Decree No. 45/2017/NĐ-CP detailing the preparation of five-year financial plans and three-year State budget financial plans

DECREE

Detailed regulations on five-year financial plans

and three-year state budget financial plans

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Pursuant to the Law on Government Organization dated June 19, 2015;

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

Pursuant to the Law on Public Investment dated June 18, 2014;

Pursuant to the Law on Public Debt Management dated June 17, 2009;

At the proposal of the Minister of Finance;

The Government issues this Decree to provide detailed regulations on the establishment of five-year financial plans and three-year state budget financial plans.

 

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree provides detailed implementation of certain provisions of the State Budget Law regarding the establishment of five-year financial plans and three-year state budget financial plans; tasks and authorities of relevant agencies and units in establishing these plans.

Article 2. Applicability

1. Ministries, ministerial-level agencies, government agencies, other central agencies (hereinafter collectively referred to as ministries and central agencies); People's Committees of provinces and centrally-administered cities (hereinafter collectively referred to as provincial People's Committees); agencies and units at the provincial level; other agencies and organizations related to the establishment of five-year financial plans and three-year state budget financial plans.

2. Agencies and organizations that have non-routine relations with the state budget are not subject to the implementation of this Decree.

Article 3. Explanation of Terms

In this Decree, the following terms are understood as follows:

1. "Five-year financial plan" means a financial plan established for a period of five years together with the five-year socio-economic development plan as stipulated in Article 17 of the State Budget Law, including the national five-year financial plan and the provincial and centrally-administered city five-year financial plans.

2. "Three-year state budget financial plan" means a state budget financial plan established annually on a rolling basis for a period of three years, starting from the budget estimate year and the two subsequent years, as stipulated in Clause 1 and Clause 2 of Article 43 of the State Budget Law; including the national three-year state budget financial plan and the provincial and centrally-administered city three-year state budget financial plans.

3. "Three-year state budget financial plan of ministries, central agencies, and provincial agencies" means the state budget financial plan established annually on a rolling basis for a period of three years by ministries, central agencies, and provincial agencies, as stipulated in Clause 3 of Article 43 of the State Budget Law.

4. "Rolling method" means that each year, the agency or unit assigned the task of establishing the three-year state budget financial plan updates, supplements, and evaluates economic and social conditions and the state budget, clarifies emerging issues to prioritize resource allocation in the medium term, thereby providing a basis for annual state budget estimate preparation work.

5. "State budget ceiling" means the limit of state budget expenditure announced by the competent authority to ministries, central agencies, and provincial agencies for a three-year planning period, detailed by year; wherein, the state budget ceiling for the first year is the verified budget expenditure amount of the state budget announced by the competent state authority according to Clause 22 of Article 4 of the State Budget Law.

6. "Basic expenditure" means the need for state budget expenditure to implement tasks, activities, systems, and policies in each field decided and committed to allocate resources in the previous year's budget estimate, currently being implemented and will continue to be carried out during the three-year planning period.

7. "New expenditure" means the need for state budget expenditure to implement new tasks, activities, systems, and policies in each field approved by the competent authority to implement, including tasks, activities, systems, and policies previously issued but not allocated resources and need to continue to be implemented during the three-year planning period.

8. "Contingent liability" means a debt obligation that has not yet arisen but may arise if at least one of the pre-determined conditions occurs.

Article 4. Relations between the five-year financial plan, the three-year state budget financial-plan, and the annual state budget estimate

1. The five-year financial plan is the financial plan to implement the goals and tasks of the national and local socio-economic development plans for the five-year planning period; it sets out basic financial-state budget targets and indicators over the five-year planning period; it plays a guiding role for the three-year state budget financial-plan and the annual state budget estimate.

2. The three-year state budget financial-plan is established annually to implement the five-year financial plan, reflecting major contents about the state budget balance framework and the ceiling of state budget expenditures for ministries, agencies, units, and localities over the three-year period, taking into account the current economic and social situation and financial-state budget conditions, and updating forecasts for the three-year planning period, serving as the basis for establishing, reviewing, and deciding on the annual state budget estimate.

3. The annual state budget estimate specifically implements the strategic orientation of the five-year financial plan, the goals and tasks of the three-year state budget financial-plan, including basic indicators that coincide with the first year's indicators of the three-year state budget financial-plan.

Chapter II

ESTABLISHING THE FIVE-YEAR FINANCIAL PLAN

Article 5. Subjects Establishing the Five-Year Financial Plan

1. The Ministry of Finance shall take the lead and coordinate with the Ministry of Planning and Investment and relevant central agencies to establish the national five-year financial plan to be reported to the Government for submission to the National Assembly for consideration and decision.

2. The People's Committee of the province shall direct the Provincial Department of Finance to take the lead and coordinate with the Provincial Department of Planning and Investment and other relevant agencies at the locality to develop the provincial five-year financial plan to be reported to the Provincial People's Council for consideration and decision.

Article 6. Basis for Establishing the Five-Year Financial Plan

1. Basis for establishing the national five-year financial plan:

a) Implementation situation of the socio-economic development plan, the five-year national financial plan in the previous phase;

b) Goals, indicators, orientations for socio-economic development, state financial-budget in the National Strategy, the five-year socio-economic development plan; strategies on finance, public debt, tax system reform;

c) Legal provisions on state financial-budget, including international treaties signed or joined by the Socialist Republic of Vietnam; directions for amendment, supplementation, and issuance of new regulations during the five-year planning period;

d) Forecast of world and domestic economic and financial situations affecting the ability to mobilize and the need to use state financial-budget resources during the five-year planning period;

đ) Guidelines of the Prime Minister on building the socio-economic development plan and the five-year financial plan.

2. Basis for establishing the provincial five-year financial plan:

a) Implementation situation of the five-year socio-economic development plan and the five-year financial plan in the previous phase of the locality;

b) Goals, indicators, orientations for socio-economic development, state financial-budget in the National Strategy, the five-year socio-economic development plan; strategies on finance, public debt, tax system reform; and the goals, indicators, orientations for socio-economic development in the five-year planning period of the locality; the overall socio-economic development master plan approved by the locality;

c) Forecast of socio-economic situations affecting the ability to mobilize and the need to use state financial-budget resources of the locality during the five-year planning period;

d) Legal provisions on state financial-budget, including the revenue distribution mechanism and expenditure responsibilities between the central budget and the local budget, among different levels of local government; directions for amendment, supplementation, and issuance of new regulations during the five-year planning period;

đ) Guidelines of the Prime Minister and the People's Committee of the province on building the socio-economic development plan and the five-year financial plan.

Article 7. Requirements for the Five-Year Financial Plan

1. In accordance with the goals, tasks, and solutions set forth in the National Strategy on Economic and Social Development; financial strategies, public debt strategies, tax system reform; five-year development goals, targets, and orientations for economic and social development at the national and local levels.

2. Consistent with forecasts of economic and social conditions, the ability to balance state budget revenues, mobilize and repay debts, and national financial safety limits over the five-year planning period; consistent with principles of balancing, managing, and decentralizing state budget revenues and expenditures, and principles of managing public debt safely.

3. Prioritize allocating the state budget to implement major policies and guidelines of the Party and State during specific periods.

4. Transparency, clarity, and effectiveness.

Article 8. Contents of the Five-Year Financial Plan

1. Contents of the national five-year financial plan:

a) Evaluation of the implementation of main goals, targets, and tasks in the previous national five-year financial plan, achievements made, limitations and weaknesses, causes, and lessons learned;

b) Determination of the general objectives of the five-year financial plan;

c) Determination of specific financial and budgetary objectives, including: revenue and revenue structure of the state budget, expenditure and expenditure structure of the state budget; state budget deficit; government debt, public debt, foreign debt of the country; domestic and foreign borrowing; mobilization and distribution of resources, state budget structure during the five-year planning period;

d) Determination of the state budget balance framework, including:

Total state budget revenue (absolute amount and ratio to Gross Domestic Product - GDP), detailed revenue structure by sector; policy and management measures to mobilize state budget revenue;

Total state budget expenditure (absolute amount and ratio to GDP), detailed by investment development expenditure, national reserve expenditure, recurrent expenditure, interest payment expenditure, aid expenditure, other expenditures; factors affecting state budget expenditure and policy and management measures to ensure a reasonable, sustainable expenditure structure, and improve the efficiency of state budget expenditure;

State budget balance: State budget deficit or surplus (absolute amount and ratio to GDP); total borrowing level of the state budget, including borrowing to cover the deficit and borrowing to repay the principal of the state budget; measures to ensure the safety and sustainability of the state budget;

e) Indicators for debt management, including: debt limit indicators; public debt stock, government debt, foreign debt of the country; ratio of debt repayment to total state budget revenue; total borrowing amount; policy and management measures to ensure the safety and sustainability of public debt;

f) Forecasting risks affecting the state budget balance framework and debt management indicators;

g) Other financial measures to implement the national five-year financial plan.

2. Contents of the five-year financial plan for provinces and centrally-administered cities:

a) Evaluation of the implementation of main goals, targets, and tasks in the previous five-year financial plan of the province or centrally-administered city, achievements made, limitations and weaknesses, causes, and lessons learned;

b) Determination of the general objectives of the five-year financial plan;

c) Determination of specific financial and budgetary objectives for the locality, including: revenue and revenue structure of the state budget, expenditure and expenditure structure of the state budget; provincial state budget deficit; provincial government debt; mobilization and distribution of resources, provincial budget structure during the five-year planning period;

d) Determination of the provincial budget balance framework, including:

State budget revenue within the locality and balanced provincial budget revenue, including total revenue; revenue amount and structure by domestic revenue and revenue from import-export activities; factors affecting state budget revenue within the locality and policy and management measures to mobilize local state budget revenue;

Provincial budget expenditure, including: total expenditure; expenditure amount and structure by investment development expenditure, recurrent expenditure, interest payment expenditure; factors affecting provincial budget expenditure and policy and management measures to ensure a reasonable, sustainable expenditure structure, and improve the efficiency of provincial budget expenditure;

Provincial budget balance: Provincial state budget deficit or surplus; total borrowing level of the provincial budget, including borrowing to cover the deficit and borrowing to repay the principal of the provincial budget; measures to ensure the safety and sustainability of the provincial budget.

e) Indicators for local debt management, including: borrowing limit, local government debt stock; planned borrowing and repayment; policy and management measures to ensure the safety and sustainability of local government debt;

f) Forecasting risks affecting the provincial budget balance framework and local government debt management indicators;

g) Other financial measures to implement the five-year financial plan for provinces and centrally-administered cities.

Article 9. Procedures for preparing the five-year financial plan

1. Procedures for preparing the national five-year financial plan:

a) Before March 31 of the fourth year of the previous five-year national financial plan period, the Prime Minister issues a Directive on preparing the subsequent five-year financial plan;

b) Before December 31 of the fourth year of the previous five-year national financial plan period, the Ministry of Planning and Investment, in charge and coordinating with relevant ministries and agencies, proposes the main economic and social targets for the subsequent five-year period to be submitted to the Ministry of Finance as the basis for preparing the subsequent five-year national financial plan;

c) Before June 30 of the fifth year of the previous five-year plan period, based on the report on the five-year socio-economic development plan for the subsequent period submitted to the Government, the Ministry of Finance, in charge and coordinating with the Ministry of Planning and Investment and relevant ministries and agencies, prepares the subsequent five-year national financial plan to be submitted to the Prime Minister;

d) Before September 20 of the fifth year of the previous five-year national financial plan period, based on the Prime Minister's comments, the Ministry of Finance completes the subsequent five-year national financial plan to report to the Government for submission to the Standing Committee of the National Assembly and its committees;

đ) Before October 20 of the fifth year of the previous five-year national financial plan period, based on the comments of the Standing Committee of the National Assembly and its committees, the Ministry of Finance completes the subsequent five-year national financial plan to report to the Prime Minister for submission to the National Assembly;

2. Procedures for preparing the five-year financial plan of provinces and centrally governed cities:

a) Before May 15 of the fourth year of the previous five-year financial plan period, based on the Prime Minister's Directive on preparing the subsequent five-year financial plan, the People's Committee of the province directs the Department of Finance, in charge and coordinating with the Department of Planning and Investment and relevant agencies and units, to prepare the five-year financial plan for the province or centrally governed city for the subsequent period;

b) Before November 30 of the fourth year of the previous five-year financial plan period, the People's Committee of the province reports the five-year financial plan for the province or centrally governed city for the subsequent period to the Standing Body of the Provincial People's Council;

c) Before December 31 of the fourth year of the previous five-year financial plan period, the People's Committee of the province sends the completed local five-year financial plan, according to the comments of the Standing Body of the Provincial People's Council, to seek opinions from the Ministry of Finance and the Ministry of Planning and Investment;

d) Before July 20 of the fifth year of the previous five-year financial plan period, the People's Committee of the province finalizes the local five-year financial plan and sends it to the Ministry of Finance and the Ministry of Planning and Investment along with annual state budget estimates;

đ) Based on the comments of the Ministry of Finance and the Ministry of Planning and Investment, the People's Committee of the province completes the five-year financial plan for the province or centrally governed city for the subsequent period to report to the Provincial People's Council for consideration and decision at the same time as submitting the first-year state budget estimate for the subsequent five-year plan period;

e) Before December 10 of the fifth year of the previous five-year financial plan period, based on the five-year socio-economic development plan for the subsequent period of the locality, the Provincial People's Council considers and decides on the five-year financial plan for the province or centrally governed city for the subsequent period.

Article 10. Adjusting the five-year financial plan

1. For the national five-year financial plan:

a) In cases where the objectives and basic targets of the national five-year socio-economic development plan change, or there are urgent requirements for national defense and security that cause significant fluctuations in state budget balance and the ability to mobilize various sources of capital, the Ministry of Finance shall take the lead and coordinate with the Ministry of Planning and Investment and relevant agencies to develop adjustment proposals, report to the Government for submission to the National Assembly for decision at the same time as submitting the draft state budget for the year of plan adjustment;

b) The process of developing the plan to adjust the national five-year financial plan (if any) shall be carried out strictly according to the procedures and timelines for developing the national five-year financial plan;

2. For the provincial and centrally-administered city five-year financial plans:

a) In cases where the objectives and basic targets of the local five-year socio-economic development plan change, or there are urgent requirements for national defense and security that cause significant fluctuations in the local budget balance and the ability to mobilize various sources of capital, the Provincial People's Committee shall direct the Department of Finance to take the lead in developing adjustment proposals, report to the Standing Committee of the People's Council for comments, then submit to the Ministry of Finance and the Ministry of Planning and Investment for comments before submitting to the same-level People's Council for decision at the same time as submitting the draft state budget for the year of plan adjustment;

b) The process of developing the plan to adjust the provincial and centrally-administered city five-year financial plan (if any) shall be carried out strictly according to the procedures and timelines for developing the provincial and centrally-administered city five-year financial plan;

c) The Provincial People's Committee shall send the adjusted provincial and centrally-administered city five-year financial plan to the Ministry of Finance and the Ministry of Planning and Investment no later than thirty days from the date the same-level People's Council approves it.

Article 11. Tasks and authorities of agencies and organizations in developing the five-year financial plan

1. Tasks and authorities of issues this Decision regarding the establishment

a) Issuing directives on the development of the five-year financial plan for the subsequent phase;

b) Directing the development of the national five-year financial plan and the adjustment of the national five-year financial plan when necessary;

c) Organizing inspections of the development of the five-year financial plan by localities.

2. Tasks and authorities of the Ministry of Finance:

a) Submitting to the Prime Minister for issuance of directives on the development of the five-year financial plan for the subsequent phase;

b) Taking the lead in developing the national five-year financial plan and reporting to the Prime Minister and the Government for submission to the National Assembly Standing Committee and the National Assembly for decision;

c) Taking the lead in developing adjustment proposals for the national five-year financial plan as stipulated in Clause 1 of Article 10 of this Decree;

d) Participating in providing opinions to the People's Committees of provinces and centrally-administered cities regarding the development of the provincial and centrally-administered city five-year financial plan or its adjustment.

3. Tasks and authorities of the Ministry of Planning and Investment:

a) Taking the lead and coordinating with central ministries and local agencies to determine the main socio-economic indicators for the subsequent five-year phase to serve as the basis for developing the national five-year financial plan;

b) Coordinating with the Ministry of Finance and relevant ministries and agencies in developing and adjusting the national five-year financial plan;

c) Participating in providing opinions to the People's Committees of provinces and centrally-administered cities regarding the development and adjustment of the provincial and centrally-administered city five-year financial plan.

4. Tasks and authorities of central ministries and agencies:

a) Coordinating with the Ministry of Planning and Investment to determine the main socio-economic indicators for the subsequent five-year phase of their respective sectors and fields under their management to serve as the basis for developing the national five-year financial plan;

b) Coordinating with the Ministry of Finance during the process of developing and adjusting the national five-year financial plan.

5. Tasks and authorities of the People's Committees of provinces and centrally-administered cities:

a) Directing the Department of Planning and Investment to take the lead and coordinate with related agencies and units at the locality to determine the main socio-economic indicators of the locality for the subsequent five-year phase, to be sent to the Department of Finance as the basis for developing the provincial and centrally-administered city five-year financial plan;

b) Directing departments, agencies, and other functional bodies at the locality to coordinate with the Department of Planning and Investment to determine the main socio-economic indicators for the subsequent five-year phase within their respective sectors and fields under their management, to serve as the basis for developing and adjusting the provincial and centrally-administered city five-year financial plan;

c) Directing the Department of Finance to take the lead and coordinate with the Department of Planning and Investment, the Tax Service, the Customs Service, and other related agencies and units at the locality in developing and adjusting the provincial and centrally-administered city five-year financial plan, to report to the People's Committee for submission to the same-level People's Council for decision and to submit to the Ministry of Finance and the Ministry of Planning and Investment in accordance with this Decree.

Chapter III

DEVELOPMENT OF THE THREE-YEAR FINANCIAL PLAN AND STATE BUDGET

Article 12. Subjects establishing the three-year state financial-budget plan

1. The Ministry of Finance shall take the lead and coordinate with the Ministry of Planning and Investment to compile the national three-year state financial-budget plan for reporting to the Government for submission to the National Assembly for reference during discussions, examination, and approval of the state budget estimate and annual central budget allocation plan.

2. The Department of Finance shall take the lead and coordinate with the Department of Planning and Investment to compile the provincial three-year state financial-budget plan for reporting to the People's Council at the same level for reference during discussions, examination, and approval of the provincial budget estimate and annual local budget allocation plan.

3. Ministries, central agencies, and first-level budget units at the provincial level shall establish the three-year state financial-budget plan within their management scope and submit it to the finance, planning, and investment departments at the same level for compilation.

Article 13. Basis for Establishing the Three-Year State Financial-Budget Plan

1. Basis for establishing the national three-year state financial-budget plan:

a) The situation of implementing the economic and social plan and the state budget estimate in the current year;

b) The national strategy on economic and social development; strategies on finance, public debt, tax system reform; five-year plans on economic and social development, finance, and public investment (in cases where the three-year plan period falls within the five-year plan period), or goals, indicators, and orientations for economic and social development, finance, and public investment in the subsequent five-year period (in cases where the three-year plan period includes a year between two five-year periods);

c) Forecast of key economic and social indicators during the three-year plan period; framework and structure of state budget revenue and expenditure, and projected state budget expenditure in the fields determined in the previously established national three-year state financial-budget plan;

d) Current regulations and directions for amending, supplementing, and promulgating new laws on state financial-budget management during the three-year plan period;

đ) Directives of the Prime Minister, guidelines of the Ministry of Finance, and the Ministry of Planning and Investment on establishing the three-year state financial-budget plan;

e) The three-year state financial-budget plan of ministries, central agencies, and provinces directly under the Central Government.

2. Basis for establishing the three-year state financial-budget plan of provinces directly under the Central Government:

a) The situation of implementing the economic and social plan and the state budget estimate in the current year at the local level;

b) The national strategy on economic and social development; strategies on finance, public debt, tax system reform; five-year plans of the country and locality on economic and social development, finance, and public investment (in cases where the three-year plan period falls within the five-year plan period), or goals, indicators, and orientations for economic and social development, finance, and public investment in the subsequent five-year period of the locality (in cases where the three-year plan period includes a year between two five-year periods);

c) Forecast of key economic and social indicators of the province directly under the Central Government during the three-year plan period; projected state budget expenditure in the fields determined in the previously established three-year state financial-budget plan of the locality;

d) Current regulations and directions for amending, supplementing, and promulgating new laws on state financial-budget management issued by the central and local authorities during the three-year plan period;

đ) Directives of the Prime Minister, guidelines of the Ministry of Finance and the Ministry of Planning and Investment, and directives of the Provincial People's Committee on establishing the three-year state financial-budget plan;

e) The three-year state financial-budget plan of agencies and units at the provincial level.

3. Basis for establishing the three-year state financial-budget plan of ministries, central agencies, and agencies and units at the provincial level:

a) The situation of implementing the main objectives, tasks, systems, policies, and state budget estimates assigned in the current year;

b) Strategies, master plans, and development plans of the sector, field, agency, or unit; medium-term public investment plans of the agency or unit;

c) Current regulations and directions for amending, supplementing, and promulgating new laws on state financial-budget management issued by the central and local authorities during the three-year plan period;

d) Forecast of economic and social indicators that affect the implementation of the objectives and tasks of the agency or unit during the three-year plan period;

đ) Directives of competent state authorities on establishing the three-year state financial-budget plan;

e) The ceiling on state budget expenditure announced by the competent authority to ministries, central agencies, and agencies and units at the provincial level in the previously established three-year state financial-budget plan.

Article 14. Requirements for Establishing a Three-Year State Financial-Budget Plan

1. In accordance with the actual situation in implementing the goals, targets, development orientation of the economy and society over five years and annually; forecasting within the three-year planning period.

2. Fully reflecting state budget revenues and other revenues as prescribed by law; expenditures are established according to sectoral structure and major expenditure items within the ceiling of budget expenditures announced by the competent authority.

3. Ensuring principles of balance, management, budget decentralization, and public debt management as stipulated in the Law on State Budgets and the Law on Public Debt Management.

4. Established through a rolling method for a three-year period, with the first year serving as a reference for establishing, submitting, and deciding on the annual state budget estimate.

5. The process of establishing, reporting, compiling, and integrating with the annual state budget estimate process.

Article 15. Contents of the Three-Year State Financial-Budget Plan

1. Contents of the national three-year state financial-budget plan:

a) Situation in fulfilling economic and social tasks in the current year and forecast of main economic and social indicators during the three-year planning period; assessment of the trend of economic development in the five-year phase from the year immediately preceding the current year to the end of the third year of the planning phase, compared with the goals and targets set out in the five-year socio-economic development plan decided by the National Assembly;

b) Situation in implementing the state budget estimate in the current year; important mechanisms and policies expected to be implemented in the state budget estimate year and the following two years to ensure state financial-budget activities in accordance with the objectives and orientations of the five-year financial plan;

c) Determination of revenue and expenditure amounts and the structure of state budget revenue and expenditure in the state budget estimate year and the following two years, including:

The state budget revenue estimate is compiled item by item and by domestic revenue structure, oil revenue, revenue from import-export activities, aid revenue; explaining factors affecting state budget revenue, including adjustments, supplements, and issuance of new revenue mechanisms and state budget revenue management policies;

The state budget expenditure estimate is compiled by sector and by investment development expenditure structure, regular expenditure, national reserve expenditure, interest payment expenditure, aid expenditure, and other expenditure items; explaining factors affecting state budget expenditure, including adjustments, supplements, and issuance of new expenditure mechanisms and state budget expenditure management policies;

Estimate of state budget deficit or surplus; forecast of public debt ratio, government debt, foreign debt of the country, and debt safety indices;

Forecast of total borrowing amount of the state budget, including borrowing to offset deficits and borrowing to repay principal of the state budget;

d) Major directions for allocating revenue and expenditure structures and balancing the state budget; principles and criteria for allocating the state budget; prioritizing allocation of the state budget by sector, program, project, and major expenditure tasks;

đ) Ceiling of state budget expenditures for ministries, central agencies, detailed by investment development expenditure structure, regular expenditure, and allocated by sector; forecast of supplementary balancing state budget amounts and targeted supplementary allocations from the central budget to local budgets;

f) Forecasting risks affecting the state budget balance framework and debt management indicators;

g) Measures to organize the implementation of the national three-year state financial-budget plan.

2. Contents of the three-year state financial-budget plan of provinces and centrally-administered cities; including:

a) Evaluation of the situation in fulfilling economic and social tasks in the current year, forecast of main economic and social indicators of the locality during the three-year planning period, compared with the goals, targets, and orientations in the five-year socio-economic development plan of the locality;

b) Situation in implementing the local budget estimate in the current year; important mechanisms and policies issued by the central and local authorities expected to be implemented during the three-year planning period to ensure local financial-budget activities in accordance with the objectives and orientations of the provincial or centrally-administered city's five-year financial plan;

c) Determination of the overall budget balance framework of the locality in the state budget estimate year and the following two years, including:

Local state budget revenue estimate and balanced local budget revenue, detailed by item and by domestic revenue structure, oil revenue, revenue from import-export activities, aid revenue, supplementary balancing amounts, and targeted supplementary allocations from the central budget to the local budget; explaining factors affecting state budget revenue, including adjustments, supplements, and issuance of new revenue mechanisms and state budget revenue management policies;

Local state budget expenditure estimate compiled by sector and by investment development expenditure structure, regular expenditure, interest payment expenditure, and other expenditure items; balanced local budget expenditure and expenditure from targeted supplementary allocations from the central budget; explaining factors affecting state budget expenditure, including adjustments, supplements, and issuance of new expenditure mechanisms and state budget expenditure management policies;

Local state budget deficit or surplus estimate; forecast of local budget debt ratio and management indices;

d) Major directions for allocating revenue and expenditure structures and balancing the local budget; principles and criteria for allocating the local budget; prioritizing allocation of the local budget by sector, program, project, and major expenditure tasks;

đ) Determination of the ceiling of local budget expenditures by sector for provincial agencies and units and supplementary balancing and targeted supplementary amounts for lower-level authorities;

e) Forecast of risks affecting local budget revenue, expenditure, balance, and management indices;

g) Measures to organize the implementation of the three-year state financial-budget plan of provinces and centrally-administered cities.

3. Contents of the three-year state financial-budget plan of ministries, central agencies, and provincial agencies and units:

a) Evaluate the implementation of the main objectives and tasks of the ministry, agency, or unit for the current year; forecast the main objectives and tasks of the ministry, agency, or unit for the three-year planning period; for ministries and agencies managing sectors, in addition to evaluating and forecasting their direct objectives and tasks, it is necessary to supplement evaluations and forecasts of the objectives and tasks of the managed sector; compare with the objectives and tasks set out in the strategy, planning, and development plans of the sector, field, agency, or unit;

b) Evaluate the implementation of budget revenue and expenditure of the ministry, agency, or unit for the current year and the previous year; forecast financial resources, including forecasts on assigned revenue, budget expenditure needs of the ministry, agency, or unit for the budget estimate year and the following two years;

c) Major directions for the allocation of revenue and expenditure structure, balance of resources of the ministry, agency, or unit; principles and criteria for allocating the state budget to subordinate agencies and units; prioritizing the allocation of the state budget and other financial resources for key programs, projects, and tasks;

d) Forecast detailed allocation of the state budget, matching both the total amount and the investment development expenditure structure, regular expenditure structure, allocated according to priority areas of expenditure, detailed according to basic expenditures and new expenditures;

đ) Forecast risks arising from the organization of plan implementation, including outstanding debts and reserve debts;

e) Solutions for organizing the implementation of the three-year state finance-budget plan of the ministry, agency, or unit;

Article 16. Procedure for preparing the three-year state finance-budget plan

1. Annually, based on the three-year state finance-budget plan reported to the competent authority in the previous year, the ability to implement the current year's state budget estimate; forecast the objectives and tasks for the three-year planning period, ministries, agencies, units, and localities shall review and evaluate the suitability of the three-year state finance-budget plan reported to the competent authority in the previous year with the actual situation, send it to the same-level financial and planning and investment agencies; the People's Committee of the province shall instruct the Department of Finance to compile the three-year state finance-budget plan of the province or centrally-administered city and submit it to the Ministry of Finance and the Ministry of Planning and Investment for consideration, consolidation, and determination of the ceiling for state budget spending for the three-year planning period. The content of the evaluation report includes:

a) Determine the annual expenditure needs of the ministry, agency, unit, or locality for the three-year planning period, detailed according to basic expenditures, new expenditures, investment development expenditure structure, regular expenditure, and budget expenditure areas as prescribed;

b) Forecast solutions to ensure financial resources to meet expenditure needs according to the determined priorities, suitable for each source of revenue and state budget;

c) Propose and recommend adjustments and supplements to mechanisms, policies, and financial-state budget resources;

2. Annually, based on the economic and social development plan, the five-year financial plan, the results of implementing economic and social tasks and state finance-budget tasks in the current year, and forecasts for the three-year planning period, the financial agency, in collaboration with the planning and investment agency, shall determine the ceiling for state budget spending for ministries, agencies, and units; forecast additional balancing funds and targeted supplementary funds from the central budget for each locality's budget during the three-year planning period;

3. In cases where the expenditure needs of ministries, agencies, units, and localities exceed the available financial-state budget resources, the financial agency (for overall budget balance and regular expenditure) and the planning and investment agency (for investment development expenditure) may request ministries, agencies, units, and localities to provide additional information, data, explanations, or host and coordinate meetings with related ministries, agencies, units, and localities to develop solutions to mobilize additional non-budgetary financial resources, review and prioritize expenditure needs, or adjust the previously announced budget ceiling, ensuring that expenditure requirements are met to achieve assigned objectives and tasks of ministries, agencies, and localities in line with the capacity to balance resources;

The time for the financial and planning and investment agencies to work with agencies, units, and localities coincides with the time for discussing the annual state budget estimate.

Article 17. Tasks and authorities of agencies and organizations in preparing the three-year state financial-budget plan

1. Tasks and authorities of

a) Direct the preparation of the three-year state financial-budget plan;

b) Approve the budget balance framework; major directions for revenue and expenditure structure, budget balance; principles and criteria for budget allocation; prioritizing budget allocation according to each field, program, project, and large-scale expenditure tasks.

2. Tasks and authorities of the Ministry of Finance:

a) Guide ministries, central agencies, and localities in preparing the three-year state financial-budget plan;

b) Determine the budget balance framework; investment development expenditure structure, regular expenditure, debt repayment, aid, national reserve expenditure; supplementary financial reserve fund expenditure over the three-year planning period;

c) Determine the projected state budget revenue for each ministry, central agency, and locality over the three-year planning period;

d) Determine the ceiling for state budget expenditure over the three-year planning period for:

Regular expenditure tasks detailed by field, annual state budget estimate and the following two years, each national target program, target program down to each ministry, agency managing the national target program, target program;

Ceiling for supplementary balance, ceiling for targeted supplementary and the projected total state budget revenue on the territory, total local government budget expenditure, some important fields of local government expenditure for the annual state budget estimate and the following two years down to each province, centrally governed city;

d) Take the lead and coordinate with the Ministry of Planning and Investment to compile the national three-year state financial-budget plan to be submitted to the Government and reported to the National Assembly;

e) Recommend to the People's Committees of provinces and centrally governed cities to adjust their local three-year state financial-budget plans;

g) Participate in opinions with the Ministry of Planning and Investment regarding the projected main socio-economic indicators as the basis for building the three-year state budget balance framework; participate in the projected ceiling for state budget investment development expenditure for ministries, central agencies, and the amount of targeted supplementary investment development expenditure from the central budget for the local budget;

h) Provide detailed guidance on the method for determining the state budget expenditure ceiling, basic expenditure, new expenditure;

3. Tasks and authorities of the Ministry of Planning and Investment:

a) Take the lead and coordinate with ministries, central agencies, and localities to determine the main socio-economic indicators over the three-year planning period to be sent to the Ministry of Finance as the basis for compiling the national three-year state financial-budget plan;

b) Guide ministries, central agencies, and localities in preparing the three-year state budget investment plan;

c) Coordinate with the Ministry of Finance to determine the state budget balance framework; investment development expenditure structure, regular expenditure, debt repayment, aid, national reserve expenditure; supplementary financial reserve fund expenditure over the three-year planning period;

d) Establish and announce the ceiling for state budget investment development expenditure for ministries, central agencies, and localities during the three-year planning period to be sent to the Ministry of Finance for consolidation into the national three-year state financial-budget plan to be submitted to the Government;

d) Recommend to the People's Committees of provinces and centrally governed cities to adjust their local three-year state financial-budget plans (investment development capital portion) if necessary;

4. Tasks and authorities of central ministries and agencies:

a) Coordinate with the Ministry of Planning and Investment to project the main socio-economic indicators within the scope of management in the three-year planning period as the basis for compiling the national three-year state financial-budget plan;

b) Prepare the three-year state financial-budget plan of the ministry, central agency in detail according to investment expenditure, regular expenditure, and each expenditure field, send to the Ministry of Finance, the Ministry of Planning and Investment for review and consolidation into the national three-year state financial-budget plan to be submitted to the Government;

5. Tasks and authorities of the People's Committees of provinces and centrally-administered cities:

a) Guide the preparation of the three-year provincial and centrally governed city state financial-budget plan;

b) Approve the local budget balance framework; major directions for revenue and expenditure structure, local budget balance; principles and criteria for local budget allocation; prioritizing budget allocation according to each field, program, project, and large-scale expenditure tasks of the locality;

c) Direct the Department of Finance to take the lead and coordinate with the Department of Planning and Investment, Tax Bureau, Customs Bureau, and other relevant agencies at the locality to prepare the three-year provincial and centrally governed city state financial-budget plan according to the guidance at point a clause 5 of this Article, report to the competent levels of the locality for comments before sending to the Ministry of Finance, the Ministry of Planning and Investment; establish and announce the ceiling for state budget expenditure for subordinate agencies and units and the ceiling for supplementary balance and targeted supplementary from the provincial, centrally governed city budget for the lower-level budget;

d) Complete the three-year provincial and centrally governed city state financial-budget plan, report to the same-level People's Council for reference when discussing, examining, and approving the annual budget estimate and local budget allocation plan.

Article 18. Time for preparing the three-year state financial-budget plan

1. Before March 31 each year, ministries, agencies, units, and localities report to the finance, planning, and investment authorities on the assessment of the three-year state financial-budget plan previously reported to the competent authority in accordance with Clause 1 of Article 16 of this Decree.

2. Before May 15 each year, The Prime Minister issues a Directive on preparing the three-year state financial-budget plan.

3. Before June 1 each year, based on the Prime Minister's Directive on preparing the three-year state financial-budget plan, The Ministry of Finance:

a) Issues guidelines for preparing the three-year state financial-budget plan;

b) Determines and announces the ceiling for regular spending from the state budget for central ministries and agencies; estimates and announces total revenue from the state budget on the territory, total balanced revenue of the local budget, the amount of supplementary balanced revenue and supplementary revenue with specific purposes from the central budget for the local budget, total balanced expenditure of the local budget, and estimated expenditure in some important fields of the locality over the three-year plan period.

4. Before June 1 each year, based on the Prime Minister's Directive on preparing the three-year state financial-budget plan, The Ministry of Planning and Investment:

a) Issues guidelines for preparing the three-year plan for investment from the state budget;

b) Develops and announces the ceiling for state budget spending for development investment for central ministries and agencies and localities over the three-year plan period, and sends it to the Ministry of Finance for consolidation.

5. Before June 15 each year, based on the Prime Minister's Directive, the guidelines of the Ministry of Finance and the Ministry of Planning and Investment on preparing the three-year state financial-budget plan:

a) Provincial People's Committees issue guidelines for preparing the three-year provincial state financial-budget plan;

b) Ministries and central agencies managing national target programs and target programs issue guidelines for preparing the three-year state financial-budget plan for the programs they manage.

6. Before July 20 each year:

a) Provincial People's Committees send the completed three-year provincial state financial-budget plan to the Ministry of Finance and the Ministry of Planning and Investment according to the opinions of the Standing Committee of the People's Council at the same level;

b) Ministries and central agencies send their three-year state financial-budget plans to the Ministry of Finance and the Ministry of Planning and Investment.

7. Before August 31 each year, the Ministry of Planning and Investment consolidates and completes the national three-year state financial-budget plan (investment development expenditure portion), detailing by sector for each ministry and central agency and the amount of supplementary revenue with specific purposes for each locality, and sends it to the Ministry of Finance for consolidation of the national three-year state financial-budget plan. The Prime Minister.

8. Before September 20 each year, the Ministry of Finance, in charge and coordinating with the Ministry of Planning and Investment, consolidates the national three-year state financial-budget plan, reports to the Government for submission to the National Assembly Standing Committee and other National Assembly bodies for comments.

9. At least 20 days before the opening of the annual National Assembly session, the national three-year state financial-budget plan is sent to National Assembly deputies for reference during discussions, examination, and approval of the annual state budget estimate and budget allocation plan.

10. Provincial People's Committees complete the three-year provincial state financial-budget plan, submit it to the same-level People's Council for reference during discussions, examination, and approval of the annual state budget estimate and local budget allocation plan.

Chapter IV

IMPLEMENTING PROVISIONS

Article 19. Effective Date

This Decree takes effect from June 5, 2017, and applies from the 2017 fiscal year.

Article 20. Transitional Provisions

For the preparation of the 2018-2020 three-year state financial-budget plan, ministries, agencies, units, and localities shall use the 2018 state budget estimate submitted to the competent authority to determine the ceiling for state budget spending, basic expenditures, and new expenditures for 2018 and the following two years.

Article 21. Responsibility for Implementation

1. The Minister of Finance and the Minister of Planning and Investment are responsible for issuing detailed guidelines for implementing this Decree.

2. Ministers, heads of ministerial-level agencies, agencies under the Government, other central agencies, and Chairmen of provincial and centrally-administered city People's Committees are responsible for implementing this Decree./.