Circular No. 49/2024/TT-BTC guides the preparation of the state budget estimate for 2025 and the financial-plan-budget plan for the three-year period 2025-2027.

CIRCULAR
Guidelines for preparing the state budget estimate for 2025 and

financial plan - state budget for the three-year period 2025-2027

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

Pursuant to the Law on Public Investment dated June 13, 2019;

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

Pursuant to Decree No. 31/2017/NĐ-CP dated March 23, 2017 of the Government promulgating the Regulation on the establishment, examination, decision-making of the five-year local financial plan, the mid-term public investment plan for five years at the local level, the three-year local financial-plan-state-budget, the draft and allocation of the local state budget, approval of the annual settlement of the local state budget;

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

Pursuant to Decree No. 14/2023/NĐ-CP dated April 20, 2023, issued by the Government, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Implementing Directive No. 17/CT-TTg dated May 22, 2024 of the Prime Minister on building the socio-economic development plan and the state budget estimate for 2025;

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 2025 and the financial-plan-state-budget for the three-year period 2025-2027.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides certain contents in the assessment of the implementation of state budget tasks (NSNN) in 2024 and the years 2021-2024; the preparation of the state budget estimate for 2025 and the financial-plan-state-budget for the three-year period 2025-2027.

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 to perform state-assigned tasks.

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 THE YEAR 2024 AND THE YEARS 2021-2024

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 2024:

a) Resolutions of the National Assembly on the five-year plan for the period 2021-2025 including Resolution No. 16/2021/QH15 dated July 27, 2021 on the Socio-Economic Development Plan for 2021-2025; Resolution No. 23/2021/QH15 dated July 28, 2021 on the National Financial Plan and borrowing, repaying public debt for the period 2021-2025; Resolution No. 29/2021/QH15 dated July 28, 2021 on the Mid-Term Public Investment Plan for 2021-2025; Resolution No. 31/2021/QH15 dated November 12, 2021 on the Economic Structural Adjustment Plan for 2021-2025.

b) Resolutions of the National Assembly: Resolution No. 103/2023/QH15 dated November 9, 2023 on the Socio-Economic Development Plan for 2024; Resolution No. 104/2023/QH15 dated November 10, 2023 on the state budget estimate for 2024; Resolution No. 105/2023/QH15 dated November 10, 2023 on the allocation of the central state budget (NSTW) for 2024; Resolution No. 142/2024/QH15 dated June 29, 2024 on the Seventh Session of the Fifteenth National Assembly.

c) Resolutions: Decision No. 01/NQ-CP dated January 5, 2024 of the Government on key tasks and solutions to implement the Socio-Economic Development Plan and the state budget estimate for 2024 (Resolution No. 01/NQ-CP) and resolutions of regular monthly meetings of the Government.

d) Decisions of the Prime Minister, Chairmen of People's Committees at all levels on allocating the state budget estimate, capital investment plans from the state budget, and supplementary budget allocations during the management of the state budget in 2024 (if any).

e) Resolutions of People's Councils, Decisions of People's Committees, and Directives of Chairmen of People's Committees at all levels on key tasks and solutions to guide the implementation of the socio-economic development plan and the state budget estimate for 2024; the five-year economic and social plan, and the five-year financial plan of the locality.

f) Circular No. 76/2023/TT-BTC dated December 29, 2023 of the Minister of Finance on the organization of implementing the state budget estimate for 2024 (Circular No. 76/2023/TT-BTC).

2. Other documents:

a) Documents of competent authorities on revenue systems, policies for tax deferral, exemption, reduction, other revenues, and measures to resolve difficulties for businesses and people; regulations on reducing, saving regular expenditures affecting the implementation of revenue and expenditure tasks of the state budget in 2024.

b) Conclusions and recommendations of supervisory, auditing, inspection bodies, administrative reform work, financial and asset management, handling complaints and petitions, thrift, anti-waste, and anti-corruption activities related to revenue and expenditure activities of the state budget.

Article 4. Evaluation of the situation and tasks of State budget revenue collection in 2024

1. Principles of evaluation:

Implement in accordance with the provisions of the Law on State Budget Revenue and Expenditure and guiding documents, laws on State budget revenue collection, and directives and management measures for State budget revenue issued by competent authorities; evaluate all tax revenues, fees, charges, and other revenues of the State budget comprehensively; do not aggregate into the State budget balance fees that have been transferred to service prices according to the Law on Fees and Charges, deductions allowed for state agencies, or retained fees from activities conducted by public service units and organizations assigned by competent state authorities.

Ministries, central agencies, and localities shall review and assess factors affecting the ability to collect State budget revenue in the first six months of the year and forecast the ability to collect in the last six months of 2024, focusing on clarifying advantages and difficulties; propose solutions to strive to complete the highest possible State budget revenue estimate decided by the National Assembly, assigned by the Prime Minister, and decided by People's Councils at all levels.

2. Content of evaluation:

a) Evaluate and analyze the reasons for increases or decreases in State budget revenue in 2024, paying particular attention to results achieved, both objective and subjective causes for each revenue target showing significant changes; specifically as follows:

Factors affecting business operations, services, and import-export activities of enterprises and economic organizations in each sector; production volume, consumption, selling price, and profit of key goods and services in the locality; impact of crude oil price fluctuations, input material costs, market fluctuations in securities and real estate markets; evaluate and analyze the impact of adjusting the schedule for increasing public service fees and prices managed by the State; projects that have completed their tax incentive period and the potential for implementing new investment projects.

Calculate specific factors contributing to increases or decreases in revenue due to changes in legal policies affecting revenue in 2024; impacts from implementing policies under the Economic and Social Recovery and Development Program; implementing schedules for reducing taxes to fulfill international economic integration commitments.

b) Collection enforcement, recovery, and handling of tax arrears in the first six months of 2024; forecast results of recovery and handling of tax arrears in the last months of 2024 (compared to targets and plans assigned, if applicable) and estimated total tax arrears as of December 31, 2024. Results of implementing recommendations from the State Audit Agency, supervisory bodies, and decisions to recover taxes made by tax authorities when conducting inspections and audits of tax compliance; any recommendations (if applicable).

c) Situation of Value Added Tax refunds (excluding excess VAT refunds) and projected amount of funds for VAT refunds to be implemented in 2024 based on correct policy and regulations and in line with actual occurrences; report to competent authorities to supplement funding for VAT refunds (if necessary) to ensure timely, thorough, and compliant VAT refunds according to legal provisions; supervision, inspection, and audit after VAT refunds, timely recovery of improperly refunded VAT; any recommendations (if applicable).

d) Evaluation of the implementation of refunding overpaid taxes, late payment penalties, and fines according to legal provisions based on criteria: number of processed/determined refund cases, amount refunded. At the same time, identify obstacles, difficulties, and propose solutions regarding policy mechanisms, management technology, and organizational coordination during implementation (if applicable).

đ) Situation of State budget revenue from land (including land use fees and land rental fees) in accordance with the Law on Land and Resolution No. 132/2020/QH14 dated November 17, 2020 of the National Assembly on piloting certain policies to resolve difficulties and backlog in managing and using defense and security land combined with labor production and economic construction activities (Resolution No. 132/2020/QH14), Decree No. 26/2021/NĐ-CP dated March 25, 2021 of the Government guiding Resolution No. 132/2020/QH14;

e) Situation of State budget revenue from the disposal and reorganization of houses and land in accordance with Decree No. 167/2017/NĐ-CP dated December 31, 2017 of the Government (Decree No. 167/2017/NĐ-CP) on the reorganization and disposal of state assets, Decree No. 67/2021/NĐ-CP dated July 15, 2021 of the Government (Decree No. 67/2021/NĐ-CP) amending and supplementing Decree No. 167/2017/NĐ-CP and relevant laws;

g) Situation of State budget revenue from leasing rights to exploit, transferring rights to exploit infrastructure assets for a limited time, State budget revenue from managing and using infrastructure assets invested and managed by the State without being counted as state capital at enterprises, exploiting land and water surfaces (after deducting related expenses);

h) Evaluation of the situation of revenue from ownership conversion of enterprises and public service units, revenue from the transfer of state capital and surplus equity capital exceeding registered capital at enterprises as stipulated in 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 and public service units, revenue from the transfer of state capital and surplus equity capital exceeding registered capital at enterprises (Decree No. 148/2021/NĐ-CP); report specifically the amount already paid into the budget, the amount generated but not yet paid into the budget (if any), and proposals for solutions concerning this revenue source (if any).

i) Results of cooperation between ministries, central agencies, and localities in managing, resolving difficulties, and obstacles in State budget revenue collection, auctioning state assets, land use rights auctions, and organizing inspections, audits, and collection enforcement of tax arrears, preventing revenue loss, and combating transfer pricing; existing issues, obstacles, and solutions to overcome them.

k) Situation of fee and charge collection in accordance with the Law on Fees and Charges (evaluate collected fees and charges; amounts paid into the State budget); revenue from administrative penalty fines, confiscation, auction proceeds from vehicle license plates, and other payments into the State budget in 2024 as prescribed.

l) The situation of foreign aid collection for the first six months of 2024 and the forecast for the whole year 2024.

m) Evaluation of the implementation situation and difficulties, obstacles regarding budgetary forecasting work, evaluation of the implementation of revenue surplus from the State Bank's income and expenditure, recommendations (if any).

Article 5. Evaluation of the Implementation of Revenue Collection Tasks of the State Budget for the Years 2021-2024

Based on the settlement of 2021, the settlement of 2022, the implementation in 2023, and the estimated implementation for the whole of 2024, evaluate the implementation of the revenue collection tasks of the State Budget for the four years 2021-2024 compared to the five-year targets and plans for the period 2021-2025 as per the Resolution of the National Assembly and People's Councils, detailing each source of revenue from land use fees, lottery revenues, dividends and post-tax profits, remaining domestic revenues (excluding land use fees, lotteries, dividends, and post-tax profits); revenues from import and export activities; foreign aid (if any); clarify achievements, limitations, and both objective and subjective causes (including the specific impact of the COVID-19 pandemic, the Russia-Ukraine conflict, and adjustments in tax policies...); lessons learned; context and recommendations for mechanisms and policies to manage State Budget revenue in the future.

Article 6. Evaluation of the Implementation of Investment Development Expenditure Tasks in 2024

1. Evaluation of the deployment and implementation of the investment development expenditure (IDEx) budget for 2024 (excluding credit tasks and national target programs)

a) For annual IDEx budgets within the scope of the Law on Public Investment

- IDEx for programs and projects:

+ Situation of allocation and assignment, adjustment, and supplementary IDEx budget from the State Budget for 2024 (if any), detailed by sector and field of expenditure, according to criteria: time limit for allocation and assignment of plans to project owners; results of budget allocation to recover pre-2015 construction capital loans and payments under the State Budget as stipulated in Clause 4, Article 101 of the Law on Public Investment; difficulties, obstacles, and recommendations for adjusting mechanisms and policies and in organizational implementation.

+ Implementation situation of the IDEx budget for programs and projects from the State Budget for 2024 (including transfers from previous years to 2024 as prescribed; analysis and clarification of reasons for delayed disbursement if applicable), detailed by sector of expenditure, including:

Public investment programs and projects (specifically each national key project, key project, expressway project, connection project with regional impact promoting rapid and sustainable economic and social development): Implementation and disbursement status up to June 2024, report on expected completion by January 31, 2025; detailed by funding source (including: for IDEx from the State Development Fund, detailed sub-tables by project group within sectors and fields; central government support funds from foreign and domestic sources); with detailed annex tables for each project, figures on approved total investment, cumulative payment up to 2023, transferred capital plan from previous years to 2024, 2024 capital plan including additional and adjusted capital and estimated 2024 implementation (with explanatory notes on reasons). For IDEx from proceeds of land asset sales, land rights transfer, and land use change: situation of revenue collection, submission to the budget, and implementation of the 2024 IDEx budget from these revenues.

Evaluation of the implementation in 2024 of investment tasks assigned from increased revenue, reduced expenditure, and savings from 2021-2023 decided to be implemented in 2024 and from the reserve budget at all levels in 2024 (if any).

Evaluation of all completed projects handed over for use but not fully funded as required, especially those that have been approved for final settlement, and projects that have submitted final settlement documents. Evaluation of the recovery of advance funding (the planned capital to recover advances in 2024; remaining advance capital to be recovered in the medium-term public investment plan for 2021-2025.

Evaluation of IDEx according to public-private partnership (PPP) methods, including advantages, difficulties, obstacles, and recommendations.

Impact on the State Budget from converting PPP projects to public investment methods and its impact on the State Budget (if any), and the supplementation of the IDEx budget from the State Budget for 2024 (if any).

- Settlement of public investment capital for completed projects, specifying: number of projects approved for final settlement of public investment capital for completed projects and the amount of capital not allocated for payment compared to the approved value of the final settlement of completed projects by competent authorities; public investment capital already paid out exceeding the approved settlement value by competent authorities but not yet recovered and submitted to the State Budget; number of public investment projects completed but not settled according to regulations by June 2024, projected by the end of 2024; reasons.

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

Situation of allocation, assignment, and supplementary budget (if any), implementation and disbursement in 2024 of the Economic and Social Recovery and Development Program (including returns for tasks and projects under the Economic and Social Recovery and Development Program from projects under the medium-term public investment plan 2021-2025 as per Resolution No. 93/2023/QH15 dated June 22, 2023 of the National Assembly).

2. Evaluation of the Implementation of State Credit Tasks in 2024

Situation of implementing the state preferential credit plan and policy credit for the first six months, estimated full-year 2024 (funding mobilization, issuance of government-guaranteed bonds; credit growth, disbursement, principal repayment, outstanding loan balance; state budget subsidy for interest rates and management fees,...); administrative reform in lending approval procedures.

3. Evaluate the implementation of the allocation, assignment, and execution of the budget for the first six months of the year, forecast the possibility of completing the entire year 2024 for state budget investment tasks outside the scope of the Public Investment Law (investment expenses under the Law on Management and Use of State Capital for Production and Business at Enterprises, and tasks according to decisions of competent authorities); existing issues, difficulties, causes, and recommendations (if any).

4. Evaluate the implementation for the first six months of 2024 and estimate the completion for the whole year 2024 regarding the total mobilized resources and the structure of socialized investment resources by industry and sector; the number of facilities invested with socialized resources; achievements; existing issues, causes, and recommendations (if any).

Article 7. Evaluation of the Implementation of Investment Expenditures in the Years 2021-2024

Based on the evaluation of the full-year 2024 implementation, conduct a cumulative assessment of the results of implementing the years 2021-2024 compared to the five-year targets and plans for the period 2021-2025; specifically, clarify:

1. For annual investment expenditure tasks within the scope of the Public Investment Law (excluding tasks implemented according to Resolution No. 43/2022/QH15 and Resolution No. 11/NQ-CP):

a) Cumulatively assess the assigned public investment budget, allocation, implementation, and disbursement from 2021-2024 (including the amount disbursed from extended time plans and payments carried over to the next year) compared to the mid-term public investment plan assigned by the competent authority for the period 2021-2025, detailing foreign sources of funds (loans and aid); for localities, detail the balanced state budget revenue and expenditure sources, central state budget supplementary sources with specific purposes by industry and sector, including foreign sources of funds (including both loan and non-repayable aid), domestic funds - if applicable; funds allocated for national key projects, major projects, expressway projects, connecting projects with significant regional impact promoting rapid and sustainable economic and social development; funds allocated from increased revenues, reduced expenditures, savings, and contingency reserves at all levels from 2021-2024 (if applicable). Clarify the level of public investment funds allocated from the local state budget for the years 2021-2024 compared to the 2021-2025 mid-term plan assigned by the competent authority, and the need to supplement the mid-term plan - if applicable. The amount of investment already allocated, the amount of investment already disbursed, the amount allowed to be extended, and the amount needed to be allocated further to complete the mid-term public investment plan.

b) The number of construction project debts compiled and allocated in the mid-term public investment plan for the period 2021-2025, the situation of allocating funds from 2021-2024 to address construction project debts, and the planned allocation for the remaining amount in 2025.

c) Cumulatively assess the advance funds allocated for recovery in the mid-term public investment plan for the period 2021-2025, the situation of allocating funds from 2021-2024 for recovery of advances, and the planned allocation for the remaining amount in 2025. Detail the advance funds that have occurred but not yet allocated for recovery in the mid-term public investment plan for the period 2021-2025 (detailed by central state budget and local state budget revenue and expenditure).

d) Evaluate the situation of handling temporary advances according to contracts beyond the recovery deadline as of June 2024 (especially those overdue for many years) in accordance with the Prime Minister's Directive No. 20/CT-TTg dated July 12, 2024 on rectifying and strengthening management of temporary advances from the state budget for investment projects of ministries, central agencies, and localities.

2. For investment expenses of programs and projects under the Economic and Social Recovery and Development Program

Report cumulatively on the budget allocated, allocation, implementation, and disbursement up to the end of 2024 for programs and projects under the Economic and Social Recovery and Development Program (including amounts returned from programs and projects under the mid-term public investment plan for the period 2021-2025) compared to the targets and plans according to Resolution No. 43/2022/QH15 and Resolution No. 11/NQ-CP; achievements in economic and social recovery and development.

Evaluate the implementation of adjustments in funding sources between tasks and projects using mid-term public investment plan funds and tasks and projects using funds from the Economic and Social Recovery and Development Program during the implementation of the state budget investment capital plan for 2022-2024.

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

Evaluate the implementation of the state's preferential investment credit plan and policy credit plans for the years 2021-2024 (funding mobilization, issuance of government-guaranteed bonds; credit growth, disbursement, repayment of principal, outstanding loans; state budget subsidy for interest rates and management fees).

4. The implementation of state budget investment tasks outside the scope of the Public Investment Law (investment expenses under the Law on Management and Use of State Capital for Production and Business at Enterprises, and tasks according to decisions of competent authorities):

Evaluate the implementation from 2021-2024, clarifying the approved budget; the amount allocated; the amount executed; the amount still to be allocated in 2025.

5. The implementation of socialization mechanisms and policies from 2021-2024 compared to the mid-term plan for the period 2021-2025 (detailing total resources, the structure of socialized resources by industry and sector; the number of facilities invested with socialized resources by industry and sector).

6. Provide detailed results achieved, existing issues, causes, and recommendations (if any) for each Clause 1, 2, 3, 4, 5 of this Article. Specifically, clarify institutional and organizational implementation issues for public investment:

- Measures implemented to promote implementation, disbursement, and improve the efficiency of fund usage according to Resolutions, Directives, Bulletins, and guidance documents of competent authorities.

- Evaluate and clarify difficulties, obstacles, existing issues, and limitations affecting allocation and disbursement, focusing on major issues such as: institutional policies, organizational implementation, and specific obstacles (if any).

- Recommendations on legal and organizational implementation of investment expenditure tasks.

Article 8. Evaluation of the Implementation of Regular Expenditure Tasks for the Year 2024 and the Years 2021-2024

1. Ministries, central agencies, and localities shall focus on evaluating the implementation of regular expenditure tasks for the year 2024 in the following areas:

a) The situation regarding the allocation, assignment, and execution of the regular expenditure budget for the first six months of the year, with a detailed forecast of the full-year 2024 implementation broken down by each assigned expenditure area. For expenditure tasks with investment characteristics (procurement, renovation, upgrading, modernization) that apply the mechanism for using regular expenditure funds as prescribed in Decree No. 165/2016/ND-CP on management and use of State Budget funds for certain activities within the fields of national security and defense, and Decree No. 01/2021/ND-CP amending Decree No. 165/2016/ND-CP, evaluate the implementation process, including reporting on special characteristics, total approved funding, amounts allocated up to the end of 2024, amounts still to be allocated, advantages, difficulties, and recommendations (if any).

The situation regarding the implementation of the reduction and savings of 5% of regular expenditures as stipulated in Clause b, Point 2 of Directive No. 01/CT-TTg dated January 4, 2024 of the Prime Minister on enhancing savings in State Budget expenditures (except for the Ministry of Public Security and the Ministry of National Defense, which implement according to the approval of the competent authority); cutting the unallocated budget after June 30, 2024, as stipulated in Resolution No. 82/NQ-CP dated June 5, 2024 of the Government. Difficulties and obstacles encountered during the implementation process, along with recommendations (if any).

b) Agencies and units shall assess the progress and ability to complete conditions and procedures, and the ability to implement in 2024, to be sent to the Ministry of Finance (if additional budgets are supplemented), for tasks expected to arise in 2024 (including proposals to supplement the budget for implementing information technology service activities, as per Decree No. 82/2024/ND-CP dated July 10, 2024 of the Government) but not allocated at the beginning of the year as stipulated in Clause 10, Article 3 of Resolution No. 105/2023/QH15 dated November 10, 2023 of the National Assembly on the allocation of the State Budget for 2024.

c) Results of implementing targets, tasks, programs, projects using regular expenditure funds from the State Budget in the first six months of the year, with a forecast for the full year 2024; difficulties and obstacles, and proposed measures to address mechanisms and policies in the organization and implementation, specifically:

- Review and determine tasks and policies that have ended or expired; recommend amendments, supplements, abolition, or replacement of policies inconsistent with laws and practical implementation.

- The situation regarding staff reduction, reform, and organizational restructuring: Achievements in the first six months of the year, estimated for the full year 2024, detailed by each target and task in Resolution No. 18-NQ/TW dated October 25, 2017 of the Sixth Plenary Session of the 12th Central Committee (Resolution No. 18-NQ/TW), Conclusion No. 28-KL/TW dated February 21, 2022 of the Politburo on staff reduction and restructuring of the cadre and civil servant workforce (Conclusion No. 28-KL/TW), Conclusion No. 40-KL/TW dated July 18, 2022 of the Politburo on improving the effectiveness of personnel management in the political system for the period 2022-2026 (Conclusion No. 40-KL/TW), and related documents of the Government and the Prime Minister.

- Implementation of public institution reform: Results of restructuring, reforming systems, managing, and improving the quality and efficiency of operations of public institutions in the first six months of the year, estimated for the full year 2024, in accordance with targets and tasks in Resolution No. 19-NQ/TW dated October 25, 2017 of the Sixth Plenary Session of the 12th Central Committee (Resolution No. 19-NQ/TW), Decree No. 60/2021/ND-CP dated June 21, 2021 of the Government on the financial autonomy mechanism of public institutions (Decree No. 60/2021/ND-CP), and Circular No. 56/2022/TT-BTC dated September 16, 2022 of the Minister of Finance guiding certain aspects of the financial autonomy mechanism of public institutions; handling assets and finances when reorganizing or dissolving public institutions (Circular No. 56/2022/TT-BTC).

2. Ministries, central agencies, and localities shall evaluate the implementation of regular expenditure tasks for the years 2021-2024 as follows:

a) Based on the settlement of accounts for the years 2021 and 2022, the results of 2023, and the forecast for the full year 2024, evaluate the cumulative situation of implementing regular expenditure tasks from the State Budget for the years 2021-2024 compared to the five-year plan targets and plans for the period 2021-2025 as per the resolutions of the National Assembly and People's Councils (if applicable); focusing on specific targets and tasks approved for implementation during the period 2021-2025 or over multiple years, if applicable; main tasks of sectors, fields, and localities; achievements; shortcomings, causes, and recommendations for solutions (if any).

b) Evaluate the cumulative implementation of staff reduction, reform, and organizational restructuring; results of restructuring, reforming systems, managing, and improving the quality and efficiency of operations of public institutions in the years 2021-2024 compared to the targets set out in the resolutions and conclusions of the Central Committee and relevant legal documents; difficulties, obstacles, causes, and recommendations.

c) Evaluate the implementation of self-management goals and reducing State Budget expenditures after granting autonomy to public institutions since the implementation of Decree No. 60/2021/ND-CP dated June 21, 2021 of the Government on the financial autonomy mechanism of public institutions to date; difficulties, obstacles, causes, and recommendations.

d) Evaluate the implementation of establishing economic and technical standards as the basis for ordering and bidding related to public services by ministries, central agencies, and localities, and difficulties, obstacles, causes, and recommendations.

Article 9. For central state administrative agencies that apply special financial mechanisms and income according to Resolution No. 104/2023/QH15 and Resolution No. 142/2024/QH15:

1. Based on Resolution No. 104/2023/QH15, Resolution No. 142/2024/QH15, and the annual budget allocation decisions for 2024 issued by the Prime Minister, the agencies and units shall report on the progress of reviewing and submitting to the competent authority regarding their special financial mechanisms and income.

2. The agencies and units shall report specifically on the situation of implementation and usage from the legal revenue sources of the unit in 2024; management and usage of funds of the unit, balances of funds as of December 31, 2023, June 30, 2024, and December 31, 2024.

Specifically, for expenditures from retained fee revenues according to the 2024 budget allocated by the competent authority: Report clearly on direct expenses serving fee collection activities as stipulated by the Law on Fees and Charges and special expenses as prescribed by the competent authority.

3. Regarding salary expenditure: Report on the salary fund according to the regulations of the agency or unit based on the general salary for civil servants (salary and other allowances with the nature of salary, contributions according to the general regulations) and personal income expenditures under the special mechanism from June 30, 2024, and the mechanism applied from July 1, 2024, approved by the competent authority.

4. For non-salary and income tasks:

a) Regular tasks:

- Evaluate the implementation for the first six months of the year according to the special financial mechanism and income from before June 30, 2024.

- For the last six months of 2024, forecast the implementation according to the mechanism as prescribed by state management agencies in Resolution No. 01/2021/UBTVQH15 and Decision No. 30/2021/QĐ-TTg, detailing each item within the budgeted amount and special tasks (general special tasks and specific special tasks), including:

(i) For tasks within the budgeted amount, review and forecast implementation for the last six months (comparing with the actual expenditure for these tasks in the first six months of 2024).

(ii) For special tasks outside the budgeted amount, review and classify into two groups: (i) general special tasks and (ii) specific special tasks as detailed in Resolution No. 01/2021/UBTVQH15 and Decision No. 30/2021/QĐ-TTg, detailing each task, decision approving, total approved funding, implementation period, reporting on the actual expenditure for these tasks in the first six months of 2024 and the forecast for the last six months, and the remaining amount to be arranged according to the approved level.

(iii) For special tasks of the agency or unit not covered in Resolution No. 01/2021/UBTVQH15 and Decision No. 30/2021/QĐ-TTg, the agencies and units shall report in detail each task, specifying the urgency, approval process, approving decision, total approved funding, implementation period, the amount allocated for implementation in the first six months of 2024 and the cumulative amount allocated up to June 30, 2024; plans, progress for submitting these tasks to the competent authorities as stipulated in Clause 1, Article 4 of Resolution No. 01/2021/UBTVQH15 if applicable (other non-recurring special tasks decided by the competent authority) and forecast for the last six months; difficulties, obstacles, and recommendations (if any).

b) For investment tasks:

Evaluate the implementation for the first six months of the year according to the special financial mechanism and income from before June 30, 2024.

Forecast the last six months of 2024 according to the mechanism as prescribed by state management agencies (in coordination with the Ministry of Planning and Investment for review), reporting specifically on each task, detailing the construction process, approving decision, total funding, and detailed sources of funding according to the approval, implementation period, the amount allocated for implementation in the first six months of 2024 and the cumulative amount allocated up to June 30, 2024, the remaining amount to be allocated; recommendations and solutions for these tasks.

5. In cases where the competent authority approves the policy and mechanism to apply from July 1, 2024, and/or transitional period, the agencies and units shall report specifically on changes in the mechanism, policies, and/or transitional period; financial impacts; forecast for the last six months of the year.

Article 10. Evaluation of the implementation of the national reserve plan and the state budget expenditure estimate for the national reserve in 2024 and the years 2021-2024.

Ministries and sectors managing national reserves shall evaluate the implementation of the national reserve plan and the approved state budget expenditure estimate for the first six months of the year, the possibility of completing the entire year 2024, advantages, difficulties, and obstacles arising during the organization and implementation of the 2024 plan. Based on the estimated completion for the entire year 2024, evaluate the implementation of the national reserve plan for the years 2021-2024 compared to the targets set out in the five-year plan for the period 2021-2025.

Article 11. Evaluation of the implementation of three national target programs, projects, and other proposals in 2024 and the years 2021-2024.

1. For the three national target programs

Based on the State Budget Law, the Investment Law, the Resolution of the National Assembly, Resolution No. 111/2024/QH15 dated January 18, 2024 of the National Assembly on special mechanisms and policies for implementing national target programs, Decree No. 27/2022/NĐ-CP dated April 19, 2022 of the Government on management mechanisms and organization of national target programs, Decree No. 38/2023/NĐ-CP dated June 24, 2023 of the Government amending and supplementing Decree No. 27/2022/NĐ-CP; decisions of the Prime Minister approving national target programs; guiding documents of competent agencies; ministries, central agencies, provincial People's Committees under the central government, and budgetary units and units using the state budget shall evaluate the situation of allocation and use of the state budget for 2024 (details of the previous years' budgets transferred to 2024 according to regulations for implementation and the 2024 budget allocated - if applicable), the possibility of using and disbursing the unallocated 2024 budget for national target programs according to Resolution No. 105/2023/QH15 of the National Assembly on the allocation of the state budget for 2024; advantages, difficulties, and recommendations (if any). Among which:

a) The leading agency of the program shall take the lead and coordinate with the Ministry of Planning and Investment, the Ministry of Finance, and the project management agencies to report on the issuance/submission for issuance of amendments and supplements to related mechanisms and policies (if any); evaluate the allocation and use of the state budget, detailing by each project, sub-project, component, construction investment costs, regular expenses, domestic capital, foreign capital (if any), and compliance with regulations on balancing and allocating counterpart funds from localities.

b) The managing agency of the program (ministries, central agencies, and provincial People's Committees under the central government) shall evaluate the amendment and supplementation/submission for amendment and supplementation of related mechanisms and policies according to the level of authority (if any); allocation and use of the state budget (including localities reporting on the targeted state budget support estimates and local counterpart funds according to regulations), detailing by each project, sub-project, component, construction investment costs, regular expenses, domestic sources, and foreign capital (if any).

c) Agencies and units shall evaluate the situation of budget allocation, distribution, and use for 2024, cumulatively from 2021-2024; existing issues, causes, and recommendations, solutions to address them (if any).

2. For programs, proposals, and tasks approved by the competent authority for the period 2021-2025 or until 2030, evaluate the completion, adjustment, and supplementation of institutional frameworks (if any), allocation and implementation in 2024. In cases where foreign capital is used, report separately on the allocation and disbursement for specific goals and tasks, and any recommendations (if any). Based on the estimated implementation for 2024, evaluate the cumulative allocated budget, the situation of allocation and use of the state budget up to the end of 2024 compared to the total amount approved for the period 2021-2025 or until 2030; results achieved; existing issues, causes, and recommendations, solutions to address them (if any).

Article 12. Regarding tasks using foreign capital sources

1. Ministries, central agencies, localities shall assess the situation of allocation, annual budget estimates for 2024, adjustments, supplements in 2024 (if any) detailed by project, sponsor, source of funds: loan capital (ODA and concessional foreign loans), aid capital (non-repayable ODA funds, non-repayable aid funds not included in official development assistance); financial mechanisms, difficulties, obstacles and recommendations (if any). For non-repayable aid capital, assess the reception of newly generated aid grants not included in the budget estimate, progress on procedures to supplement the budget; assess difficulties and obstacles when allocating medium-term and annual public investment budgets without clearly distinguishing between loan and aid capital structures and propose solutions to implement.

2. Assess the implementation and disbursement results of foreign capital compared with the allocated budget estimates; difficulties regarding ODA disbursement procedures (if any); clarify the reasons for delayed disbursements, responsibilities of ministries, sectors, localities as managing authorities for investment, responsibilities of Project Management Boards and related agencies; propose solutions to address difficulties during the implementation of programs and projects.

3. Based on the estimated expenditure in 2024, assess the implementation of the four-year period 2021-2024 compared to the mid-term targets and plans for the 2021-2025 period assigned/or implementation plans for the 2021-2025 period according to agreements signed (if any); difficulties, obstacles and recommendations.

Article 13. Assessment of the situation in implementing the creation of sources for salary reform in 2024

Ministries, central agencies, and localities shall assess the implementation of the mechanism for creating expenditure for salary reform in 2024 linked to restructuring organizational structures, reducing redundant staff, and enhancing the financial autonomy of public service units as prescribed.

Article 14. Assessment of the implementation of state budget tasks by provinces and centrally-administered cities in 2024 and the years 2021-2024

In addition to the requirements stipulated from Article 4 to Article 13 of this Circular, provinces and centrally-administered cities shall supplement the following assessments:

1. Work on mobilizing financial resources at the local level to fulfill economic and social development tasks, difficulties, obstacles and recommendations (if any).

2. Assess the implementation of policies for tax exemptions and reductions. In cases of revenue shortfalls, localities shall implement according to point b Clause 9 Article 3 Decision No. 1600/QD-TTg dated December 10, 2023 of the Prime Minister on the allocation of the state budget estimate for 2024, Decision No. 1602/QD-TTg dated December 10, 2023 of the Prime Minister on the detailed allocation of the state budget estimate for 2024 and Clause 6 Article 9 Circular No. 76/2023/TT-BTC of the Minister of Finance.

3. The ability to implement the 2024 public investment budget estimate, by each spending category (including adjustments and supplements during the year as prescribed), detailed: state budget (investment in construction, investment from land use fees and lottery revenues, investment from state budget surplus); supplementary targeted funding from the central budget for the local budget from domestic and foreign sources (including loans and non-repayable aid); focusing on assessing the following contents:

a) For annual public investment expenditures within the scope of the Public Investment Law (excluding the Economic and Social Recovery and Development Program under Resolution No. 43/2022/QH15:

- Situation of allocation, budget estimates, and supplements (if any); situation of handling arrears in basic construction and recovery of advance payments in 2024; forecast remaining balance at the end of 2024 (if any); recommendations for handling.

- Implementation and disbursement of public investment capital from the state budget for the first six months of 2024 and assessment for the whole year 2024.

- Allocation, organization of implementation, and disbursement of public investment capital from supplementary targeted funding from the central budget for localities for the first six months of 2024, assessment for the whole year 2024.

- State budget deficit in 2024 and the situation of investment from this source (if any).

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

- Approval, allocation, organization of implementation, and disbursement of investment capital from retained revenue sources according to regulations: fee revenue, retained public service revenue, and other lawful revenue sources, detailed by spending category.

- Allocation and budget estimates for state budget expenditures from land use fees to invest in local projects and works.

- Revenue, expenditure, management, and utilization of lottery proceeds for local public investment in 2024.

b) Implementation of public investment tasks under Resolution No. 43/2022/QH15 dated January 11, 2022 of the National Assembly on fiscal and monetary policies supporting the Economic and Social Recovery and Development Program

Implementation of tasks delegated, supplemented with budget estimates, allocation, organization of implementation, assessment of disbursement capacity by January 31, 2025 for programs, projects, and tasks within the Program, and supplementation of budget estimates, disbursement of programs, projects, and tasks outside the Program, accelerating progress; advantages, difficulties, obstacles, and recommendations (if any).

c) Situation of allocation, budget estimates, and disbursement of 2024 public investment budget estimates outside the scope of the Public Investment Law (if any)

d) Compliance with regulations on public investment, directives, and telegrams of the Prime Minister in this field;

đ) Expected results, existing issues, causes, and recommendations (if any).

4. Report on the implementation of social welfare policies issued by the Central Government in 2024. Localities shall report in detail the number of beneficiaries (based on the target group for the first six months of 2024 to review and determine the expected number of beneficiaries for the whole year 2024), support levels, duration of benefits for each social welfare policy according to regulations to specifically determine the state budget funding needs to implement centrally-issued social welfare policy groups.

BASED ON THE PROVISIONS OF DECISION NO. 127/QĐ-TTg DATED JANUARY 24, 2022 OF THE PRIME MINISTER ON THE PRINCIPLES FOR TARGETED SUPPORT FROM THE STATE BUDGET TO THE LOCAL BUDGET TO IMPLEMENT SOCIAL SECURITY POLICIES ISSUED BY THE CENTRAL AUTHORITY FOR THE PERIOD 2022-2025, THE FUNDS ALLOCATED IN THE LOCAL BUDGET EXPENDITURE BUDGET FOR 2024 ARE USED TO DETERMINE THE AMOUNT OF ADDITIONAL STATE BUDGET FUNDS TO BE PROVIDED TO THE LOCALITIES.

(ATTACHED DETAIL REPORT FORM NUMBER 01).

5. REPORT ON THE SITUATION OF IMPLEMENTING THE SALARY REFORM IN 2024:

a) ESTIMATED SALARY FUND, ALLOWANCE, AND SUBSIDY TO BE IMPLEMENTED IN 2024.

b) NEED FOR ADDITIONAL FUNDS TO IMPLEMENT THE SALARY REFORM.

c) USE OF LOCAL RESOURCES TO IMPLEMENT THE SALARY ADJUSTMENT, INCLUDING: 10% SAVINGS FROM REGULAR EXPENSES (EXCEPT FOR SALARIES, ALLOWANCES, CONTRIBUTIONS BASED ON SALARIES, ITEMS WITH THE NATURE OF SALARIES, AND EXPENSES FOR PERSONNEL UNDER THE SYSTEM) IN THE 2024 BUDGET ALLOCATED BY THE AUTHORIZED BODY; 70% OF THE INCREASE IN LOCAL REVENUE REALIZED IN 2023 COMPARED TO THE 2023 BUDGET ASSIGNED BY THE PRIME MINISTER; AND 50% OF THE INCREASE IN LOCAL REVENUE IN THE 2024 BUDGET COMPARED TO THE 2023 BUDGET ASSIGNED BY THE PRIME MINISTER (EXCLUDING LAND USE FEES, LOTTERY REVENUES, FEES FROM SERVICES, AND STATE-OWNED ENTERPRISE DIVESTMENT FUNDS MANAGED BY THE LOCALITY AND OTHER EXCLUDED ITEMS AS PROVIDED IN CLAUSE 2, ARTICLE 3 OF RESOLUTION NO. 34/2021/QH15 DATED NOVEMBER 13, 2021 OF THE NATIONAL ASSEMBLY ON THE 2022 STATE BUDGET; THE REVENUE RETAINED UNDER THE REGIME IN 2024; REMAINING FUNDS FROM THE 2023 SALARY REFORM (IF ANY), AND THE EXPECTED REMAINING FUNDS FROM THE 2023 SALARY REFORM UNTIL THE END OF 2024.

(ATTACHED DETAIL REPORT FORM NUMBER 02A).

6. REPORT ON THE USE OF THE LOCAL BUDGET RESERVE AS PROVIDED IN CLAUSE 2, ARTICLE 10 OF THE STATE BUDGET LAW, INCLUDING THE AMOUNT ALLOCATED AT THE BEGINNING OF THE YEAR, THE AMOUNT USED FROM THE LOCAL BUDGET RESERVE AND THE FINANCIAL RESERVE FUND (IF ANY) UNTIL JUNE 30, 2024, AND THE EXPECTED AMOUNT TO BE USED IN THE LAST SIX MONTHS OF 2024.

7. SITUATION OF BORROWING AND REPAYING LOANS OF THE LOCAL BUDGET, INCLUDING:

a) BALANCE OF DEBT AT THE BEGINNING OF 2024, BALANCE OF DEBT AS OF JUNE 30, 2024, AND ESTIMATED BALANCE OF DEBT AT THE END OF DECEMBER 2024, IN DETAIL BY SOURCE OF DEBT (ISSUANCE OF LOCAL GOVERNMENT BONDS; REPAYMENT OF FOREIGN LOANS OF THE GOVERNMENT BY EACH LENDER AND PROJECT; STATE CAPITAL INVESTMENT CREDIT; OTHER LOANS).

b) AMOUNT RAISED UNTIL JUNE 30, 2024 AND ESTIMATED TOTAL FOR 2024, IN DETAIL BY PURPOSE OF RAISING FUNDS (REPAYMENT OF PRINCIPAL, COVERING DEFICITS) AND BY EACH SOURCE OF FUNDS (ODA LOANS FUNDED FOR REPAYMENT, ISSUANCE OF LOCAL GOVERNMENT BONDS, OTHER LEGAL SOURCES OF FUNDS).

c) SITUATION OF INTEREST AND CHARGE REPAYMENT AS OF JUNE 30, 2024 AND ESTIMATED TOTAL FOR 2024, IN DETAIL BY INTEREST AND CHARGE REPAYMENT OF DOMESTIC LOANS, FOREIGN LOAN REPAYMENT FUNDED BY THE GOVERNMENT BY EACH PROJECT, IN DETAIL.

d) SITUATION OF PRINCIPAL REPAYMENT OF LOANS AS OF JUNE 30, 2024 AND ESTIMATED TOTAL FOR 2024, IN DETAIL BY PRINCIPAL REPAYMENT OF DOMESTIC LOANS, PRINCIPAL REPAYMENT OF FOREIGN LOAN REPAYMENT FUNDED BY THE GOVERNMENT BY EACH PROJECT; SPECIFICALLY BY EACH SOURCE OF REPAYMENT (NEW LOANS TO REPAY OLD ONES, FROM SURPLUS, INCREASED REVENUE, SPENDING SAVINGS, BUDGET SURPLUS).

(ATTACHED DETAIL REPORT FORM NUMBER 03).

8. FOR PROVINCES AND CITIES DIRECTLY UNDER THE CENTRAL GOVERNMENT THAT HAVE BEEN ISSUED WITH SPECIAL FINANCIAL AND BUDGET MECHANISMS AND POLICIES BY THE AUTHORIZED BODY, PROVIDE A SPECIFIC EVALUATION OF THE IMPLEMENTATION RESULTS OF THE SPECIAL FINANCIAL AND BUDGET MECHANISMS AND POLICIES AT THE LOCAL LEVEL (INCLUDING POLICIES ISSUED BY THE LOCALITY); EVALUATE THE IMPACT OF THE MECHANISMS AND POLICIES ON THE BUDGET REVENUE AND EXPENDITURE RESULTS IN THE AREA.

9. Implementation of conclusions and recommendations of the State Audit Agency, inspection, and audit agencies.

Article 15. Evaluation of the implementation of the financial plan for state financial funds outside the budget in 2024 and the years 2021-2024

Ministries, central agencies, and local agencies and units responsible for managing state financial funds outside the budget shall assess the effectiveness of their operations; report on the review, restructuring, merger, cessation of operations, or dissolution of ineffective funds that do not meet their intended purposes, have overlapping objectives, tasks, or service recipients, lack financial independence, or have overlapping revenue sources and expenditure tasks with the State Budget; summarize and evaluate the implementation of the revenue-expenditure plans and assigned tasks every six months and forecast for the full year 2024 linked to operational effectiveness; cumulatively assess the implementation up to the end of 2024 compared to the targets set for the 2021-2025 period (if applicable); difficulties and obstacles encountered and recommendations for solutions.

Article 16. For legitimate revenues of state agencies and public institutions retained and not included in the State Budget balance (in cases where special mechanisms apply, they shall be implemented according to Article 9 of this Circular)

1. Agencies and units shall report on the revenues of public institutions (excluding State Budget sources), based on which the degree of autonomy of each unit shall be determined; assess the retained fees for 2024 and the years 2021-2024 in accordance with the laws governing state management agencies and public institutions.

2. The results of implementing tasks funded from the legitimate revenues of state agencies and public institutions retained and not included in the State Budget balance in 2024, detailing the investment and development expenditures (specifying fee and retained income sources, development activity fund, other lawful sources of the unit), regular expenditures, detailed by each spending area, and cumulatively for the years 2021-2024.

3. Forecast remaining legitimate revenues at the end of 2024; remaining needs for expenditures (from 2025) for investment and regular tasks from this source that have been approved until now - if applicable.

Chapter III
BUILDING THE STATE BUDGET FOR 2025

Article 17. Requirements

1. The State Budget for 2025 shall be constructed in accordance with the provisions of the State Budget Law, guiding documents for the State Budget Law, and related laws, consistent with the 10-year Socio-Economic Development Strategy for the 2021-2030 period, five-year plans for the 2021-2025 period, goals set forth in Central Resolution decisions, special development mechanisms for certain regions as prescribed, Government Directive No. 17/CT-TTg dated May 22, 2024 on building socio-economic development plans and the State Budget for 2025, relevant laws and directives from competent authorities; it must have a solid legal basis and calculation grounds; align with the assessment of the implementation in 2024, the years 2021-2024, the capacity to implement in 2025, and achieve the highest possible targets of the 2021-2025 five-year plan.

2. Ministries and central agencies managing sectors and fields, when constructing the budget, must consider reviewing, integrating, and abolishing overlapping and ineffective social welfare policies; only propose new policies, projects, and tasks when sufficient resources can be balanced; fully forecast State Budget needs according to the hierarchical implementation of new policies, systems, and tasks decided by competent authorities. Allocate the budget to recover State Budget advances due for recovery within the year as stipulated in Article 50 of the State Budget Law and the Investment Law. Do not allocate the budget for policies and systems that have not yet been promulgated.

3. Focus on directing, handling, and resolving immediately during the budget construction phase any existing financial and budgetary management issues, violations detected and recommended by auditing and inspection agencies in accordance with the law.

Article 18. Building the State Budget Revenue Estimate for 2025

1. General principles

a) The State Budget Revenue Estimate for 2025 must be built in accordance with the provisions of the State Budget Law, the Tax Administration Law, tax laws, fee and surcharge laws, other relevant legal documents, and Directive No. 17/CT-TTg dated May 22, 2024 of the Prime Minister, ensuring the collection of all sources of State budget revenue accurately and fully, consistent with the implementation situation of previous years and achieving the highest targets for State budget revenue during the 2021-2025 period.

b) Building the revenue estimate for 2025 must closely follow the economic and social conditions, financial situations both domestically and internationally, specifically calculating factors that increase or decrease and shift revenue sources due to changes in legal policies on revenue collection, management, especially policies on tax exemptions, reductions, and extensions of tax payment deadlines, expired land lease payments, the implementation of phased tax cuts and incentives to fulfill the Government's commitments in international economic integration with foreign investors, and the implementation of regulations to combat profit shifting and base erosion.

c) Building the revenue estimate must be linked to the vigorous implementation of administrative reform measures, modernizing revenue management work; strengthening revenue management, preventing revenue loss, particularly tax evasion in business and real estate transactions; effectively managing new revenue sources arising under digital economy and e-commerce conditions; intensifying tax inspections and audits, combating transfer pricing, tax evasion, and fraudulent tax practices, rigorously handling overdue tax debts, and strictly controlling tax refunds.

d) Strive for the domestic revenue estimate for 2025, excluding land use fees, lottery revenues, proceeds from state-owned enterprise sales, dividends, post-tax profits, and the difference between income and expenditure of the State Bank, to increase nationwide by at least 5-7% compared to the estimated actual performance in 2024 (excluding factors affecting revenue increases or decreases due to policy changes); the growth rate of revenue at each locality should be appropriate to economic growth and new revenue sources in each area, taking into account the enhancement of revenue management, prevention of revenue loss, and recovery of tax arrears. The revenue estimate from import-export activities in 2025 should increase by an average of 4-6% compared to the estimated actual performance in 2024.

2. Building the Domestic Revenue Estimate:

a) Localities must build the domestic revenue estimate for 2025, in addition to meeting the goals and requirements stipulated in Clause 1 of this Article, must forecast all new State budget revenue sources within their jurisdiction, but not consolidate non-State budget items into the State budget balance according to the prescribed system, based on the assessment of actual implementation in previous years, the specific characteristics of 2025, and the audit of the 2025 revenue estimate announced by the competent authority.

b) The State Budget Revenue Estimate for 2025 must be built on the national information system on land and taxpayers; ensuring the accuracy and completeness of each revenue item, tax type, and revenue field for each locality, detailing revenue from newly operational projects with significant revenue according to current tax, fee, and surcharge regulations and other State budget revenues; detailing each fee and surcharge item as prescribed; regulations adjusting policies that continue to affect State budget revenue in 2025 and regulations expected to be amended and applied in 2025.

Specifically, the preparation of the revenue estimate related to housing and land must comply with the laws on housing and land, closely following planning and plans for land use rights allocation, land auctioning, and land leasing at the local level, and approved schemes for the reorganization and disposal of housing and land; the People's Committee of the province/city must direct local agencies to closely cooperate with tax authorities to build the land use fee revenue estimate accurately reflecting potential revenue generation, addressing the issue of inaccurate revenue forecasting and revenue estimate preparation related to land in recent years in accordance with the spirit of Resolution No. 91/2023/QH15 dated June 19, 2023 on approving the 2021 State Budget Settlement.

c) Revenue from the reorganization and disposal of housing and land, public assets as stipulated in Decree No. 167/2017/NĐ-CP and Decree No. 67/2021/NĐ-CP; revenue from leasing exploitation rights, transferring exploitation rights with a time limit; State budget revenue from managing and using infrastructure assets invested and managed by the State through a method not counted as state capital in enterprises, and revenue from land development funds and water surfaces (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, public institutions, state-owned equity transfers, and excess capital contributions over charter capital in enterprises must be implemented in accordance with Decree No. 148/2021/NĐ-CP dated December 31, 2021 of the Government.

Revenue from land use fees for defense and security combined with labor production and economic construction activities shall be carried out in accordance with the Land Law and Articles 201 and 260 of the 2024 Land Law by the Ministry of National Defense and the Ministry of Public Security.

d) Detailed estimates of fee and surcharge revenues (as specified in the Law on Fees and Surcharges) including total revenue, amount to be deposited into the budget, amount to be deducted and retained according to the law, detailed by each type of fee and surcharge, and budget estimates for agencies and units allowed to retain according to the fields as stipulated in Clause 4 of Article 11 of Circular No. 342/2016/TT-BTC issued by the Minister of Finance and Form No. 07 attached to Circular No. 342/2016/TT-BTC.

The construction of the budget for expenditures from retained fee revenues must comply with the contents of expenditures serving revenue collection as stipulated in Decree No. 120/2016/NĐ-CP dated August 23, 2016 of the Government, amended and supplemented by Decree No. 82/2023/NĐ-CP dated November 28, 2023 of the Government, without exceeding the retention ratio prescribed in the Circulars of the Minister of Finance.

Agencies and units shall not prepare budgets for special mechanism tasks that have been abolished pursuant to Resolution No. 104/2023/QH15 and Resolution No. 142/2024/QH15.

d) Estimate the revenue from administrative violation fines, penalties, confiscations, auction proceeds from vehicle license plates, and other payments to the State Budget in 2025 as prescribed.

e) For revenues not consolidated into the State Budget balance as prescribed (fees, service charges for public services, tuition fees, medical service prices, other lawful revenues retained by agencies and units as prescribed), such agencies and units must prepare separate estimates, 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 prescribed.

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

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

b) Consider factors such as: anticipated domestic price fluctuations and international market prices of products with large State Budget revenues; global crude oil price fluctuations; exchange rates between the Vietnamese dong and the currencies of strategic trading partners; reduced revenue impacts from implementing tariff reduction schedules under Free Trade Agreements signed and commitments implemented in 2025; levels of trade facilitation and the influence of technical barriers; scale and progress of major investment projects involving raw material and equipment imports; production plans of domestic oil refineries.

4. Building the Value Added Tax Refund Estimate 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 exporting enterprises, total number of new approved projects and investment capital, implementation progress of ongoing investment projects and new projects, investment projects ending their investment phase and transitioning to operational phases at the locality, accurately and timely estimate the expected VAT refunds arising in 2025 according to current policies and new policies coming into effect. Develop a budget for VAT refunds linked to requirements for strengthening VAT refund management, monitoring, inspection, and post-refund audits to ensure compliance with actual occurrences and policy regulations.

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:

The preparation of the 2025 State Budget revenue estimate from non-repayable foreign aid should be based on and closely follow the implementation of the 2024 State Budget revenue estimate (allocated estimates, received funds from donors, executed funds); program/project/non-project aid documents approved by competent Vietnamese authorities; donor commitment documents, letters of aid, or intention letters; actual implementation progress, potential new occurrences, and limitations to avoid underestimation requiring additional approval from competent authorities or overestimation leading to unused funds or reallocation. During the process of preparing the State Budget revenue/expenditure estimate for non-repayable foreign aid, the program/project/non-project director and the first-level budget agency (the supervising agency) must determine the nature of investment and recurrent expenditures, detail each expenditure item/sector, clearly define funding sources according to State Budget management regulations (if applicable).

For received aid from years prior to 2024 that was not included in allocated estimates, ministries, central agencies, and localities must prepare and consolidate these into the 2025 budget proposal for competent authority review and decision-making, serving as a basis for accounting and settlement as prescribed.

Article 19. Budgeting State Budget Expenditure for 2025

1. Principles for Construction

a) In accordance with the provisions of the State Budget Law, the Public Investment Law, and other relevant laws; in compliance with the resolutions of the Standing Committee of the National Assembly and the decisions of the Prime Minister regarding principles, criteria, and allocation standards for public investment capital and regular State Budget expenditure; to meet the requirements for restructuring the budget, the policy on reorganizing organizational structures and reducing redundant staff, and improving the quality and efficiency of public service sectors according to the Central Committee's and Politburo's resolutions. Ensuring resources for salary reform, social insurance policies linked to the reorganization of organizational structures and the reduction of redundant staff according to regulations.

b) Adhering to the principle of transparency and thriftiness as stipulated in Resolution No. 74/2022/QH15 dated November 15, 2022 of the National Assembly from the initial stage of determining tasks, ensuring the implementation of tasks consistently from the budget preparation phase through allocation, management, utilization, and settlement phases of the State Budget.

c) Closely aligning with the feasibility and resource assurance, minimizing the cancellation of budgets and transferring funds to the following year. Based on the assessment of the 2024 implementation, ministries, central agencies, and localities should review overlapping tasks, tasks ending in 2024; ongoing tasks to continue in 2025; prioritize the sequence of new tasks approved by competent authorities based on urgency and importance, and implement immediately upon receiving funding, ensuring that the State Budget expenditure plan is consistent with the ability to mobilize and balance resources (including lawful sources as prescribed).

2. Preparation of the Public Investment Expenditure Budget:

a) The public investment expenditure budget from the State Budget includes both loan sources (ODA and foreign concessional loans), grant aid (non-repayable ODA, non-repayable grant aid not included in official development assistance), lottery revenue, revenue from selling state-owned shares in certain enterprises, land use fee revenue, constructed in accordance with legal regulations and the State Budget's balancing capacity in the year; consistent with the five-year public investment plan for 2021-2025 and supplementary resolutions of the National Assembly, public investment expenditures as prescribed by the State Budget Law, and other relevant laws not within the scope of the Public Investment Law.

The construction of the public investment budget for 2025 must comply with the provisions of Article 51 of the Public Investment Law. Adhere to the principles, criteria, and allocation standards prescribed in the Public Investment Law, Resolution No. 29/2021/QH15 dated July 28, 2021 of the National Assembly on the Five-Year Public Investment Plan for 2021-2025, and Resolution No. 973/2020/UBTVQH14 dated July 8, 2020 of the Standing Committee of the National Assembly (Resolution No. 973/2020/UBTVQH14) and Decision No. 26/2020/QĐ-TTg dated September 14, 2020 of the Prime Minister on the principles, criteria, and allocation standards for public investment capital from the State Budget for the period 2021-2025. The amount allocated for each task and project must be consistent with the five-year public investment plan, the implementation and disbursement capability of each project up to January 31, 2026, without extending the implementation and disbursement time to the next phase as stipulated in Article 68 of the Public Investment Law, ensuring detailed allocation and assignment to projects before December 31, 2024 as prescribed in Clause 5 of Article 61 of the Public Investment Law and Article 44 of the State Budget Law. Concentrating capital to allocate repayment for tasks and projects under the Economic and Social Recovery and Development Program from projects in the five-year public investment plan adjusted from the Program's capital according to Resolution No. 93/2023/QH15 dated June 22, 2023 of the National Assembly; projects funded from annual increased revenues must also be allocated; allocating the remaining advance payment capital to be recovered in the five-year public investment plan; prioritizing capital allocation for national key projects, inter-regional connection programs and projects; capital for projects using ODA and concessional loans from foreign financiers (including counterpart funds); state capital participating in projects under the public-private partnership model; investment preparation tasks; interest subsidy and management fee tasks according to Resolution No. 43/2022/QH15 and legal provisions, capital contribution to policy banks and non-budgetary state financial funds. Not allocating capital in a scattered and inefficient manner.

Based on the approved guidelines and directions, the Ministry of Planning and Investment shall prepare the public investment expenditure budget for 2025 for this task (if expected to arise in 2025) according to the Decree on the Investment Support Fund (if issued), accompanied by detailed explanations (showing specific legal bases and calculation grounds), and submit it to the Ministry of Finance for consolidation.

Implementing in accordance with the provisions of the State Budget Law regarding the total annual support capital for public investment provided by the Central State Budget to the Local State Budget to implement major and particularly important programs and projects with significant impacts on local economic and social development, not exceeding 30% of the total basic construction investment expenditure of the Central State Budget as prescribed.

b) For foreign capital, the allocation plan must be detailed by source of loan and grant aid by sector and field; consistent with the five-year public investment plan of the Central State Budget for 2021-2025, the content of agreements and commitments with financiers, consistent with the project's financial mechanism and program/project progress, prioritizing sufficient capital allocation for projects concluding agreements, loan, and grant aid in 2025 and unable to extend.

For new agreements, commitments, and agreements (if any), they must be within the scope of the approved plan of 300 trillion VND of foreign capital for public investment over the five-year period 2021-2025.

c) Based on the amount already collected and spent from the management, use, reorganization, and disposal of state-owned real estate but not yet settled; the amount already paid to the State Budget in previous years that has not been used and the budgeted revenue for the State Budget from the management, use, reorganization, and disposal of state-owned real estate in 2025, ministries, central agencies, local agencies, and units shall prepare detailed budgets for spending on public investment from this source according to regulations, including clearly stating completed projects that have not been settled due to lack of budget allocation; projects approved to use funds from the sale of assets on land and the transfer of land use rights paid to the budget but not yet utilized and generated within 2025; these should be consolidated in the public investment expenditure budget of ministries, central agencies, and local agencies and submitted to the planning and investment agency and the financial agency at the same level for consolidation and submission to the competent authority for decision.

(Detailed report form number 04-05 attached)

In addition, ministries and central agencies shall prepare separate reports detailing the implementation of plans for managing, using, reorganizing, and disposing of real estate up to 2024; along with plans for managing, using, reorganizing, and disposing of real estate in 2025, the budgeted revenue and expenditure from this source in 2025 according to the above contents.

The Ministry of Public Security and the Ministry of National Defense shall provide detailed reports on tasks related to revenue and expenditure implemented according to Clause 4, Article 260 of the Land Law 2024; including the detailed amount of revenue paid to the budget up to the end of 2024 that has not been allocated in the budget; the expected revenue to arise in 2025-2027 from transitional schemes and projects as prescribed, and the proposed expenditure tasks accompanied by detailed documentation according to Resolution No. 132/2020/QH14, guiding documents, and laws on the State Budget and public investment, to be submitted to the Ministry of Finance and the Ministry of Planning and Investment for consolidation and reporting to the competent authority as prescribed.

d) For the budget for interest subsidy and management fee compensation

Based on the provisions of the law on interest subsidy and management fee and the implementation of national credit policies in 2024, predict changes in the target groups, policies, and tasks; forecast credit growth, loan balance, capital mobilization, deposit rates, lending rates, etc., to build the State Budget expenditure budget for 2025 according to the State Budget Law, Public Investment Law, and implementing guidance documents.

đ) For the budget for registered capital for policy banks, state financial funds outside the budget, and support investment for other policy targets, carried out according to the Public Investment Law and guiding documents. Entrust State Capital Registered Capital through the Social Policy Bank to lend to the poor, other policy targets, and support certain activities as stipulated in Clause 6, Article 4 of Resolution No. 111/2024/QH15 dated January 18, 2024 of the National Assembly.

e) For the budget for public investment outside the scope of the Public Investment Law (with detailed explanation), implement the contents and tasks as prescribed in the Law on Management and Use of State Capital for Production and Business Activities in Enterprises and Circular No. 148/2021/NĐ-CP of the Government, and State Budget expenditures to fulfill government commitments to foreign investors as approved by the competent authority.

g) For the budget for expenditures from legal revenues of state agencies and public service units designated for investment outside the State Budget balance (excluding special mechanism tasks abolished according to Resolution 104/2023/QH15 and Resolution No. 142/2024/QH15), implement according to current regulations (detailed sources of fees, retained proceeds, development fund for service activities, borrowing sources, and other legal sources of the unit); submit to the superior management agency for consolidation and reporting to the investment and finance agency at the same level.

3. Regarding the construction of the national reserve plan and the budget for purchasing goods for the national reserve in 2025:

Based on the provisions of the National Reserve Law, the State Budget Law, and implementing guidance documents, ministries and central agencies responsible for managing national reserves shall develop plans and budgets for purchasing goods for the national reserve in 2025 consistent with the national reserve development goals and national reserve warehouse planning, and the State Budget's balancing capacity. Provide detailed explanations and analyze reasons item by item and corresponding values; prepare reporting forms according to Article 4 of Circular No. 145/2013/TT-BTC dated October 21, 2013, issued by the Minister of Finance, guiding the national reserve plan and State Budget expenditure for the national reserve, and Article 30 of this Circular.

4. Construction of the regular expenditure budget estimate

a) Based on the State Budget Law, the Law on Management and Use of Public Assets, and implementing guidance documents; relevant laws; resolutions of the Central Committee, Politburo, and National Assembly; principles, criteria, and allocation standards for regular State Budget expenditure according to Resolution No. 01/2021/UBTVQH15 of the Standing Committee of the National Assembly and Decision No. 30/2021/QĐ-TTg of the Prime Minister; State Budget expenditure policies, systems, and standards; approved projects and tasks; Directive No. 17/CT-TTg dated May 22, 2024 of the Prime Minister; the audit of the 2025 budget revenue and expenditure, ministries, central agencies, and localities shall prepare detailed regular expenditure budgets by expenditure areas, ensuring the fulfillment of important political tasks, fully implementing all state policies and systems already established, especially those concerning human resources and social welfare.

For the budget for preferential allowances for persons who have rendered meritorious services to the revolution, based on the provisions of Decree No. 77/2024/NĐ-CP dated July 1, 2024, Decree No. 75/2021/NĐ-CP dated July 24, 2021, Decree No. 55/2023/NĐ-CP dated July 21, 2023 of the Government on the levels of preferential allowances and benefits for persons who have rendered meritorious services to the revolution, Decree No. 131/2021/NĐ-CP dated December 31, 2021 of the Government detailing and implementing the Preferential Treatment Ordinance for Persons Who Have Rendered Meritorious Services to the Revolution, and any adjustment regulations for 2024 (if applicable).

For the expenditure on pension payments for retirees guaranteed by the State Budget, the budget estimate is based on Decree No. 75/2024/NĐ-CP dated June 30, 2024 of the Government adjusting pensions, social insurance benefits, and monthly allowances, detailing the public welfare services for social security and healthcare.

For repair, maintenance, and regular upkeep of physical infrastructure, follow Circular No. 65/2021/TT-BTC dated July 29, 2021 of the Minister of Finance; for activities related to renting information technology services, follow Decree No. 82/2024/NĐ-CP dated July 10, 2024 of the Government. b) The budget estimate for regular expenditures from the State Budget for state management agencies, the Party, and mass organizations in 2025 shall be developed in conjunction with the implementation of Resolution No. 28-KL/TW on streamlining staffing and restructuring the cadre and civil servant workforce and Resolution No. 40-KL/TW on enhancing the effectiveness of management of staffing in the political system for the period 2022-2026 issued by the Politburo.

Specifically, determine the impact on the salary fund and administrative operating costs in 2025 compared to 2024; ensure thorough savings in regular expenditures, particularly in purchasing public assets, traveling domestically and internationally, using official vehicles, organizing conferences, seminars, research, surveys, electricity, and fuel.

c) The budget estimate for operations in 2025 from the State Budget for public service units shall be based on the objectives of reforming public service units according to Resolution No. 62-KL/TW of the Politburo dated October 2, 2023 on implementing Resolution No. 19-NQ/TW dated October 25, 2017 of the Central Committee of the Communist Party of Vietnam on continuing to reform the organizational structure and management, improving the quality and efficiency of public service units, Resolution No. 01/2021/UBTVQH15, Decree No. 60/2021/NĐ-CP, Decision No. 30/2021/QĐ-TTg, and Circular No. 56/2022/TT-BTC. Among which:

- Do not develop a budget estimate for regular State Budget support for public services that have completed their pricing and fee adjustment process by 2024 or are expected to complete it in 2025.

- Public service units that self-fund part of their regular expenditures under central ministries and agencies shall reduce their direct State Budget support by at least 3% in 2025 compared to the 2024 budget estimate (excluding salary funds and excluding the 5% reduction and savings as per Directive No. 01/CT-TTg dated January 4, 2024 of the Prime Minister), and reduce the number of staff funded by the State Budget in accordance with Resolution No. 19-NQ/TW.

- Public service units fully funded by the State Budget under central ministries and agencies shall continue to reduce their direct State Budget support by at least 2% in 2025 compared to the 2024 budget estimate (excluding salary funds and excluding the 5% reduction and savings as per Directive No. 01/CT-TTg dated January 4, 2024 of the Prime Minister), except for essential public services funded by the State Budget.

- The level of State Budget support for regular expenditures for public service units in Groups 3 and 4 in 2025 includes State Budget support for implementing policies and wage systems, social insurance, and social welfare policies approved by competent authorities and implemented from July 1, 2024, after utilizing the wage reform funds as prescribed.

d) For budget estimates of regular expenditures not assigned to autonomous management and other special tasks that arise infrequently in areas of State Budget spending: central ministries, agencies, and localities shall guide subordinate agencies and units to prepare and consolidate budget estimates in accordance with laws on State Budgets and relevant laws.

đ) For procurement tasks of assets and equipment, renovation, expansion, and new construction projects within existing investment projects, and for the application of information technology, budget estimates shall be prepared in accordance with Decree No. 82/2024/NĐ-CP dated July 10, 2024 amending and supplementing certain provisions of Decree No. 73/2019/NĐ-CP of the Government on managing investment in the application of information technology using State Budget funds, the decree guiding the use of regular State Budget expenditures for the procurement of assets and equipment, renovation, expansion, and new construction projects within existing investment projects (if issued), and relevant laws, along with detailed explanatory documents on legal bases, assigned tasks, approved funding needs, implementation sources, implementation periods, allocations up to the end of 2024, and proposed allocations for 2025, submitted to the financial authority at the same level for consolidation and reporting to the competent authority for decision-making as prescribed.

For expenditures in the fields of national defense and security, ministries, sectors, and localities shall prepare budget estimates for procurement tasks of assets and equipment, renovation, expansion, and new construction projects, and for the application of information technology using regular State Budget expenditures according to Decree No. 165/2016/NĐ-CP and Decree No. 01/2021/NĐ-CP amending Decree No. 165/2016/NĐ-CP, accompanied by detailed explanatory documents as prescribed (including specific characteristics; legal and practical bases; total funding needs as approved; implementation sources as approved; implementation periods; allocations up to the end of 2024; and proposed allocations for 2025).

Only economic activities

Based on the estimated revenue from road usage fees in 2024, the Ministry of Transport proposes a plan for allocating road usage fee revenues to the State Treasury for the management and maintenance of national highways and local roads in 2025; principles and criteria for allocating road usage fee revenues for the management and maintenance of local roads for each locality, to be consolidated and reported together with the State Budget estimate for 2025 and the three-year plan for 2025-2027 to the Ministry of Finance for consolidation and submission to the competent authority for decision-making as prescribed.

g) Expenditures for state management agencies, the Party, and mass organizations shall clearly specify:

- The number of authorized personnel positions for 2025 according to the decision on personnel allocation by the competent authority (if any), the actual number of personnel present up to July 1, 2024, and the number of unfilled personnel positions based on the 2025 personnel allocation expenditure mentioned above. In cases where there has been no approved 2025 personnel allocation expenditure, the 2025 budget estimate shall be prepared based on the target personnel allocation for 2026 assigned by the Politburo in Decisions No. 71-QĐ/TW dated July 18, 2022 on the total personnel allocation for the political system for the period 2022-2026, No. 72-QĐ/TW dated July 18, 2022 on personnel allocation for Party agencies, Vietnam Fatherland Front, political and social organizations at central level and provincial and municipal party committees and direct subordinate central party committees for the period 2022-2026, No. 73-QĐ/TW dated July 18, 2022 on personnel allocation for ministries, ministerial-level agencies, government agencies, organizations established by the Government and Prime Minister, Vietnamese representative offices abroad, public service units, mass organizations entrusted with tasks by the Party and State at the central level for the period 2022-2026, No. 75-QĐ/TW dated July 18, 2022 on personnel allocation for People's Courts for the period 2022-2026, No. 76-QĐ/TW dated July 18, 2022 on personnel allocation for the People's Procuracy for the period 2022-2026, and decisions of the competent authorities related thereto.

- Determine the salary fund for rank and grade, allowances based on salary, and contributions under the prescribed regulations based on the 2025 personnel allocation expenditure determined above and the basic salary level according to Decision No. 73/2024/NĐ-CP dated June 30, 2024 of the Government (for a full twelve months) guaranteed by the State Budget: including the salary fund of the actual personnel present up to July 1, 2024, determined based on the salary levels according to rank, grade, and position; allowances based on salary and contributions under the prescribed regulations, and the salary fund of unfilled personnel positions (but still within the total allocated personnel quota), calculated based on the 2024 basic salary level and the pay scale factor for Grade 1 of Class A1 civil servants, allowances based on salary, and contributions under the prescribed regulations. In cases where agencies and units have plans to recruit personnel under Decree No. 140/2017/NĐ-CP dated December 5, 2017 of the Government on policies to attract and develop cadres from outstanding graduates, young scientists, or to recruit experienced cadres, civil servants, and experts according to approved projects or plans, the additional salary fund for these categories shall be determined according to the prescribed regulations.

- Explain the basis for preparing the budget estimates for special expense items for 2025 (legal basis, assigned tasks, tasks approved by the competent authority, content of expenses, policies, regulations, and prescribed expenditure standards) according to Resolution No. 01/2021/UBTVQH15 and other relevant provisions in the spirit of thrift and efficiency.

- Ministries, central agencies, and localities shall instruct subordinate agencies and units to prepare budget estimates to ensure funding for legislative work, perfecting laws, implementing laws, and monitoring law enforcement as prescribed (including clearly identifying funding for legislative work and perfecting laws as basic investment funding 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 the Legal System of Vietnam until 2010, with a view to 2020) and prioritize allocation within the assigned budget range to ensure the implementation of this work.

- Ministries, central agencies, and localities shall propose detailed budget estimates for organizing the Party Congresses at all levels according to their functions and tasks, accompanied by detailed explanations.

h) Agencies and units shall build (accompanied by detailed explanations) and incorporate into the state budget estimates the regular expenditure tasks related to the handling of state assets, restructuring and disposal of real estate, and conversion of ownership of enterprises and public service units as prescribed (if applicable). For regular expenditure to implement tasks stipulated in Decree No. 148/2021/NĐ-CP and Circular No. 57/2022/TT-BTC dated September 16, 2022 of the Minister of Finance guiding certain provisions of Decree No. 148/2021/NĐ-CP, they shall be incorporated into the budget estimates for economic activities of the State Budget.

i) For regular expenditure of programs and projects using borrowed funds (ODA and foreign concessional loans) and aid funds (non-repayable ODA funds, non-repayable aid funds not included in official development assistance):

Based on agreements and accords already signed and to be signed with donors (for agreements to be signed, only including aid sources), progress in project documentation or aid disbursements, financial mechanisms (if any) approved by the competent authority, ministries, central agencies, and localities shall prepare budget estimates for each program, project, agreement, and counterpart funds (if any), detailing each source of borrowed funds and foreign aid, by sector, and disbursement mechanism (implementing revenue and expenditure recording or disbursement according to domestic financial mechanisms); for localities, clearly define which of these funds belong to the local state budget and supplementary national budget funds for localities.

For programs and projects that are partially funded by the state budget and partially through 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 participation by some ministries, central agencies, and localities, these ministries, central agencies, and localities shall prepare budget estimates for expenditures from foreign sources and provide detailed bases for allocation to the Ministry of Finance and the Ministry of Planning and Investment for consolidation and submission to the competent authority for decision-making, and send copies to the main management agencies of the programs and projects for consolidation and monitoring.

5. Establish the budget for foreign aid expenditures.

BASED ON THE COMMITMENTS OF VIETNAM'S GOVERNMENT TO FOREIGN GOVERNMENTS FOR THE FIVE-YEAR PERIOD FROM 2021 TO 2025 (IF ANY), ANNUAL ASSISTANCE COMMITMENTS WITH RECIPIENT COUNTRIES, APPROVED PROJECT DOCUMENTS BY AUTHORIZED AUTHORITIES, IMPLEMENTATION SITUATIONS OF BUDGET ESTIMATES, CAPITAL DISBURSEMENT CAPABILITIES OF ASSISTANCE PROGRAMS AND PROJECTS IN 2024, AND THE AGENCIES DESIGNATED BY THE GOVERNMENT TO LEAD THE PREPARATION OF BUDGET ESTIMATES FOR ASSISTANCE EXPENDITURES FOR EACH ASSISTANCE PROGRAM AND PROJECT USING ASSISTANCE FUNDS, INCLUDING DETAILED INVESTMENT TASKS AND REGULAR EXPENSES; THE COMBINED BUDGET ESTIMATE FOR EACH ASSISTANCE RECIPIENT.

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

FINANCIAL SUPPORT FOR ASSOCIATIONS SHALL BE CONDUCTED IN ACCORDANCE WITH THE PROVISIONS OF DECREE NO. 45/2010/ND-CP OF APRIL 21, 2010, ISSUED BY THE GOVERNMENT, REGARDING THE ORGANIZATION, OPERATIONS, AND MANAGEMENT OF ASSOCIATIONS, DECREE NO. 33/2012/ND-CP OF THE GOVERNMENT AMENDING AND SUPPLEMENTING CERTAIN PROVISIONS OF DECREE NO. 45/2010/ND-CP, AND OTHER AMENDING, SUPPLEMENTING, AND REPLACING LEGAL DOCUMENTS.

7. MINISTRIES MANAGING INDUSTRY SECTORS AND FIELDS, WHILE PREPARING THE 2025 STATE BUDGET EXPENDITURE ESTIMATE (DIRECTLY IMPLEMENTED PORTION), SHALL SIMULTANEOUSLY INITIATE REQUIREMENTS FROM MINISTRIES, SECTORS, AND LOCALITIES TO SUBMIT REPORTS EVALUATING THE SITUATION AND NEEDS FOR IMPLEMENTING MECHANISMS AND POLICIES ISSUED BY AUTHORIZED AUTHORITIES AND EFFECTIVE IN 2025. BASED ON THIS INFORMATION, THEY SHALL AGGREGATE AND DETERMINE THE TOTAL FUNDING REQUIREMENTS, ACCOMPANIED BY DETAILED EXPLANATIONS OF THE CALCULATION BASIS.

FOR EXPENDITURES ON PUBLIC SERVICES IN THE SCIENCE AND TECHNOLOGY FIELD AND ENVIRONMENT PROTECTION FIELD, THE MINISTRY OF SCIENCE AND TECHNOLOGY AND THE MINISTRY OF NATURAL RESOURCES AND ENVIRONMENT SHALL BASE THEIR ACTIONS ON SPECIALIZED LEGAL DOCUMENTS, COORDINATE WITH CENTRAL MINISTRIES AND AGENCIES TO REVIEW AND PROPOSE BUDGET ALLOCATION PLANS FOR REGULAR EXPENDITURES UNDER THEIR MANAGEMENT, ENSURING THAT TASKS, PROJECTS, AND PROPOSALS HAVE LEGAL FOUNDATIONS, FILES, PROCEDURES, AND ARE IN ACCORDANCE WITH THE STANDARDS AND QUOTAS SET BY AUTHORIZED GOVERNMENT AUTHORITIES, AND ARE IN LINE WITH THE NATURE OF THE INVESTMENT/FUNCTIONAL FUNDS AS PROVIDED BY LAW, WITHIN THE SCOPE OF THE TOTAL MONITORING LIMIT FOR PUBLIC SERVICE EXPENDITURES IN THE SCIENCE AND TECHNOLOGY FIELD AND ENVIRONMENT PROTECTION FIELD ANNOUNCED (IF ANY). BASED ON ARTICLE 42 OF THE STATE BUDGET LAW, THEY SHALL NOT PROPOSE TASKS WITHOUT COMPLETE PROCEDURES AND SHALL NOT ALLOCATE FUNDS FOR SUCH TASKS. THEY SHALL BE FULLY RESPONSIBLE FOR THE PROPOSED PLAN AND SHALL SUBMIT IT TO THE MINISTRY OF FINANCE FOR INCLUSION IN THE NATIONAL TREASURY ALLOCATION PLAN, TO BE SUBMITTED TO THE AUTHORIZED AUTHORITIES AS REQUIRED.

8. PREPARATION OF THE 2025 BUDGET EXPENDITURE ESTIMATE FOR NATIONAL TARGET PROGRAMS AND OTHER PROGRAMS, PROJECTS, AND PROPOSALS:

a) BASED ON THE STATE BUDGET LAW, THE INVESTMENT LAW, RESOLUTIONS OF THE NATIONAL ASSEMBLY, AND THE PRIME MINISTER’S APPROVAL DECISIONS, GUIDELINES FROM FUNCTIONAL AGENCIES, IMPLEMENTATION SITUATIONS FROM 2021 TO 2024, THE MID-TERM PUBLIC INVESTMENT PLAN, AND THE ANNOUNCED MONITORING LIMITS, THE CENTRAL MINISTRIES AND AGENCIES LEADING THE PROGRAMS SHALL COORDINATE WITH THE MANAGING UNITS OF THE PROGRAMS, PROJECTS, AND SUBPROJECTS TO BUILD THE 2025 BUDGET EXPENDITURE ESTIMATE FOR EACH CENTRAL MINISTRY AND AGENCY AND EACH LOCALITY, DETAILING THE OBJECTIVES, CONTENTS, AND TASKS APPROVED BY AUTHORIZED AUTHORITIES, SPECIFICALLY FOR EACH PROJECT, SUBPROJECT, AND COMPONENT, STRUCTURE OF INVESTMENT AND REGULAR EXPENDITURES BY FIELD, NATIONAL TREASURY FUNDS, LOCAL GOVERNMENT FUNDS, FUNDS INCORPORATED FROM OTHER PROGRAMS AND PROPOSALS, AND OTHER LEGALLY RAISED FUNDS (IF ANY), ENSURING LEGAL FOUNDATIONS, FILES, PROCEDURES, APPROVAL DECISIONS, AND CHARGES, STANDARDS, AND QUOTAS SET BY AUTHORIZED GOVERNMENT AUTHORITIES, AND SHALL SUBMIT TO THE MINISTRY OF FINANCE AND THE MINISTRY OF PLANNING AND INVESTMENT ALONG WITH THE STATE BUDGET ESTIMATE REPORT FOR 2025.

b) FOR OTHER PROGRAMS, PROJECTS, AND PROPOSALS (LED BY ONE MINISTRY AND DISTRIBUTED TO MULTIPLE MINISTRIES, CENTRAL AGENCIES, AND LOCALITIES): THE LEADING MINISTRIES AND CENTRAL AGENCIES SHALL BASE THEIR ACTIONS ON APPROVAL DECISIONS, GUIDELINES, IMPLEMENTATION SITUATIONS IN 2024 AND 2021-2024; PROPOSE THE FUNDING FOR IMPLEMENTATION IN 2025, ACCOMPANIED BY DETAILED LEGAL FOUNDATIONS, FILES, PROCEDURES, AND EXPLANATIONS FOR ANY INCREASES OR DECREASES COMPARED TO THE 2024 BUDGET ESTIMATE, SPECIFICALLY FOR EACH OBJECTIVE, TASK, AND EXPENDITURE FIELD, AND SHALL SUBMIT TO THE MINISTRY OF FINANCE ALONG WITH THE 2025 BUDGET ESTIMATE REPORT.

BASED ON THE ANNOUNCEMENT NUMBER FROM THE MINISTRY OF FINANCE, THE LEADING MINISTRIES AND CENTRAL AGENCIES SHALL PROPOSE PRINCIPLES, CRITERIA, QUOTAS, AND DETAILED ALLOCATION PLANS FOR FUNDING FOR EACH MINISTRY AND CENTRAL AGENCY AND LOCALITY IN 2025, SPECIFICALLY FOR EACH OBJECTIVE, TASK, AND EXPENDITURE FIELD, ACCORDING TO STATE BUDGET MANAGEMENT REGULATIONS, ACCOMPANIED BY DETAILED EXPLANATIONS, ENSURING LEGAL FOUNDATIONS, FILES, PROCEDURES, BASED ON THE TASKS ASSIGNED AND APPROVED BY AUTHORIZED AUTHORITIES, AND CHARGES, STANDARDS, AND QUOTAS SET BY AUTHORIZED GOVERNMENT AUTHORITIES, AND SHALL SUBMIT TO THE MINISTRY OF FINANCE ACCORDING TO THE NOTIFICATION OF THE MINISTRY OF FINANCE.

THE LEADING MINISTRIES AND CENTRAL AGENCIES OF NATIONAL TARGET PROGRAMS, PROGRAMS, PROJECTS, AND PROPOSALS SHALL BE FULLY RESPONSIBLE FOR THE LEGAL FOUNDATIONS, PRACTICAL SITUATIONS, AND PROPOSALS FOR PRINCIPLES, CRITERIA, QUOTAS, AND DETAILED ALLOCATION PLANS FOR EACH MINISTRY AND CENTRAL AGENCY AND LOCALITY, ENSURING COMPLIANCE WITH REGULATIONS, COMPLETE FILES, PROCEDURES, APPROVAL DECISIONS, CHARGES, STANDARDS, AND QUOTAS SET BY AUTHORIZED GOVERNMENT AUTHORITIES, AND THE NATURE OF REGULAR FUNDS.

9. ESTIMATE OF SOURCES AND REQUIREMENTS FOR FINANCIAL SUPPORT TO IMPLEMENT WAGE REFORM AND ADJUST RETIREMENT BENEFITS, SOCIAL INSURANCE BENEFITS, MONTHLY ALLOWANCES (STATE BUDGET SHARE), AND VETERANS' BENEFITS IN 2025:

a) Regarding the source of salary reform

MINISTRIES AND CENTRAL AGENCIES AND LOCALITIES SHALL PREPARE THE BUDGET ESTIMATE FOR FUNDS GENERATED FROM WAGE REFORM IN ACCORDANCE WITH RESOLUTION 27-NQ/TW, NATIONAL ASSEMBLY RESOLUTIONS, RESOLUTION 01/2021/UBTVQH15, DECREE 60/2021/NĐ-CP, CIRCULAR 56/2022/TT-BTC, AND RELATED LEGAL DOCUMENTS.

b) Regarding the need for funding support

THE ESTIMATE OF THE REQUIREMENTS FOR FINANCIAL SUPPORT IN 2025 SHALL BE BASED ON ENSURING POLICIES AND SYSTEMS FOR WAGES, ADJUSTMENTS TO RETIREMENT BENEFITS, SOCIAL INSURANCE BENEFITS, MONTHLY ALLOWANCES (STATE BUDGET SHARE), VETERANS' BENEFITS, AND SOCIAL ASSISTANCE AS PROVIDED IN DECREE 73/2024/NĐ-CP, DECREE 75/2024/NĐ-CP, DECREE 76/2024/NĐ-CP, AND DECREE 77/2024/NĐ-CP OF 2024 AFTER UTILIZING THE FUNDS OF THE AGENCIES AND UNITS AS PROVIDED.

10. PREPARATION OF THE BUDGET ESTIMATE FOR IMPLEMENTING THE POLICY OF REDUCING THE STAFFING LEVEL:

The preparation of the budget for implementing the policy on streamlining the establishment in 2025 according to the conclusions numbered 28-KL/TW and 40-KL/TW of the Politburo, the regulations of the Government, and the guiding documents for implementation.

11. For the budget of expenses for public services from retained revenue: Ministries, central agencies, and localities shall prepare the budget of expenses from retained revenue and report to the competent authority in accordance with the form prescribed in Circular 342/2016/TT-BTC dated December 30, 2016, issued by the Minister of Finance detailing and guiding the implementation of certain provisions of Decree No. 163/2016/NĐ-CP, but not to be consolidated into the budget of expenses of state budget of ministries, central agencies, and localities.

12. Based on the inspection results of the budget revenue and expenditure in 2025, ministries, central agencies, and localities shall build a strict budget of expenses in accordance with the State Budget Law, guiding documents of the State Budget Law, and related laws and regulations; after working with the Ministry of Finance and the Ministry of Planning and Investment, each ministry, central agency, province, and centrally-administered city shall proactively implement the work of building the plan for allocating the 2025 state budget immediately after the National Assembly decides and the Prime Minister assigns the budget, ensuring to complete and submit to the competent authority for decision-making on allocation by sector and assign the state budget to budgetary units before December 31, 2024, in accordance with the provisions of the State Budget Law.

Article 20. For agencies and units that have abolished or are currently requesting to abolish special financial mechanisms and income according to Resolution No. 104/2023/QH15 and Resolution No. 142/2024/QH15.

1. Report on the number of positions approved in 2024, the actual number present as of July 1, 2024; the number of contractual employees (if any); the number of positions approved or according to the Project for 2025.

2. The projected salary fund according to Decree No. 73/2024/NĐ-CP of 2024 of the Government (detailing salary grades, allowances, other income, contributions based on salary).

3. Proposal for the 2025 regular expenditure budget.

Agencies and units shall prepare the regular expenditure budget for 2025 similar to state management agencies. In which:

a) Expenditure tasks according to standard rates: calculated based on the number of positions in 2025 and the expenditure standards set out in Resolution 01/2021/UBTVQH15 and Decision 30/2021/QĐ-TTg.

b) Regarding positions: Calculated based on the administrative positions in 2025 approved by the competent authority. In cases where the agency or unit has not been assigned the quota of civil servants' positions for 2025, it shall temporarily calculate based on the number of positions present as of July 1, 2024, without exceeding the number of positions reported to the Ministry of Home Affairs for approval by the competent authority.

c) Special expenditure tasks: reviewed based on common and specific special tasks stipulated in Resolution 01/2021/UBTVQH15 and Decision 30/2021/QĐ-TTg, accompanied by detailed explanations about the approval decisions of the competent authority, total funds approved based on current policies, systems, and expenditure standards; the amount allocated up to the end of 2024; the amount still to be allocated, and the amount planned to be allocated in 2025.

d) For special tasks of the agency or unit not included in the detailed provisions of common and specific special tasks at Resolution 01/2021/UBTVQH15 and Decision 30/2021/QĐ-TTg (if any), which have been reviewed, submitted, and approved by the competent authority according to the provision on "Other special tasks that occur irregularly and are decided by the competent authority" in Point a Clause 1 Article 4 of Resolution 01/2021/UBTVQH15, the agencies and units shall propose the budget along with detailed supporting documents as for the special tasks stipulated in Resolution 01/2021/UBTVQH15 and Decision 30/2021/QĐ-TTg mentioned above.

In cases where they are currently submitting, the agency or unit shall report in detail the basis for implementing these tasks from now until then; the urgency; the approval and implementation process of each task so far; the needs in 2025 and subsequent years (if any); the submission process to the competent authority for these tasks up to the time of submitting the budget proposal to the Ministry of Finance (with supporting documents).

4. For the construction investment budget:

For newly emerging tasks, it is recommended to build the budget similarly to state management agencies.

For projects requiring continued allocation of state budget funds for implementation and completion, it is recommended that ministries, central agencies, and localities work with the Ministry of Planning and Investment to guide the procedures and formalities for allocating public investment funds according to the laws on public investment.

5. Report specifically on the advantages, difficulties, and obstacles encountered in the organization and implementation, and recommendations (if any).

Article 21. Building Financial Plans for State Financial Funds Outside the State Budget

Based on the results of reviewing and evaluating state financial funds outside the state budget, ministries, central agencies, and local agencies responsible for managing such state financial funds outside the state budget shall propose plans to restructure, merge, suspend, or dissolve ineffective funds that do not comply with the provisions of the Law on State Budget and related laws in 2025; prepare revenue and expenditure plans for the 2025 fiscal year for state financial funds outside the state budget that continue to operate within their management scope as stipulated by the Law on State Budget and relevant laws, and submit these plans along with their 2025 state budget preliminary reports to the same-level finance agency (including detailed explanations about the beginning-of-year balance; new income from the state budget level, from fundraising, sponsorship, etc., during the year; expenditures for tasks during the year; changes in registered capital and operating capital of these funds).

Article 22. Building the Preliminary State Budget Deficit Estimate

In addition to general guidelines on preparing the state budget estimate as prescribed in current legal documents and this Circular, the preparation and construction of the preliminary state budget deficit estimate need to pay attention to the following main contents:

1. Construction of the State Revenue Estimate:

Localities shall build estimates based on the total of all tax, fee, and other revenues collected on their territory according to Article 7 of the Law on State Budget and related laws.

The People's Committee at the provincial level shall direct financial, tax, customs agencies, and coordinate with relevant agencies at the locality to strictly implement the preparation of the state budget revenue estimate and bear responsibility before the Government and Prime Minister for the construction of the state budget revenue estimate.

The preparation of the state budget revenue estimate must ensure positivity, accuracy, and comprehensive inclusion of all newly generated revenues on the territory to accurately calculate the budget revenue sources, without leaving room for localities to set revenue targets; analyze and evaluate specifically the impacts affecting the state budget revenue estimate for 2025 by each area, sector, item, tax, focusing on assessing the impact of revenue due to the influence of epidemics, natural disasters, and budget effects from implementing policies of tax deferral, exemption, and reduction.

2. Regarding the construction of the balanced state budget expenditure estimate, local people's committees shall proactively:

In 2025, continue to stabilize the ratio of distribution of revenue shares and additional balancing transfers from the Central State Budget to the Local State Budget (if applicable) as in 2024. Build the Local State Budget expenditure estimate based on the revenue share received according to the decentralization, additional balancing transfers from the Central State Budget to the Local State Budget determined by the allocation for 2024 (if applicable), additional transfers from the Central State Budget to the Local State Budget for salary reform in 2025 (if applicable). Base on the development plan goals for the 2021-2025 period, closely aligning with the economic and social development goals and tasks for 2025 of the locality; estimate the implementation of the revenue and expenditure tasks of the locality in 2024 to build a detailed Local State Budget expenditure estimate for each spending area according to the Law on State Budget, ensuring priority allocation of sufficient budget for implementing committed projects and policies already established.

At the same time, implement the following main contents:

a) Allocate the budget for expenditure to create sources for salary reform according to Resolution No. 27-NQ/TW and guiding documents as prescribed (if applicable).

b) Regarding the construction of the investment expenditure estimate from the balanced Local State Budget

- Based on the provisions of the Law on State Budget; Resolution No. 973/2020/UBTVQH14 of the Standing Committee of the National Assembly; build the 2025 investment expenditure estimate, detailing the balanced Local State Budget sources (including centralized domestic construction investment, land use fee investment, lottery investment, excess Local State Budget investment (if applicable); estimate expenditures for projects using foreign capital (loans, aid)).

- Allocate sufficient counterpart funds under the responsibility of the locality, and funds to timely and fully settle debts due when they become due. Allocate sufficient funds to implement regional linkage projects, important projects with widespread impact that the locality has committed to allocate counterpart funds according to regulations; allocate sufficient funds to repay all debts due within the five-year plan, recover all advance funds still to be recovered within the medium-term public investment plan 2021-2025.

- Entrust Local State Budget funds through the Social Policy Bank to support the implementation of certain activities of the National Target Programs as stipulated in Clause 6, Article 4 of Resolution No. 111/2024/QH15 dated January 18, 2024 of the National Assembly.

- Allocate the investment expenditure estimate from land use fees, prioritizing investment in infrastructure economic and social works, the National Target Program on New Rural Development.

- For lottery revenue: Localities shall accurately estimate lottery revenue (including revenue from lottery computer games) and continue to use the entire lottery revenue for investment, prioritizing education and training, vocational training (including purchasing teaching equipment for the new general education curriculum) and health sectors; the remainder shall be allocated to implement important and urgent investment tasks of the Local State Budget, the National Target Program on New Rural Development.

- For the use of ticket revenue from participating in casinos: Localities permitted by competent authorities to pilot allowing Vietnamese citizens to participate in casino operations shall use the revenue from casino participation tickets to invest in social welfare, community services, ensuring social security, where at least 60% shall be allocated to education, training, vocational training, and healthcare sectors according to Clause 3, Article 5 of Circular No. 102/2017/TT-BTC dated October 5, 2017 of the Ministry of Finance guiding certain provisions of Decree No. 03/2017/NĐ-CP dated January 16, 2017 of the Government on casino operations.

c) Payment of interest, fees, and other expenses: Prepare a separate budget item for balancing the local state budget to ensure full and timely repayment of maturing debts; include detailed explanations of payment levels according to each source of borrowed funds (if applicable), including: foreign government loans, government loans to localities for relending, development credit, and issuance of local government bonds.

d) Supplementing the local financial reserve fund: determined by the amount allocated in the 2024 budget.

đ) Local state budget contingency reserve allocated in accordance with the provisions of the State Budget Law (from 2% to 4% of total balanced local state budget expenditures - excluding the deficit of the local state budget).

c) Regarding the preparation of the regular expenditure budget for the local state budget

After allocating funds for salary reform (if applicable); investment capital from the balanced local state budget; payment of interest, fees, and other expenses; supplementing the local financial reserve fund; and the local state budget contingency reserve as mentioned above, the remaining portion of the balanced local state budget will be allocated for regular expenditures. Localities organize the reduction of the budget estimates for state agencies and public service units based on streamlining staffing, reorganizing the organizational structure, and reforming public service units in 2025, which is determined based on cumulative results up to 2024, the objectives of Resolution No. 18-NQ/TW, Resolution No. 19-NQ/TW, and Decree No. 60/2021/NĐ-CP, with the reduction in staffing determined according to the staffing allocation decision of the competent authority (if applicable).

3. On preparing the supplementary budget target figures from the central state budget for the local state budget to implement social welfare policies issued by the central government

Localities prepare the 2025 supplementary budget target figures from the central state budget for the local state budget to implement social welfare policies issued by the central government in 2025; following the guidance provided in Clause 4, Article 14 of this Circular. For each policy, provide detailed explanations of the basis for determining beneficiaries and funding needs (the beneficiaries for the 2025 budget are determined based on the number of beneficiaries expected to benefit from the policy in 2024).

4. On preparing the salary reform budget

In 2025, continue implementing the mechanism to generate sources for salary reform as prescribed. Among these: Localities continue to implement the mechanism of saving 10% of regular expenditures (excluding salaries, allowances attached to salaries, items with the nature of salaries, and expenditures for personnel according to regulations); increased revenue from the local state budget (excluding land use fees, lottery revenues, proceeds from equitization and divestment of state-owned enterprises managed by localities, and items excluded according to Clause 2, Article 3 of Resolution No. 34/2021/QH15 dated November 13, 2021 of the National Assembly regarding the state budget for 2022), including 70% of the actual increase in revenue achieved in 2024 compared to the 2024 budget estimate, 50% of the projected increase in revenue for 2025 compared to the 2023 budget estimate assigned by the Prime Minister; 50% of the funds set aside from reduced support for regular activities in administrative fields and support for public service units according to the proposal of the locality stipulated in Directive No. 17/CT-TTg dated May 22, 2024 of the Prime Minister; surplus funds from the implementation of salary reform in 2024; retained revenue according to regulations in 2025.

(Detailed reporting form according to Form 02b attached)

5. Preparing the deficit/surplus figure, borrowing plan, principal repayment plan, and interest, fee repayment plan for the local state budget in accordance with the State Budget Law and guiding documents.

Chapter IV

FINANCIAL PLAN - STATE BUDGET FOR THE 2025-2027 PERIOD

Article 23. Basis and Requirements for Establishing the Three-Year Financial Plan 2025-2027

Pursuant to the State Budget Law, 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 dated July 7, 2017 of the Minister of Finance guiding the preparation of five-year financial plans and three-year financial-state budget plans (Circular No. 69/2017/TT-BTC), laws on tax, tax administration, fees and charges, public investment, public debt management, state asset management, and related legal documents; the Ten-Year Socio-Economic Development Strategy 2021-2030, five-year plans for the period 2021-2025; Central Committee Resolutions XII on streamlining the organizational structure, reducing staff establishments, and reforming public service units; Decisions and Decrees No. 73/2024/NĐ-CP, No. 75/2024/NĐ-CP, No. 76/2024/NĐ-CP, and No. 77/2024/NĐ-CP of the Government in 2024; principles, criteria, and expenditure standards for development investment during the 2021-2025 period and principles, criteria, and regular expenditure standards for 2022; based on the three-year financial-state budget plan 2024-2026 reviewed and updated as of March 31, 2024; based on loan agreements, aid agreements, and foreign capital sources that have been and will be signed and implemented from 2025 to 2027; provisions regarding the stabilization period of the state budget; based on the expenditure forecasts for the period 2025-2027 announced by the finance, planning, and investment agencies and the 2025 state budget draft prepared according to Chapter III of this Circular; policies, systems, programs, projects, and tasks within the scope of management during the 2021-2025 period which will end in 2026; ministries, central agencies, and provincial-level units shall establish the three-year financial-state budget plan 2025-2027 in accordance with regulations, noting:

1. The period 2025-2027 includes one year falling under the five-year plan 2021-2025 and two years (2026-2027) falling under the five-year plan 2026-2030. Accordingly, the 2025 budget estimate shall be prepared in accordance with this Circular and the goals and tasks set out in the five-year plan 2021-2025; for the two years 2026-2027, it is assumed that they will continue to implement the mechanisms and policies of the 2022-2025 stabilization period and new mechanisms and policies if they are expected to arise.

2. In cases where the expenditure needs of ministries, central agencies, and provincial-level units in the years 2025-2027 increase or decrease significantly compared to the 2025 budget estimate and the estimated actual expenditure in 2024 (including supplementary budgets within the year); ministries, central agencies, and provincial-level units must provide explanations and justifications, and implement measures to mobilize additional financial resources outside the state budget, ensuring that all expenditure needs can be balanced with available resources.

3. The budget estimates for the years 2025-2027 shall be established based on the regulations concerning salary policies, social insurance, and social welfare policies as stipulated in Decrees No. 73/2024/NĐ-CP, No. 75/2024/NĐ-CP, No. 76/2024/NĐ-CP, and No. 77/2024/NĐ-CP of the Government and the approved implementation timeline for the years 2025-2027, if applicable.

Article 24. Preparation of the Three-Year State Budget Revenue Plan 2025-2027

1. The three-year state budget revenue plan 2025-2027 shall be prepared in accordance with the requirements specified in Article 23 of this Circular, while:

a) Taking into account the potential for economic development nationwide, by industry, sector, and locality in the years 2025-2027, consistent with the Ten-Year Socio-Economic Development Strategy 2021-2030, five-year plans for the period 2021-2025; the 2025 revenue estimate; factors affecting investment capacity, labor productivity, competitive strength, business environment improvement, support for production and business activities of enterprises, and trade and import-export activities each year; factors influenced by international integration processes and policy changes in other countries such as global minimum tax.

b) Factors expected to increase, decrease, or shift revenue due to adjustments in revenue policies, expansion of tax bases, enhanced revenue management according to Resolution No. 07-NQ/TW; Resolution No. 23/2021/QH15 on the National Financial Plan and borrowing and repaying 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 tariff reduction schedule according to integration commitments; global minimum tax; certain corporate income tax policies to support and develop 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.

For the period 2026-2027, efforts should be made to ensure that the growth rate of domestic revenue (excluding land use fee revenue, lottery revenue, proceeds from the sale of state-owned enterprise shares, dividends, post-tax profits, and the difference between revenue and expenditure of the State Bank) and the growth rate of revenue from import-export activities do not fall below the growth rates of these revenues in 2025 as specified in Point d Clause 1 Article 18 of this Circular. The specific revenue growth rate for each locality will depend on local conditions, characteristics, and be consistent with the economic growth rate in each locality.

2. Estimates of fees and charges for the years 2025-2027 should be positive and detailed for each type of fee and charge as prescribed (revenue amount, state budget revenue) and only consolidated into the state budget revenue estimate for fees and charges paid to the state budget.

3. For retained earnings, tuition fees, healthcare service fees, and non-fee and charge public service revenue items, and revenue items transferred to a service pricing mechanism: separate revenue and expenditure plans shall be established in accordance with regulations and submitted to supervisory authorities; continue implementing the mechanism to generate funds from these revenues for salary reform as prescribed; submit to the same-level finance authority as required.

Article 25. Preparation of the State Budget Expenditure Plan for 2025-2027 by Ministries, Central Agencies, and Provincial Agencies

1. The State Budget Expenditure Plan for 2025-2027 by Ministries, Central Agencies, and Provincial Agencies shall be prepared in accordance with the guidelines set out in Article 23 and the 2025 budget estimate prepared in accordance with Chapter III of this Circular; specifically detailing the objectives, tasks, programs, projects, policies, and systems that have expired or newly approved by the competent authority, particularly focusing on the implementation of Resolution No. 18-NQ/TW, Conclusion No. 62-KL/TW of the Politburo dated October 2, 2023, Resolution No. 19-NQ/TW, Conclusion No. 28-KL/TW, Conclusion No. 40-KL/TW, and creating sources to implement salary reform according to Resolution No. 27-NQ/TW, Decree No. 60/2021/NĐ-CP, and Circular No. 56/2022/TT-BTC, salary policies, pension policies, subsidies for war veterans, social welfare policies issued in 2024.

2. During the process of preparing the State Budget Expenditure Estimate for 2025, Ministries, Central Agencies, and Provincial Agencies simultaneously determine in detail their own base expenditures and new expenditures for the 2025 budget estimate in accordance with Article 5 and Article 6 of Circular No. 69/2017/TT-BTC of the Minister of Finance to serve as the basis for determining base expenditures, new expenditures, and to compile the demand for investment expenditure, maintenance, and operation costs in the 2025-2027 expenditure plan.

3. For Ministries and sector management agencies, while preparing the annual State Budget Revenue and Expenditure Plans for the period 2025-2027 (the part directly implemented by the Ministry or agency), it is necessary to calculate and determine the total funding requirements for implementing mechanisms, policies, programs, projects, and tasks issued/terminated each year during the 2025-2027 period nationwide (concluding national key programs, programs, projects, and tasks from 2021-2025), accompanied by detailed explanations of the calculation bases (the Ministry of Planning and Investment proposes investment funds from the State Budget to implement the tasks of the Investment Support Fund).

Article 26. Preparation of the Financial-State Budget Plan for 2025-2027 by Provinces and Municipalities Directly Under the Central Government

In addition to the relevant contents regarding the preparation of the State Budget Revenue and Expenditure Plan for 2025-2027 stipulated in Articles 24 and 25 of this Circular, the preparation of the Financial-State Budget Plan for 2025-2027 by provinces and municipalities directly under the central government must also pay attention to the following matters:

1. The People's Committee at the provincial level shall direct the Department of Planning and Investment to forecast the economic and social development situation in the locality for 2025-2027, to be sent to the Department of Finance as the basis for preparing the Financial-State Budget Plan for 2025-2027.

2. Based on the revenue targets assigned and the scope of State Budget revenue as prescribed by the State Budget Law and related guiding documents, the 2025 State Budget revenue estimate on the local territory established in Chapter III of this Circular, the People's Committee at the provincial level shall direct the Department of Finance to take the lead and coordinate with the Tax Office, Customs Office, and other relevant agencies in the locality to prepare the State Budget revenue plan for 2025-2027, including:

a) Analyzing and evaluating the specific impacts of increases, decreases, and shifts in revenue sources due to adjustments in tax policies linked to the goal of restoring and developing the economy and society; assessing the impact of revenue due to the influence of epidemics and natural disasters; implementing the five-year plans for the period 2021-2025, guiding documents for the Law on Tax Administration No. 38/2019/QH14; implementing the phased reduction of customs duties according to commitments in international integration; planning the implementation of new tax policies stipulated in Resolution No. 07-NQ/TW; requiring measures to prevent revenue loss, recover overdue payments, combat transfer pricing, and tax fraud.

b) Regarding fee and charge revenues, the budget estimates shall be prepared in accordance with current regulations; consolidating the portion of fees paid into the State Budget for 2025-2027 into the State Budget revenue estimate; preparing a separate plan for retained revenue, tuition fees, healthcare service charges, public service charges, and other revenues (not included in the list of fees) for management, supervision, and creation of sources for salary reform for these entities.

3. Based on the projected revenue in the locality and the revenue of the locality under the decentralized system decided by the competent authority, estimating the additional amount from the Central State Treasury for the Local State Treasury for the three years 2025-2027 as announced by the competent authority; the People's Committee at the provincial level shall direct the Department of Finance to take the lead and coordinate with the Department of Planning and Investment, the People's Committee at the district level, and other relevant agencies in the locality to prepare the Local State Treasury expenditure plan for 2025-2027, ensuring priority allocation of sufficient funds to implement existing policies, benefits, and commitments (including special policies decided by the Provincial People's Council); determining the need for targeted additional funds from the Central State Treasury for central policies for each year of the 2025-2027 period; for new local expenditure tasks in each year of the 2025-2027 period, allocating them in order of priority to achieve the main economic and social goals of the locality within the scope of available resources each year 2025-2027.

4. Preparing the plan for implementing salary reform: Implementing in accordance with Clause 9 of Article 19 of this Circular.

5. The preparation of the deficit/surplus plan, borrowing, and repayment of the Local State Treasury for the years 2024-2026 shall be carried out in accordance with the provisions of the State Budget Law, Decree No. 45/2017/NĐ-CP of the Government, and Circular No. 69/2017/TT-BTC of the Minister of Finance on preparing a five-year financial plan and a three-year financial-state budget plan, ensuring that the local debt stock at the end of each year does not exceed the limit prescribed (clearly specifying the sources: ODA loans for relending, issuance of local government bonds, and other legitimate financial sources).

Chapter V
IMPLEMENTATION

Article 27. 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 for the implementation of the Law, as stipulated in Decree No. 45/2017/NĐ-CP dated April 21, 2017 of the Government and Directive No. 17/CT-TTg dated May 22, 2024.

Article 28. Regarding the Forms for Preparing and Reporting the 2025 State Budget Estimate and the Three-Year Financial Plan - State Budget 2025-2027

1. For the 2025 estimate, apply the forms prescribed in Circular No. 342/2016/TT-BTC dated December 30, 2016 of the Minister 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 numbers 12.1 to 12.5 in public service areas) and forms numbers 01, 02a, 02b, and 03 issued together with this Circular.

2. For the detailed estimates of revenue and expenditure from the reorganization and disposal of state-owned land, apply forms numbers 04 and 05 issued together with this Circular.

3. For the three-year financial plan - State Budget 2025-2027: apply forms numbers 01 to 06 and forms numbers 13 to 19 issued together with Circular No. 69/2017/TT-BTC of the Minister of Finance guiding the preparation of five-year financial plans and three-year financial plans - State Budget.

Article 29. Implementation Provisions

1. This Circular takes effect from August 30, 2024, and applies to the process of preparing the 2025 State Budget estimate and the three-year financial plan - State Budget 2025-2027. The content, procedures, and timeframes for preparing the 2025 State Budget estimate and the three-year financial plan - State Budget 2025-2027 shall be carried out in accordance with the State Budget Law, guiding documents for the implementation of the Law, and the guidance provided in this Circular.

2. During the process of preparing the 2025 State Budget estimate and the three-year financial plan - State Budget 2025-2027, if any difficulties arise in the implementation process, ministries, central agencies, localities, economic groups, and state-owned corporations shall report to the Ministry of Finance for timely resolution.