Resolution No. 49/2017/QH14 on the State Budget Estimate for 2018

RESOLUTION
On the State budget estimate for 2018

OF THE NATIONAL ASSEMBLY

Based on the Constitution of the Socialist Republic of Vietnam;

Based on the Law on State Budget No. 83/2015/QH13 and Resolution No. 25/2016/QH14 dated November 9, 2016 of the National Assembly on the national financial plan for the 2016-2020 period;

On the basis of considering Report No. 464/BC-CP dated October 18, 2017 of the Government; Report No. 739/BC-UBTCNS14 dated October 20, 2017 of the Committee for Finance and Budget; Report No. 211/BC-UBTVQH14 dated November 10, 2017 of the Standing Committee of the National Assembly and the opinions of the National Assembly deputies,

RESOLVES:

Article 1. Approves the State budget estimate for 2018

1. The total revenue of the State budget is 1,319,200 billion VND (one million three hundred nineteen thousand two hundred billion VND).

2. The total expenditure of the State budget is 1,523,200 billion VND (one million five hundred twenty-three thousand two hundred billion VND).

3. The deficit of the State budget is 204,000 billion VND (two hundred four thousand billion VND), equivalent to 3.7% of Gross Domestic Product (GDP), including:

The central government budget deficit is 195,000 billion VND (one hundred ninety-five thousand billion VND), equivalent to 3.54% GDP;

The local government budget deficit is 9,000 billion VND (nine thousand billion VND), equivalent to 0.16% GDP.

4. The total amount of borrowing of the State budget, including borrowing to cover the deficit and borrowing to repay the principal of the State budget, is 363,284 billion VND (three hundred sixty-three thousand two hundred eighty-four billion VND).

(Annexes 1, 2, 3, and 4 attached)

Article 2. Adjusts the State budget estimate for 2017

1. Reduce the estimate of capital from government bonds by 14,033.795 billion VND, while increasing the estimate of foreign capital by 14,033.795 billion VND to allocate the budget for projects that have been disbursed but not yet allocated according to regulations since 2016. Supplement these projects into the list of projects in the mid-term public investment plan for the 2016-2020 period and use them from the mid-term foreign capital reserve fund. (Annex 5 attached).

2. Supplement 245.814 billion VND in the estimate of development expenditure from non-repayable aid funds in 2017 for the Vietnam Electricity Corporation and eight provinces according to the Memorandum No. 349/TTr-CP dated August 23, 2017 of the Government (Annex 6 attached).

3. Supplement 77.66 billion VND in the estimate of expenditure for environmental protection from the Asian Development Bank (ADB) loan for Thua Thien-Hue Province according to the Memorandum No. 403/TTr-CP dated October 4, 2017 of the Government.

Article 3. Assigns the Government to implement certain measures to manage fiscal and budget tasks in 2018

1. Prudently manage fiscal policy, closely coordinate with monetary policy to support production and business development, continue to stabilize macroeconomic conditions, control inflation, promote economic growth. Strictly enforce financial and budget discipline, comply with the State budget estimate in accordance with the provisions of the law. Strengthen inspection, auditing, and transparency in the use of the State budget.

2. Direct the implementation of tax laws, fees, and charges; study amendments and supplements to some tax policies towards restructuring revenue sources, ensuring the neutrality of taxes, enhancing the leading role of the central budget and tax management; accelerate administrative reform in tax procedures; create a favorable environment for production and business, supporting enterprise development; make significant changes in preventing revenue loss, handling and preventing illegal trade practices, fake goods production and trading, transfer pricing, and tax evasion; strive to reduce the tax arrears rate below 5% of total State budget revenue.

3. In the 2018-2020 period, continue to adjust 100% of value-added tax and special consumption tax revenues from gasoline and diesel products of the Nghi Son Refining and Petrochemical Plant to the central budget; maintain the percentage ratio of environmental protection tax revenue distribution for domestic and imported gasoline and diesel products as in 2017.

4. Collect into the State budget 72% of the oil and gas royalties, profits distributed from the Vietnam-Russia Joint Venture "Vietsovpetro", and documentation fees generated in 2018; the remaining 28% will be reinvested back into PetroVietnam in accordance with the law.

5. Continue to use lottery proceeds for development investment, prioritizing education, training, vocational training, public health,新农村发展规划和建设项目的投资；在安排资金确保完成上述领域的投资项目后，可用于应对气候变化的项目和其他属于地方预算投资对象的重要项目。

6. Manage State budget expenditures according to the assigned estimates. Thoroughly save on regular expenditures of each ministry, central agency, and locality; significantly reduce conference, seminar, ceremonial, research, and overseas survey expenses; strictly allocate funds for equipment purchases in accordance with regulations; promote the implementation of vehicle usage quotas. Continue administrative reforms and expand the application of information technology while strengthening supervision in managing State budget revenues and expenditures. Only issue policies that increase State budget expenditures when truly necessary and with guaranteed funding sources. Strictly implement the Law on Thrift and Combating Wastefulness, the Law on Preventing Corruption, and the Law on Management and Use of Public Assets.

7. Adjust the base salary from 1.3 million VND/month to 1.39 million VND/month, adjust pensions, social insurance benefits, monthly allowances, and preferential benefits for war veterans by the same increase in the base salary, effective from July 1, 2018.

Ministries, central agencies, and localities are instructed to continue implementing regulations on salary reform policies combined with thorough cost savings linked to organizational restructuring, reducing staff numbers, and ensuring self-balancing of increased spending due to the adjustment of the base salary within the assigned State budget estimates.

The central budget ensures funding for adjusting pensions, social insurance benefits, and monthly allowances as prescribed (for those supported by the state budget) and preferential allowances for persons with meritorious service; it also provides partial support for additional salary increases for certain localities facing budget difficulties that cannot balance their sources according to the Government's regulations.

After ensuring the requirements for salary reform, localities shall independently utilize their own salary reform funds to implement social welfare systems and policies issued by the Central Government. The central budget will supplement targeted funding to local budgets for the remaining financial needs according to the regulations.

During the period from 2018 to 2020, localities with budget adjustments at the central level may use surplus salary funds for investment in projects as prescribed by law if they can ensure funding for salary reform and social welfare policies throughout the entire process without requesting support from the central budget.

8. Direct ministries, central agencies, and localities:

a) Strictly implement the policy of reducing staff establishments, reorganizing administrative bodies to be leaner, more effective, and efficient.

b) Accelerate the implementation of new management mechanisms, financial mechanisms, and restructuring of public service units; based on this, restructure the budget in each sector, reduce direct subsidies from the budget to public service units, allocate resources to increase support for beneficiaries under social policies when using public services, improve the quality of public services through salary reform and increased investment and procurement expenditures. Reform the financial support mechanism for public service units based on their output results.

c) Adjust prices of goods managed by the State towards market prices, ensuring reasonable compensation for production and business costs, and attracting investment from other economic sectors.

9. The total issuance of government bonds in 2018 shall not exceed 50,000 billion VND, including the amount transferred from government bonds to 2018 (if any) for investment in projects meeting investment procedures as prescribed.

10. Strictly implement the medium-term public investment plan for the 2016-2020 period as per Resolution No. 26/2016/QH14 of the National Assembly. Expenditure on development investment from the state budget must comply with the provisions of the law. Enhance mobilization of domestic and foreign resources for development investment, perfecting the legal basis to promote public-private partnership (PPP), creating conditions for various economic sectors to participate in infrastructure construction, especially in agriculture, rural areas, and tourism. Strictly manage the advance allocation of the state budget estimate and the transfer of funds according to the provisions of the State Budget Law. Review and resolve issues and inconsistencies in the legal system regarding public investment, promptly allocate capital, and accelerate disbursement progress.

11. Closely follow and strictly implement Resolution No. 25/2016/QH14 of the National Assembly on the five-year national financial plan for the 2016-2020 period. Strictly control the deficit of the state budget, the deficit of local budgets, and the level of borrowing by local budgets; during operation, active measures should be taken to reduce deficits. Strengthen supervision over borrowing, use of borrowed funds, and repayment, particularly for newly signed loan agreements, foreign loans, and loans guaranteed by the Government; do not use borrowed funds from newly signed loan agreements for regular expenditures as stipulated by the State Budget Law (except for agreements signed and disbursed before 2017). Ensure that public debt, government debt, and foreign debt of the country remain within the prescribed limits.

12. Organize a comprehensive evaluation of the application of special financial mechanisms in certain fields, gradually reducing the application of special mechanisms for state management tasks. Strengthen management of state financial funds outside the budget, ensuring transparency; promptly reorganize and reform the management mechanisms of these funds, ensuring compliance with the provisions of the State Budget Law.

Article 4. Supervision of Implementation

The Standing Committee of the National Assembly, the Finance and Budget Committee, the Ethnic Council, and other committees of the National Assembly, delegations of National Assembly members, and National Assembly deputies within their respective responsibilities and authorities as prescribed by law shall supervise the implementation of the provisions of this Resolution.

This Resolution was adopted by the National Assembly of the Socialist Republic of Vietnam, the fourteenth session, fourth meeting on November 13, 2017./.