Decision No. 46/2016/QĐ-TTg On the issuance of the standard allocation rates for the 2017 state budget recurrent expenditure plan

Pursuant to …;

On issuing the allocation standards for the annual budgetary expenditure plan
bank state finance year 2017

Pursuant to the Law on Government Organization No. 76 dated June 19, 2015;

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

Pursuant to Resolution No. 266/2016/UBTVQH14 dated October 4, 2016 of the Standing Committee of the National Assembly promulgating the principles, criteria, and allocation standards for the annual budgetary expenditure plan for the state finance year 2017;

At the proposal of the Minister of Finance;

The Prime Minister issues this Decision on the allocation standards for the annual budgetary expenditure plan for the state finance year 2017.

Article 1. Attached to this Decision are the allocation standards for the annual budgetary expenditure plan for the state finance year 2017.

Article 2. Scope of Application

2. Applicability:

a) This Decision stipulates the allocation standards for the annual budgetary expenditure plan for the state finance year 2017, the first year of the stable budget period 2017-2020 as provided for in the State Budget Law;

b) For the years within the stable budget period 2017-2020, implementation shall be carried out according to the provisions of the State Budget Law and the provisions applicable to the stable budget period as set forth in this Decision.

第二条 组织和实施奖励工作的支出水平，如政府第152/2025/NĐ-CP号决定关于分级授权和奖励领域的分权规定

a) Ministries, ministerial-level agencies, agencies under the Government, other central agencies, provinces, and centrally-administered cities (hereinafter referred to as ministries, central agencies, and localities);

b) Agencies, organizations, and individuals involved in the preparation, allocation, and execution of the regular budget expenditure plan.

Article 3. Principles of applying norms

1. The allocation standards for the annual budgetary expenditure plan for the state finance year 2017 issued with this Decision serve as the basis for preparing the annual budgetary expenditure plans of each ministry, central agency, and each province, centrally-administered city (including provincial, district, and commune levels).

2. The allocation standards for the local budget already include all funding requirements for implementing the policies and regulations issued by the central government up to May 31, 2016 (excluding additional policies based on multidimensional poverty criteria and national budget support policies when there are participants such as tuition fee exemptions and learning support costs pursuant to Decree No. 86/2015/NĐ-CP dated October 2, 2015 of the Government; electricity subsidies for poor households and social policy beneficiaries; health insurance for near-poor households and members of farming, forestry, fishery, and salt production households with average living standards).

3. The total annual budgetary expenditure estimates of localities and the annual budgetary expenditure estimates for education and training, vocational training, science, and technology are calculated based on the allocation standards for the annual budgetary expenditure plan for the state finance year 2017 issued with this Decision and must ensure that they are not lower than the annual budgetary expenditure estimates for 2016 decided by the National Assembly.

Article 4. Organization of Implementation

1. Based on the allocation standards for the annual budgetary expenditure plan for the state finance year 2017 issued with this Decision, the Ministers and Heads of Central Agencies shall issue allocation standards for the annual budgetary expenditure plans for subordinate units as the basis for organizing implementation, ensuring consistency in total amounts, being appropriate to the actual conditions and revenue sources of each subordinate unit, conducting public disclosure and transparency, and complying with relevant laws; and simultaneously submit them to the Ministry of Finance for consolidation and reporting to the Prime Minister.

2. The allocation standards for the annual local budgetary expenditure plan for 2017 issued with this Decision are only for determining the total regular expenditures, including detailed areas of education and training, vocational training, science, and technology for the National Assembly to decide. Based on the financial capacity and specific circumstances of the locality, the People's Committees of provinces and centrally-administered cities shall submit to the Provincial People's Councils to issue allocation standards for the annual local budgetary expenditure plans that are suitable for each level of local government, appropriate to the actual conditions of each spending area, and comply with the provisions of the State Budget Law to serve as the basis for preparing and allocating the local budget for 2017, the first year of the stable budget period 2017-2020; and simultaneously submit them to the Ministry of Finance for consolidation and reporting to the Prime Minister.

3. Based on the total regular expenditures of the local budget for 2017 calculated according to the allocation standards and the progress of adjusting prices and service fees as prescribed in Decree No. 16/2015/NĐ-CP dated February 14, 2015 of the Government on the mechanism of self-management of public institutions (hereinafter referred to as Decree 16), localities shall establish allocation standards for the local budgetary expenditure plans, where allocations to public institutions must comply with the provisions of Decree 16 and other decrees regulating the self-management mechanisms of public institutions in various fields, enhancing their autonomy, reducing support levels for public institutions in line with the adjustment schedule for public service prices and fees, and reallocating resources to directly support individuals benefiting from central government policies. Annually during the stable budget period 2017-2020, based on the results of implementing Decree 16 and related legal documents, the Ministry of Finance shall coordinate with the People's Committees of provinces and centrally-administered cities to determine the reduction in state budget support for public institutions to supplement the resources for implementing central government policies in the locality.

4. During the process of allocating, managing, and using state budget funds, the Ministers, Heads of Central Agencies, and localities must strictly adhere to thrift, anti-waste, administrative reform; conduct transparent budgeting as prescribed; clearly define the responsibilities of each agency, unit, and head in managing and using state budget funds.

Article 5. Effective Date

This Decision shall take effect from the date of signing.

Article 6. Responsibility for Implementation

The Minister of Finance, Ministers, Heads of Ministerial-Level Agencies, Heads of Agencies under the Government, Chairpersons of the People's Committees of provinces and centrally-administered cities are responsible for implementing this Decision./.

STANDARDS FOR ALLOCATING REGULAR EXPENDITURE ESTIMATES
STATE BUDGET FOR 2017

(Attached to Decision No. 46/2016/QĐ-TTg

dated October 19, 2016 of the Head of the GovernmentIndustrial machinery for processing or manufacturing foodstuffs or beverages, not elsewhere specified in this Chapter, except machines for extracting or processing animal fats or vegetable oils that do not evaporate.

PART I

ALLOCATION STANDARDS FOR THE ANNUAL BUDGETARY EXPENDITURE PLAN
FOR THE STATE FINANCE YEAR FOR MINISTRIES AND CENTRAL AGENCIES

Article 1. Standard for allocation of administrative management expenditure budget

1. Standard for allocation applicable to the Supreme People's Court, Supreme People's Procuracy, civil enforcement agencies, State Audit Office, Government Inspectorate; Ministries and central agencies:

a) A common standard shall be applied to the Supreme People's Court, Supreme People's Procuracy, civil enforcement agencies, State Audit Office, Government Inspectorate: Allocation standard of VND 55 million per establishment post;

b) A cumulative reduction method standard shall be applied to the Ministry of Justice (excluding civil enforcement agencies), other Ministries and central agencies (except those specified in point a, Clause 1 and Clause 2 of this Article): The number of establishment posts assigned by the competent authority to each ministry and central agency shall be divided into different levels with the first level having up to 100 establishment posts. The budget allocation standard decreases gradually according to the levels of establishment posts, specifically:

- Up to 100 establishment posts: Allocate VND 54 million per establishment post;

- From the 101st to the 500th establishment post: Allocate VND 50 million per establishment post;

- From the 501st to the 1,000th establishment post: Allocate VND 48 million per establishment post;

- From the 1,001st establishment post onwards: Allocate VND 45 million per establishment post.

c) The budget allocation standards prescribed in points a and b of this clause include:

- Administrative expenses serving regular operations of the agencies' machinery: Awards under regulations, collective welfare, information, propaganda, communication, travel expenses, conferences, summaries, outbound and inbound delegations, office supplies, public service payment.

- Regularly occurring business expenses: Professional expenses of various sectors, training and professional development expenses; sector management expenses; implementation expenses for sector management tasks; expenses for legal education and publicity work; construction, improvement, review of regulatory documents; investment evaluation and supervision expenses; support expenses for Party and mass organization activities within the agency.

- Salary, wage, and activity expenses for regular contractual labor (including contractual labor under Decree No. 68/2000/NĐ-CP dated November 17, 2000 of the Government on implementing the contractual system for certain types of work in state administrative agencies and public institutions). The head of the unit using the budget decides the number of contractual workers within the scope of the regular operating expense budget based on the standard.

- Repair costs for property serving professional work and regular maintenance of infrastructure facilities; procurement and replacement costs for equipment and working tools of officials and civil servants as stipulated.

d) The budget allocation standards prescribed in points a and b of this clause do not include:

- Salary and other items with salary nature (including 40% of the current salary received in Vietnam for officials, civil servants, and workers sent abroad for study and work according to regulations).

- Special common expenses for central agencies, including: Annual fees; counterpart funds for projects; rental expenses for headquarters; expenses for organizing National Congresses and international conferences decided by the competent authority; expenses for activities of Steering Committees, Coordination Boards, inter-ministerial task forces, Commissions, Councils established or authorized by the Prime Minister to establish or authorize ministries to establish; vehicle purchase expenses, major repairs of headquarters; procurement costs for equipment and working tools according to approved plans.

- Special individual expenses: Expenses for overseas representative offices; expenses for ensuring the operation of vehicles for state reception; expenses for purchasing gifts and souvenirs for high-level leaders visiting foreign countries; expenses for outbound and inbound delegations that must be allocated at a high level to meet the special tasks of the Ministry of Foreign Affairs and the Ministry of Industry and Trade; expenses for regular surveys outside the expenses carried out by statistical officials, expenses for comprehensive and periodic surveys according to decisions of the competent authority; expenses for the activities of the Council for proposing the drafting of regulatory documents, the Council for reviewing project drafts and draft regulatory documents implemented by the Ministry of Justice according to the Law on Enacting Regulatory Documents; uniform expenses; expenses deducted from actual tax revenue; support for religious organizations; expenses for producing award trophies.

- Other special tasks arising infrequently decided by the competent authority.

2. Allocation of administrative management expenditure budget for special central agencies and units:

a) For the budget expenses to ensure the operation of the Central Party Office, the President's Office, the National Assembly Office, the Government Office, calculated based on the standards, systems, and specific requirements of these agencies;

b) The State Bank of Vietnam, Vietnam Social Security, Vietnam General Confederation of Labor, and units implementing administrative cost contracts according to the decision of the competent authority (Treasury, Tax Authority, Customs...), may apply the standard for allocating administrative management expenditure to build their own expenditure levels;

c) Special associations, political-social-professional organizations, social organizations, social-professional organizations supported by the state budget according to current regulations.

3. Based on the administrative establishment posts assigned by the competent authority and the regular expenditure level according to the allocation standard, encourage ministries and central agencies to streamline establishment posts, save expenses to increase income for officials and civil servants and increase expenditure for key tasks of the agency or unit.

4. The administrative management expenditure budget for subsequent years during the period of stable budget (from 2018 to 2020) shall be determined according to the establishment posts approved by the competent authority and the adjusted allocation standard for administrative management expenditure based on the state budget capacity presented by the Government to the National Assembly for decision in the annual central budget allocation plan.

Article 2. Allocation of the budget for expenditures of public service units

1. The state budget supports regular expenditures of public service units under the self-management mechanism stipulated in Decree No. 16, specifically:

a) For public service units that self-fund regular expenditures and investment expenditures and public service units that self-fund regular expenditures: Implement the mechanism where the State orders or assigns tasks for public services within the list of public services funded by the state budget issued by the competent authority and according to prices set by the competent authority in accordance with the law on prices;

b) For public service units that partially self-fund regular expenditures (due to service fees not covering costs, ordered by the State to provide public services at prices and fees that do not cover costs): Implement the mechanism where the State orders or assigns tasks for providing public services within the list of public services funded by the state budget issued by the competent authority and according to prices and fees set by the competent authority that do not cover costs.

The state budget supports the portion of costs not covered in the price or fee of public services according to the adjustment schedule for prices and fees of each sector and the ability of the unit to ensure operational expenses from its own revenue;

c) For public service units where the state funds regular expenditures (based on functions and tasks assigned by the competent authority, without revenue or low revenue): Follow current regulations, the state budget supports stable regular expenditure funding for three years and adjusts when the state changes tasks, mechanisms, and policies as prescribed. Based on the salary fund, allowances, funding for special tasks, and regular operational expenses applied up to the administrative management expense allocation standard of units of the same staffing scale, units determine the level of state budget support for regular expenditure funding;

d) The Minister, Head of Central Agencies shall be responsible for publicly disclosing the state budget funding for ordering and assigning tasks for public services provided by subordinate public service units;

2. During the time that decrees on the self-management mechanism of public service units in each sector have not been issued, public service units shall operate under the self-management mechanism, bearing responsibility for implementing tasks, organizational structure, staffing, and finance according to current regulations. Regular expenditures for central budget sectors shall be allocated based on the following principles:

a) The state budget reduces regular funding for public service establishments for expenditures already included in service prices according to the adjustment schedule for service prices in each public sector. Funds saved are used to increase support for the poor and policy beneficiaries to access public services, to create resources for implementing salary reform according to the approved plan, to increase procurement and repair expenses, and to increase development investment, thereby restructuring regular budget expenditures and gradually restructuring state budget expenditures;

b) Scientific and technological tasks approved by the competent authority are arranged according to the implementation progress and annual state budget balance capacity, prioritizing national-level scientific and technological tasks and ongoing tasks. New tasks are only arranged after sufficient funding for ongoing or new urgent tasks has been allocated. Funding is not allocated for scientific and technological tasks approved beyond authority or without identified funding sources;

Article 3. Allocation of the defense and security expenditure budget

For defense and security expenditures in the central budget, based on the need for funding to implement policies and systems for personnel, special defense and security tasks, and the annual central budget balance capacity, the Government shall submit to the National Assembly for decision;

Chapter II

ALLOCATION STANDARDS FOR THE ANNUAL BUDGETARY EXPENDITURE PLAN
THE STATE FOR PROVINCES AND CENTRALLY-GOVERNED CITIES

Section 1

METHODS FOR DETERMINING SOME CRITERIA AND BASIS FOR DETERMINING
THE LEVEL OF REGULAR EXPENDITURE ALLOCATION IN LOCAL BUDGETS

Article 4. Population Criteria

1. The population of each province and centrally-governed city is determined based on data provided by the General Statistics Office Director.

2. Four population regions are divided as follows:

a) Urban population: includes the population of wards and towns (for mountainous areas, ethnic minorities in plains, remote and highland areas - islands, which are counted in the corresponding regions' populations but not in urban populations);

b) Mountainous area population, ethnic minority population in plains, remote areas: includes the population of lowland mountain villages, ethnic minorities in plains according to the regulations of the Ethnic Committee; the population of remote villages (remote villages are lowland villages with difficult natural geographic conditions, harsh weather, far from cultural and political centers, difficult to travel to, etc., defined according to Circular Joint No. 11/2005/TTLT-BNV-BLDTBXH-BTC-UBDT dated January 5, 2005 of the Ministry of Home Affairs - Ministry of Labor, Invalids and Social Affairs - Ministry of Finance - Ethnic Committee, where officials working in these areas receive regional allowances);

c) Highland-island population includes the population of highland villages and island villages (island villages and highland villages are defined according to the Prime Minister's Decision and the Ethnic Committee's recognition);

d) Plain area population includes the population of villages in the remaining areas;

Article 5. Criteria for members of poor households

The number of people in poor households is determined based on the number of poor households in 2015 according to the poverty standard stipulated in Decision No. 09/2011/QD-TTg dated January 30, 2011 of the Prime Minister on issuing the criteria for poor and near-poor households.

Article 6. Criteria for National Tourism Areas and Sites

National tourism areas and sites are approved by Decision No. 201/QĐ-TTg dated January 22, 2013 of the Prime Minister on the overall planning for the development of tourism in Vietnam until 2020 with a vision to 2030.

Section 2

REGULATIONS ON THE ALLOCATION STANDARDS FOR RECURRENT EXPENSES
LOCAL BUDGET

Article 7. Allocation Standards for Recurrent Expenses for Educational Public Services

1. Allocation standards based on population aged from 1 to 18 years old attending school:

The allocation standard under this clause includes: Adequate funding for all levels of education and types of education; scholarships for boarding students from ethnic minorities, benefits for half-board students, preferential policies in the field of education that have been issued.

Based on the allocation standards prescribed in this clause, if the recurrent expenditure ratio for teaching and learning activities (excluding salaries and salary-like allowances) is less than 18% of total educational public service expenditures, it will be supplemented to ensure a maximum salary, allowance, and salary-like expenditure ratio (social insurance, health insurance, unemployment insurance, trade union fees) of 82%, and a minimum expenditure ratio for teaching and learning activities of 18% (excluding tuition revenue). This ratio only applies to 2017, the first year of the 2017-2020 budget stabilization period between the central and local budgets; each year during the 2017-2020 budget stabilization period, the Provincial People's Council decides accordingly based on the budget capacity and actual conditions of each locality.

2. Allocation standards based on additional criteria, determined based on the number of beneficiaries in 2016, including support levels according to established regulations:

a) Lunch money for preschool children aged 3 to 5 years old as stipulated in Decision No. 239/QĐ-TTg dated February 9, 2010 and Decision No. 60/2011/QĐ-TTg dated October 26, 2011 of the Prime Minister;

b) Education policy for persons with disabilities as provided for in Circular Joint No. 42/2013/TTLT-BGDĐT-BLĐTBXH-BTC dated December 31, 2013 of the Ministry of Education and Training, the Ministry of Labor, Invalids and Social Affairs, and the Ministry of Finance;

c) Support for high school students in areas with particularly difficult socio-economic conditions as stipulated in Decision No. 12/2013/QĐ-TTg dated January 24, 2013 of the Prime Minister;

d) Support for tuition expenses for university students who are ethnic minorities studying at higher education institutions as stipulated in Decision No. 66/2013/QĐ-TTg dated November 11, 2013 of the Prime Minister.

Article 8. Allocation Standards for Recurrent Expenses for Vocational Training and Skill Development

Allocation standards based on population (excluding those aged from 1 to 18 years old):

The allocation standard under this Article includes funding for various forms of vocational training and skill development (regular, part-time, selected candidates, retraining, other forms of vocational training and skill development), various levels of vocational training and skill development, provincial and district political centers, etc., of the locality.

Article 9. Allocation Standards for Recurrent Expenses for Health Services

1. Allocation standards based on population:

The allocation standard under this clause includes: special allowances and increased funding for preventive work to implement Resolution No. 18/2008/QH12 of the National Assembly. Based on budget capacity, localities allocate recurrent expenses for health services to implement this resolution of the National Assembly to ensure funding for preventive health tasks (excluding revenue from medical examination and treatment services).

2. Allocation standards based on additional criteria are determined based on the number of beneficiaries in 2016 (except for the poor household members defined in Article 5, Section I, Chapter II), including support levels according to established regulations:

a) Funding for purchasing health insurance cards for children under 6 years old;

b) Funding for purchasing health insurance cards for the following groups: members of poor households, ethnic minorities living in areas with difficult socio-economic conditions, people living in particularly difficult socio-economic areas, people living in island communes and districts; individuals who have donated organs or tissues in accordance with the law; individuals entitled to monthly social assistance benefits as stipulated in Clause 1, Article 9 of Decree No. 136/2013/NĐ-CP dated October 21, 2013 of the Government;

c) Funding to support the purchase of health insurance cards for students;

d) Funding for purchasing health insurance cards for the following groups: war veterans, those directly participating in the resistance against the United States to save the country, those participating in wars to defend the homeland and international missions in Cambodia and Laos, young volunteers, civilian workers on firelines.

Article 10. Allocation Standards for Administrative Management Expenses

1. Allocation standards for administrative management expenses, excluding salaries, allowances, and other items with the nature of salary as stipulated in Clause 2 of this Article:

a) Allocation standard based on population criteria:

b) Allocation standards based on the number of administrative units at the district and commune levels:

c) For provinces and centrally governed cities that have been permitted by competent authorities to establish specialized agencies such as the Department of Foreign Affairs, the Department of Planning and Architecture, and the Ethnic Minorities Board at the provincial level, additional allocation shall be provided at the rate of 2,040 million VND/agency.

2. Salaries, allowances, and other items with the nature of salary (social insurance, health insurance, trade union fees) shall be calculated according to current regulations.

3. In cases where the budget estimate for administrative management expenses calculated based on the allocation standards (excluding salaries, allowances, and other items with the nature of salary) as stipulated in Clause 1 of this Article is less than 25% of the total administrative management expenses, it will be supplemented to ensure a minimum of 25%, with the maximum ratio of salary, allowance, and other items with the nature of salary being 75%.

Article 11. Allocation Standards for Cultural and Information Services Expenses

1. Allocation standards based on population:

Unit: dong/person/year

The allocation standards in this clause include preferential policies for ethnic minority areas as stipulated in existing policies and regulations.

2. Additional allocation standards include:

a) Provinces and centrally governed cities with professional art troupes (public service units) and mobile information teams shall be allocated additional funds: 510 million VND/professional art troupe and 250 million VND/mobile information team.

b) Provinces and centrally governed cities with national tourist areas shall be supported with 3,000 million VND/tourist area.

Article 12. Allocation Standards for Radio and Television Broadcasting Services Expenses

1. Allocation standards based on population:

The allocation standards in this clause include funding for increasing broadcasting time in ethnic languages.

2. Allocation standards based on additional criteria:

Provinces and centrally governed cities with mountainous districts - ethnic minority areas in plains, remote areas, highland districts, and islands with radio and television relay stations shall be allocated 330 million VND/district to increase broadcasting coverage in difficult areas.

Article 13. Allocation Standards for Physical Education and Sports Services Expenses

1. Allocation standards based on population:

2. Allocation standards based on additional criteria:

Provinces and centrally governed cities with athletes achieving high national-level achievements and disabled athletes participating in central-level competitions shall be allocated training funds according to the prescribed regulations for athletes.

Article 14. Allocation Standards for Social Security Expenses

1. Allocation standards based on population:

2. Additional allocation standards include:

a) Funding for implementing the monthly social assistance benefit system for social welfare beneficiaries as stipulated in Decree No. 136/2013/NĐ-CP dated October 21, 2013 of the Government shall be based on the beneficiary population in 2016, with support levels according to the prescribed regulations.

b) Funding for implementing the monthly adjustment of social assistance benefits for retired village cadres as stipulated in Decision No. 130-CP dated June 20, 1975 of the Council of Ministers and Decision No. 111-HĐBT dated October 13, 1981 of the Council of Ministers shall be based on the beneficiary population in 2016, with support levels according to the prescribed regulations.

c) Funding for direct support to poor households in difficult areas as stipulated in Decision No. 102/2009/QĐ-TTg dated August 7, 2009 of the Prime Minister shall be based on the beneficiary population in 2015, with support levels according to the prescribed regulations.

d) Provinces and centrally governed cities with families under policy support (families: martyrs, wounded soldiers, disabled veterans, heroes of the people's armed forces, heroes of labor during the resistance war, mothers of Vietnam's heroes, those who contributed to the revolution, military personnel injured in occupational accidents) in addition to the monthly allowance or one-time assistance provided by the central government budget shall also be allocated 500,000 VND/family under policy support to provide additional funding for visiting and encouraging families under policy support on holidays and festivals.

Article 15. Allocation Standards for National Defense Expenditure

1. Allocation standards based on population:

2. Allocation standards based on additional criteria:

Provinces and centrally governed cities with land borders, island communes or island districts (but without subordinate commune administrative units) shall be allocated funds at the rate of 800 million VND per border commune or island commune; 4 billion VND per island district to have additional funding for national defense tasks; for localities bordering two or more provinces of neighboring countries, the allocation rate shall be 1.4 times the amount per border commune.

Article 16. Allocation Standards for Security Expenditure

1. Allocation standards based on population:

2. Allocation standards based on additional criteria:

Provinces and centrally governed cities with land borders, island communes or island districts (but without subordinate commune administrative units) shall be allocated funds at the rate of 600 million VND per border commune or island commune; 1.6 billion VND per island district to have additional funding for security tasks; for localities bordering two or more provinces of neighboring countries, the allocation rate shall be 1.4 times the amount per border commune.

Article 17. Allocation Standards for Science and Technology Expenditure

The Ministry of Finance shall take the lead and coordinate with the Ministry of Science and Technology to develop a plan for allocating the budget for science and technology expenditure of local budgets for the year 2017, to report to the Government for submission to the National Assembly for decision.

Article 18. Allocation Levels for Economic Activity Expenditure

1. The general allocation level is 10% of the regular expenditure in the fields covered from Article 7 to Article 17, Section 2, Chapter II.

2. For special cities (Hanoi, Ho Chi Minh City), an additional allocation of 70% according to the standard set out in Clause 1 of this Article shall be provided to implement important urban traffic tasks.

3. Allocate to provinces and centrally governed cities with urban administrative units recognized by the competent authority at the level of 76.5 billion VND per district or urban type I (belonging to a province) per year; 46.5 billion VND per urban type II per year; 12.75 billion VND per urban type III per year; 8.5 billion VND per urban type IV per year; 5 billion VND per urban type V per year.

For years during the period of stabilizing the budget, if a locality is recognized by the central competent authority to upgrade its urban status, the Ministry of Finance shall supplement from the central budget for localities receiving supplementary balance from the central budget according to the urban support level specified in Clause 3 of this Article.

4. Allocation based on additional criteria, including:

a) Water resource fee exemption costs shall be calculated based on the budget for water resource fee exemptions in 2016 decided by the competent authority;

b) Support funds for localities producing rice shall be determined based on the support level and the area of paddy land announced by the Ministry of Natural Resources and Environment pursuant to Clause 2 and Clause 3 of Article 7 of Decree No. 35/2015/NĐ-CP dated April 13, 2015 of the Government on the management and use of paddy land. Additionally, for localities with large areas of paddy land (the area of paddy land accounting for 20% or more of the total natural land area or having a higher paddy land area than the national average), an additional allocation of 400,000 VND per hectare of paddy land shall be provided;

c) Support funds for localities with island districts and island communes: Calculated based on 70% of the actual expenses incurred by the locality in 2015 to subsidize electricity losses, subsidize water supply and essential goods transportation to island districts and island communes, and maintain the operation of water tanks and seawater desalination plants for island districts and island communes.

Article 19. Allocation Standards for Environmental Protection Expenditure

Based on the total budget estimate for environmental protection expenditure from the state budget, including 15% from the central budget and 85% from local budgets. The allocation of environmental protection expenditure from local budgets shall be made according to the following criteria:

1. Allocate 48% based on urban population and population density, specifically:

a) For special-class cities, the coefficient is 15; for Class I cities, the coefficient is 7; for Class II to IV cities, the coefficient is 2; for the remaining areas, the coefficient is 1;

b) Regarding the coefficient based on population density: over 2,000 people/km², the coefficient is 15; between 1,000 and 2,000 people/km², the coefficient is 6; between 750 and 1,000 people/km², the coefficient is 2.5; between 500 and 750 people/km², the coefficient is 1.8; 500 people/km² and below, the coefficient is 1.² coefficient 15; over 1,000 - 2,000 people/km² coefficient 6; over 750 - 1,000 people/km² coefficient 2.5; over 500 - 750 people/km² coefficient 1.8; from 500 people/km² down to or equal coefficient 1.

2. Allocate 40% based on the impact of industrial production on the environment according to the value of industrial production in each locality using the formula:

(The value of industrial production in Province A is taken from the data for 2015 provided by the General Statistics Office)

3. Allocate 5% to ensure environmental protection in nature reserves according to the formula:

(The area of nature reserve in Province A is defined in Decision No. 1976/QĐ-TTg dated October 30, 2014 of the Prime Minister approving the national special-use forest system planning until 2020 with a vision to 2030)

4. Allocate 7% based on the impact from natural forests ensuring natural environmental protection according to the area of natural forests in each locality using the formula:

(The area of natural forest in Province A is taken from the data for 2014 provided by the Ministry of Agriculture and Rural Development)

Article 20. Allocation Level for Other Recurrent Expenditures from Local Budgets

1. Allocate according to the proportion (0.5%) of the total recurrent expenditures calculated based on the allocation standards (from Article 7 to Article 19, Section 2, Chapter II).

2. Allocate according to additional criteria:

Provinces and centrally-administered municipalities bordering neighboring countries shall be supplemented with funds at a rate of VND 800 million/village border to perform tasks related to neighboring countries; for localities bordering two or more neighboring countries, they shall be allocated a factor of 1.4 times/village border.

Article 21. For Difficult or Low-Population Areas

1. Provinces and centrally-administered municipalities facing difficulties or having low populations shall be additionally allocated according to the percentage of expenditure calculated based on population standards as follows: Localities in the Mekong Delta region shall be additionally allocated 9%; localities with a population under 400,000 shall be additionally allocated 16%; localities with a population from 400,000 to less than 600,000 shall be additionally allocated 14%; localities with a population from 600,000 to 900,000 shall be additionally allocated 12%. In cases where a locality meets two or more criteria, it shall only be allocated according to the highest support criterion.

2. Provinces and centrally-administered municipalities with an average population per district under 85,000 shall be additionally allocated 5% of the expenditure calculated based on population standards.

Article 22. Regarding provinces and cities with budget redistribution rates to the central government

Provinces and cities with budget redistribution rates to the central government shall be allocated additional percentages of expenditures calculated based on population standards as follows:

Hanoi City and Ho Chi Minh City shall be allocated an additional 70%; other centrally-administered cities (Haiphong, Da Nang, Can Tho) shall be allocated an additional 45%; localities contributing more than 40% to the central budget shall be allocated an additional 40%; localities with budget redistribution rates from 15% to less than 40% shall be allocated an additional 35%; localities with remaining budget redistribution rates shall be allocated an additional 30%.

Article 23. Budget Reserve

Based on the state budget capacity, the Ministry of Finance shall submit to the Government for submission to the National Assembly the allocation of the local budget reserve for the year 2017 in accordance with the provisions of the State Budget Law.

Article 24. Regarding years during the budget stabilization period

1. The central budget shall support according to regulations for new policies and policies increasing expenditure levels compared to the standard budget estimates for local balanced budgets in the first year of the budget stabilization period in 2017.

For existing policies calculated in the first year of the budget stabilization period, if there is no change in funding (due to increased levels or expanded beneficiary groups), localities shall independently allocate their local budgets to implement them; in cases where there is a surplus or shortfall in funding compared to the initial allocation in the first year of the budget stabilization period, localities shall report the results of implementation, and the Ministry of Finance shall submit to the competent authority for the preparation of the budget estimate for the following year to ensure sources for implementation.

2. For policies (funding exemptions and reductions in school fees and support for educational expenses under Decree No. 86/2015/ND-CP, support for electricity costs for poor households and social policy beneficiaries, funding for purchasing health insurance cards for near-poor households, and people in average-income households engaged in agriculture, forestry, fisheries, and salt production), based on actual beneficiaries, the Ministry of Finance shall supplement targeted funding from the central budget for localities in accordance with established regulations.

3. When a new administrative unit is established according to the resolution of the Standing Committee of the National Assembly, the Ministry of Finance shall supplement from the central budget reserve for the local budget to support newly established administrative units (funding for relocation work, renting office space, repairing and purchasing additional working equipment; payment of salaries and allowances for newly added staff positions, etc.) as follows:

a) For newly established cities, towns, and districts, 17,000 million VND/unit/year shall be supported;

b) For newly established counties: those in highland and island areas shall be supported 17,000 million VND/unit/year; those in mountainous and ethnic minority areas in plains and remote areas shall be supported 13,600 million VND/unit/year; counties in other regions shall be supported 10,200 million VND/unit/year;

c) For newly established communes, wards, and towns: those in highland and island areas shall be supported 3,400 million VND/unit/year; those in mountainous and ethnic minority areas in plains and remote areas shall be supported 2,720 million VND/unit/year; communes, wards, and towns in other regions shall be supported 2,380 million VND/unit/year.

4. Provinces and centrally-administered cities that organize defense area exercises assigned by Military Regions, and implement the mobilization of human resources, vessels, and civilian means to participate in protecting national sovereignty and maritime rights and interests of the Socialist Republic of Vietnam according to Decree No. 30/2010/ND-CP dated March 29, 2010 of the Government, the Ministry of Finance shall submit to the Prime Minister for targeted support to localities within the central budget's balancing capacity.

5. The Ministry of Finance shall submit to the Government for submission to the National Assembly:

a) An increase in supplementary balance transfers from the central budget to localities compared to the first year of the budget stabilization period as stipulated by the State Budget Law;

b) A plan for handling special cases where new projects coming into operation generate significant increases in local revenue;

c) Support for localities within the central budget's balancing capacity in cases of special security and defense tasks arising./.