Based on the reorganization of production and business operations according to Decisions No. 388/HĐBT, No. 315/HĐBT, and No. 196/CT of the Council of Ministers; implement the adjustment and handling of working capital according to Decision No. 378/HĐBT dated November 16, 1991 of the Council of Ministers, settle debts to ensure working capital for state enterprises. In 1993, the State Budget will allocate working capital only once to state enterprises, with a maximum allocation level of 30% of the approved working capital standard at the time of allocation.

Prioritize the allocation plan for working capital for enterprises producing important products for the socialist-oriented market economy, newly operational enterprises, and enterprises generating significant revenue for the State Budget but not yet allocated working capital or currently having insufficient working capital.

Enterprises included in the list for working capital allocation in 1993 must meet the following requirements:

- Have been reorganized and registered according to Decision No. 388/HĐBT of the Council of Ministers and the circular guiding this process issued by the Ministry of Planning and Investment - Ministry of Finance.

- Clearly explain the effective production plan and demonstrate the ability to increase production and contribute additional revenue to the State Budget if allocated working capital.

- Must have their working capital standards approved by relevant authorities (Finance, Tax, supervisory agencies...).

3/ On reserves:

- Only strategic items such as foodstuffs, fuel, metals, transport vehicles, specialized tires, flood prevention materials like rock rubble, steel baskets... will be included in reserves, with reserve levels determined based on necessary needs to meet urgent demands during natural disasters or enemy threats as decided by the Council of Ministers.

Agricultural material reserves: rice seeds, corn seeds, pesticides, veterinary drugs, vegetable and fruit seeds according to decisions of the Council of Ministers.

When calculating, clearly determine the specific needs for quantity and capital for each item.

- For circulating reserves in certain industries and mountainous regions: inventory and maintain existing reserves, no additional reserves will be added for these items in 1993.

4/ On price subsidies: According to current regulations, the State Budget will subsidize prices for the following items:

- Subsidize transportation costs for fertilizers, pesticides to mountainous areas and phosphates to southern regions according to Decision No. 386/HĐBT dated February 12, 1990 and Decision No. 2598/PPLT dated August 9, 1991 of the Council of Ministers.

- Subsidize transportation costs for coal to mountainous areas according to Decision No. 210/PPLT dated August 1, 1991 of the Council of Ministers.

- Subsidize the maintenance and improvement of livestock and poultry breeds and original seeds according to Decision No. 125/CT dated April 18, 1991 of the Council of Ministers regarding the provision of funding to maintain and improve the quality of livestock and poultry breeds and original seeds, and the joint circular of the Ministry of Finance and the Ministry of Agriculture and Rural Development No. 03 TT/LB dated July 8, 1991.

- Subsidize some newspapers, magazines, publishing houses, and book distribution agencies according to Decision No. 361/PPLT dated January 31, 1992 of the Council of Ministers.

When calculating the subsidy plan, clearly determine the quantity, cost, production cost, transportation cost, selling price, and subsidy level for each specific item. Apart from the above items, ministries and localities may not include additional subsidy or loss compensation for production and business activities.

5/ On administrative and public service expenses:

The 1993 administrative and public service expense plan must be based on a thorough analysis of the implementation situation in 1992, eliminating expenses that do not comply with policies and regulations, expenses that are merely for show, and one-off expenses solely for 1992 such as election expenses...; based on the projected inflation rate in 1993 to prepare an appropriate expense plan that fits the actual situation, ensuring normal operation of units in the most economical manner, limiting expensive imported equipment purchases and conference expenses. In allocating administrative and public service expenses for 1993, attention should be given to:

- Plans must be separated into two parts: foreign currency expense plans and Vietnamese dong expense plans:

+ For foreign currency expense plans: based on Circular No. 1728 TC/TCĐN dated November 20, 1991 of the Ministry of Finance on direct foreign currency expenditures from the centralized foreign currency fund of the State, and Circular No. 1842 TC/TCĐN dated December 9, 1991 of the Ministry of Finance on meeting foreign currency needs for units; based on current foreign currency expenditure standards of the Ministry of Finance and the actual situation of the unit to develop the plan. Specifically for the need to import materials and equipment, it must be done economically, importing only essential materials and equipment that cannot be produced domestically.

+ For the plan to spend with Vietnamese dong: Based on the results of reorganizing and registering the payroll quota according to two lists as directed in Circular Joint Ministry No. 79 TT/LB dated December 27, 1991 and the joint letter of the Ministry of Finance and the Government Personnel Board No. 1235 CV/LB dated July 8, 1992. For the quota under List I (maximum quota, equal to the level announced by the Government Personnel Board), all items of salary, allowances, and wage subsidies, price subsidies, and other expenses according to the planned standards attached to this circular shall be fully calculated. In the plan, major expense categories such as basic salary (basic wage), allowances, subsidies, price subsidies, and non-recurring expenses like purchases and repairs must be clearly separated.

For the quota under List II (if any), only the basic salary, allowances, and wage subsidies, price subsidies can be calculated; other expenses cannot be included. The expenditure for List II must be recorded as a separate item to be resolved according to the general policy of the State.

- When calculating the plan, it is necessary to mobilize and manage effectively each source of funds for specific areas, such as: contributions from the people, aid from governments and international organizations...; not to leave them outside the budget, and not to include expenses determined by sectors and localities outside the general system of the State.

- For economic public services activities: the plan for 1993 must be aligned with the five-year plan goals from 1991-1995, focusing on prioritizing tasks serving agricultural, forestry, and water resource development; maintenance and repair of infrastructure projects; exploitation of existing natural resources of the country and redistribution of labor and population. Careful and detailed calculations must be made for each task and priorities set for urgent tasks, including:

+ Establishing the public service expenditure plan for transportation: it must be based on clearly defining the needs for maintenance and repair, and specific expenditure standards for each type to serve as the basis for allocating funds. For local budgets allocating public service expenditures for transportation, the principle is that transportation service expenditures from the budget should not exceed the revenue from transportation fees; for mountainous provinces, if the revenue from transportation fees is too low to meet the needs, additional funding may be requested from the state budget.

+ Public service expenditure for forestry (including forest planting investment): must be allocated in accordance with the revenue from forest resource taxes and forestry public service revenues. Calculations need to detail both income and expenditure. In 1993, the approach will focus on concentrating revenue at the National Treasury to reinvest according to projects; therefore, Ministries and localities need to develop projects for this purpose.

- For science and technology: priority funding should be given to national-level science programs and research topics in fundamental sciences. For the application of technological progress in production, mainly using unit funds and scientific support funds, reducing state budget support for this area.

- For education and training: based on the reorganization of schools according to Decision No. 76/HĐBT dated March 9, 1992 of the Council of Ministers; expanding non-state-owned schools and classes; implementing diverse school types to meet the learning needs of the people and improve teaching and learning quality, with limited capital but high efficiency in spending.

In 1993, continue to allocate funds to implement the objectives: universal primary education and eradication of illiteracy, implementation of educational policies in mountainous regions, reorganization of schools and repair of key educational facilities.

- For the health and healthcare sector: the allocation direction for 1993 is based on the reorganization of medical examination and treatment facilities (especially at the district and provincial levels) according to Announcement No. 26/TB dated April 1, 1992 of the Council of Ministers' Office regarding the reorganization of the health sector's structure and staffing; promoting the implementation of health insurance; increasing investment ratios for disease prevention and initial health protection, especially in mountainous areas. Currently, private medical examination and treatment facilities are developing strongly, so the number of patients seeking treatment at state-run hospitals may significantly decrease compared to before, particularly at district and provincial hospitals. Therefore, it is necessary to assess the actual situation of medical examinations and treatments in 1991 and 1992 to base the 1993 plan closely on the actual situation. When implementing health insurance, the state budget expenditure for this sector must be recalculated.

In 1993, continue to allocate funds to implement programs: expanded immunization, malaria control, goiter prevention, population and family planning programs; it is necessary to clearly define the specific content of work and financial requirements for each program.

- For culture and social affairs; concentrate funds to prioritize the implementation of the nationwide broadcasting and television coverage program; classify cultural and artistic activities (serving politics, mass culture) to have appropriate investment and support policies, with the spirit that cultural and artistic activities serving the masses must generate sufficient revenue to cover costs; the State will only consider supporting cultural and artistic forms serving politics or according to government orders. Regarding social security, the plan calculation must be based on fully exploiting the contributions of the people, organizations, and units, promoting the principle of "State and people working together", developing "social funds", "gratitude and repayment funds" to care for the lives of烈士在这一段落中提到了“社会基金”和“感恩与回报基金”，这些内容在之前的翻译中没有直接对应的英文表述。为了保持翻译的准确性和完整性，我将按照原文内容进行翻译，并确保不添加任何解释或额外信息。

- Regarding the administrative and public service expenditure level in 1993: based on the planned comprehensive expenditure standard to prepare the budget estimate attached to this circular; Ministries and localities should provide specific guidance for units to implement in line with the specific circumstances of their Ministries and localities. However, the total expenditure of Ministries and localities must not exceed the planned expenditure standard.

5/ On expenditure for labor restructuring:

- For the material production sector: from 1993, the State Budget does not provide funding for units to resolve policies for workers who have been laid off according to Decision No. 176/HĐBT dated October 9, 1989; units that need to reorganize labor must use funds from their own funds to pay off laid-off workers.

For enterprises, after reorganization according to Decree No. 388/HĐBT dated November 20, 1991, if they must be dissolved according to Decision No. 315/HĐBT dated September 1, 1990 of the Council of Ministers, then the Ministries and localities shall compile the needs to include them in the plan for 1993 in accordance with the guidance provided in Circular Joint No. 05/TT-LB dated April 11, 1992 of the Ministry of Labor, War Invalids and Social Affairs and the Ministry of Finance. As for the number of state employees in institutions operating under Decision No. 268/CT dated July 30, 1990, after reorganization according to Decision No. 196/CT dated June 5, 1992 of the Council of Ministers, if they must be laid off, then the Ministries and localities shall base on the above-mentioned circular to prepare lists and budgets separately.

- For the administrative and public service sector: based on the staffing quota announced by the Government Organization Board, the implementation situation in 1992, and the needs for organizational restructuring and staffing adjustment to forecast the staffing quota needed for adjustment in 1993. Regarding the expenditure level and planning forms, follow Circular Joint No. 04/TT-LB dated May 24, 1991 of the Ministry of Labor, War Invalids and Social Affairs and the Ministry of Finance, and Circular Joint No. 02/TT-LB dated April 6, 1992 of the Government Organization Board, the Ministry of Finance, and the Ministry of Labor, War Invalids and Social Affairs.

6/ On expenditures for job placement and salary policy reform:

- On expenditures for job placement: The Ministry of Labor, War Invalids and Social Affairs shall coordinate with relevant ministries and localities to carefully assess the implementation situation in 1992; based on the demand for job placement, development directions and goals for economic regions, potential idle lands, barren hills, degraded land, and consolidate all programs and projects proposed by ministries and localities to establish the national fund plan for job placement in 1993 (including foreign aid and recovered funds from previous years).

Ministries, sectors, and localities should base on current guiding documents to develop programs and projects for job placement to submit to competent authorities for review; at the same time, only include in the plan job placement programs and projects that have been approved by competent authorities, clearly distinguishing sources of capital: supplementary state budget, recovered funds from previous years, bank credit, mobilized capital from the people or self-owned capital of the unit, foreign aid...

- On expenditures for salary policy reform: The Ministry of Labor, War Invalids and Social Affairs shall coordinate with related agencies, based on the implementation situation in 1992, to formulate plans to continue implementing salary policy reform in 1993 according to the steps already presented to the National Assembly and the financial requirements for implementation.

7/ On other expenditures:

The plan for 1993 must be based on a thorough analysis of the implementation situation in 1992, excluding extraordinary expenses and expenses not in accordance with regulations; based on the specific situation of the unit, ministry, or locality, ensure accurate expenditure according to current regulations, itemize each expense, and provide detailed explanations for each item.

Localities may not include in their local budget plans expenses to support vertical units whose funding is guaranteed by the central government, such as the military, police, prosecution, tax, State Treasury... They can only include expenses for items that have been delegated to local management.

C. ON THE DELEGATION OF MANAGEMENT OF THE STATE BUDGET:

According to Resolution No. 186/HĐBT dated November 27, 1989 and Decision No. 168/HĐBT dated May 16, 1992 of the Council of Ministers. Specifically, revenue from forest maintenance fees and forest resource taxes will be collected entirely by the central government to invest in forests according to approved projects.

To concentrate funds for investment in construction and development, salary policy reform, creating jobs for society..., the arrangement of the budget revenue and expenditure plan for 1993 of each province and city must aim to actively exploit and increase revenues, reduce subsidies from the central government (for localities currently receiving subsidies from the central government) or reduce the rate of distribution of agricultural tax and business income tax revenues to local budgets (for localities currently benefiting from the distribution of these two types of taxes) compared to 1992.

D. IMPLEMENTATION:

1/ Progress in building and consolidating plans:

a. From now until the end of August 1992, ministries and localities shall guide subordinate units to evaluate the implementation of the 1992 plan and prepare the state budget plan for 1993 based on the points mentioned above. Ministries and localities shall compile materials evaluating the implementation of revenue and expenditure in 1992; prepare the budget revenue and expenditure plan for 1993 and submit specific recommendations to the Ministry of Finance no later than September 10, 1992.

b. The Ministry of Finance will organize meetings with ministries and localities in two rounds as follows:

Round 1: End of September to early October 1992, the Ministry of Finance will organize specific meetings with ministries and localities to hear detailed reports on each item of budget revenue and expenditure.

(The specific schedule will be announced later).

Round 2: End of October to early November 1992, after summarizing the results of Round 1 and reporting to the Council of Ministers for comments, the Ministry of Finance will organize meetings again with ministries and localities to determine the official revenue and expenditure tasks for ministries and localities.

c. In November 1992, the Ministry of Finance will consolidate and complete the state budget plan and the budget revenue and expenditure plan for ministries and localities to submit to the Council of Ministers and the National Assembly for approval.

2/ Regarding the forms for building and reporting plans:

- For units and factories: ministries and localities shall base on the system of forms and reports stipulated in Circular No. 40 TC/VP dated September 8, 1990 of the Ministry of Finance to guide units to prepare plans suitable for the characteristics of the ministry or locality and ensure the completeness of the required reporting contents as stipulated in this circular.

- For ministries and provincial finance departments: report the state budget plan to the Ministry of Finance according to the system of forms attached to this circular. Accompanying the report must be a detailed explanation of each revenue and expenditure item.

- Specifically for the banking sector, in addition to the necessary forms mentioned above, the system of forms serving the work of building and reporting financial plans for 1993 must clearly reflect its special nature through several financial plan reports such as:

+ Report on income-expenditure-profit plan

+ Report on the plan for capital sources-capital utilization (or production and business operation plans of production units)

+ Report on funds of the Bank

+ Report on the wage plan, total income.

For the State Bank of Vietnam, it is necessary to establish two additional reports:

+ Training plan

+ Report on the plan for affiliated enterprises.

3/ The General Department of Taxation has the responsibility to provide detailed guidance on this circular for implementation within the tax system.

During the process of building the state budget plan for 1993, if there are new policies and regulations, the Ministry of Finance will provide supplementary guidance. During the implementation process, if there are difficulties or obstacles, relevant ministries and localities need to report to the Ministry of Finance for timely resolution./.