Decree No. 51/1998/ND-CP Amending and Supplementing Certain Provisions of Decree No. 87/CP dated December 19, 1996 on Detailed Regulations for the Delegation of Management, Preparation, Execution, and Settlement of State Budgets

DECREE OF THE GOVERNMENT

Amending and supplementing some articles of Decree No. 87/CP dated December 19, 1996 on detailed regulations for the decentralization of management, preparation, implementation, and settlement of the state budget

provides detailed regulations on the分级管理，编制，执行和决算国家预算事项

THE GOVERNMENT

Pursuant to the Law on Government Organization dated September 30, 1992;

Pursuant to the Law Amending and Supplementing Some Articles of the State Budget Law No. 06/1998/QH10 dated May 20, 1998;

At the proposal of the Minister of Finance,

DECREE:

Article 1. Amending and supplementing some articles of Decree No. 87/CP as follows:

1. Clause 3 shall be amended and supplemented as follows:

1. Employers stipulated in Clause 1 of Article 1 of this Decree may recruit foreign workers up to a ratio not exceeding 3% of the current number of employees in the enterprise, but at least one person must be recruited.

1. The state budget includes the central budget and local budgets of various levels of local government (local budgets).

Local budgets include:

a) Provincial budget (commonly referred to as provincial budget);

b) District budget (commonly referred to as district budget);

c) Commune budget (commonly referred to as commune budget).

2. Relationships between different levels of budget are implemented according to the following principles:

a) Supplementing from higher-level budgets to lower-level budgets to ensure fairness and balanced development among regions and localities. The amount supplemented is part of the revenue of the lower-level budget;

b) In cases where a higher-level state management agency delegates tasks within its functions to a lower-level agency, it must transfer funds from the higher-level budget to the lower-level budget to carry out those tasks;

c) Apart from supplementing revenues and delegating spending responsibilities as stipulated in points a and b of Clause 2 of this Article, the budget of one level shall not be used to fund tasks of another level, except in the following circumstances: Local People's Committees at all levels may use their allocated budgets to support units managed by higher levels located within their administrative areas:

In case of natural disasters and other emergencies requiring immediate mobilization of resources to stabilize economic and social conditions.

When units managed by higher levels perform their functions and combine with local requirements to undertake certain tasks.

2. Article 15 is amended and supplemented as follows:

"Article 15. Revenue sources of the central budget include:

1. Revenues of 100%:

a) Value-added tax on imported goods;

b) Export tax, import tax;

c) Special consumption tax, excluding special consumption tax collected domestically on tobacco products, paper offerings, funeral objects, and services such as nightclubs, massage parlors, karaoke bars; golf course memberships and play fees; casino operations; slot machine gambling; horse and car racing betting tickets;

d) Corporate income tax of units under full industry accounting;

d) Taxes and other revenues from oil and gas exploration and exploitation activities (including land and water lease payments) managed centrally;

e) Income from state capital contributions, recovery of state capital at economic entities, recovery of state loans (principal and interest), income from the National Reserve Fund, and income from the Central Financial Reserve Fund in special cases;

g) Loans and non-repayable aid provided by foreign governments, organizations, and individuals to the Government as prescribed by law;

h) Fees and charges paid to the central budget: Entry and exit fees, air traffic control fees, transportation fees, and other fees and charges as prescribed by the Government;

i) Proceeds from public services of units managed centrally;

k) Surplus of the central budget;

l) Other revenues as prescribed by law.

2. Revenues shared between the central budget and provincial budgets at a percentage rate (%):

a) Value-added tax, excluding value-added tax specified in point a, Clause 1 of this Article and value-added tax collected from lottery sales;

b) Corporate income tax, excluding corporate income tax specified in point d, Clause 1 of this Article and corporate income tax collected from lottery sales;

c) Income tax on high-income individuals;

d) Tax on income transferred abroad by foreign organizations and individuals with investment in Vietnam;

đ) Revenue from the use of state budget funds by state-owned enterprises, excluding revenue from the use of state budget funds from lottery sales. "

3. Article 16 is amended and supplemented as follows:

"Article 16. Expenditure responsibilities of the central budget include:

1. Recurrent expenditure on:

a) Public services in education, training, health care, social welfare, culture, information, sports, science, technology, and environment, and other public services managed centrally:

Boarding schools for ethnic minorities;

Postgraduate, university, college, vocational high school, and other forms of training and continuing education;

Disease prevention, treatment, and other health care activities;

Social welfare institutions, anti-social behavior prevention, and other social activities;

Cultural heritage preservation, museums, library restoration of historical sites ranked, artistic performances, and other cultural activities;

Broadcasting, television, and other information activities;

Training and nurturing national team coaches and athletes; organizing national and international competitions; managing sports facilities and other sports activities;

Scientific research and technological development;

Environmental activities;

Other public services.

b) Economic public services managed centrally:

Transportation public services: maintenance, repair, and construction of roads, bridges, and other transportation infrastructure; installation of traffic signs and safety measures on routes;

Agricultural, irrigation, fisheries, and forestry public services: maintenance and repair of embankments, irrigation works, agricultural, fishery, and forestry stations; afforestation, agricultural, and fishery promotion work; forest protection, fire prevention, and aquatic resource conservation work;

Basic investigation;

Surveying administrative boundaries at all levels;

Mapping;

Surveying borders and setting border markers;

Surveying, creating land maps, and archiving land records;

Settlement and new economic zones;

Other economic undertakings;

c) National defense, security, and social order and safety:

Seaman'srecord book;

Ensuring material and spiritual life and policies for the entire military force;

Training, education, scientific research;

Procurement of weapons and military equipment for the entire military force, including local troops;

Preparing fuse, explosives, and ignition devices to supply for mine and grenade production to equip civilian self-defense forces and reserve military personnel;

Preparing industrial mobilization, including preparing design documents, technology, technical implementation guidelines, special-purpose tools, and specialized national defense equipment;

Long-term (over five days) exercises of reserve mobilization units under main force troops;

Mobilizing civilian self-defense units and reserve military personnel from one province to another;

Building and repairing special military works, combat facilities, office buildings, barracks, and warehouses of military agencies at the provincial level and above;

Security and social order and safety:

Ensuring material and spiritual life and social policies for the people's public security force;

Training, education, scientific research;

Procurement of weapons and equipment for the people's public security force;

Management and reform of prisoners; management and education in educational institutions and juvenile correctional schools;

Fire prevention and firefighting;

Building and repairing special works, barracks, office buildings, and warehouses of the people's public security force; repairing prisons and reformatory camps for prisoners at the provincial level and above; repairing houses in educational institutions and juvenile correctional schools;

d) Activities of the National Assembly, the President, Ministries, ministerial-level agencies, government agencies, the People's Court system, and the People's Procuracy;

đ) Activities of central agencies of the Communist Party of Vietnam;

e) Activities of central agencies of the Vietnam Fatherland Front, the Ho Chi Minh Communist Youth Union, the Vietnam Veterans Association, the Vietnam Women's Union, the Vietnam Farmers' Union; activities of the Vietnam General Confederation of Labor;

g) Price subsidies according to state policy;

h) National programs managed by the central government;

i) Supporting the Social Insurance Fund according to the Government's regulations;

k) Implementing policies for war invalids, disabled veterans, relatives of martyrs, families with meritorious contributions to the revolution, and other social policy beneficiaries;

l) Funding social organizations and occupational associations at the central level according to the law;

m) Paying interest on loans made by the Government;

n) Aid;

o) Other expenditures as prescribed by law;

2. Development investment expenditure:

a) Investment in construction of economic and social infrastructure projects that cannot recover costs managed by the central government;

b) Investment and capital support for state-owned enterprises; contributing shares to joint ventures in enterprises in sectors requiring state participation according to the law;

c) Expenditure for the National Investment Support Fund and development support funds for economic development programs and projects;

d) State reserves;

đ) Loans by the Government for development investment;

3. Repayment of principal on loans made by the Government;

4. Supplementing the Financial Reserve Fund;

5. Supplementing the provincial budget;

(i) Loans and financial leasing (including loans and financial leasing to other credit institutions and branches of foreign commercial banks in Vietnam), except:

Article 17. The sources of revenue for the provincial budget include:

1. Revenues of 100%:

a) Rent for land and water surfaces for businesses, including foreign-invested enterprises, except rent for land and water surfaces from oil exploration and exploitation activities managed by the central government;

b) Rent and sale proceeds from state-owned housing;

c) Stamp duty arising within the districts and urban districts, excluding stamp duty on real estate;

d) Revenue from lottery activities;

đ) Non-reimbursable grants and donations in cash or kind from overseas organizations and individuals directly to the provincial level according to the law;

e) Fees and charges collected into the provincial budget as prescribed by the Government;

g) Mobilization of funds from organizations and individuals for infrastructure construction as prescribed by the Government;

h) Voluntary contributions from organizations and individuals both domestically and abroad to the provincial budget;

i) Revenue from the Provincial Financial Reserve Fund in exceptional cases;

k) Revenue from the operations of units managed by provincial agencies;

l) Revenue from loans for investment as stipulated in Clause 3, Article 8 of the State Budget Law;

m) Surplus revenue of the provincial budget;

n) Other revenues as prescribed by law;

o) Additional revenue from the central budget;

2. Revenues divided between the central budget and the provincial budget according to percentages as prescribed in Clause 2, Article 15 of Decree No. 87/CP dated December 19, 1996, amended and supplemented by this Decree;

3. Revenues divided between the provincial budget, the district budget, and the commune and town budget according to percentages:

Land transfer tax;

Property tax;

Land use fee;

4. Revenues divided between the provincial budget, the district budget, and the commune, town, and ward budgets according to percentages:

a) Revenues specified in Clause 2 of this Article shall be determined by the provincial level within its jurisdiction;

b) Agricultural land use tax; natural resource tax; stamp duty on real estate; special consumption tax on domestically produced goods such as betel leaves, paper offerings, paper goods, and services from nightclubs, massage parlors, karaoke bars; golf club membership fees and green fees; casino operations; jackpot games; horse racing, car racing betting tickets; local budgets will receive 100%. The allocation ratio for agricultural land use tax to communes, towns, and wards may reach up to 100%, but must be at least 20%. Allocation ratios for other taxes and fees are determined by the provincial level.

5. The分级财政规定的第四款所指的收入由省人民代表大会决定，但须在分配范围内进行。在进行分配时，必须确保与各级被分配的支出任务保持平衡；注重最大限度地开发本地收入以满足被分配的支出任务；鼓励各级政府开发和加强管理收入，并且必须符合各地区的条件和特点；与各级地方政府的管理职能相联系；对于规模较小的收入来源，限制分配给多个级别，并限制从上级预算中补充。

5. Article 18 is amended and supplemented as follows:

Article 18. The expenditure tasks of the provincial budget include:

1. Recurrent expenditure on:

a) Activities related to public services in education, training, health care, social welfare, culture, information, sports, science, technology, and environmental affairs, and other public services managed by provincial agencies:

General education, supplementary education, kindergartens, primary schools, boarding schools for ethnic minorities, and other educational activities;

Part-time higher education, colleges, vocational high schools, short-term training, and other forms of training;

Disease prevention, treatment, and other health care activities;

Social welfare institutions, social relief, famine relief, social evil prevention, and other social activities;

Cultural heritage preservation, museums, libraries, artistic performances, and other cultural activities;

Broadcasting, television, and other information activities;

Training and nurturing coaches and athletes for provincial teams; organizing provincial competitions; managing sports facilities and other sports activities;

Scientific research, application of advanced techniques, and other public service activities in science and technology;

Environmental activities;

Other public services.

b) Economic public service activities managed by provincial agencies:

Transportation public services: maintenance, repair, and construction of bridges and roads and other transportation works; setting up traffic signs and measures to ensure traffic safety on routes;

Agricultural, water conservancy, fisheries, and forestry public services: maintenance, repair of embankments, water conservancy projects, agricultural, forestry, and fishery stations; forest promotion, agricultural promotion, and fishery promotion work; funding for forest conservation, fire prevention, and protection of aquatic resources;

Urban public services (applicable to centrally-administered cities, except for those assigned to towns): maintenance, repair of street lighting systems, sidewalks, water supply and drainage systems, urban traffic, parks, and other urban public services;

Surveying, creating land maps, and archiving land records;

Basic investigation;

Other economic undertakings;

c) National defense, security, and social order and safety, including:

Seaman'srecord book;

Training of civilian militia;

Organizing meetings, training sessions, and reporting on work;

Activities of rotating reserve units engaged in combat duties or standby combat readiness in border and island areas under special circumstances as directed by the Ministry of Defense;

Building regional defense plans;

Transporting weapons, equipment, and military supplies for civilian militias and reservists;

Welcoming military personnel returning from their service;

Security and social order and safety:

Supporting preventive campaigns against various types of crime;

Supporting campaigns to maintain security and social order and safety;

Supporting fire prevention and firefighting efforts;

Supporting repairs to temporary detention facilities;

Supporting reviews and summaries of mass movements for national security protection;

d) Activities of state agencies at the provincial level;

đ) Activities of the Communist Party of Vietnam's agencies at the provincial level;

e) Activities of the Vietnam Fatherland Front, the Ho Chi Minh Communist Youth Union, the Vietnam Veterans Association, the Vietnam Women's Union, and the Vietnam Farmers' Association at the provincial level;

g) Funding for social organizations and occupational associations at the provincial level as prescribed by law;

h) Implementing social policies managed by the provincial level;

i) National programs entrusted to the provincial level by the Government;

k) Subsidies according to state policy;

l) Paying interest on loans for investment as stipulated in Clause 3, Article 8 of the State Budget Law;

m) Other expenditures as prescribed by law.

2. Development investment expenditure:

a) Investment in constructing economic and social infrastructure projects managed by the provincial level;

b) Investment and capital support for state-owned enterprises as prescribed by law.

3. Repayment of principal on loans for investment as stipulated in Clause 3, Article 8 of the State Budget Law.

4. Supplementing the Financial Reserve Fund.

5. Supplementing the budgets of lower levels.

6. Article 19 is amended and supplemented as follows:

"Article 19. The sources of revenue for the district budget include:

1. Revenues of 100%:

a) Business license tax, excluding business license tax collected from small households operating in communes and townships;

b) Slaughter tax collected from slaughterhouses in wards;

c) Fees and charges from activities managed by district-level agencies;

d) Revenue from public service activities of units managed by the district;

đ) Non-repayable aid from organizations and individuals abroad directly to the district as prescribed by law;

e) Contributions from organizations and individuals for the construction of infrastructure projects as prescribed by the Government;

g) Voluntary contributions from organizations and individuals both domestically and internationally to the district budget;

h) Surplus of the district budget;

i) Supplement from the provincial budget;

k) Other revenues as prescribed by law.

2. The allocation ratios between the provincial budget, the district budget, and the commune, township, and ward budgets for these revenues are specified in Clauses 3 and 4 of Article 17 of Decree No. 87/CP dated December 19, 1996, as amended and supplemented by this Decree.

3. In addition to the revenues specified in Clauses 1 and 2 of this Article, for towns and cities under provinces, there is an additional allocation ratio for stamp duty revenue, excluding stamp duty revenue from land and property transactions occurring within the area, and they can establish an investment fund as prescribed by the Government.

7. Article 20 is amended and supplemented as follows:

"Article 20. The expenditure tasks of the district budget include:

1. Recurrent expenditure on:

a) Educational and training activities, healthcare activities shall be carried out according to the分级管理 of the provincial level. The delegation to the county level should be based on the management capacity and financial resources of the county, while ensuring the overall plan of the province for educational and training development and healthcare;

b) Cultural, information, physical education and sports, social welfare, and other public service activities managed by county-level agencies;

c) Economic public service activities managed by county-level agencies:

Agriculture, fisheries, forestry, water conservancy;

Transportation;

Urban public service activities (applicable to township and city district budgets): maintenance and upkeep of lighting systems, sidewalks, water supply and drainage systems, intra-city traffic, parks, and other urban public services;

Other economic undertakings;

d) National defense, security, and social order and safety:

Seaman'srecord book;

Mass defense education work;

Recruitment and reception of military personnel completing their service obligations;

Registration of reservists;

Organization of training for civilian self-defense forces;

Conferences and training sessions for civilian self-defense forces;

Security and social order and safety:

Propaganda and education on mass movements for national security;

Support for campaigns to maintain national security and social order and safety;

Supporting reviews and summaries of mass movements for national security protection;

Support for security and social order activities at the grassroots level;

e) Activities of state agencies at the county level;

f) Activities of the Communist Party of Vietnam's agencies at the county level;

g) Activities of the Vietnam Fatherland Front, Communist Youth Union, Vietnam Veterans Association, Vietnam Women's Union, and Vietnam Farmers' Union's agencies at the county level;

h) Financial support for social organizations and occupational associations at the county level as stipulated by law;

i) Other expenditures as stipulated by law.

2. Investment and development expenditure: Expenditure on construction of economic and social infrastructure projects according to the分级管理of the province. In the case of townships and cities under provincial administration, there must be a responsibility to invest in building national-level general secondary schools and public welfare facilities, street lighting, water supply and drainage systems, intra-city traffic, traffic safety, and urban sanitation.

3. Supplementary expenditure for lower-level budgets."

8. Article 21 is amended and supplemented as follows:

"Article 21. Sources of revenue for village and town budgets include:

1. Revenues of 100%:

a) Business license tax collected from small-scale businesses;

b) Livestock slaughter tax;

c) Various fees, charges, and contributions to village and town budgets as stipulated by law;

d) Revenue from the use of public land funds and other public asset revenues;

đ) Income from public service activities managed by villages and towns;

e) Voluntary contributions to villages and towns;

g) Non-reimbursable aid from foreign organizations and individuals directly to villages and towns as stipulated by law;

h) Surplus income of village and town budgets;

i) Supplement from higher-level budgets;

k) Other revenues as prescribed by law.

2. The allocation ratio between provincial, county, and village/town budgets according to Articles 3 and 4 of Clause 17 of Decree No. 87/CP dated December 19, 1996, as amended and supplemented by this Decree."

9. Article 22 is amended and supplemented as follows:

"Article 22. Expenditure responsibilities of village and town budgets include:

1. Recurrent expenditure on:

a) Social work and cultural, information, physical education, and sports activities managed by villages and towns;

b) Funding support for supplementary education, kindergartens, and nurseries managed by villages and towns;

c) Health care activities in villages and towns;

d) Management, maintenance, and upkeep of architectural structures, assets, welfare facilities, and roads managed by villages and towns;

đ) Activities of state agencies in villages and towns;

e) Activities of the Communist Party of Vietnam, Vietnam Fatherland Front, Communist Youth Union, Vietnam Veterans Association, Vietnam Women's Union, and Vietnam Farmers' Union in villages and towns;

g) Civilian self-defense force work, social order, and safety:

Training of civilian self-defense forces;

Registration of military service obligations and sending young people to perform military service;

Propaganda and mobilization for mass movements to protect national security, social order, and safety;

Grassroots-level security and social order activities.

h) Other expenditures as stipulated by law.

2. Development investment expenditure:

Investment in the construction of economic and social infrastructure projects according to the分级管理of the province."

10. Article 24 is amended and supplemented as follows:

"Article 24. Sources of revenue for community-level budgets include:

1. Revenues of 100%:

a) Various fees, charges, and contributions to community-level budgets as stipulated by law;

b) Livestock slaughter tax, excluding livestock slaughter tax collected from animal slaughtering enterprises;

c) Voluntary contributions from organizations and individuals to communities;

d) Non-reimbursable aid from foreign organizations and individuals directly to communities as stipulated by law;

đ) Surplus income of community-level budgets;

e) Supplement from higher-level budgets;

g) Other revenues as stipulated by law.

2. The allocation ratio between provincial, county, and community-level budgets according to Clause 4 of Article 17 of Decree No. 87/CP dated December 19, 1996, as amended and supplemented by this Decree."

11. Article 28 is amended and supplemented as follows:

Organizations and individuals with investment projects in the Lao Bao Trade Zone shall be exempt from land rental fees for the first eleven years from the date of signing the land lease contract and shall enjoy a land rental fee equal to 30% of the land rental fee applied to mountainous districts of Quang Tri Province starting from the twelfth year onwards."

1. The Government shall specify the percentage allocation ratios between the central budget and each provincial and centrally-administered municipal budget; these ratios shall apply uniformly to all allocated revenues.

2. Based on the percentage allocation ratios specified by the Government for each province and centrally-administered municipality, the Provincial People's Committee shall specify the percentage allocation ratios between the provincial budget and each county, district, township, and city district budget, and each village and town budget. The percentage allocation ratios specified in Clause 2 of Article 28 of the State Budget Law, as amended and supplemented by the Law Amending and Supplementing Certain Provisions of the State Budget Law, for local government budgets at various levels must not exceed the percentage allocation ratios specified by the Government for each province and centrally-administered municipality.

12. Article 29 is amended and supplemented as follows:

Article 29. The Government shall submit to the Standing Committee of the National Assembly for decision on the plan to supplement from the central budget to the budgets of each province and centrally-administered city. The People's Committee of a province shall submit to the People's Council for decision on the plan to supplement from the provincial budget to the budgets of each district and stipulate the supplementation to the communal budgets.

Annually, in cases of price erosion, based on the amount of supplementation decided by the Standing Committee of the National Assembly and the rate of economic growth, the Government shall decide on the level of adjustment increase according to the rate of price erosion and according to the rate of economic growth in calculating the supplementation for lower-level budgets.

The Minister of Finance shall specify the method for calculating the amount of supplementation from higher-level budgets to lower-level budgets in accordance with Article 40 of the State Budget Law which has been amended and supplemented by the Law Amending and Supplementing Certain Provisions of the State Budget Law.

13. Article 34 is amended and supplemented as follows:

"Article 34.

1. The Customs Office of each province shall prepare the budget estimate for export tax, import tax, special consumption tax on imported goods, value-added tax on imported goods, and other revenues related to export and import activities within its jurisdiction and send it to the General Department of Customs, the People's Committee of the province, and simultaneously send it to the Department of Finance and Price Control.

The General Department of Customs shall coordinate with the Ministry of Finance, the Ministry of Planning and Investment, and the Ministry of Trade to prepare the budget estimate for export tax, import tax, special consumption tax on imported goods, value-added tax on imported goods, and other revenues related to national export and import activities and send it to the Ministry of Finance and the Ministry of Planning and Investment for consolidation into the state budget estimate to be submitted to the Government.

2. Local tax authorities shall prepare the budget estimate for state revenue in their respective areas, forecast the amount of value-added tax refunds due to enterprises within their jurisdiction, and send it to the higher-level tax authority, the People's Committee, the financial authority, and the planning and investment authority at the same level."

14. Article 36 is amended and supplemented as follows:

"Article 36. Preparation of the state budget estimate:

1. Preparation of the communal budget estimate: The Finance Board shall prepare the state revenue budget estimate, the communal revenue and expenditure budget estimate, and submit it to the People's Committee of the commune for reporting to the Chairman and Vice-Chairman of the Commune People's Council for consideration and reporting to the People's Committee of the district, and simultaneously send it to the District Finance Office.

2. Preparation of the district budget estimate: The District Finance Office shall examine the budget estimates of units under the district, the revenue estimates prepared by the tax authority, the revenue and expenditure budget estimates of communes; prepare the state revenue budget estimate in the district, the district revenue and expenditure budget estimate (including the communal budget estimates and the district-level budget estimate), the budget estimates of authorized funds (if any), and submit them to the People's Committee of the district for reporting to the Standing Body of the District People's Council for consideration and reporting to the People's Committee of the province, and simultaneously send them to the Provincial Department of Finance and Price Control, the Provincial Department of Planning and Investment (the budget estimate by sector, the program expenditure budget estimate, the construction investment budget estimate), the provincial management department, sector (the budget estimate for expenditure by sector managed by the department), the provincial program management agency (the program expenditure budget estimate) no later than August 15 of the previous year.

3. Preparation of the provincial budget estimate: The Provincial Department of Finance and Price Control shall examine the budget estimates of units under the province, the revenue estimates prepared by the tax authority and customs authority (if any), the revenue and expenditure budget estimates of districts; prepare the state revenue budget estimate in the province, the provincial revenue and expenditure budget estimate (including the district budget estimates and the provincial-level budget estimate), the budget estimates of authorized funds, and submit them to the People's Committee of the province for reporting to the Standing Body of the Provincial People's Council for consideration and reporting to the Government, and simultaneously send them to the Ministry of Finance, the Ministry of Planning and Investment (the budget estimate by sector, the program expenditure budget estimate, the construction investment budget estimate), the ministry managing the sector, industry (the budget estimate for expenditure by sector managed by the ministry), the central agencies managing programs (the program expenditure budget estimate).

4. Preparation of the state budget estimate and the central budget estimate:

The Ministry of Finance shall take the lead in coordinating with the Ministry of Planning and Investment and other ministries, based on the revenue and expenditure budget estimates prepared by ministries, central government agencies, and provinces, the expenditure budget estimates by sector, industry, and national program by relevant ministries and program management agencies, debt repayment requirements, and borrowing capacity; prepare the central revenue and expenditure budget estimate, consolidate and prepare the state revenue and expenditure budget estimate to be submitted to the Government for submission to the National Assembly for approval.

15. Article 37 is amended and supplemented as follows:

"Article 37. Tasks and powers of the People's Committees at all levels and state agencies during the process of preparing, consolidating, and allocating the budget estimate:

1. The People's Committee:

a) Guide, organize, and direct subordinate units and lower-level authorities to prepare the revenue and expenditure budget estimates within their jurisdiction; coordinate and direct local tax and customs authorities (if any) to prepare the state revenue budget estimate in their area and forecast the amount of value-added tax refunds due to enterprises in their area;

b) Prepare the state revenue budget estimate in their area, the local revenue and expenditure budget estimate; report to the Standing Body of the People's Council or the Chairman and Vice-Chairman of the People's Council for consideration of the local budget estimate and report to the higher-level administrative state agency;

c) After the state budget estimate is decided by the National Assembly, based on the revenue and expenditure tasks assigned by the higher-level agency, submit to the same-level People's Council for decision on the local budget estimate and the allocation plan of their own budget, and report to the higher-level administrative state agency and the higher-level financial authority the local budget estimate and the result of the allocation of their own budget already decided by the same-level People's Council;

d) Based on the resolution of the same-level People's Council, assign revenue and expenditure tasks to each subordinate agency and unit, revenue and expenditure tasks and the level of budget supplementation to lower levels.

đ) Establish a plan to adjust the local state budget estimate and the allocation plan for revenue and expenditure estimates at their own level, to submit to the same-level People's Council for decision-making according to the requirements of the higher-level administrative agency when the resolution of the same-level People's Council is not consistent with the revenue and expenditure tasks assigned by the higher level;

e) Examine the resolutions on the state budget estimates of lower-level People's Councils; request lower-level People's Councils to adjust their state budget estimates if necessary;

2. Financial agencies at all levels:

a) Organize working sessions with lower-level People's Committees, agencies, and units at the same level regarding the state budget estimates; have the right to require adjustments to revenues and expenditures in the estimates that are not in accordance with regulations, standards, are not reasonable, not economical, or not suitable for the budget capacity and economic and social development orientation;

During the discussion process to consolidate and establish the state budget estimates, if there are still differing opinions between financial agencies and other agencies at the same level and lower-level authorities, financial agencies at all levels must report to the same-level People's Committee for decision-making; the Ministry of Finance must report to the Government for decision-making;

b) Take the lead in coordinating with the planning and investment agencies at the same level in consolidating and establishing state budget estimates by sector;

c) Take the lead in coordinating with relevant agencies and units in consolidating and establishing state budget estimates and the allocation plan for state budget estimates at their own level;

d) Coordinate with the planning and investment agencies at the same level in establishing and allocating centralized investment construction project budgets for each unit and project;

đ) Coordinate with national program management agencies in establishing the allocation plan for national program expenditure budgets;

e) Propose budget balancing plans and measures to implement policies to increase revenue and economize on state budget expenditures;

g) The Ministry of Finance coordinates with the State Bank of Vietnam to establish the state budget deficit financing plan, anticipate the level and timing of temporary advances from the State Bank to cover short-term central government budget deficits during the year;

h) The Ministry of Finance reviews the resolutions on provincial state budget estimates of the Provincial People's Council to propose opinions to the Prime Minister to request the Provincial People's Council to adjust the provincial state budget estimates if necessary. Financial agencies at all levels review the resolutions on state budget estimates of lower-level People's Councils to propose opinions to the same-level People's Committee to request lower-level People's Councils to adjust their state budget estimates if necessary;

3. Planning and Investment Agencies at all levels:

a) The Ministry of Planning and Investment submits to the Government the national socio-economic development plan project and the main balances of the national economy, including financial, monetary, basic construction investment capital balances, serving as the basis for building financial and state budget plans; submits to the Government to submit to the National Assembly the list of national programs, projects, and important construction works funded from the state budget;

b) The Ministry of Planning and Investment, and local planning and investment agencies take the lead in coordinating with financial agencies at the same level to establish and allocate centralized investment construction project budgets for each unit and project, sending them to financial agencies at the same level as the basis for consolidating and establishing state budget estimates and allocation plans for state budget estimates to be submitted to the competent authority for examination and decision-making to assign to the units;

c) Coordinate with financial agencies at the same level in consolidating and establishing state budget estimates by sector;

d) Coordinate with national program management agencies in establishing the allocation plan for national program expenditure budgets;

4. Central and local state agencies:

a) Ministries and sectors coordinate with the Ministry of Finance in establishing state budget expenditure standards and norms within their respective sectors and fields;

b) Central and local state agencies organize the establishment of revenue and expenditure state budget estimates within their management scope, and send revenue and expenditure estimates by sector to financial agencies, planning and investment agencies at the same level (sectoral state budget estimates, national program expenditure estimates, construction investment expenditure estimates), national program management agencies at the same level (national program expenditure estimates), and superior sector and field management agencies (sectoral state budget estimates); coordinate with financial agencies, planning and investment agencies at the same level, and lower-level People's Committees to establish and allocate state budget estimates by sector and field;

c) National program management agencies coordinate with financial agencies, planning and investment agencies at the same level to establish national program expenditure budgets and allocation plans for units and localities, sending them to financial agencies, planning and investment agencies at the same level for consolidation into state budget estimates and allocation plans for state budget estimates to be submitted to the competent authority for decision-making to assign to the units;"

16. Article 38 is amended and supplemented as follows:

"Article 38. Decision-making, Allocation, and Assignment of State Budget Estimates:

1. After the state budget estimates are decided by the National Assembly:

a) The Government establishes the allocation plan for central state budget estimates for each ministry and sector and the supplementary amount from the central state budget for each province, to be decided by the Standing Committee of the National Assembly;

b) Based on the resolutions of the National Assembly and the Standing Committee of the National Assembly, the Prime Minister decides to assign revenue and expenditure tasks to each ministry and sector, and revenue and expenditure tasks and the supplementary amount from the central state budget for each province;

c) The Ministry of Finance provides detailed guidance on revenue and expenditure tasks for central agencies, provincial People's Committees, and state-owned enterprises;

2. After receiving the assignment of revenue and expenditure tasks from the Prime Minister, the provincial People's Committee submits the provincial state budget estimates and the allocation plan for provincial state budget estimates to the provincial People's Council for decision; reports to the Government and the Ministry of Finance the provincial state budget estimates and the results of the provincial state budget allocation plan decided by the provincial People's Council.

Pursuant to the resolution of the Provincial People's Council, the People's Committee of the province decides to assign revenue and expenditure tasks for each agency and unit under the province; revenue and expenditure tasks and the level of budget supplementation for each district.

3. After receiving the decision on assigning revenue and expenditure tasks from the People's Committee of the province, the People's Committee of the district shall submit to the District People's Council for deciding the draft budget of the district and the detailed allocation plan of the district budget; report to the People's Committee of the province, the Department of Finance and Price Control on the draft budget of the district and the results of the detailed allocation of the district budget decided by the District People's Council.

Pursuant to the resolution of the District People's Council, the People's Committee of the district decides to assign revenue and expenditure tasks for each agency and unit under the district, revenue and expenditure tasks and the level of budget supplementation for each commune.

4. After receiving the decision on assigning revenue and expenditure tasks from the People's Committee of the district, the People's Committee of the commune shall submit to the Commune People's Council for deciding the draft budget of the commune and the detailed allocation plan of the commune budget; report to the People's Committee of the district, the Office of Finance on the draft budget of the commune and the results of the detailed allocation of the commune budget decided by the Commune People's Council.

17. Article 54 is amended and supplemented as follows:

"Article 54. At the end of the fiscal year, for provinces with an increase in revenue from export tax, import tax, and special consumption tax (excluding special consumption tax collected on domestically produced goods such as betel leaves, paper money, paper offerings, and services from operating nightclubs, massage parlors, karaoke bars; golf course operations: membership card sales, golf play tickets; casino operations; slot machine games; horse racing and car racing betting tickets), compared to assigned tasks, the Government shall decide to allocate a portion according to a specific percentage (%) of the increased revenue as a reward for the provincial budget to invest in infrastructure construction projects and report to the Standing Committee of the National Assembly. The specific use of the reward funds for each project and the assessment of rewards for the provincial, district, and commune budgets shall be decided by the People's Committee of the province and reported to the Provincial People's Council."

18. Article 56 is amended and supplemented as follows:

"Article 56. Financial Reserve Fund:

1. Sources forming the Financial Reserve Fund:

a) The central financial reserve fund is formed from the following sources:

A portion of the increase in central government revenue compared to the budget estimate. The specific amount is decided by the Prime Minister;

Fifty percent (50%) of the surplus of the central government budget;

Allocation within the annual budget expenditure of the central government. The specific amount is decided by the Government and submitted to the National Assembly for approval.

b) The provincial financial reserve fund is formed from the following sources:

A portion of the increase in provincial budget revenue compared to the budget estimate. The specific amount is decided by the Chairman of the People's Committee of the province;

Fifty percent (50%) of the surplus of the provincial budget;

Allocation within the annual budget expenditure of the provincial budget. The specific amount is decided by the Chairman of the People's Committee of the province and submitted to the People's Council for approval.

2. Management and use of the Financial Reserve Fund:

a) The Financial Reserve Fund is managed at the State Treasury and the State Treasury returns the interest earned on the Financial Reserve Fund deposits that the State Bank pays to the State Treasury, which is then added to the Fund;

b) The central financial reserve fund has the Minister of Finance as the account holder; the provincial financial reserve fund has the Chairman of the People's Committee of the province as the account holder;

c) The establishment of the Financial Reserve Fund is carried out gradually each year, with a maximum limit of 25% of the annual budget expenditure forecast of the corresponding level;

d) The Financial Reserve Fund is used to meet expenditure needs when revenue has not yet been concentrated in time and must be repaid within the fiscal year, except for special cases provided for in point e, Clause 2 of this Article;

đ) The provincial budget may borrow from the central financial reserve fund if it has exhausted its own provincial reserve fund. The district and commune budgets may borrow from the provincial financial reserve fund;

e) In cases where budget revenue or borrowing to offset deficits does not reach the approved budget estimate or natural disasters or enemy attacks occur, and after rearranging the budget and using the contingency reserve still cannot provide sufficient resources to meet expenditure tasks:

The Prime Minister decides to use the central financial reserve fund to balance the budget.

The Chairman of the People's Committee of the province decides to use the provincial financial reserve fund to balance the budget, reporting to the same-level People's Council and the Ministry of Finance.

19. Article 62 is amended and supplemented as follows:

"Article 62. At the end of the accounting period (month, quarter, year), accounting units must close their books. Closing the final year-end budget accounting books must ensure the following requirements:

1. All revenues belonging to previous years' budgets, paid in the following year, must be recorded and settled in the following year's budget revenue.

2. All expenditures from the previous year's budget that have not been implemented may not be transferred to the next year for further disbursement. In exceptional cases, if approved by the competent authority, they will be handled and recorded as follows:

If approved for inclusion in the previous year's budget expenditure, the remaining funds from the previous year's budget should be used to process and record it in the previous year's budget expenditure (during the adjustment settlement period).

If approved for inclusion in the next year's budget expenditure, it will be allocated to the next year's budget expenditure.

3. Debts, loans, and advances of budgetary units and all levels of local government budgets must be settled before closing the final year-end accounting books; in exceptional cases, if permitted by the competent authority, debts, loans, and advances from the previous year's budget can be transferred to the next year's budget.

4. Temporary receipts and temporary holds must be reviewed specifically and handled as follows:

Refund to the entities subject to temporary receipts and temporary holds or deposit into the state budget depending on the specific circumstances as decided by the competent authority.

Temporary receipts and holds awaiting processing are transferred to the temporary hold account according to the guidance of the competent authorities.

5. As for inventory materials, goods, and cash balances at units on December 31, they must be inventoried according to current regulations and handled as follows:

Inventory goods and materials that have been settled in the previous year's budget expenditure, if still to be used in the following year, the unit must closely monitor their usage and report separately; if not usable, the unit must establish a liquidation committee to sell them and remit the proceeds to the state budget.

Unit cash balances belonging to the state budget as of December 31 must be remitted to the state budget, except for amounts that should be spent according to the system but have not yet been expended.

6. The balance of authorized funds as of December 31 shall be processed by the State Treasury to transfer back to the higher-level budget and notify the same-level financial authority. Upon receipt of the transferred authorized fund from the lower level, the higher-level State Treasury shall record the reduction in the higher-level budget allocation and notify the same-level financial authority.

20. Article 63 is amended and supplemented as follows:

"Article 63. The adjustment of final accounts settlement is prescribed as follows:

1. Matters that need to be addressed during the adjustment period of final accounts settlement:

Recording additional revenues and expenditures that occurred before December 31 but whose supporting documents are still in transit;

Reconciling and addressing errors in accounting records;

Handling expenditures of the previous year according to decisions made by competent authorities.

2. The time limit for adjusting final accounts settlement:

By January 31 of the following year for commune budgets.

By February 28 of the following year for district budgets.

By March 31 of the following year for provincial budgets.

By May 31 of the following year for central government budgets."

21. Article 67 is amended and supplemented as follows:

"Article 67. The procedures for preparing, submitting, and approving annual revenue and expenditure final account reports at various levels are prescribed as follows:

1. The Commune Finance Department is responsible for preparing the annual revenue and expenditure final account report of the commune for review by the Commune People's Committee and submission to the District Finance Office; simultaneously, the Commune People's Committee submits it for approval by the Commune People's Council. If the annual final account report approved by the Commune People's Council differs from the report submitted by the Commune People's Committee to the District Finance Office, the Commune People's Committee must submit supplementary and adjusted reports to the District Finance Office.

2. The District Finance Office is responsible for auditing the commune's annual revenue and expenditure final account report; preparing the annual revenue and expenditure final account report for the district; compiling the annual revenue report for the district; settling the district's annual revenue and expenditure (including district and commune revenue and expenditure) for review by the District People's Committee and submission to the Provincial Department of Finance and Price Control; simultaneously, the District People's Committee submits it for approval by the District People's Council. If the annual final account report approved by the District People's Council differs from the report submitted by the District People's Committee to the Provincial Department of Finance and Price Control, the District People's Committee must submit supplementary and adjusted reports to the Provincial Department of Finance and Price Control.

3. The Provincial Department of Finance and Price Control is responsible for auditing the annual revenue and expenditure final account report of the district; preparing the annual revenue and expenditure final account report for the province; compiling the annual revenue report for the province and the annual revenue and expenditure final account report for the province (including provincial and district revenue and expenditure) for review by the Provincial People's Committee and submission to the Ministry of Finance and the State Audit Office; simultaneously, the Provincial People's Committee submits it for approval by the Provincial People's Council. If the annual final account report of the provincial budget approved by the Provincial People's Council differs from the report submitted by the Provincial People's Committee to the Ministry of Finance, the Provincial People's Committee must submit supplementary and adjusted reports to the Ministry of Finance and the State Audit Office.

4. The Ministry of Finance is responsible for auditing and reporting the annual revenue and expenditure final account report of the province; preparing the annual revenue and expenditure final account report for the central government and compiling the comprehensive annual revenue and expenditure final account report for the state budget for submission to the Government for approval by the National Assembly; simultaneously sending it to the State Audit Office."

22. Article 70 is amended and supplemented as follows:

"Article 70.

1. Time limits for submitting monthly, quarterly accounting reports, and annual final account reports:

a) Monthly and quarterly accounting reports are regulated by the Minister of Finance;

b) Annual final account reports must be submitted to the financial authority no later than February 15 of the following year (for first-level budget units of districts); no later than March 15 of the following year (for first-level budget units of provinces); no later than April 30 of the following year (for first-level budget units of the central government);

c) Annual final account reports of lower-level budgets submitted to higher-level budgets must be no later than February 15 of the following year (for commune budgets); no later than March 15 of the following year (for district budgets); no later than April 30 of the following year (for provincial budgets).

2. In cases where lower-level budget units fail to submit quarterly accounting reports and annual final account reports within the prescribed time, the financial authority has the right to temporarily suspend funding until the reports are received, except for certain urgent expenditures requiring decisions from competent authorities."

Article 2. This Decree takes effect from the 1999 fiscal year. Previous provisions of the Government, Ministries, agencies equivalent to ministries, and government agencies that conflict with the content of this Decree are abolished.

The Ministry of Finance and relevant ministries are responsible for guiding and implementing this Decree.

Article 3. The Minister, Heads of Ministries equivalent to Ministries, Heads of Government Agencies, Chairpersons of People's Committees of provinces and centrally governed cities are responsible for implementing this Decree./.