Circular No. 47/2022/TT-BTC guiding the construction of the state budget estimate for 2023 and the financial-plan-budget plan for the three-year period 2023-2025.

CIRCULAR

Guidelines for preparing the state budget estimate for 2023,

financial plan - state budget for three years from 2023 to 2025

                                      

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

Pursuant to Decree No. 163/2016/NĐ-CP of December 21, 2016 of the Government detailing and guiding the implementation of the Law on State Budget;

Pursuant to Decree No. 45/2017/NĐ-CP of April 21, 2017 of the Government detailing the preparation of five-year financial plans and three-year financial-plan - state budget;

Pursuant to Decree No. 31/2017/NĐ-CP of March 23, 2017 of the Government promulgating the regulations on the establishment, examination, and decision-making of five-year local financial plans, five-year medium-term public investment plans at the local level, three-year financial-plan - state budget at the local level, annual estimates and allocation of local budgets, and approval of local budget final accounts annually;

Pursuant to Decree No. 87/2017/NĐ-CP dated July 26, 2017 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Implementing Directive No. 12/CT-TTg of July 22, 2022 of the Prime Minister on building development plans and state budget estimates for 2023;

Pursuant to the proposal of the Director of the State Budget Department;

The Minister of Finance issues this Circular guiding the preparation of the state budget estimate for 2023 and the financial-plan - state budget for three years from 2023 to 2025.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides certain aspects of the work of preparing the state budget estimate for 2023 and the financial-plan - state budget for three years from 2023 to 2025. In addition to the provisions of this Circular, the preparation of the state budget estimate for 2023 and the financial-plan - state budget for three years from 2023 to 2025 shall be carried out in accordance with the provisions of Decree No. 163/2016/NĐ-CP of December 21, 2016 of the Government detailing the implementation of certain articles of the Law on State Budget.

Article 2. Applicability

1. State agencies, political organizations, and political-social organizations;

2. Social-professional organizations, social organizations, and social-professional organizations supported by the state budget according to tasks assigned by the State;

3. Public service units;

4. Other organizations and individuals related to the state budget.

Chapter II

EVALUATION OF THE IMPLEMENTATION OF STATE BUDGET TASKS IN 2025

STATE BUDGET FOR 2022

Article 3. Basis for evaluation

1. Resolutions of the National Assembly, the Government, People's Councils at all levels, and management documents of competent authorities regarding the state budget estimate for 2022:

a) Resolutions of the National Assembly on the five-year plan for the period 2021-2025 including Resolution No. 16/2021/QH15 of July 27, 2021 on the Socio-Economic Development Plan for 2021-2025; Resolution No. 23/2021/QH15 of July 28, 2021 on the National Financial Plan and Borrowing and Repayment of Public Debt for the 2021-2025 Period; Resolution No. 29/2021/QH15 of July 29, 2021 on the Medium-Term Public Investment Plan for 2021-2025; Resolution No. 31/2021/QH15 of November 26, 2021 on the Economic Restructuring Plan for 2021-2025.

b) Resolutions of the National Assembly: Resolution No. 32/2021/QH15 of November 12, 2021 on the Socio-Economic Development Plan for 2022; Resolution No. 34/2021/QH15 of November 13, 2021 on the state budget estimate for 2022; Resolution No. 40/2021/QH15 of November 13, 2021 on the central government budget allocation for 2022; Resolution No. 43/2022/QH15 of January 11, 2022 on fiscal-monetary policies supporting the Recovery and Development Program (Resolution No. 43/2022/QH15).

c) Resolution No. 18/2022/UBTVQH15 of March 23, 2022 of the Standing Committee of the National Assembly on the environmental protection tax rate for gasoline, diesel, and lubricants (Resolution No. 18/2022/UBTVQH15).

d) Resolutions of the Government: Resolution No. 01/NQ-CP of January 8, 2022 on main tasks and solutions to implement the socio-economic development plan and state budget estimate for 2022 (Resolution No. 01/NQ-CP); Resolution No. 02/NQ-CP of January 10, 2022 on main tasks and solutions to improve the business environment and national competitiveness in 2022 (Resolution No. 02/NQ-CP); Resolution No. 11/NQ-CP of January 30, 2022 on the Recovery and Development Program and implementation of Resolution No. 43/2022/QH15 of the National Assembly on fiscal-monetary policies supporting the Program (Resolution No. 11/NQ-CP); Resolution No. 54/NQ-CP of April 12, 2022 of the Government on the program of action of the Government to implement the National Assembly's resolution on economic restructuring for the 2021-2025 period and monthly regular meetings of the Government.

e) Decisions of the Prime Minister, Chairmen of People's Committees at all levels on allocating state budget estimates and capital investment plans from the state budget; decisions supplementing the budget during the management of the state budget in 2022 (including supplementary estimates under Resolution No. 43/2022/QH15).

f) Resolutions of People's Councils, Decisions of People's Committees, and Directives of Chairmen of People's Committees at all levels on main tasks and solutions to guide the implementation of socio-economic development plans and local state budget estimates for 2022.

g) Circular No. 122/2021/TT-BTC of December 24, 2021 of the Ministry of Finance on organizing the implementation of the state budget estimate for 2022.

2. Other documents:

a) Documents of competent authorities on tax, fee, and surcharge collection systems; policies on tax, fee, and surcharge deferral, exemption, reduction, and measures to support businesses and people; regulations on reducing and saving regular expenditures (if any) affecting the implementation of revenue and expenditure tasks of the state budget in 2022.

b) Conclusions and recommendations of supervisory, auditing, and inspection agencies on administrative reform, complaint and appeal resolution, thrift, waste prevention, and anti-corruption activities related to revenue and expenditure activities of the state budget.

Article 4. Evaluation of the Implementation of Revenue Collection in 2022

1. Principles for Evaluation:

Conduct in accordance with the provisions of the State Budget Law, tax, fee, and surcharge laws, and other guiding and managing documents on state budget issued by competent authorities; do not evaluate national revenue from fees that have been transferred to service prices according to the Law on Fees and Charges, deductions for state agencies, or retained fees from service activities carried out by public institutions and organizations assigned by competent state authorities.

Based on economic and social development results and state budget revenue for the first six months of the year, forecast the possibility of implementation for the last six months, focusing on clarifying advantages, difficulties, especially the impact of geopolitical conflicts worldwide, climate change, natural disasters, and epidemics affecting business operations and import-export activities; ministries, central agencies, and localities shall review and assess factors influencing the ability to collect state budget revenue in 2022, propose solutions to strive to complete the highest possible state budget revenue estimate decided by the National Assembly and People's Councils at all levels.

2. Content of evaluation:

a) Evaluate and analyze the reasons for the increase or decrease in state budget revenue in 2022, paying particular attention to:

- Factors affecting business and service operations and import-export activities of enterprises and economic organizations in each sector, the situation and trend of post-COVID-19 business recovery; expired tax incentive projects; the potential to implement expansion and new investment projects; production volume, consumption, selling price, and profit of key goods and services in the region; the growth rate of retail sales and service revenue.

- The impact of crude oil price fluctuations, input material prices, rice, agricultural input prices, stock market and real estate market fluctuations; the impact of implementing international economic integration commitments, including new-generation free trade agreements; monetary policies, credit, trade, investment, pricing policies, administrative reform, and other factors affecting the economy and state budget revenue in the first six months of the year.

- Specifically calculate the factors increasing or decreasing revenue due to changes in revenue-related laws and regulations; tax deferral, exemption, reduction, and measures to implement the Economic Recovery and Development Program according to Resolution No. 43/2022/QH15 of the National Assembly, Resolution No. 11/NQ-CP of the Government, Resolution No. 18/2022/UBTVQH15 of the Standing Committee of the National Assembly, and the tax reduction schedule to fulfill international economic integration commitments.

b) Collection and recovery of overdue taxes in the first six months of 2022; forecast the results of recovering overdue taxes in the last months of 2022 (compared to assigned targets if applicable) and the estimated total amount of overdue taxes as of December 31, 2022. Results of implementing the recommendations of the State Audit Agency, supervisory bodies, and tax authority decisions when conducting tax law enforcement inspections and audits; any recommendations (if applicable).

c) The situation of value-added tax refunds and the expected amount of funds for VAT refunds to be implemented in 2022 based on policy and actual occurrences; report to the competent authority to supplement refund funds (if necessary) to ensure timely and strict VAT refunds according to the law; supervision, inspection, and audit after VAT refunds, timely recovery of improperly refunded VAT; any recommendations (if applicable).

d) Evaluation of the implementation of refunds of excess taxes, late payment penalties, and fines according to the criteria: amount refunded, number of files reviewed for refund, number of refund decisions made according to regulations, difficulties and recommendations regarding mechanisms and policies, management technology, organizational coordination during implementation (if applicable).

đ) The situation of state budget revenue from the disposal of state assets according to the Law on Management and Use of State Assets and guiding documents; state budget revenue from land (land use fees, land lease fees) according to the Land Law and Resolution No. 132/2020/QH14 dated November 17, 2020 of the National Assembly, Decree No. 26/2021/NĐ-CP dated March 25, 2021 of the Government guiding Resolution No. 132/2020/QH14 on pilot policies to resolve difficulties and backlog in land management and use for national defense and security combined with labor production and economic construction (Resolution No. 132/2020/QH14); state budget revenue from the disposal and arrangement of houses and land according to Decree No. 167/2017/NĐ-CP dated December 31, 2017 of the Government on the arrangement and disposal of state assets, Decree No. 67/2021/NĐ-CP dated July 15, 2021 of the Government amending and supplementing Decree No. 167/2017/NĐ-CP, and related laws; state budget revenue from leasing rights to exploit, transferring rights to exploit infrastructure assets for a period of time, state budget revenue from managing and using infrastructure assets invested and managed by the State without being counted as State capital in enterprises, exploitation of water surfaces (after deducting relevant costs); revenue from ownership conversion of enterprises, public institutions, revenue from transferring State capital and surplus capital above the registered capital in enterprises according to Decree No. 148/2021/NĐ-CP dated December 31, 2021 of the Government on the management and use of revenue from ownership conversion of enterprises, public institutions, revenue from transferring State capital and surplus capital above the registered capital in enterprises (Decree No. 148/2021/NĐ-CP).

e) Results of cooperation between ministries, central agencies, and localities in managing, resolving difficulties and obstacles related to state budget revenue collection, selling state assets at auction, land use rights auctions, and organizing inspections, audits, urging debt recovery, preventing revenue loss, combating transfer pricing; existing issues, obstacles, and solutions for resolution.

g) The situation regarding fee and charge collection as prescribed by the Law on Fees and Charges (evaluation of collected fees and charges according to regulations; amount of fees paid into the state budget); administrative penalty revenue, fines, confiscations, and other payments to the state budget in 2022 as prescribed by the Law on Administrative Penalties and related legal documents.

h) Revenue items retained by administrative agencies in 2022 under special financial mechanisms as prescribed by competent authorities, detailed sources of retained fees, revenue items specified in other specialized laws or legal documents that have not been specifically defined as state budget revenue sources in the State Budget Law, Law on Fees and Charges (hereinafter referred to as business revenue), lawful revenue sources (if any), and projected cumulative remaining amounts as of December 31, 2022.

i) Revenue items of public service organizations (excluding state budget sources), based on which the degree of autonomy of each organization is determined; evaluation of retained fee revenue according to legal provisions for state management agencies and public service organizations.

Article 5. Evaluation of the Implementation of Investment Development Expenditure Tasks in 2022

1. Evaluation of the implementation and organization of the investment development expenditure (IDEx) budget for 2022 (excluding credit tasks and national target programs)

a) For annual IDEx budgets (excluding tasks implemented pursuant to Resolution No. 43/2022/QH15 and Resolution No. 11/NQ-CP)

- Development investment expenditures for programs and projects

+ Situation of allocation and assignment, adjustment, and supplementation of the IDEx budget from the state budget for 2022, detailed by expenditure areas:

Deadline for allocation and assignment of plans to project owners;

Results of budget allocation to recover state budget funds advanced and settle construction debts from the state budget;

Adjustments and supplements to the IDEx budget of ministries, sectors, and localities in 2022 (if any);

Difficulties, obstacles, and recommendations for adjusting mechanisms and policies; recommendations for implementation.

+ Implementation of the IDEx budget for programs and projects funded by the state budget in 2022 (including transfers from previous years to 2022 as prescribed), detailed by expenditure areas, including:

Public investment programs and projects: Disbursement of capital up to June 2022, report on expected implementation until January 31, 2023; detailed by funding sources (including: for IDEx of local state budget, detail local state budget funding; central state budget support with targeted foreign and domestic funds); include annexed detailed tables for each project, data on approved total investment, cumulative payment up to 2021, 2022 capital plan - including supplementary and adjusted funds and estimated 2022 implementation, accompanied by explanations).

For IDEx from revenues from selling assets on land, transferring land use rights, and changing land purposes: Collection and submission to the state budget, and implementation of the IDEx budget for 2022 from these revenues. In cases where new revenues arise from selling assets on land, transferring land use rights, and changing land purposes in 2022 but were not included in the initial budget and have all necessary conditions and procedures for implementation, the agency or unit shall report this separately in the 2023 state budget proposal to submit to competent authorities for inclusion in the medium-term public investment plan (if not already included), while supplementing the 2022 revenue and expenditure budget as prescribed.

Evaluation of the handling of construction debts from the state budget and recovery of advanced funds as of December 31, 2021; estimated handling in 2022; projected construction debts and unrecovered advances as of December 31, 2022 (detailed by project).

+ IDEx under the Public-Private Partnership (PPP) model as prescribed by Decree No. 69/2019/NĐ-CP dated August 15, 2019 of the Government on the use of state assets to pay investors when implementing construction-transfer projects; difficulties, obstacles, causes, and recommendations.

+ Impact on the state budget from converting PPP projects to public investment methods and impact on the state budget (if any), and supplementation of the IDEx budget from the state budget for 2022 (if any).

+ Settlement of public investment capital for completed projects, specifying: number of projects approved for settlement of public investment capital for completed projects and remaining public investment capital yet to be allocated for payment compared to the approved completion value; number of projects using public investment capital that have been completed but not settled according to regulations as of June 2022, projected to the end of 2022; reasons and solutions for handling.

- Evaluation of the implementation of IDEx tasks in 2022 by administrative agencies enjoying special financial mechanisms as prescribed, detailed by project and funding sources (state budget, retained fees, business revenue, other lawful sources).

b) Evaluation of the implementation and organization of the IDEx budget pursuant to Resolution No. 43/2022/QH15 and Resolution No. 11/NQ-CP (excluding credit tasks) by program and project, and by expenditure area:

- Situation of allocation, assignment, transfer, and supplementation of the IDEx budget from the Economic Recovery and Development Program, separately listing tasks under the Program and transferred or supplemented tasks from the Program's funds, detailed by expenditure areas.

+ Situation of allocation, transfer, and assignment, supplementation of the IDEx budget for programs and projects under the Economic Recovery Program;

+ Situation of transfer, allocation, and supplementation of the IDEx budget for programs, projects, and tasks not under the Economic Recovery Program;

- Implementation situation

+ The situation of disbursement of programs and projects under the Economic and Social Recovery and Development Program;

+ The situation of disbursement of programs and projects not under the Economic and Social Recovery and Development Program that have been reallocated or supplemented in the budget estimate.

2. Evaluation of the implementation of other state budget expenditure tasks for investment in 2022:

a) For annual credit tasks (excluding tasks implemented according to Resolution No. 43/2022/QH15 and Resolution No. 11/NQ-CP)

The situation of implementing the plan for preferential state investment credit and policy credit for six months and estimated for the whole year 2022 (funding mobilization, issuance of government-guaranteed bonds; credit growth, disbursement, principal repayment, outstanding loans; state budget subsidy for interest rate differential and management fees,...); administrative reform in loan approval procedures.

b) For credit tasks according to Resolution No. 43/2022/QH15 and Resolution No. 11/NQ-CP

- The situation of allocating, supplementing the budget estimate, guiding, and paying interest subsidies to commercial banks for lending at subsidized interest rates to enterprises, cooperatives, and individual businesses according to Decree No. 31/2022/NĐ-CP dated May 20, 2022 of the Government on subsidizing interest rates from the state budget for loans of enterprises, cooperatives, and individual businesses (Decree No. 31/2022/NĐ-CP);

- The situation of allocating, supplementing the budget estimate, guiding, and disbursing the credit package for lending to support job creation; students and trainees; private preschools and primary schools; individuals borrowing to purchase or lease social housing; building new or renovating and repairing houses according to social housing policies; implementing the National Target Program on Socio-Economic Development in Ethnic Minority and Mountainous Areas for the period 2021-2030.

c) The task of increasing the registered capital for the Vietnam Agriculture and Rural Development Bank: Progress in implementation, including detailed submission process, additional registered capital, impacts on the state budget revenue and expenditure in 2022.

3. For funds from legitimate revenues of state agencies and public service units designated for investment but not included in the state budget: evaluation of the approval, allocation of sources, and results of implementing investment expenditure tasks in 2021 according to regulations (detailed sources of retained fees and service revenues, development fund for services, unit's legal borrowings and other sources) by each spending category.

4. The situation of socialization in 2022:

Evaluation of the implementation in 2022 regarding total socialized resources and resource structure for investment by industry and sector; number of facilities invested with socialized resources; achievements; difficulties, causes, and recommendations (if any).

5. Evaluation of existing difficulties when implementing laws on public investment, including recommendations on legal grounds for arranging and implementing investment expenditure tasks.

Article 6. Evaluation of the implementation of regular expenditure tasks in 2022 (including the task of providing rental housing support for workers according to Resolution No. 43/2022/QH15 and Resolution No. 11/NQ-CP)

1. The situation of implementing the allocation, budget assignment, and execution of regular expenditure budgets for the first six months of the year, and the forecast for the entire year 2022, detailed by assigned spending categories, including an assessment of spending tasks according to the budget, and a focus on clarifying the implementation of support policies against the COVID-19 pandemic and assistance to workers and employers affected by the pandemic.

For regular expenditure tasks related to national defense and security that apply the mechanism of using regular state budget expenditures approved by the competent authority, the agency or unit evaluates the implementation according to regulations.

2. Results of implementing major goals, tasks, programs, projects from regular state budget expenditures in the first six months of the year, and forecast for the entire year 2022; difficulties and proposed measures to address issues related to mechanisms and policies in organizing implementation, specifically:

a) Review and determine tasks, policies, and systems that have ended or expired; propose supplements and amendments to tasks, policies, and systems that are inconsistent with reality.

b) The situation of reducing staff establishments, organizational restructuring, and personnel reform: Achievements in the first six months of the year, estimated for the whole year 2022, and cumulative implementation up to the end of 2022, detailed by each goal and task in Resolution No. 18-NQ/TW dated October 25, 2017 of the 6th Plenary Session of the 12th Central Committee (Resolution No. 18-NQ/TW), Conclusion No. 28-KL/TW dated February 21, 2022 of the Politburo (Conclusion No. 28-KL/TW) on the situation of staff establishments and organizational restructuring of cadres, civil servants, and public officials, and related documents of the Government and Prime Minister; focusing on evaluating the degree of completion of set targets: reduction in staff establishments, reduction in organizational structures (for cases where the targets have not been met by the end of 2022 as stated in the above Conclusions and Resolutions, agencies and units provide specific explanations of difficulties, obstacles, and reasons); state budget savings due to staff establishment reductions and organizational restructuring, including funds used for salary reform; state budget funds required to implement staff establishment reduction policies according to government regulations.

c) Implementation of reforms in the public service sector:

- The results of restructuring, reforming the system, management, improving quality and efficiency of operations of public service units under Resolution No. 19-NQ/TW dated October 25, 2017 of the 6th Plenary Session of the 12th Central Committee (Resolution No. 19-NQ/TW) and Decree No. 60/2021/NĐ-CP dated June 21, 2021 of the Government on the financial autonomy mechanism for public service units (Decree No. 60/2021/NĐ-CP) in the first six months of the year, estimated for the whole of 2022 and cumulative up to the end of 2022; specifically: evaluate the implementation of the pricing and fee schedule for public services as stipulated in Article 5 of Decree No. 60/2021/NĐ-CP, other cases with different schedules, especially medical examination and treatment services at public medical facilities, education and training services and vocational education services at public educational institutions, and the agencies and units report in detail the expected level of achievement by the end of 2022, explain the reasons, progress in reporting and approval by competent authorities (if applicable); based on this, provide a detailed evaluation of the implementation of each target set out in Resolution No. 19-NQ/TW (specifically the expected number and degree of autonomy of each unit; each source of finance (state budget revenue, service income), each expenditure item for each unit, each field of service; total number of positions and number of positions receiving state budget salary by each field of service as of 2022).

- The impact of restructuring, reforming, and enhancing the self-management capacity of public service units on the allocation of the state budget according to each field in 2022, cumulative up to the end of 2022, and the use of state budget funds allocated from the increased self-management of public service units; difficulties, obstacles, and recommendations.

d) The situation regarding the implementation of regular expenditure tasks in 2022 by administrative agencies currently benefiting from special financial mechanisms as provided by current regulations, in detail: salary fund (including grade-based salaries, contributions based on salaries, and additional salary components under special mechanisms - if applicable); professional and operational expenses, detailed by each source of funding (state budget, retained fees, business income, other lawful sources).

đ) Evaluation of the results of implementing regular expenditure tasks in 2022 from retained service income and fees not included in state budget balancing; lawful sources of the agency or unit as prescribed, detailed by area of expenditure.

e) Evaluation of the implementation of the task of providing housing rental support to workers with labor relations who are renting or residing in industrial zones, export processing zones, and key economic areas according to Resolution No. 43/2022/QH15 and Resolution No. 11/NQ-CP.

Article 7. Evaluation of the Implementation of the National Reserve Plan and Expenditure Tasks in 2022

Ministries and sectors managing national reserves shall evaluate the implementation of the national reserve plan and expenditure tasks in the first six months of the year, the possibility of completing the full year 2022, in detail according to each content of purchase, sale, import, export, rotation, and reserve-related activities, estimate the national reserve inventory at the end of 2022; the establishment, revision, and supplementation of economic and technical standards for national reserve goods; advantages, difficulties, and issues arising during the implementation of the 2022 plan.

Article 8. Evaluation of the implementation of three national target programs and other programs, projects, and plans

1. For the three national target programs

Based on the Prime Minister's Decision approving the national target programs, Decree No. 27/2022/NĐ-CP dated April 19, 2022 of the Government stipulating the management mechanism and organization of implementing the national target programs, the ministries and central agencies responsible for the national target programs shall report specifically as follows:

a) The situation regarding the development of guiding documents to organize the implementation of the Program;

b) The total budget for the Program according to the approval of the competent authority; the medium-term investment plan from 2021 to 2025 for each national target program (specifically including state budget funds, local budget funds; integrated funds from other programs and projects; loan funds, other raised funds - if applicable), by each spending category (if applicable);

c) The supplementation, allocation, and annual budget assignment for 2022 (including the 2021 budget carried over) for each national target program; disbursement progress and implementation capability in 2022, detailed by each state budget fund, local budget fund; construction investment funds, regular expenses; integrated funds from other programs and projects; loan funds, other raised funds - if applicable), by each spending category;

d) Advantages, difficulties, obstacles, and recommendations (if any).

2. For ongoing tasks under the national target programs during the period of 2016-2020 that need to continue and have been approved by the competent authority in the form of programs, projects, or plans for the period of 2021-2025 or until 2030, and which have been assigned budgets, supplemented, or are being submitted for budget supplementation in 2022, the ministries and central agencies shall report on the issuance of guiding documents and implementation in 2022 by each spending category. In cases where foreign sources of funding are used, separately report on the allocation, disbursement for each specific goal and task according to the Agreement or Memorandum signed, detailed by each source of funding (non-repayable ODA, repayable ODA, concessional loans, non-repayable aid not included in official development assistance); financial mechanisms, difficulties, obstacles, and recommendations (if any). For non-repayable aid, evaluate the receipt of new aid not included in the budget, the progress of supplementary budget procedures; review the assignment of medium-term and annual public investment budgets when the structure between loans and aid is not clearly separated and propose solutions to implement.

3. For other programs and projects using foreign sources of funding:

a) Ministries, central agencies, and localities shall assess the allocation, assignment, and implementation of the 2022 budget expenditure, adjustments, and supplements in 2022 (if any) according to the Agreement or Memorandum signed, detailed by each source of funding (non-repayable ODA, repayable ODA, concessional loans, non-repayable aid not included in official development assistance); financial mechanisms, difficulties, obstacles, and recommendations (if any). For non-repayable aid, evaluate the receipt of new aid not included in the budget, the progress of supplementary budget procedures; review the assignment of medium-term and annual public investment budgets when the structure between loans and aid is not clearly separated and propose solutions to implement.

b) Evaluate the disbursement results of foreign funds, compare with the allocated budget; clarify the reasons for slow disbursement, responsibilities of ministries, sectors, and localities as the main managing bodies of investment, responsibilities of the Project Management Board and related agencies; propose solutions to address difficulties in the implementation of programs and projects.

Article 9. Evaluation of the Implementation of Salary Policies and Sources for Salary Reform in 2022

Ministries, central agencies, and localities shall evaluate the implementation of policies to create sources for salary reform expenses linked to restructuring organizational structures, reducing redundant staff, and enhancing financial autonomy of public service units in accordance with Article 4 of Circular No. 122/2021/TT-BTC dated December 24, 2021, issued by the Ministry of Finance on organizing the implementation of the State Budget for 2022.

Article 10. Evaluation of the Performance in 2022 of Provinces and Central Cities

In addition to the requirements stipulated from Article 4 to Article 9 of this Circular, provinces and centrally-administered cities shall supplement the following evaluations:

1. Financial resource mobilization efforts at the local level to fulfill the tasks of economic and social development, difficulties encountered, obstacles, and recommendations (if any).

2. Evaluation of the implementation of policies exempting and reducing revenues due to the implementation of the Program for Economic Recovery and Development, Resolution No. 18/2022/UBTVQH15 of the Standing Committee of the National Assembly. In cases where there is revenue shortfall, localities shall implement according to point b, Clause 8, Article 2 of Decision No. 2047/QĐ-TTg dated December 3, 2021, of the Prime Minister on allocating the State Budget for 2022 and Clause 7, Article 9 of Circular No. 122/2021/TT-BTC dated December 24, 2021 on organizing the implementation of the State Budget for 2022.

3. The ability to implement the budget for investment in socio-economic development in 2022, broken down by expenditure category (including adjustments and supplements during the year as prescribed), detailed as follows: state budget resources (investment in construction, investment from land use fees and lottery proceeds, investment from state budget surplus); supplementary resources with specific purposes from the central budget for the local budget from domestic and foreign sources (including loans and non-refundable aid); among which, clarify:

a) The implementation of annual investment expenditure tasks (excluding the Economic Recovery and Development Program under Resolution No. 43/2022/QH15)

- The allocation of the budget, handling of arrears in construction projects, and recovery of advance payments in 2022; forecast remaining amounts at the end of 2022 (if any); recommendations for handling.

- Organization and disbursement of investment funds from the state budget for the first six months of the year and evaluation for the whole year 2022.

- Situation of allocation, organization, and disbursement of investment funds from supplementary resources with specific purposes from the central budget for the locality for the first six months of the year, evaluation for the whole year 2022.

- State budget deficit in 2022 and investment from this source (if any).

- Increase in revenue and reduction in expenditure of the state budget (if any).

- Approval, allocation, organization, and disbursement of investment funds from retained revenue sources such as fee income, retained public service income, and other lawful revenue sources, detailed by expenditure category.

b) The implementation of investment expenditure tasks under Resolution No. 43/2022/QH15

Implementation situation of assigned tasks, supplementary budget allocations, distribution, organization, and implementation, assessment of disbursement capacity until December 31, 2022, for programs, projects, and tasks under the Program, and supplementary budget allocations, disbursements for programs, projects, and tasks not under the Program, accelerated progress; favorable conditions, difficulties, obstacles, and recommendations (if any).

4. Report on the implementation of social welfare policies in the locality in 2022 (specific report on beneficiaries and funding). For social welfare policies based on multi-dimensional poverty criteria for the period 2021-2025, funding for some policies encouraging and supporting marine product exploitation and breeding, and marine service activities in distant sea areas, and funding for social welfare policies issued by the central government and effective after September 1, 2021, determine the state budget requirement, the portion supported by the central budget, and the portion guaranteed by the local budget according to Decision No. 127/QĐ-TTg dated January 24, 2022, of the Prime Minister on principles for central budget support for local budgets to implement centrally-issued social welfare policies for the period 2021-2025.

5. Implementation of policies to support people affected by the COVID-19 pandemic as prescribed; budget allocation (including the amount of central budget support for the local budget - if any) and use of local budget reserves for security, defense, disaster prevention, mitigation, and disease control tasks. Usage of local budget reserves and financial reserve funds up to June 30, 2022, and projected usage for the last six months of 2022.

Guidance, organization, and implementation, disbursement capacity throughout the year for the task of providing rental housing subsidies to workers in labor relations who rent or live in dormitories in industrial zones, export processing zones, and key economic areas according to Resolution No. 43/2022/QH15. Evaluation of favorable conditions, difficulties, obstacles, and recommendations.

6. Allocation and allocation of the state budget for investment in local projects and works from land use fees; implementation of cadastral surveying, establishment of land ownership records, and issuance of land use right certificates.

7. Collection, management, and utilization of lottery proceeds for investment in important social welfare projects in the locality in 2022.

8. Implementation of borrowing and repayment of local budget debts, including:

a) Year-end debt balance, debt balance as of June 30, and estimated debt balance as of December 31, 2022, detailed by debt source (local government bond issuance; loan repayment of government foreign loans by each lender and project; state investment credit; other loans).

b) Amount raised by June 30 and estimated for the whole year 2022, detailed by purpose of raising (principal repayment, deficit coverage) and by type of capital raised (ODA loan for onward lending, local government bond issuance, other lawful financial sources).

c) Repayment situation as of June 30 and estimated for the whole year 2022, detailed repayment of interest and fees on domestic borrowings, government foreign loan repayments, detailed by each program and project.

d) The situation of principal repayment for loans as of June 30 and the full year forecast for 2022, detailing the principal repayment of domestic borrowing and the principal repayment of government foreign loan sources, itemized by each program and project; specifically according to each source of repayment (new loans to repay old debts, from surplus revenue, increased revenue, and cost savings).

9. For provinces and centrally-administered cities that have been authorized to issue special financial and budgetary mechanisms and policies, provide a specific assessment of the implementation results of these special financial and budgetary mechanisms and policies at the local level (the local mechanisms and policies issued; impact assessment on revenue and expenditure results of the State Budget in the locality).

10. The situation of implementing recommendations from the State Audit Agency and the Inspectorate in the field of finance - State Budget management, public asset management.

Article 11. Evaluation of the financial plan of state funds outside the State Budget for 2022

Ministries, central agencies, and local agencies and units responsible for managing state funds outside the State Budget shall report on the review, restructuring, merger, cessation of operations, or dissolution of ineffective funds that do not comply with their purposes, overlap in objectives, tasks, service targets, or lack independent financial capacity, or overlap in revenue sources and expenditure tasks with the State Budget; evaluate the implementation of the revenue-expenditure plan and assigned tasks for the first six months and the full-year forecast for 2022; difficulties and obstacles arising and proposed solutions.

Chapter III

BUILDING THE STATE BUDGET ESTIMATE FOR 2023

Article 12. Requirements

1. The State Budget estimate for 2023 must be built in accordance with the provisions of the Law on the State Budget and guiding documents; it must include a detailed explanation of the legal basis and calculation grounds; it must align with the Socio-Economic Development Strategy for the 2021-2030 period, the five-year plans for 2021-2025, the goals set forth in the Central Resolutions; it must align with the objectives, guidelines, and principles of the mid-term investment plan allocation for the 2021-2025 period as stipulated in Resolution No. 29/2021/QH15 of the National Assembly, the implementation schedule of tasks and solutions under the Economic and Social Recovery and Development Program as stipulated in Resolution No. 43/2022/QH15 of the National Assembly, Resolution No. 11/NQ-CP of the Government, and Resolution No. 18/2022/UBTVQH15 of the Standing Committee of the National Assembly; special development mechanisms and policies for certain regions as prescribed, relevant laws, and directives from competent authorities.

2. Based on the evaluation of the 2022 performance, ministries, central agencies, and localities should determine key tasks to be implemented in 2023, proactively arrange expenditures and prioritize the implementation sequence of tasks, programs, projects, and proposals approved by competent authorities according to their urgency, importance, and feasibility in 2023, consistent with available resources (including other lawful sources as prescribed); thoroughly economize and prevent waste right from the budget estimate stage, ensuring the consistent implementation of tasks from the budget estimate stage to the allocation, management, and utilization of the State Budget.

3. When building the budget estimate, ministries and central agencies managing sectors and fields need to consider a comprehensive review of all systems and policies (especially social welfare policies) to abolish or integrate them within their authority, or propose to competent authorities to abolish or integrate overlapping, redundant, and inefficient policies; only propose new policies that increase budget spending when truly necessary and with guaranteed funding sources; proactively anticipate sufficient funding needs and mobilize corresponding resources for newly decided policies, systems, and tasks; do not allocate budget estimates for policies that have not yet been issued. Allocate budget estimates to recover advance payments for State Budget expenditures due for recovery in the year as stipulated in Article 50 of the Law on the State Budget.

4. Focus on directing, handling, and resolving existing and illegal issues in financial and budget management discovered and recommended by auditing and inspection agencies in accordance with the law, starting from the budget estimate stage.

Article 13. Construction of the 2023 Revenue Budget

1. General principles

a) The 2023 State Budget revenue budget must be constructed in accordance with the provisions of the State Budget Law, the Tax Administration Law, and other tax, fee, and surcharge laws, as well as related legal documents, taking into account the economic recovery trend to ensure that all sources of State Budget revenue are collected accurately and fully.

b) The construction of the 2023 revenue budget must closely follow the socio-economic situation, both globally and domestically, and specifically calculate factors of increase and decrease, and shifts in revenue sources due to changes in legal policies on revenue collection, tax and fee exemptions and reductions, extension of tax payment deadlines, land lease payments, and implementation of tax reduction schedules to fulfill international economic integration commitments, including new-generation free trade agreements; the impact on budget revenues from implementing tasks stipulated in Resolution No. 43/2022/QH15, Resolution No. 18/2022/UBTVQH15, and the additional paid-in capital for three state-owned commercial banks holding controlling stakes according to Resolution No. 43/2022/QH15; the impact on budget revenues from fulfilling government obligations under commitments with foreign investors that have been or are being submitted to competent authorities.

c) The construction of the revenue budget must be linked to the vigorous implementation of administrative reform measures and modernization of revenue management work; strengthening management and preventing revenue loss from businesses and individuals engaged in commerce and services, particularly preventing revenue loss from business operations, real estate transfers, and other sources of revenue from urging the implementation of audit and inspection recommendations; intensifying tax inspections and audits, combating transfer pricing, trade fraud, tax evasion, and strictly managing taxable prices; effectively managing new revenue sources arising from e-commerce activities, platform-based businesses, and other services provided by foreign suppliers without permanent establishments in Vietnam; resolutely addressing overdue tax debts and strictly controlling tax refunds.

d) Strive for the 2023 domestic revenue budget excluding land use fees, lottery revenue, proceeds from selling state-owned shares, dividends, post-tax profits, and the difference between income and expenditure of the State Bank to increase by approximately 7-9% nationwide compared to the estimated actual performance in 2022 (after excluding revenue factors influenced by policy changes). The specific revenue growth rate will vary depending on local conditions, characteristics, and in line with the economic growth rate in each locality. The 2023 revenue budget from import and export activities should increase by approximately 4-6% compared to the estimated actual performance in 2022.

2. Building the Domestic Revenue Estimate:

a) Localities constructing the 2023 domestic revenue budget, in addition to ensuring the goals and requirements set forth in Clause 1 of this Article, must comprehensively consolidate all revenue sources within the scope of State Budget revenue generated within their jurisdictions (including revenue at the commune, ward, town level, taxes from foreign and domestic contractors when implementing investment projects, taxes from newly operational projects, and projects that have completed preferential corporate income tax periods); while excluding amounts not included in the State Budget revenue balance as specified, based on a full assessment of actual implementation in 2022, the unique features of 2023, and the projected revenue budget for 2023 announced by the competent authority.

b) The 2023 State Budget revenue budget must be constructed based on a system of information data on land and taxpayers; ensuring accuracy and completeness for each revenue item, tax type, and revenue sector for each area, detailing revenue from new projects with significant revenue according to current tax, fee, and surcharge regulations and other non-State Budget revenue; detailing each fee and surcharge item as prescribed; adjustments to policies continuing to affect State Budget revenue in 2023 and regulations expected to be amended and applied in 2023.

All revenue from national defense and security land use under the pilot management and utilization mechanism; revenue from reorganizing state-owned property, disposing of public assets, leasing rights to exploit, and transferring the right to exploit infrastructure assets for a limited time; State Budget revenue from managing and utilizing infrastructure assets invested in and managed by the State through a method not counted as state capital in enterprises, and revenue from exploiting land and water resources (after deducting related costs) must be fully budgeted and submitted to the State Budget in accordance with the law. Revenue from ownership conversion of enterprises and public institutions, state capital transfer, and excess capital over paid-in capital in enterprises must be implemented in accordance with Decree No. 148/2021/NĐ-CP.

Detailed budgets for each fee and surcharge item (as listed in the Law on Fees and Surcharges) must be prepared according to the prescribed items.

For fee revenue, service charges, tuition fees, medical service prices, and other lawful revenue retained by agencies and units for their own use as prescribed, these are not consolidated into the State Budget revenue budgets of central ministries, agencies, and localities, but the agencies and units must prepare separate budgets, explain the basis for calculation, and develop usage plans to submit to higher-level management agencies and report to the same-level financial authorities as required.

3. Building the State Budget Revenue Estimate from Import and Export Activities:

a) Based on forecasts of the growth in value of goods exported and imported subject to taxes in the context of integration, promoting trade promotion activities, and restructuring product categories, especially traditional products with main revenue sources and newly emerging products.

b) Considering factors such as: anticipated domestic price fluctuations and international market prices for goods with significant state budget revenue; global crude oil price fluctuations; exchange rates between the Vietnamese dong and the currencies of strategic trading partners; reduced revenue from implementing tariff reduction schedules under signed Free Trade Agreements and commitments implemented in 2023; levels of trade facilitation and the impact of technical barriers; scale and progress of major investment projects involving raw material and equipment imports; production plans of domestic oil refineries.

4. Establishing the budget for VAT refunds in accordance with the Value Added Tax Law:

Based on actual conditions and socio-economic development goals at the locality; production and business plans of export enterprises, total number of new approved projects and investment capital, progress of ongoing investment projects and new projects, investment projects ending their investment phase and transitioning to operational phases within the locality to accurately and timely calculate the expected VAT refund amount for 2023 according to current policies and newly effective policies. Establishing the VAT refund budget linked to the requirement of strengthening management, monitoring, inspection, and post-refund audit to ensure compliance with actual occurrences and policies.

5. The budgeted revenue of the State Budget (including domestic revenue and revenue from import and export activities) needs to predict the portion of tax refunds, late payment penalties, and excess payments that reduce State Budget revenue as stipulated by law.

6. Prepare the budget for non-repayable aid receipts:

Based on agreements and non-reimbursable ODA and non-reimbursable aid not included in official development assistance from state budget revenues that have been and are being implemented; agreements that will be signed and implemented from 2023 and the progress of aid disbursements, ministries, central agencies, and localities establish the 2023 non-reimbursable aid revenue budget for ministries, agencies, and localities. For aid received before 2022 without allocated budgets, new aid not included in the medium-term plan (for public investment), ministries, central agencies, and localities include and consolidate into the 2023 budget to supplement the medium-term plan, allocate budgets, record, and settle accounts according to regulations (specifying projects from this source that are included in the medium-term public investment plan or not).

Article 14. Establishing the 2023 State Budget Expenditure Budget

1. General principles

a) Establishing the 2023 State Budget Expenditure Budget in accordance with the provisions of the State Budget Law, Public Investment Law, related laws; legal provisions on principles, criteria, and standard allocation amounts for public investment and regular State Budget expenditures; meeting requirements for restructuring the budget, policy arrangements for organizational restructuring, streamlining staffing in the political system, improving quality and efficiency of public service sectors according to Central Committee Resolutions and Politburo Resolutions.

b) Continuing to focus resources on implementing salary reform and social insurance policies according to Resolution No. 27-NQ/TW and Resolution No. 28-NQ/TW of the 7th Plenum (12th Tenure). Prioritizing enhancing healthcare system capacity, especially preventive healthcare and primary healthcare in necessary and urgent areas; intensifying implementation of measures to promote digital transformation and develop a digital economy and society. Emphasizing administrative reform towards modernization, innovating the single window mechanism, reducing costs.

c) Adhering to the principle of transparency and the requirement of thorough thrift and waste prevention from the outset of task determination; proactively reviewing overlapping policies and tasks, prioritizing the order of expenditures based on urgency, importance, and feasibility of implementation in 2023 to complete tasks, programs, projects, and proposals approved by competent authorities based on allocated state budget funds and other legitimate sources.

2. Preparation of the Public Investment Expenditure Budget:

a) The public investment expenditure budget from the state budget includes both ODA funds (loans and grants), non-ODA grants from state budget revenues, government bond funds, lottery revenue, revenue from selling state-owned shares in certain enterprises, land use fee revenue) is established according to legal provisions and the state budget's balancing ability in the year; consistent with the medium-term public investment plan for the 2021-2025 period, plans and progress of tasks and projects under the Economic and Social Recovery and Development Program according to Resolution No. 43/2022/QH15 and Resolution No. 11/NQ-CP, national financial plan, borrowing and repayment of public debt for the 2021-2025 period, and other investment tasks as stipulated by the State Budget Law and other relevant legal documents.

Prioritize allocating the 2023 budget to accelerate the implementation of important and urgent projects with ripple effects, capable of rapid disbursement, and significant for economic and social development; settling basic construction debts as prescribed in Clause 4, Article 101 of the Public Investment Law, recovering advance state budget funds; projects completed but not fully funded; projects completed in 2023. Allocate sufficient counterpart funds for projects using ODA and preferential loans from foreign financiers; state investment in projects implemented through public-private partnership. The allocation level for each task must comply with Resolution No. 43/2022/QH15, the medium-term public investment plan for the 2021-2025 period, reallocation of funds within the medium-term public investment plan 2021-2025, and funds from the Economic and Social Recovery and Development Program in 2022; progress and disbursement capability in 2023.

Ministries, sectors, localities shall separately prepare the budget estimate for 2023 for programs, projects, and tasks according to Resolution No. 43/2022/QH15 and Resolution No. 11/NQ-CP, ensuring the allocation level for the period 2022-2023 for these tasks as stipulated in Resolution No. 43/2022/QH15, detailing by industry and field, accompanied by detailed appendices for each program, project, and task; decide on approval; total investment amount approved; commencement and completion deadlines; budget allocation for 2022, any reallocation if applicable, and estimated implementation up to January 31, 2023; propose the budget estimate for 2023 (accompanied by explanatory notes).

Implement strictly in accordance with the provisions of the State Budget Law regarding the annual total support capital for investment and construction from the State Treasury to the local budget to implement certain large and particularly important programs and projects that have significant impacts on the socio-economic development of the locality, not exceeding a maximum of 30% of the total investment expenditure of the State Treasury.

b) Allocate investment and construction expenditures (with detailed explanations) to implement the contents and tasks as prescribed in Decree No. 148/2021/NĐ-CP of the Government, state budget expenditures to fulfill commitments of the Government to foreign investors within the scope of the anticipated revenue from tax collection and allocate additional state budget sources to increase the registered capital of the Vietnam Agriculture and Rural Development Bank as stipulated in Resolution No. 43/2021/QH15 and Resolution No. 11/NQ-CP.

c) For foreign capital, the allocation plan must be consistent with the mid-term public investment plan for the 2021-2025 period of the State Treasury, the content of agreements, commitments with sponsors, comply with the financial mechanism of the project, and the progress of implementing the program/project, prioritizing sufficient funding for projects concluding foreign loan agreements in 2023 and unable to extend.

For new agreements, arrangements, and commitments (if any) must be included in the five-year borrowing and repayment plan for 2021-2025. In cases not included in the five-year borrowing and repayment plan for 2021-2025, they must be supplemented into the five-year borrowing and repayment plan for 2021-2025 and ensure within the limit of 300 trillion VND of external capital for the entire five-year period already approved.

d) Based on the collected and spent investment and construction funds from the management, utilization, reorganization, and disposal of state-owned houses and land but not yet settled; the amounts previously paid into the state budget in previous years but not utilized, and the budget estimate of revenue from the management, utilization, reorganization, and disposal of state-owned houses and land in 2023, ministries, central agencies, and local agencies and units shall prepare the budget estimate for investment and construction expenditures from this source according to regulations, including clearly stating completed projects not yet settled due to lack of budget allocation; projects approved to use proceeds from selling assets on land and transferring land use rights paid into the budget but not utilized; projects expected to use this revenue generated in 2023; consolidate in the budget estimate for investment and construction expenditures of ministries, central agencies, and local agencies and units and submit to the planning and investment agency and finance agency at the same level for consolidation and submission to the competent authority for decision.

Additionally, central ministries and agencies shall prepare separate reports explaining in detail the implementation of the management, utilization, reorganization, and disposal of houses and land, revenue collection, and expenditure from this source up to 2022; along with plans to implement the management, utilization, reorganization, and disposal of houses and land in 2023, the budget estimate for revenue collection in 2023, and expenditure from this source according to the above contents (Ministry of Public Security, Ministry of National Defense shall separately prepare revenue sources and expenditure tasks according to Resolution No. 132/2020/QH14, Decree No. 26/2021/NĐ-CP guiding Resolution No. 132/2020/QH14, and Decree No. 167/2017/NĐ-CP, Decree No. 67/2021/NĐ-CP amending Decree No. 167/2017/NĐ-CP); send to the Ministry of Finance and the Ministry of Planning and Investment for consolidation and reporting to the competent authority as prescribed.

đ) For the budget estimate for interest subsidy and management fee reimbursement

Based on the legal provisions on interest subsidy and management fees and the situation in 2022, predict changes in the target groups, policies, and tasks; forecast credit growth, outstanding loans, capital mobilization, deposit rates, lending rates,...; credit tasks under the Program for Economic and Social Recovery and Development to build the state budget expenditure estimate for 2023 in accordance with the State Budget Law, Investment Law, and guiding documents.

Among which, separately prepare the budget estimate (with detailed explanations) for interest subsidies for enterprises, cooperatives, households, and interest subsidies for loans at the Social Policy Bank; interest subsidy and management fee reimbursement for lending under social policy credit programs (employment support; students and trainees; private kindergartens and primary schools; individuals borrowing or leasing social housing, building new or renovating and repairing houses according to social housing policies; implementing the National Target Program on Socio-Economic Development in Ethnic Minority and Mountainous Areas for the 2021-2030 period), ensuring the allocation level for the period 2022-2023 for these tasks as stipulated in Resolution No. 43/2022/QH15.

e) Capitalize the registered capital for policy banks and state financial funds outside the budget; support investment capital for other policy beneficiaries according to the Prime Minister's decision in accordance with the Investment Law and guiding documents.

g) For sources of funds from legitimate revenues of state agencies and public service organizations designated for investment outside the state budget balance:

Prepare the budget estimates for investment and construction tasks according to current regulations (detailing revenue from fees, retained business income, development funds, and other legitimate sources of the unit) by spending category; submit to the higher-level management agency for consolidation and reporting to the investment and finance agency at the same level.

3. Develop plans and state budget estimates for national reserve tasks:

BASED ON THE PROVISIONS OF THE NATIONAL RESERVE LAW AND GUIDING DOCUMENTS, MINISTRIES AND SECTORS MANAGING NATIONAL RESERVES SHALL DEVELOP PLANS AND BUDGET ESTIMATES FOR NATIONAL RESERVES IN 2023 IN LINE WITH THE DIRECTIONAL OBJECTIVES FOR NATIONAL RESERVES IN THE 2021-2025 PERIOD, THE ABILITY TO BALANCE THE STATE BUDGET, AND ECONOMIC-SOCIAL FORECASTS, INCLUDING ANTICIPATED NEEDS FOR RELIEF AND ASSISTANCE, WITH A FOCUS ON STRATEGIC AND ESSENTIAL ITEMS; PRIORITY SHOULD BE GIVEN TO NATIONAL RESERVES FOR PREVENTION, RESPONSE, AND MITIGATION OF NATURAL DISASTERS, EPIDEMICS, AND NATIONAL DEFENSE AND SECURITY.

4. DEVELOPMENT OF REGULAR EXPENSE BUDGETS:

a) BASED ON THE STATE BUDGET LAW, THE LAW ON MANAGEMENT AND USE OF PUBLIC ASSETS, AND RELATED GUIDING DOCUMENTS; RESOLUTIONS OF THE PARTY CENTRAL COMMITTEE, THE POLITBUREAU, AND THE NATIONAL ASSEMBLY; DIRECTIVE NO. 12/CT-TTg OF THE PRIME MINISTER ON THE DEVELOPMENT PLAN FOR THE ECONOMY AND SOCIAL AFFAIRS AND THE STATE BUDGET ESTIMATE FOR 2023 (DIRECTIVE NO. 12/CT-TTg); THE REVIEW OF THE 2023 BUDGET ESTIMATE FOR REVENUE AND EXPENDITURE; THE PRINCIPLES, CRITERIA, AND ALLOCATION RATES FOR REGULAR EXPENSE BUDGETS UNDER RESOLUTION NO. 01/2021/UBTVQH15 OF THE STANDING COMMITTEE OF THE NATIONAL ASSEMBLY (RESOLUTION NO. 01/2021/UBTVQH15) AND DECISION NO. 30/2021/QD-TTg OF THE PRIME MINISTER (DECISION NO. 30/2021/QD-TTg); AND THE POLICIES, REGULATIONS, AND ALLOCATION RATES FOR STATE BUDGET EXPENDITURES; PROJECTS AND TASKS APPROVED BY AUTHORIZED AUTHORITIES, MINISTRIES, CENTRAL ORGANIZATIONS, AND LOCALITIES SHALL DEVELOP DETAILED REGULAR EXPENSE BUDGETS FOR EACH SPENDING CATEGORY TO ENSURE THE SATISFACTION OF MAJOR POLITICAL TASKS, FULL IMPLEMENTATION OF GOVERNMENT POLICIES AND REGULATIONS, ESPECIALLY THOSE RELATING TO HUMAN RESOURCES, SOCIAL WELFARE, AND POLICIES BENEFITING CITIZENS.

BUDGET ESTIMATES FOR PROCUREMENT, MAINTENANCE, AND REPAIR OF ASSETS MUST BE BASED ON CURRENT STANDARDS, ALLOCATION RATES, AND MANAGEMENT REGULATIONS FOR PUBLIC ASSETS; EXPENSES FOR MAINTENANCE AND REPAIR OF INFRASTRUCTURE MUST COMPLY WITH REGULATIONS. REGULAR EXPENSES SHALL NOT BE ALLOCATED FOR NEW TASKS INVOLVING URBANIZATION, UPGRADE, AND EXPANSION AS PROVIDED IN POINT a, CLAUSE 1, ARTICLE 6 OF THE PUBLIC INVESTMENT LAW AND GUIDING DOCUMENTS (INCLUDING TASKS LISTED IN CLAUSE 12, ARTICLE 3 OF RESOLUTION NO. 973/2020/UBTVQH14 OF THE STANDING COMMITTEE OF THE NATIONAL ASSEMBLY ON PRINCIPLES, CRITERIA, AND ALLOCATION RATES FOR CAPITAL INVESTMENTS FROM THE STATE BUDGET FOR THE 2021-2025 PERIOD). FOR THE FIELD OF NATIONAL DEFENSE AND SECURITY, IMPLEMENTATION SHALL FOLLOW DECREE NO. 165/2016/NĐ-CP OF THE GOVERNMENT ON MANAGEMENT AND USE OF THE STATE BUDGET FOR CERTAIN ACTIVITIES IN THE FIELD OF NATIONAL DEFENSE AND SECURITY ISSUED ON DECEMBER 24, 2016, AND DECREE NO. 01/2020/NĐ-CP OF THE GOVERNMENT AMENDING AND COMPLETING DECREE NO. 165/2016/NĐ-CP ISSUED ON MAY 14, 2020.

b) THE 2023 REGULAR EXPENSE BUDGET FROM THE STATE BUDGET OF GOVERNMENT ADMINISTRATIVE UNITS, PARTIES, AND ASSOCIATIONS SHALL BE DEVELOPED IN CONJUNCTION WITH THE IMPLEMENTATION OF CONCLUSION NO. 28-KL/TW; HEREIN, THE SALARY FUND CALCULATED BASED ON THE STAFFING LEVEL GRANTED (IF ANY) OR ACCORDING TO CONCLUSION NO. 28-KL/TW, THEREBY SPECIFYING THE EFFECTS OF INCREASES OR DECREASES IN THE SALARY FUND IN 2023 COMPARED TO 2022; ENSURING MAXIMUM SAVINGS IN REGULAR EXPENSES, ESPECIALLY IN GOVERNMENT PURCHASES, TRAVEL BOTH DOMESTIC AND OVERSEAS, USE OF GOVERNMENT VEHICLES, ORGANIZATION OF MEETINGS, SEMINARS, RESEARCH, SURVEYS, AND ENERGY SAVING.

IN ADDITION TO CONTINUOUSLY SAVING 10% OF REGULAR EXPENSES TO CREATE FUNDS FOR SALARY REFORM AS REQUIRED, ADDITIONAL AVERAGE SAVINGS OF 10% OF REGULAR EXPENSES FROM THE STATE BUDGET OF GOVERNMENT ADMINISTRATIVE UNITS SHALL BE IMPLEMENTED FROM THE BUDGET ESTIMATION STAGE (EXCEPT FOR SALARIES, ALLOWANCES ACCOMPANYING SALARIES, EXPENSES WITH THE NATURE OF SALARIES, EXPENSES FOR HUMAN RESOURCES ACCORDING TO REGULATIONS, AND SPECIAL EXPENSES THAT CANNOT BE REDUCED SUCH AS ANNUAL FEES, EXPENSES ACCORDING TO CONTRACTS FOR GOODS AND SERVICES SIGNED PRIOR TO AND CONTINUING IN 2023) TO PROVIDE FUNDS FOR INCREASED EXPENDITURE ON PUBLIC INVESTMENTS AND OTHER URGENT TASKS WITHIN THE RESPONSIBILITY OF BUDGET LEVELS ACCORDING TO THE DIVISION OF RESPONSIBILITIES.

c) THE 2023 OPERATIONAL BUDGET FROM THE STATE BUDGET OF PUBLIC SERVICE UNITS SHALL BE DEVELOPED BASED ON THE GOALS OF REFORMING PUBLIC SERVICE UNITS ACCORDING TO RESOLUTION NO. 19-NQ/TW, RESOLUTION NO. 01/2021/UBTVQH15, AND THE PROVISIONS IN DECREE NO. 60/2021/NĐ-CP. AMONG WHICH:

- NO BUDGET ESTIMATE FOR REGULAR EXPENSES FROM THE STATE BUDGET TO SUPPORT PUBLIC SERVICES THAT HAVE COMPLETED THE PRICE AND FEE TRANSITION PROCESS BY 2022 OR ARE EXPECTED TO COMPLETE IN 2023.

- PUBLIC SERVICE UNITS THAT SELF-FUND A PORTION OF THEIR REGULAR EXPENSES UNDER MINISTRIES AND CENTRAL ORGANIZATIONS SHALL DEVELOP A 2023 STATE BUDGET ESTIMATE REDUCING MINIMUM 3% OF DIRECT SUPPORT FROM THE STATE BUDGET COMPARED TO THE 2022 BUDGET ESTIMATE, CORRESPONDINGLY REDUCING THE NUMBER OF STAFF RECEIVING SALARIES FROM THE STATE BUDGET IN ACCORDANCE WITH THE REDUCTION IN REGULAR EXPENSES FROM THE BUDGET.

- PUBLIC SERVICE UNITS FULLY FUNDED BY THE STATE BUDGET UNDER MINISTRIES AND CENTRAL ORGANIZATIONS SHALL CONTINUE TO REDUCE MINIMUM 2% OF DIRECT EXPENSES FROM THE STATE BUDGET COMPARED TO THE 2022 BUDGET ESTIMATE, EXCEPT FOR ESSENTIAL PUBLIC SERVICES GUARANTEED BY THE STATE BUDGET.

d) EXPENSES FOR ECONOMIC ACTIVITIES

EXPENSES FOR ECONOMIC ACTIVITIES FROM ROAD USAGE FEES SHALL BE BASED ON THE CRITERIA FOR ALLOCATING FUNDS APPROVED BY AUTHORIZED AUTHORITIES. THE MINISTRY OF TRANSPORT SHALL PROPOSE A DISTRIBUTION PLAN FOR FUNDS TO LOCALITIES AND SUBMIT IT TO THE MINISTRY OF FINANCE AT THE SAME TIME AS THE PROPOSAL FOR THE 2023 STATE BUDGET ESTIMATE AND THE THREE-YEAR FINANCIAL PLAN FROM 2023 TO 2025.

BASED ON THE REVENUE FROM VIOLATION PENALTIES IN THE FIELD OF TRAFFIC SAFETY IMPLEMENTED BY THE POLICE IN 2021, THE MINISTRY OF PUBLIC SECURITY SHALL PROPOSE SPECIFIC PERCENTAGES FOR THE DISTRIBUTION BETWEEN THE STATE TREASURY AND LOCAL BUDGETS AND THE PRINCIPLES AND CRITERIA FOR ALLOCATING TARGETED SUPPLEMENTARY FUNDS (WITH DETAILED EXPLANATIONS), TO BE COMBINED WITH THE REPORT ON THE 2023 STATE BUDGET ESTIMATE AND THE THREE-YEAR PLAN FROM 2023 TO 2025 TO BE SUBMITTED TO THE GOVERNMENT AND AUTHORIZED AUTHORITIES AS REQUIRED.

đ) EXPENSES FOR THE OPERATIONS OF GOVERNMENT ADMINISTRATIVE UNITS, PARTIES, AND ASSOCIATIONS SHALL BE CLEARLY DEFINED:

- The number of authorized positions for 2023 (if applicable); in cases where positions have not been allocated, continue to reduce positions for those who have not achieved the target set forth in Resolution No. 39-NQ/TW dated April 17, 2015 of the Politburo until the end of 2022, or according to the position allocation of 2022 for those who have already achieved the target set forth in Resolution No. 39-NQ/TW, clearly stating the actual number of positions present as of July 1, 2022, and the number of positions not yet filled based on the 2023 position allocation.

- Determine the salary fund for rank and grade levels, allowances based on salary, and contributions under the prescribed regulations at the basic salary level of 1,490,000 VND/month (for a full 12 months) guaranteed by the State Budget: (i) The salary fund based on the authorized position allocation for 2023 shall be determined as above, including the salary fund of the actual number of positions present as of July 1, 2022, which is determined based on the salary scale according to rank, grade, and position; allowances based on salary and contributions under the regulations, and the salary fund of unfilled positions (but still within the total authorized position allocation), calculated based on a monthly salary of 1,490,000 VND and the salary coefficient of Grade 1 for Class A1 civil servants, allowances based on salary, and contributions as prescribed; (ii) Reduce the salary fund for cases that must continue to streamline positions. In cases where agencies and units have plans to recruit according to Decree No. 140/2017/NĐ-CP dated December 5, 2017 of the Government on policies to attract and create sources of cadres from outstanding graduates, young scientists, or recruit experienced cadres, civil servants, and experts with higher coefficients than the salary coefficient of Grade 1 for Class A1 civil servants according to the project or approved plan, then determine the additional salary fund for these subjects as prescribed.

- Explain the basis for preparing the budget estimate for special expenditure items (legal basis, content of expenditure, expenditure level, other related contents) in 2023 in the spirit of thrift and efficiency.

- Ministries, central agencies, and localities direct subordinate agencies and units under their management to prepare the budget estimate for funding the work of building, perfecting, implementing, and supervising the implementation of laws in accordance with the regulations (clearly identifying the funding for building and perfecting laws as basic investment funds for legal infrastructure according to Decision No. 04/QĐ-TTg dated January 7, 2021 of the Prime Minister promulgating the Implementation Plan for Conclusion No. 83-KL/TW dated July 29, 2020 of the Politburo on the summary of the implementation of Resolution No. 48-NQ/TW dated May 24, 2005 of the Politburo of the Ninth Congress on the Strategy for Building and Perfecting Vietnam's Legal System until 2010, with a vision to 2020) and prioritize allocation within the assigned budget to ensure the implementation of this work.

e) Agencies and units build (with detailed explanations) and incorporate into the state budget estimate regular expenditures related to the handling of public assets, restructuring and disposing of real estate, converting ownership of enterprises, and public service units as prescribed (if applicable). For regular expenditures to implement tasks stipulated in Decree No. 148/2021/NĐ-CP, they should be incorporated into the budget estimate for economic activities of the state budget.

g) For regular expenditures of programs and projects funded by ODA (including loans and grants), preferential loans, and non-reimbursable grants not included in official development assistance:

Based on agreements and commitments already signed and to be signed with donors, progress in implementing project documents or grants, and financial mechanisms (if any) approved by competent authorities, ministries, central agencies, and localities shall prepare detailed budget estimates for each program, project, grant, and counterpart funds (if any), itemized by expenditure category and disbursement mechanism (implementing revenue and expenditure recording or disbursing according to domestic financial mechanisms); for localities, clearly allocate these funds between the local state budget and supplementary state budget funds for localities.

For programs and projects funded by both government allocations and loan repayments (for ongoing tasks), the agency responsible for managing the programs and projects shall guide the preparation and consolidation of budget estimates for each portion of the funds.

For programs and projects involving multiple central ministries, agencies, and localities, these entities shall prepare budget estimates for expenditures from foreign sources and provide detailed explanations of the allocation basis to the Ministry of Finance and the Ministry of Planning and Investment for consolidation and submission to the competent authority for decision-making, and also send to the main managing agency of the programs and projects for consolidation and monitoring.

5. Prepare the budget estimate for foreign aid expenditures

Based on the commitments of the Vietnamese Government to foreign governments for the five-year period from 2021 to 2025 (if applicable) and annual commitments with recipient countries, and based on the progress of implementing programs and projects funded by Vietnamese Government aid, and the ability to disburse aid funds for programs and projects in 2022, agencies tasked by the Government to lead the planning of aid funds shall prepare budget estimates for aid expenditures for each program and project using aid funds, and the consolidated budget estimates for each recipient partner.

6. For political social-professional organizations, social organizations, and social-professional organizations:

a) In cases where the competent authority has allocated positions: implement budget allocation based on the number of positions allocated by the competent authority, applying the principle of allocating regular expenditures of the state budget in the field of state administration and supporting tasks assigned by the competent authority.

b) For other mass organizations ensuring the principles of voluntarism, self-management, self-funding, and operating according to their charters and complying with the law: the state budget supports tasks assigned by the competent authority.

7. For agencies and units currently applying financial mechanisms as prescribed in Article 5 of the State Budget Law or approved by the competent authority:

a) Pursuant to Resolution No. 27-NQ/TW of the 7th Plenary Session of the Central Committee (Term XII) on implementing salary policy reform (Resolution No. 27-NQ/TW), Resolution No. 01/2021/UBTVQH15, Decision No. 30/2021/QĐ-TTg, and Directive No. 21/CT-TTg dated August 5, 2021 of the Prime Minister on enhancing the effectiveness of implementation and innovating financial management mechanisms linked with the characteristics of administrative state agencies, all agencies and units are required to report specifically on the progress and contents submitted to competent authorities regarding measures to ensure the effectiveness of operations when implementing salary reform according to Resolution No. 27-NQ/TW; report on the amount of regular expenditure savings in the years 2021-2022; comprehensively assess revenue-expenditure tasks for the year 2022 and forecast for 2023, to be sent to the Ministry of Finance for consolidation and reporting to competent authorities at the same time as building the State Budget estimate.

b) When building the regular expenditure budget for 2023, all agencies and units must save a minimum of 15% compared to the 2022 budget from the planning stage (excluding salary payments, allowances based on salary, expenses with a nature similar to salary, human resource expenses under regulations, and special expenses that cannot be reduced such as annual premiums, expenses under existing contracts for goods and services signed before and continued in 2023).

c) The allocation of the investment and construction budget for 2023 shall be carried out in accordance with the Law on Public Investment, the progress of tasks, and available resources.

8. Ministries managing sectors and fields, while preparing the State Budget expenditure plan for 2023 (the part directly implemented by ministries), should simultaneously proactively request reports from relevant ministries, sectors, and localities evaluating the situation and needs to implement mechanisms and policies issued and effective in 2023. Based on this, they should aggregate and determine the total funding requirements, accompanied by detailed explanations of the basis for calculation, to be sent to the Ministry of Finance and the Ministry of Planning and Investment along with the State Budget estimate for 2023 and the three-year plan for 2023-2025 of the agency or unit.

9. Building the budget for national target programs and other programs, projects, and plans:

a) Pursuant to the Law on State Budget, the Law on Public Investment, based on the Prime Minister's approval decisions, management mechanisms, and implementation of national target programs as stipulated in Decree No. 27/2022/NĐ-CP dated April 19, 2022 of the Government, guidance documents for implementation, medium-term plans assigned (if any), announced inspection results, implementation capacity in 2022, central agencies responsible for programs should build the 2023 State Budget expenditure plan and propose a roadmap for implementation during the period 2023-2025 for each central agency and locality, detailing expenditure tasks for public investment, regular expenditure by each spending area, central government budget, local government budget, integrated program and project funds, and other legally raised sources (if any), to be sent to the Ministry of Finance and the Ministry of Planning and Investment along with the State Budget estimate for 2023 and the three-year plan for 2023-2025 of the agency or unit.

b) For other programs, projects, and plans: Central agencies should base their decisions on approval, guidance documents, implementation status in 2022, and prepare the budget, aggregating it into the regular expenditure budget report for 2023, detailing by each spending area according to State Budget management regulations.

10. Budget for generating sources for salary reform, adjusting pensions, social insurance benefits, monthly allowances (part covered by the State Budget), preferential allowances for persons with meritorious service:

a) Central agencies should prepare the budget for generating sources for salary reform from regular expenditure savings and a portion of income from public services according to Resolution No. 27-NQ/TW.

b) Administrative agencies at the central level applying special mechanisms should forecast the new salary fund according to the approved mechanism by the competent authority (if any) or according to Resolution No. 01/2021/UBTVQH15 dated September 1, 2021 of the Standing Committee of the National Assembly and Decision No. 30/2021/QĐ-TTg of the Prime Minister; simultaneously report specifically on the impacts of increases and decreases compared to the current salary fund and the ability to balance from retained sources.

c) Publicly funded organizations continue to implement solutions to generate sources for salary reform according to Resolution No. 27-NQ/TW and Decree No. 60/2021/NĐ-CP, ensuring self-funding for the additional salary increase in line with the self-funded regular expenditure of the organization.

d) Localities should aggregate and report the budget for generating sources to implement salary reform in 2023.

đ) For pension adjustment funds, social insurance benefits, monthly allowances (part covered by the State Budget), preferential allowances for persons with meritorious service, agencies and departments should prepare the budget according to the State regulations based on their assigned tasks and functions.

11. Preparing the budget for implementing the policy of streamlining the workforce:

The preparation of the budget for implementing the policy of streamlining the workforce in 2023 shall be carried out in accordance with the Government's regulations and implementation guidelines.

12. For the budget for public services from retained revenue: Central agencies and localities should prepare the budget from retained revenue and report to the competent authority according to the form prescribed in Circular No. 342/2016/TT-BTC dated December 30, 2016 of the Ministry of Finance detailing and guiding the implementation of certain provisions of Decree No. 163/2016/NĐ-CP, but not aggregated into the State Budget expenditure plan of central agencies and localities.

13. BASED ON THE 2023 BUDGET REVENUE AND EXPENDITURE AUDIT NUMBER, MINISTRIES, CENTRAL AGENCIES, AND LOCALITIES SHALL DEVELOP A TIGHT AND DETAILED SPENDING BUDGET FOR EACH FIELD AS PROVIDED IN THE STATE BUDGET LAW, FOR EACH TASK, AND FOR EACH SUBORDINATE BUDGET-FUNDING UNIT; AFTER DISCUSSING WITH THE MINISTRY OF FINANCE AND THE MINISTRY OF PLANNING AND INVESTMENT, SUCH MINISTRIES, CENTRAL AGENCIES, AND PROVINCES AND MUNICIPALITIES SHALL PROMPTLY IMPLEMENT THE WORK OF ESTABLISHING BUDGET ALLOCATION SCHEMES FOR THEIR 2023 BUDGETS TO SUBMIT TO THE AUTHORIZED AUTHORITIES FOR DECISION ON ALLOCATION BY FIELD AND ASSIGNMENT OF THE BUDGET TO BUDGET-FUNDING UNITS TO ENSURE COMPLETION BEFORE DECEMBER 31, 2022, IN ACCORDANCE WITH THE STATE BUDGET LAW.

Article 15. BUILDING THE FINANCIAL PLAN FOR NATIONAL FINANCIAL FUNDS OUTSIDE THE BUDGET

BASED ON THE RESULTS OF REVIEWING AND EVALUATING NATIONAL FINANCIAL FUNDS OUTSIDE THE BUDGET, MINISTRIES, CENTRAL AGENCIES, AND LOCAL AUTHORITIES RESPONSIBLE FOR MANAGING SUCH FUNDS SHALL PROJECT PLANS FOR RESTRUCTURING, MERGING, SUSPENDING, OR DISSOLVING FUNDS THAT ARE INEFFECTIVE OR NOT IN ACCORDANCE WITH THE LAW IN 2023; THEY SHALL ALSO PREPARE FINANCIAL INCOME AND EXPENDITURE PLANS FOR 2023 FOR REMAINING FUNDS UNDER THEIR MANAGEMENT IN ACCORDANCE WITH THE STATE BUDGET LAW AND RELATED LEGISLATION, AND SUBMIT THESE PLANS ALONG WITH THEIR 2023 STATE BUDGET PROJECTIONS TO THE SAME-LEVEL FINANCIAL AUTHORITIES (INCLUDING DETAILED EXPLANATIONS OF THE BEGINNING BALANCES; NEW INCOME GENERATED FROM THE STATE BUDGET LEVEL, FROM RAISING FUNDS, AND FROM SUPPORT; EXPENDITURES FOR TASKS IN THE YEAR; CHANGES IN CAPITAL CONTRIBUTIONS AND OPERATIONAL FUNDS OF SUCH FUNDS).

Article 16. BUILDING THE BUDGET PROJECTION FOR THE GOVERNMENT'S DEVELOPMENT BUDGET

IN ADDITION TO GENERAL GUIDELINES ON THE PREPARATION OF THE STATE BUDGET AS PROVIDED IN CURRENT LEGAL DOCUMENTS AND THIS CIRCULAR, THE PREPARATION AND CONSTRUCTION OF THE GOVERNMENT'S DEVELOPMENT BUDGET SHOULD PAY ATTENTION TO THE FOLLOWING MAIN CONTENTS:

1. Construction of the State Revenue Estimate:

THE PEOPLE’S COMMITTEES AT THE PROVINCE LEVEL SHALL DIRECT THE FINANCE, TAX, CUSTOMS AUTHORITIES, AND COOPERATE WITH OTHER RELEVANT AUTHORITIES TO STRICTLY IMPLEMENT THE PREPARATION OF THE 2023 STATE BUDGET INCOME PROJECTIONS IN ACCORDANCE WITH THE LAW.

LOCALITIES SHALL PREPARE THE BUDGET BASED ON THE TOTAL INCOME FROM TAXES, FEES, AND OTHER INCOMES ON THEIR TERRITORIES AS PROVIDED IN ARTICLE 7 OF THE STATE BUDGET LAW AND RELATED LEGISLATION. REQUIREMENTS INCLUDE POSITIVE, REALISTIC, AND COMPLETE INCOME PROJECTIONS, INCLUDING NEW INCOMES GENERATED ON THE TERRITORY, TO CALCULATE THE CORRECT AND FULL SOURCES OF INCOME; SPECIFIC ANALYSIS AND EVALUATION OF THE IMPACTS ON THE 2023 STATE BUDGET INCOME PROJECTIONS BY AREA, SECTOR, INCOME CATEGORY, AND TAX TYPE. LOCALITIES SHALL DIRECT THE AUTHORITIES AND UNITS AND SUBORDINATES TO CLOSELY COOPERATE IN FORECASTING AND PREPARING INCOME PROJECTIONS FROM LAND (LAND USE FEES, LEASE FEES, WATER SURFACE LEASE FEES), IMPROVING THE QUALITY OF INCOME PROJECTIONS, AND ADDRESSING THE ISSUE OF INACCURATE FORECASTS AND PROJECTIONS FROM LAND IN THE PAST PERIOD.

2. REGARDING THE PREPARATION OF THE GOVERNMENT'S DEVELOPMENT BUDGET EXPENDITURE PROJECTIONS:

BASED ON THE PROVISIONS IN CLAUSE 2, ARTICLE 2 OF RESOLUTION NO. 40/2021/QH15 OF NOVEMBER 13, 2021 OF THE NATIONAL ASSEMBLY ON THE ALLOCATION OF THE STATE BUDGET FOR 2022, AND DIRECTIVE NO. 12/CT-TTg OF JULY 22, 2022 OF THE PRIME MINISTER ON THE DEVELOPMENT PLAN AND THE 2023 STATE BUDGET PROJECTIONS, LOCALITIES SHALL PREPARE THE 2023 GOVERNMENT'S DEVELOPMENT BUDGET EXPENDITURE PROJECTIONS BASED ON THE 2022 BUDGET ALLOCATED BY THE NATIONAL ASSEMBLY AND THE PRIME MINISTER, AND THE NEEDS FOR INCREASED EXPENDITURE TO IMPLEMENT LAWS AND POLICIES.

BASED ON THE 2023 GOVERNMENT'S DEVELOPMENT BUDGET, THE PERCENTAGE OF INCOME SHARING BETWEEN THE STATE BUDGET AND THE BUDGET OF EACH PROVINCE AND CITY DIRECTLY UNDER THE CENTRAL GOVERNMENT REDEFINED FOR THE 2023-2025 PERIOD AND THE SUPPLEMENTARY BALANCE FOR 2023 DECIDED BY THE NATIONAL ASSEMBLY, THE PEOPLE’S COMMITTEES AT THE PROVINCE LEVEL SHALL DETERMINE THE PERCENTAGE OF INCOME SHARING BETWEEN LOCAL GOVERNMENT LEVELS AND THE SUPPLEMENTARY BUDGET FOR LOWER LEVELS TO BE SUBMITTED TO THE PROVINCE PEOPLE'S CONGRESS FOR DECISION TO APPLY FROM 2023.

At the same time, implement the following main contents:

a) FOR THE GOVERNMENT'S DEVELOPMENT BUDGET EXPENDITURE PROJECTIONS FOR PUBLIC INVESTMENT: BASED ON THE PROVISIONS OF THE PUBLIC INVESTMENT LAW; EVALUATION OF IMPLEMENTATION IN 2022 AND THE MID-TERM PUBLIC INVESTMENT PLAN WITH STATE BUDGET FUNDS FOR THE 2021-2025 PERIOD; PREPARE THE 2023 GOVERNMENT'S DEVELOPMENT BUDGET EXPENDITURE PROJECTIONS FOR PUBLIC INVESTMENT IN DETAIL, INCLUDING THE BALANCED GOVERNMENT'S DEVELOPMENT BUDGET SOURCES (INCLUDING BASIC CONSTRUCTION INVESTMENT, INVESTMENT FROM LAND USE FEES, LOTTERY INVESTMENT, INVESTMENT AS PROVIDED IN DECREE NO. 148/2021/NĐ-CP IF APPLICABLE, INVESTMENT FROM THE GOVERNMENT'S DEVELOPMENT BUDGET SURPLUS IF APPLICABLE); PROJECTIONS FOR PROJECTS USING FOREIGN FUNDS (LOANS, GRANTS), AND ARRANGE SUFFICIENT MATCHING FUNDS FOR LOCALITIES.

FOR ONGOING AND TRANSFERRED INVESTMENT PROJECTS UNDER THE MID-TERM PROGRAMS FOR THE 2016-2020 PERIOD THAT HAVE BEEN ADDED TO THE GOVERNMENT'S DEVELOPMENT BUDGET FOR INDUSTRIES AND SECTORS FROM 2021 BY THE MINISTRY OF PLANNING AND INVESTMENT, LOCALITIES SHALL EVALUATE THE IMPLEMENTATION IN 2022, ACCUMULATED UNTIL NOW, AND PREPARE THE 2023 PROJECTIONS BY SECTOR.

LOCALITIES SHALL PREPARE SEPARATE PROJECTIONS FOR GOVERNMENT'S DEVELOPMENT BUDGET EXPENDITURE TASKS FOR RECOVERY AND DEVELOPMENT ACCORDING TO THE PROGRAM, IN DETAIL BY SOURCE (STATE BUDGET, LOCAL BUDGET IF ANY), BY EXPENDITURE SECTOR, WITH ATTACHMENTS SUMMARIZING EACH TASK, APPROVED INVESTMENT LEVEL, STATE BUDGET AND LOCAL BUDGET SOURCES, AMOUNTS ALREADY ARRANGED AND ESTIMATED IMPLEMENTATION BY SOURCE AS OF JANUARY 31, 2023, AND PROPOSALS FOR 2023 BUDGET PROJECTIONS BY SOURCE.

b) ALLOCATE FUNDS TO FULLY AND TIMELY REPAY GOVERNMENT'S DEVELOPMENT BUDGET LOANS WHEN DUE, ESPECIALLY PRINCIPAL LOANS FROM VIETNAM DEVELOPMENT BANK UNDER THE ZERO INTEREST RATE CREDIT PROGRAM.

c) FOR LOTTERY INCOME SOURCES:

Localities shall prepare budgets closely reflecting lottery revenues (including revenues from lottery computer games) and continue to allocate all lottery revenues for investment in public services (DTPT), prioritizing education and training, vocational training (including investments in purchasing teaching equipment for the new general education curriculum) and healthcare; the remainder shall be prioritized for implementing projects on disaster prevention and mitigation, climate change adaptation,新农村发展和其它重要的国家预算投资对象。

d) Regarding the use of ticket revenue from participating in casino games:

Localities permitted by competent authorities to pilot allowing Vietnamese citizens to participate in casino operations may use the revenue from such participation to fund public service investments aimed at social welfare, community service, ensuring social security and order, with a minimum allocation of 60% for education, training, vocational training, and healthcare, as stipulated in Clause 3, Article 5 of Circular No. 102/2017/TT-BTC dated October 5, 2017 issued by the Ministry of Finance guiding certain provisions of Decree No. 03/2017/NĐ-CP dated January 16, 2017 of the Government on casino business operations.

đ) The State Budget (NSĐP) shall re-determine the 10% savings from regular expenditures in 2023 for salary reform as prescribed.

e) For localities permitted to adjust and supplement staffing levels in education and healthcare sectors according to decisions of competent authorities, they shall continue to proactively allocate budget funds to ensure funding for additional staff salaries; for increased salary needs due to salary reform, these shall be aggregated into the local salary reform requirements and processed according to current regulations.

g) Funding for multi-dimensional poverty standards approved by competent authorities and Government Resolutions, detailed for each type of multi-dimensional poverty standard, specifically the number of beneficiaries and funding requirements for social welfare policies in 2023 based on multi-dimensional poverty criteria for the 2021-2025 period; funding for some policies encouraging and supporting marine product exploitation and cultivation and marine product exploitation services in distant sea areas; funding for social welfare systems and policies issued by the central government and effective after September 1, 2021.

Payment of interest, fees, and other expenses: Prepare a separate budget item within the balanced budget for timely and full payment of maturing debts; include detailed explanations of payments by each source of borrowing (if applicable), including foreign loans, government loans to localities, development credit, and issuance of local government bonds.

3. Prepare the budget deficit/surplus forecast, borrowing plans, and principal and interest repayment plans for the State Budget in accordance with the Law on State Budget and related guiding documents.

Chapter IV

PREPARATION OF FINANCIAL PLANS - STATE BUDGET FOR THE 2023-2025 PERIOD

Article 17. Basis and Requirements for Preparation

1. Implement the provisions of the Law on State Budget, Decree No. 45/2017/NĐ-CP of the Government detailing the preparation of five-year financial plans and three-year financial-state budget plans, Circular No. 69/2017/TT-BTC of the Ministry of Finance dated July 7, 2017 guiding the preparation of five-year financial plans and three-year financial-state budget plans (Circular No. 69/2017/TT-BTC), relevant tax laws, management of taxes, Law on Fees and Charges, Law on Public Investment, Law on Public Debt Management, Law on State Asset Management, and related legal documents; the Ten-Year Socio-Economic Development Strategy 2021-2030, five-year plans for the 2021-2025 period; Central Committee Resolutions XII on streamlining institutions, reducing staffing, reforming public service units, and resolutions on salary reform, social insurance...; principles, criteria, and standards for public investment expenditure during the 2021-2025 period and principles, criteria, and standards for regular expenditure in 2022; based on the reviewed and updated three-year financial-state budget plan 2022-2024 up to March 31, 2022; based on agreements and loan and aid agreements that have been or will be signed and implemented in 2023-2025; regulations on the stable period of the state budget; based on the ceiling of expenditures for the 2023-2025 period announced by the finance, planning, and investment departments and the 2023 state budget draft prepared in accordance with Chapter III of this circular, ministries, agencies, and units at the central level and provincial-level units shall prepare the three-year financial-state budget plan 2023-2025 in accordance with the regulations.

In cases where the expenditure needs of central ministries, agencies, and provincial-level units in 2023-2025 significantly increase or decrease compared to the budget (including supplementary budgets in the year) and the estimated expenditure in 2022, exceeding the financial resources of the state budget that the finance and investment departments have updated and announced for the 2023-2025 period, the ministries, central agencies, and provincial-level units shall provide explanations and solutions to mobilize additional non-budgetary financial resources to ensure that expenditure needs can be met with available resources.

2. The budget for expenditures in 2023-2025 shall be prepared based on a basic salary of 1,490,000 VND/month. Based on the decision of the competent authority regarding the implementation plan for salary reform according to Resolution No. 27-NQ/TW dated May 21, 2018 of the 7th Plenary Session of the 12th Central Committee on salary policy reform for civil servants, public officials, military personnel, and workers in enterprises, the Ministry of Finance will announce and guide accordingly.

3. The preparation, reporting, consolidation, and submission of the three-year financial-state budget plan 2023-2025 shall be carried out concurrently with the process of preparing the 2023 state budget draft.

Article 18. Establishing the State Budget Revenue Plan

1. The State Budget Revenue Plan for the three-year period 2023-2025 shall be established in accordance with the requirements stipulated in Article 17 of this Circular, and at the same time:

a) Based on the capacity for economic development nationwide, by industry, sector, and locality from 2022 to 2024, consistent with the Ten-Year Socio-Economic Development Strategy for 2021-2030, the five-year plans for the period 2021-2025, and the contents and tasks of implementing the Program for Recovery and Development of the Economy and Society pursuant to Resolution No. 43/2022/QH15 of the National Assembly and Resolution No. 11/NQ-CP of the Government; factors affecting investment capacity, labor productivity, competitiveness, improvement of the business environment, support for production and business operations of enterprises, and trade activities including import and export; factors influencing the process of international integration.

b) Factors expected to increase, decrease, or shift revenue sources due to adjustments in tax policies, expansion of tax bases, enhanced tax collection management pursuant to Resolution No. 07-NQ/TW; Resolution No. 23/2021/QH15 on the National Financial Plan and Borrowing and Repayment of Public Debt for the five-year period 2021-2025; implementation of guiding documents for the Law on Tax Administration No. 38/2019/QH14; implementation of the schedule for reducing tariffs according to commitments under international integration; certain corporate income tax policies aimed at supporting and developing businesses; mobilization from the informal economy sector.

c) Revenue impact from adjusting prices and fees for public services according to the schedule of incorporating full cost recovery into public service prices as prescribed by law.

During the period 2023-2025, efforts should be made to achieve an average annual growth rate of domestic revenue excluding land use fee revenue, lottery revenue, proceeds from selling state-owned shares in enterprises, dividends, post-tax profits, and the difference between revenue and expenditure of the State Bank of approximately 8-9%; an average annual growth rate of approximately 5% for revenue from import and export activities. The specific increase in revenue for each locality may be higher or lower than the national average, depending on local conditions, characteristics, and consistency with the economic growth rate in each locality.

2. The budget estimates for fees and charges for the years 2023-2025 shall be positive and detailed for each type of fee and charge as prescribed (revenue amount, amount remitted to the State Budget) and only consolidated into the State Budget Revenue Estimate for the portion of fees and charges remitted to the State Budget.

3. For retained revenues, tuition fees, medical service prices, service revenue from public services not included in the list of fees and charges, and revenues transferred to a service pricing mechanism: separate revenue plans shall be established in accordance with regulations and usage plans shall be developed and submitted to supervisory authorities for approval and continued implementation of the mechanism to generate funds from these revenues for salary reform as prescribed; and submitted to the financial authority at the same level as prescribed.

Article 19. Establishing the State Budget Expenditure Plan for the Three-Year Period 2023-2025 for Ministries, Central Agencies, and Provincial Agencies

1. The State Budget Expenditure Plan for the three-year period 2023-2025 for ministries, central agencies, and provincial agencies shall be established in accordance with the requirements stipulated in Article 17 of this Circular; the 2023 budget estimate shall be established in Chapter III of this Circular; specifically detailing the objectives, tasks, programs, projects (including national target programs), policies, and systems that have expired or newly approved by competent authorities, particularly noting the implementation of Resolutions No. 18-NQ/TW, No. 19-NQ/TW, Conclusion No. 28-KL/TW, and generating resources for salary reform pursuant to Resolution No. 27-NQ/TW and Decree No. 60/2021/NĐ-CP.

2. During the process of establishing the State Budget Expenditure Estimate for 2023, ministries, central agencies, and provincial agencies shall simultaneously detail their base expenditures and new expenditures for the 2023 budget estimate in accordance with Articles 5 and 6 of Circular No. 69/2017/TT-BTC of the Ministry of Finance to serve as the basis for determining base expenditures, new expenditures, and the total demand for investment and maintenance and operation expenses in the 2023-2025 expenditure plan.

3. For ministries managing industries and sectors, while establishing the annual State Budget Revenue and Expenditure Plans for the period 2023-2025 (the part directly implemented by the ministry), it is necessary to calculate and determine the total funding requirements for mechanisms, policies, and tasks issued annually during the period 2023-2025 nationwide, accompanied by detailed explanations of the calculation basis.

Article 20. Financial Plan - State Budget for the 2023-2025 Period of Provinces and Central Cities

In addition to the relevant contents regarding the work of preparing the revenue and expenditure plan for the State Budget for the 2023-2025 period as stipulated in Articles 17 and 18 of this Circular, the preparation of the financial plan - State Budget for the 2023-2025 period of provinces and central cities must also pay attention to the following matters:

1. The People's Committee of the province shall direct the Department of Planning and Investment to forecast the socio-economic development situation in the locality for the years 2023-2025, and send it to the Department of Finance as the basis for preparing the financial plan - State Budget for the 2023-2025 period.

2. Based on the assigned revenue amount, the scope of State budget revenue as prescribed by the Law on State Budget and guiding documents, and the revenue budget for the locality in 2023 set out in Chapter III of this Circular, the People's Committee of the province shall direct the Department of Finance to take the lead and coordinate with the Tax Service, Customs Office, and other relevant agencies in the locality to prepare the State budget revenue plan for the 2023-2025 period, including:

a) Analyzing and evaluating specifically the impacts of increases, decreases, and shifts in revenue sources due to adjustments in tax policies linked to the goal of economic recovery and development; assessing the impact of revenue sources affected by epidemics and natural disasters; implementing five-year plans for the 2021-2025 period and guiding documents for the Law on Tax Administration No. 38/2019/QH14; implementing the schedule for reducing tariffs according to commitments under international integration; planning the implementation of new tax policies as stipulated in Resolution No. 07-NQ/TW; requiring measures to prevent revenue loss, recover overdue debts, combat transfer pricing, and tax fraud.

b) For fee and charge revenues, the preparation of the budget estimate shall be carried out in accordance with current regulations; incorporating the portion of fees paid into the State budget into the revenue budget for the 2023-2025 period; preparing a separate plan for retained revenue, school fees, healthcare service charges, public service charges, and other revenues (not included in the list of fees) for management, supervision, and creation of funding for salary reform for these entities.

3. On the basis of the forecasted revenue sources in the locality, the revenue of the locality under the decentralized system decided by the competent authority, and the forecasted supplementary funds from the Central State Treasury for the Provincial State Budget for the 2023-2025 period announced by the competent authority; the People's Committee of the province shall direct the Department of Finance to take the lead and coordinate with the Department of Planning and Investment, District People's Committees, and other relevant agencies in the locality to prepare the Provincial State Budget expenditure plan for the 2023-2025 period, ensuring priority allocation of sufficient funds to implement existing policies, programs, and commitments (including special policies decided by the Provincial People's Council); determining the need for targeted supplementary funds from the Central State Treasury for central policies for each year of the 2023-2025 period; for new local expenditure tasks in each year of the 2023-2025 period, allocating them in order of priority to achieve the main economic and social goals of the locality within the scope of available resources for each year 2023-2025.

4. Preparing the plan for implementing salary reform: To be implemented in accordance with Clause 10, Article 14 of this Circular.

5. The preparation of the deficit/surplus, borrowing, and repayment plans for the Provincial State Budget for the years 2022-2024 shall be carried out in accordance with the provisions of the Law on State Budget, Decree No. 45/2017/NĐ-CP of the Government, and Circular No. 69/2017/TT-BTC of the Ministry of Finance guiding the preparation of the five-year financial plan and the three-year financial plan - State Budget, ensuring that the local debt level at the end of each year does not exceed the limit prescribed (specifying the sources: Official Development Assistance loans, issuance of local government bonds, and other legitimate financial sources).

Chapter V

IMPLEMENTATION

Article 21. Responsibilities of Ministries, Central Agencies, and Localities

The responsibilities of ministries, central agencies, and People's Committees of provinces and centrally governed cities shall be implemented in accordance with the State Budget Law and guiding documents, as well as Clauses 2, 3, 4, and 5 of Article 17 of Decree No. 45/2017/NĐ-CP dated April 21, 2017 of the Government and Directive No. 12/CT-TTg dated July 22, 2022 of the Prime Minister.

Article 22. Regarding the Forms for Compiling and Reporting the 2023 State Budget Estimate and the Three-Year Financial Plan - State Budget 2023-2025

1. For the 2023 estimate: apply the forms prescribed in Circular No. 342/2016/TT-BTC dated December 30, 2016 of the Ministry of Finance detailing and guiding the implementation of certain provisions of Decree No. 163/2016/NĐ-CP (with particular attention to the application of forms No. 12.1 to 12.5 for public service sectors) and forms No. 01 and No. 02 issued together with this Circular.

2. For the detailed estimate of State budget revenue and expenditure from the reorganization and disposal of real estate: apply forms No. 03 and No. 04 issued together with this Circular.

3. For the three-year financial plan - State budget 2023-2025: apply forms No. 01 to No. 06 and forms No. 13 to No. 19 issued together with Circular No. 69/2017/TT-BTC of the Ministry of Finance guiding the compilation of five-year financial plans and three-year financial plans - State budget.

Article 23. Implementation Provisions

1. This Circular takes effect from September 12, 2022, and applies to the compilation of the 2023 State Budget Estimate and the three-year financial plan - State budget 2023-2025. The content, procedures, and timeframes for compiling the 2023 State Budget Estimate and the three-year financial plan - State budget 2023-2025 shall be carried out in accordance with the State Budget Law and the guidance provided in this Circular.

2. During the process of compiling the 2023 State Budget Estimate and the three-year financial plan - State budget 2023-2025, if new policies and regulations are issued, the Ministry of Finance will issue supplementary guidance notices; if any difficulties arise in the implementation process, ministries, central agencies, localities, state-owned economic groups, and corporations shall report to the Ministry of Finance for prompt resolution./.