Circular No. 54/2018/TT-BTC guiding the preparation of the State budget estimate for 2019 and the financial-plan-budget plan for the three-year period from 2019 to 2021

CIRCULAR
Guidelines for preparing the state budget estimate for 2019
and the three-year financial-plan-budget plan from 2019 to 2021

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

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. 45/2017/ND-CP dated April 21, 2017 of the Government detailing the preparation of five-year financial plans and the three-year financial-plan-budget plan for the state;

Pursuant to Decree No. 31/2017/ND-CP dated March 23, 2017 of the Government promulgating the regulations on the preparation, examination, and decision-making of five-year local financial plans, five-year medium-term public investment plans at the local level, three-year financial-plan-budget plans at the local level, budget estimates and allocations at the local level, and annual approval of local government final accounts;

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

Implementing Directive No. 13/CT-TTg dated May 24, 2018 of the Prime Minister on the construction of development plans and state budget estimates for 2019;

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 2019 and the three-year financial-plan-budget plan from 2019 to 2021.

PART I
EVALUATION OF THE IMPLEMENTATION OF STATE BUDGET TASKS IN 2025
STATE BUDGET FOR 2018 AND THE PERIOD FROM 2016 TO 2018

Article 1. Basis for evaluating the implementation of state budget tasks in 2018 and the period from 2016 to 2018

1. Resolution No. 07-NQ/TW dated November 18, 2016 of the Politburo on restructuring the State Budget, managing public debt to ensure the safety and sustainability of the national financial system (Resolution No. 07-NQ/TW); Resolutions of the National Assembly: No. 142/2016/QH13 on the five-year plan for the period 2016-2020 for socio-economic development (Resolution No. 142/2016/QH13), No. 25/2016/QH14 dated November 9, 2016 on the five-year national financial plan for the period 2016-2020 (Resolution No. 25/2016/QH14), No. 26/2016/QH14 dated November 10, 2016 on the five-year medium-term public investment plan for the period 2016-2020 (Resolution No. 26/2016/QH14), No. 49/2017/QH14 dated November 13, 2017 on the state budget estimate for 2018, and No. 50/2017/QH14 dated November 14, 2017 on the allocation of the central state budget for 2018, and resolutions of People's Councils at all levels on the five-year local financial plans for the period 2016-2020, five-year medium-term public investment plans for the period 2016-2020, and local state budget estimates and allocations for 2018.

2. Decisions of the Prime Minister: No. 1915/QĐ-TTg, No. 1916/QĐ-TTg  dated November 29, 2017 on allocating the state budget estimate for 2018, No. 2131/QĐ-TTg dated December 29, 2017 on allocating the capital investment plan for the state budget for 2018, number2130/QĐ-TTg dated December 29, 2017 on allocating additional investment plans for foreign-funded projects under the central state budget for the medium-term investment plan 2016-2020 and for 2017 for projects that have been disbursed since before 2016 (Decision No. 2130/QĐ-TTg), No. 280/QĐ-TTg dated March 8, 2018 on adjusting the bond issuance plan for the period 2012-2015 and 2014-2016, extending the implementation and disbursement time for investment capital from the central state budget in 2018 (Decision No. 280/QĐ-TTg), decisions on allocating medium-term public investment plans for the period 2016-2020, allocating medium-term plans for national target programs for the period 2016-2020 by competent authorities, and other decisions on supplementing the budget during the management of the state budget in 2018; decisions of the People's Committees at all levels on local state budget estimates and allocations for 2018. levels on the state budget estimate and allocation for the 2018 fiscal year.

3. Directives and administrative guidance documents related to the state budget for 2018 issued by competent authorities, including: Resolutions of the Government: No. 01/NQ-CP dated January 1, 2018 on key tasks and solutions to guide the implementation of the socio-economic development plan and the state budget estimate for 2018 (Resolution No. 01/NQ-CP), No. 19-2018/NQ-CP dated May 15, 2018 on continuing to implement key tasks and solutions to improve the business environment, enhance the country’s competitiveness in 2018 and subsequent years (Resolution No. 19-2018/NQ-CP), and monthly regular meetings of the Government; Decision No. 579/QĐ-TTg dated April 28, 2017 of

4. The situation in fulfilling financial tasks and state budget for the first six months of the year; forecast and measures to strive to complete the state budget estimate for the remaining months and the entire year 2018 have been decided by competent authorities.

4. Implementation of financial-state budget tasks in the first six months; forecasts and measures to strive to complete the state budget estimate for the remaining months and the whole year of 2018 have been decided by competent authorities.

Article 2. Evaluation of the implementation of the state budget revenue collection tasks in 2018 and the period from 2016 to 2018

1. Evaluation of the implementation of the state budget revenue collection task in 2018:

Evaluation of the implementation of state budget revenue collection in accordance with the State Budget Law 2015, excluding the accounting of fees and charges that have been transferred to service prices as stipulated by the Law on Fees and Charges; deductions for state agencies or retained amounts from activities carried out by public service units and state-owned enterprises.

Based on the estimated state budget revenue results for the first six months of the year, forecasting the macroeconomic prospects for 2018, and the business production and operation situation, market price trends for the last six months of the year, ministries, central agencies, and localities shall review and evaluate factors affecting revenue, propose management measures to strive to exceed the state budget revenue collection target for 2018 approved by the National Assembly and People's Councils at all levels; assess the implementation of the 2018 task, focusing on the following contents:

a) Evaluate and analyze the reasons for the increase or decrease in state budget revenue in 2018, paying particular attention to:

The advantages and difficulties in business production and operation and import-export activities of enterprises and economic organizations under various economic sectors affected by domestic and foreign factors; the ability to implement new investment projects, expand investments, and deepen investments by enterprises; production volume, consumption, selling price, and profit of key goods and services in the locality; the growth rate of retail sales and service revenue; market trends.

The impact of crude oil price fluctuations, agricultural product prices on the world and domestic markets, the impact of implementing international economic integration commitments, the implementation of Resolution No. 35-NQ/CP, Resolution No. 19-2018/NQ-CP, Resolution No. 36a/NQ-CP dated October 14, 2015 on digital government, monetary policies, credit, trade, investment, pricing policies, administrative reform, and other factors on the economy and state budget revenue in the first six months of the year.

b) Evaluate the implementation and results of measures for managing state budget revenue according to Resolution No. 01/NQ-CP; the implementation of tax, fee, and charge policies revised and supplemented effective in 2018; adjustment of special consumption tax rates (SCT) according to the schedule for certain items under the Law Amending and Supplementing Certain Provisions of the SCT Law, the Law Amending and Supplementing Certain Provisions of the Value Added Tax (VAT) Law, the SCT Law, and the Tax Administration Law; provisions regarding the calculation method and level of water resource exploitation rights fees under Decree No. 82/2017/ND-CP dated July 17, 2017 of the Government; provisions regarding the reorganization and handling of state assets under Decree No. 167/2017/ND-CP dated December 31, 2017 of the Government (Decree No. 167/2017/ND-CP) and other tax, fee, and charge policies affecting the implementation of the state budget revenue collection task in 2018.

c) Evaluate the situation of inspection, examination, and recovery of overdue taxes:

Review and determine the amount of overdue taxes as of December 31, 2017; report on the implementation of urging and coercive measures to recover overdue taxes, write-off taxes in the first six months of 2018, and the implementation of the report to the National Assembly on the plan to handle overdue taxes according to Resolution No. 55/2017/QH14 dated November 24, 2017 of the National Assembly on the questioning and answering session at the fourth session of the 14th National Assembly; forecast the amount of overdue taxes as of December 31, 2018.

Results of implementing the recommendations of the State Audit Agency, inspections, and tax authorities' decisions to collect additional taxes in the implementation of plans and tasks for inspecting and examining tax law compliance.

d) Evaluate the declaration, payment, and refund of VAT generated in 2018 in accordance with the VAT Law. In this regard, forecast the amount of VAT refunds in 2018 linked to strengthening post-refund monitoring, inspection, and audit, and recovering improperly refunded VAT; propose recommendations to adjust the management mechanism for VAT refunds to ensure strict compliance with legal regulations.

đ) Evaluate the collection of state budget revenues from land (land use fees, land rental fees) under the Land Law and state budget revenues from the disposal and reorganization of houses and land as stipulated in Decree No. 167/2017/ND-CP.

e) 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 right auctions, and organizing inspections, examinations, urging, and recovering overdue taxes, preventing revenue loss, and combating transfer pricing; existing issues, obstacles, and solutions to address them.

g) Results of collecting fees and charges, including the total revenue, revenue deposited into the state budget, revenue retained compared to the budget, and the appropriateness of the retention ratio; fines and confiscations from administrative violations in the first six months of the year and projected for the whole year 2018.

i) Evaluate tuition fees, healthcare service prices, and service fees for public services (excluding fees and charges listed in the Law on Fees and Charges).

2. Evaluation of the implementation of the state budget revenue collection task over the three years from 2016 to 2018:

Based on the estimated full-year 2018 figures, evaluate the cumulative total state budget revenue collected during the 2016-2018 period compared to the five-year targets and plans for 2016-2020 as set forth in the National Assembly and People's Council resolutions, detailing each source of revenue from land use fees, lottery proceeds, dividends and post-tax profits, domestic revenue (excluding land use fees, lottery proceeds, dividends, and post-tax profits), export-import revenue, and aid (if any); evaluate the advantages and difficulties and propose policy and management recommendations for state budget revenue collection in the future.

Article 3. Evaluation of the implementation of investment development expenditure tasks

1. Evaluation of the implementation of investment development expenditure (IDDE) in 2018:

a) Work on budget allocation and organization of IDDE implementation in 2018:

- The situation of allocating and transferring the IDDE budget for 2018, including state budget resources, government bonds, and investment from other sources outside the state budget (including decisions to adjust and supplement Decision No. 2130/QD-TTg and Decision No. 280/QD-TTg): The allocation, distribution, and transfer of capital to projects and works according to the Law on Public Investment; the time frame for distributing and transferring plans to project owners; the results of budget allocation for recovering advance state budget funds and settling construction debts under the state budget.

- The situation of establishing, reviewing, approving investment policies, making investment decisions for public investment projects, and adjusting public investment projects (if applicable) in accordance with the Law on Public Investment and government directives.

- Implementation of IDDE in 2018 (including decisions to adjust and supplement No. 2130/QD-TTg, No. 280/QĐ-TTg): Evaluation of the volume of work completed, capital paid up to the second quarter of 2018 (including payment for completed work volume and advance capital payment), estimated work volume and capital to be paid by December 31, 2018, detailed breakdown of disbursement achievement rates, overruns, reasons, recommendations (with detailed appendices for each project, data on approved total investment, cumulative capital paid up to the end of 2017, planned capital - including supplementary and adjusted capital and estimated implementation in 2018, accompanied by explanations).

Implementation of investment projects funded from proceeds of asset sales on land and land use rights transfers (detailing completed projects not yet settled due to lack of budget allocation, estimated implementation in 2018; proceeds from asset sales on land and land use rights transfers deposited into the state budget but not proposed for use by December 31, 2017, expected revenue to arise in 2018).

The Ministries of Health and National Defense and the People's Committee of Ho Chi Minh City report on the implementation of investments and construction of five central and terminal hospitals in Ho Chi Minh City using funds from the Enterprise Restructuring and Development Support Fund (details of total funds borrowed from the Fund, disbursed funds, funds withdrawn from the Fund but not disbursed, funds not withdrawn from the Fund), funds allocated from the 2017-2018 state budget IDDE plan, and implementation progress; propose recommendations to ensure project schedules (if applicable).

Summary and evaluation of the outstanding investment construction debt under the state budget (including government bonds as directed by the Prime Minister in Decisions No. 27/CT-TTg dated October 10, 2012, No. 14/CT-TTg dated June 28, 2013, and No. 07/CT-TTg dated April 30, 2015: Debt amount as of December 31, 2017, recovery in 2018, estimated construction debt, advance funds remaining as of December 31, 2018 (detailed by project).

Implementation of projects and programs funded from loans and repayment of local loan sources (including temporary advances retained at the State Treasury).

Settlement of completed investment projects, specifying: number of projects completed but not settled as of June 2018 and projected by the end of 2018; causes and solutions.

Evaluation of difficulties in managing investment under the Law on Public Investment, the Construction Law, and related laws, proposing solutions.

b) Evaluation of the results of implementing support development tasks:

Implementation of preferential state investment credit (total credit growth, sources of funds to implement the credit growth plan, state budget subsidies for interest rate differences,...); beneficiaries; scope of preference; main bodies implementing the credit policy; lending interest rates; administrative reform in loan approval procedures.

Implementation of credit policies for poverty alleviation programs, near-poor households, newly escaped poor households, extremely difficult ethnic minority households; student and vocational student credits; job creation and labor export credits; clean water and rural environmental sanitation credits;... Each credit program must clearly specify legal basis, scope, beneficiaries, borrowing conditions, average deposit interest rates, average lending interest rates; year-end loan balance, new loans and repayments during the year, projected year-end balance; subsidy interest rate fund balance at the beginning of the year, new occurrences during the year, amounts already subsidized, projected year-end balance.

Implementation of socialization mechanisms and policies (total and structure of socialized investment resources by sector and field; number of facilities invested through socialized resources; achievements; existing issues, causes, and solutions).

2. Evaluation of the implementation of IDDE from 2016 to 2018:

Based on the evaluation of the entire year 2018, conduct a cumulative assessment of the results of implementing the three-year period 2016-2018 compared to the five-year targets and plans for 2016-2020; specifically:

a) Cumulative IDDE expenditures implemented during the 2016-2018 period compared to the mid-term plan assigned by the competent authority for the 2016-2020 period, detailing state budget resources, central budget supplements with specific sources from government bonds, foreign sources (including both loan and non-reimbursable aid), domestic sources - if applicable.

b) Number of projects with construction debts compiled and allocated in the 2016-2020 mid-term investment plan, the situation of allocating funds in 2016-2018 to address construction debts, projected allocation for the remaining years 2019-2020. Projects with construction debts that have been implemented but not reported in the mid-term plan, newly occurred (if any), proposals for handling construction debts of these projects.

c) Cumulative advance funds compiled in the 2016-2020 mid-term investment plan, the situation of allocating funds in 2016-2018 to recover advance funds, projected allocation for the remaining years 2019-2020. Newly occurred advance funds not included in the mid-term investment plan (if any), proposals for handling.

d) Cumulative implementation of the support development plan for the period 2016-2018 compared to the plan for the period 2016-2020 assigned by the competent authority, detailing each program and support policy; difficulties and recommendations if any.

đ) Implementation situation of socialized mechanisms and policies for the period 2016-2018 compared to the plan for the period 2016-2020 assigned (detailing total resources, structure of socialized resources by sector and field; number of facilities invested from socialized resources by sector and field; achievements; existing issues, causes, and solutions to address them).

Article 4. Evaluation of the implementation of regular expenditure tasks

1. Ministries, central agencies, and localities focus on evaluating the implementation of regular expenditure tasks in 2018 for the following contents:

a) Situation of allocation, budget assignment, and execution of the State budget estimate for the first six months of 2018 and forecast for the whole year 2018 according to each assigned spending area; results of achieving objectives, tasks, large programs, and projects; difficulties and obstacles and proposed measures to handle them.

b) Results of reducing estimates for regular expenditure tasks assigned in the annual budget of ministries, central agencies, and localities but not allocated by June 30, 2018, as stipulated in Resolution No. 01/NQ-CP.

c) Implementation and difficulties and obstacles arising during the implementation of tasks, mechanisms, policies, and expenditure regulations, while proposing immediate solutions to address them in 2018, specifically:

- For regulations and policies: Overall assessment of all policies and regulations; review and propose supplements and amendments to policies and regulations that are inconsistent with reality.

- Situation of guidance, implementation, and results achieved in the first six months of the year and estimated for the whole year (detailed targets and allocated funds) in implementing Resolution No. 18-NQ/TW dated October 25, 2017 of the 6th Plenary Session of the 12th Central Committee on continuing to innovate and streamline the organizational structure of the political system to enhance efficiency (Resolution No. 18-NQ/TW), Resolution No. 39-NQ/TW dated April 17, 2015 of the Central Committee on streamlining the workforce and restructuring the cadre and civil servant corps (Resolution No. 39-NQ/TW) and Conclusion No. 17-KL/TW dated September 11, 2017 of the Politburo on the implementation of staffing and workforce streamlining in organizations within the political system in 2015-2016, goals, tasks, and solutions for the 2017-2021 period (Conclusion No. 17-KL/TW); Plan No. 07-KH/TW dated November 27, 2017 of the Political Bureau to implement Resolution No. 18-NQ/TW (Plan No. 07-KH/TW); Decree No. 10/NQ-CP dated February 3, 2018 of the Government on the Program of Action of the Government to implement Resolution No. 18-NQ/TW (Decree No. 10/NQ-CP); Decree No. 108/2014/NĐ-CP dated November 20, 2014 of the Government on policies for workforce streamlining (Decree No. 108/2014/NĐ-CP); Directive No. 02/CT-TTg dated January 6, 2017 of the Prime Minister on accelerating the policy of workforce streamlining (Directive No. 02/CT-TTg); Decision No. 2218/QĐ-TTg dated December 10, 2015 of the Prime Minister on the Government's plan to implement Resolution No. 39-NQ/TW (Decision No. 2218/QĐ-TTg); Decree No. 26/2015/NĐ-CP dated March 9, 2015 of the Government on regulations and policies for cadres who do not meet age criteria for re-election or re-appointment in term-based positions in Party, State, and political-social organizations (Decree No. 26/2015/NĐ-CP).

- Situation of guidance, implementation, and results achieved in the first six months of the year and estimated for the whole year (detailed targets and allocated funds) in implementing Resolution No. 19-NQ/TW dated October 25, 2017 of the 6th Plenary Session of the 12th Central Committee on continuing to innovate the organizational and management system and improving the quality and efficiency of public service units (Resolution No. 19-NQ/TW), Decision No. 08/NQ-CP dated January 24, 2018 of the Government on the Program of Action of the Government to implement Resolution No. 19-NQ/TW; Decree No. 16/2015/NĐ-CP dated February 14, 2015 of the Government on the mechanism of autonomy for public service units (Decree No. 16/2015/NĐ-CP); other Decrees of the Government on the mechanism of autonomy in specific fields of public services (Decree No. 54/2016/NĐ-CP dated June 14, 2016 on the mechanism of autonomy for public scientific and technological organizations (Decree No. 54/2016/NĐ-CP), Decree No. 141/2016/NĐ-CP dated October 10, 2016 on the mechanism of autonomy for public service units in economic and other service sectors (Decree No. 141/2016/NĐ-CP),...).

In the health sector, evaluate the results of reducing regular funding for healthcare public service units according to the schedule of adjusting medical service prices and fees and the use of allocated funds as guided by Circular No. 132/2017/TT-BTC, difficulties, obstacles, and recommendations.

In the education and training sector, evaluate specifically the results of implementing Decision No. 77/NQ-CP dated October 24, 2014; identify difficulties, obstacles, solutions, and recommendations for applying and expanding the implementation of Resolution No. 19-NQ/TW.

d) Implementation situation of the multi-dimensional poverty standard according to Decision No. 59/2015/QĐ-TTg dated November 19, 2015 of the Prime Minister and Resolution No. 40/NQ-CP dated May 10, 2017 of the Government in the first six months of the year and forecast for the whole year 2018; difficulties, obstacles, and proposed solutions.

2. Evaluation of the implementation of regular expenditure tasks for the period 2016-2018 as follows:

For programs, projects, and tasks with objectives and plans implemented during the period 2016-2020, detail each decision assigning tasks, total funds, phased implementation each year from 2016-2020, cumulative implementation in 2016-2018, difficulties, obstacles, and recommendations.

Evaluate the cumulative implementation of Resolution No. 39-NQ/TW over the three years 2016-2018 compared to the targets set out in Resolution No. 39-NQ/TW, detailing each target and allocated funds.

Evaluate the cumulative implementation of Decree No. 16/2015/NĐ-CP, Decree No. 54/2016/NĐ-CP, and Decree No. 141/2016/NĐ-CP; detailing the issuance of guiding documents pursuant to Decision No. 695/QĐ-TTg dated May 21, 2015 of the Prime Minister on the Plan for Implementing Decree No. 16/2015/NĐ-CP 16/2015/ND-CP; the situation regarding the implementation of the phased inclusion of full costs into service fees; the implementation of staff reduction over the three years from 2016 to 2018 (percentage reduced compared to December 31, 2015); regular funding reduced over the three years from 2016 to 2018 (percentage reduced compared to December 31, 2015); the financial autonomy status of public service units as of December 31, 2018 (compared to December 31, 2015); details for each sector; difficulties, obstacles, and recommendations.

Article 5. Evaluation of the Implementation of National Reserve Plans

Ministries and sectors managing national reserve goods evaluate the implementation of plans and state budget estimates for national reserves in 2018 and previous years, including: Plans and estimates for purchasing, selling, rotating, and exchanging goods, selling goods, allocating national reserve goods, and national reserve business expenses (details on quantity, value of goods, importation, disbursement of funds, operating costs, etc.) up to June 30, 2018 and projected completion for 2018. Advantages, difficulties, obstacles, and proposed solutions for completing tasks in the remaining months of 2018.

Based on the projected annual completion for 2018, evaluate the implementation of national reserves during the period 2016-2018 compared to the five-year plan targets for 2016-2020 and the National Reserve Development Strategy until 2020.

Article 6. Evaluation of the Implementation of National Target Programs, Target Programs, and Other Programs and Projects Using Foreign Funds

1. For National Target Programs and Target Programs:

a) Evaluate the implementation of the 2018 budget estimates for National Target Programs and Target Programs

- Ministries serving as program leaders for National Target Programs/Target Programs approved before 2017 report on the issuance and implementation of guiding documents and coordination mechanisms with agencies responsible for projects/components within the National Target Programs.

- Agencies serving as program leaders approved in 2018 or currently under approval report on progress in submitting to the Prime Minister, and the development or coordination in developing guiding documents.

- Agencies serving as program leaders approved in 2018 or currently under approval report on progress in submitting to the Prime Minister, and the development or coordination in developing guiding documents.

- Ministries, central agencies, and localities assess the allocation, assignment, and implementation of the 2018 budget estimates for National Target Programs and Target Programs; advantages, difficulties, and obstacles in implementation; if National Target Programs and Target Programs use foreign funds, report on detailed disbursements according to ODA grants, ODA loans, preferential loans, and non-governmental foreign aid, financial mechanisms, and recommendations (if any). For the National Target Program on Sustainable Poverty Reduction, specifically evaluate the implementation for newly added districts pursuant to Decision No. 275/QĐ-TTg dated March 7, 2018 of the Prime Minister.

b) Based on the projected 2018 budget expenditure, evaluate the cumulative implementation of National Target Programs and Target Programs from 2016 to 2018 compared to the mid-term plan assigned for 2016-2020 (if applicable) and the total amount approved for 2016-2020 (in cases where no mid-term plan was assigned), difficulties, obstacles, and recommendations.

2. For other programs and projects using foreign funds:

a) Ministries, central agencies, and localities assess the allocation, assignment, and implementation of the 2018 budget estimates for other programs and projects using foreign funds (including project components), detailed according to ODA grants, ODA loans, preferential loans, non-governmental foreign aid, financial mechanisms, and recommendations (if any).

Specifically for programs and projects using ODA loans and/or preferential loans, determine the possibility of exceeding the allocated budget (if any); for programs and projects using aid without a budget estimate that need to be implemented immediately in 2018, reports must be submitted to the Ministry of Planning and Investment and the Ministry of Finance for consolidation and submission to the Prime Minister for adjustment within the total foreign capital budget allocated, or for submission to the Standing Committee of the National Assembly for supplementary budget approval before implementation if it exceeds the total foreign capital budget allocated.

b) Based on the projected 2018 budget expenditure, evaluate the cumulative implementation from 2016 to 2018 compared to the mid-term target plan for 2016-2020 (if applicable)/or the implementation plan for 2016-2020 according to agreements or signed agreements; difficulties, obstacles, and recommendations.

b) Based on the estimated implementation of the 2018 expenditure budget, evaluate the cumulative implementation from 2016 to 2018 compared to the mid-term target and plan for the period 2016-2020 assigned (if applicable)/or the implementation plan for the period 2016-2020 according to the Agreement or signed Memorandum; difficulties, obstacles, and recommendations.

Article 7. Evaluation of the situation regarding funding for salary adjustment implementation

1. Ministries and central agencies shall report on:

a) Staffing, salary funds, allowances based on salary, and contributions according to prescribed regulations (social insurance, health insurance, unemployment insurance, trade union fees).

b) The need for funding to implement salary reform in accordance with Decree No. 72/2018/NĐ-CP dated May 15, 2018 of the Government stipulating the basic salary for civil servants, public officials, and military personnel.

c) Sources of funding to ensure the implementation of salary reform in 2018, including:

- Reallocating regular expenditure within the State budget estimate for 2018; transferring unspent funding from 2017 for salary reform to 2018 (if applicable); transferring unspent funding from 2018 to 2019 for basic salary adjustment (if applicable).

- Revenue retained according to the schedule for incorporating costs into prices and service fees under Decree No. 16/2015/NĐ-CP and other decrees on autonomy for public institutions in various fields.

- Funding allocated in connection with the implementation of Resolution No. 18-NQ/TW and Resolution No. 19-NQ/TW.

2. Provinces and centrally-administered cities shall report on:

a) Salary funds, allowances, subsidies, and contributions according to prescribed regulations (social insurance, health insurance, unemployment insurance, trade union fees) implemented in 2017 and projected for 2018;

b) The need for funding to implement salary reform in 2018;

c) The use of local resources to implement salary reform in 2018, including:

- Savings from reducing regular expenditure by 10% (excluding salaries and salary-like payments); 50% of increased domestic revenue as prescribed; surplus from salary reform (if any) reserved for implementing social welfare policies issued by the Central Government pursuant to Decision No. 579/QĐ-TTg;

- Revenue retained according to the schedule for incorporating costs into prices and service fees under Decree No. 16/2015/NĐ-CP and other decrees on autonomy for public institutions in various fields;

- Funding allocated in connection with the implementation of Resolution No. 18-NQ/TW and Resolution No. 19-NQ/TW.

d) Reviewing and determining the need for allowances and subsidies for particularly difficult economic and social areas according to Decision No. 131/QĐ-TTg dated January 25, 2017 of the Prime Minister approving the list of particularly difficult communes in coastal and island areas, Decision No. 582/QĐ-TTgdated April 28, 2017 of the Prime Minister approving the list of particularly difficult hamlets, communes in Zone III, Zone II, and Zone I in ethnic minority and mountainous regions for the period 2016-2020. Article 8. Evaluation of the Implementation of State Budget Tasks by Provinces and Centrally-Administered Cities in 2018 and the Period 2016-2018 In addition to the general requirements mentioned above, provinces and centrally-administered cities shall focus on evaluating the following additional contents:

1. Evaluating the mobilization of financial resources at the local level to fulfill the tasks of socio-economic development in 2018 and cumulatively over the three years 2016-2018, compared to the five-year plan 2016-2020, identifying difficulties and obstacles, and proposing recommendations.

2. Based on the estimated total revenue for the year 2018, evaluate the cumulative implementation of State budget revenue in the period 2016-2018 compared to the five-year plan 2016-2020, detailing each source of revenue (land use fee, lottery revenue, dividend and post-tax profit, remaining domestic revenue, import-export revenue, and foreign aid if any).

3. The ability to balance the local budget compared to the estimate, measures already taken and those planned to ensure budget balance in case of expected reduction in local revenue in 2018; the situation of balancing the local budget compared to the estimate for each year 2016-2018; difficulties, obstacles, and recommendations if any.

4. Based on the estimated total investment expenditure of the locality in 2018, evaluate the cumulative implementation of investment expenditure of the locality in the period 2016-2018 compared to the medium-term public investment plan 2016-2020, detailing the sources of local budget balance (specifically land use fee, lottery revenue, remaining local revenue, and loan repayment) and central government supplementary funding (specifically treasury bonds, foreign sources, and others if any).

5. Implementation of social welfare policies: For each policy, provide a detailed report on the target group (including specific details for households with low income and multi-dimensional poverty according to each criterion lacking basic services), the need for funding to implement the policy in 2018 (with explanation of the basis for determination and calculation method). After using the stable funding allocated in the local budget balance for 2017 (the first year of the 2017-2020 budget stability period), central government support funding, and surplus from salary reform after ensuring salary reform in the year (if any), in cases where there is still a shortfall, the Ministry of Finance will submit to the competent authority for allocation in the 2019 budget for the locality to have funding to implement (not considered during annual budget management).

6. Implementation of organizational restructuring, staff reduction, and innovation in public institutions in 2018 and cumulatively over the three years 2016-2018: Evaluate according to the guidelines in Article 4 of this Circular, specifically for 2018 and cumulatively over the three years 2016-2018; specifically the results achieved according to each goal and task; funding allocated for each resolution (detailed explanation of funding allocated according to each goal mentioned in the resolutions, specifically reduced salary expenses, operational expenses according to standards when reducing staff, reduced support for public institutions that have been restructured or transferred to higher levels of autonomy, reduced expenses for administrative unit restructuring, reduced funding due to increased revenue based on the schedule for incorporating costs into service prices according to Decree No. 16/2015/NĐ-CP and other decrees on autonomy for public institutions in various fields...); difficulties, obstacles, and recommendations if any.

5. Implementation of social security policies: For each policy, provide a specific report on the target group (including detailed information on income-poor households, multi-dimensional poverty based on each criterion lacking basic services), funding requirements to implement the policy in 2018 (with explanation of the basis for determination, calculation method). After using the funding allocated stably in the state budget balance for 2017 (the first year of the stable budget period 2017-2020), central government support funds and salary reform funds after ensuring salary reform in the year with surplus (if any), in cases where there is still a shortage of funds, the Ministry of Finance will submit to the competent authority to allocate the 2019 state budget plan for localities to have funding sources to implement (not considered for handling during annual budget management).

6. Situation in restructuring the organizational structure, reducing staff establishment, and innovating public service units in 2018 and cumulatively over three years 2016-2018: Evaluate according to the guidance provided in Article 4 of this Circular, specifically for 2018 and cumulatively over three years 2016-2018; specifically the achievements made according to each goal and task; funding allocated for each Resolution (detailed explanation of the funding allocated according to each goal mentioned in the Resolutions, detailed reduction in salary expenses, operational expenses according to standards when reducing staff establishment, reduction in support for public service units that have been restructured or transferred to higher self-reliance groups, reduction in expenses for administrative unit restructuring, reduction in funding due to increased revenue based on the correct and full fee pricing according to Decree No. 16/2015/ND-CP and other Decrees on self-reliance for public service units by sector according to the Government...); difficulties, obstacles, and recommendations if any.

7. The source for salary reform in 2018, any surplus remaining after ensuring sufficient funds for salary reform in 2018, shall be used to pay instead of the State Treasury's support to implement social welfare policies issued by the Central Government (reducing correspondingly the amount of State Treasury support according to the system) as stipulated in Decision No. 579/QD-TTg, the amount already approved by competent authorities to be used for investment in training (for localities with central adjustment) pursuant to Resolution No. 49/2017/QH14.

8. Report specifically on the allocation of the budget (including the targeted State Treasury support for the local budget, if any) and the use of the local budget reserve to fulfill security, defense tasks; prevention, control, and mitigation of natural disasters and epidemics; the situation of using the local budget reserve and financial reserve fund (if any) up to June 30, 2018.

9. The situation of allocating and assigning the state budget expenditure from land use revenue for local infrastructure projects, conducting land surveying, establishing land ownership records, and issuing land use right certificates.

10. The implementation status of borrowing and repaying local government debts, including:

a) The beginning-of-year debt balance, the amount borrowed up to June 30, 2018, the estimated total borrowing for the year, detailed by purpose of borrowing (borrowing to repay principal, borrowing to offset deficit) and by each source of funding (issuing local government bonds; borrowing back foreign loans of the Government by each sponsor and project; borrowing state credit for investment; borrowing from the national treasury; other borrowings).

b) The implementation status of interest and fee repayment up to June 30, 2018, detailed by each source of funding mentioned above.

c) The implementation status of principal repayment of borrowings, detailed by each source (new borrowing to repay old debt, from surplus revenue, increased revenue, and cost savings).

d) The end-of-year debt balance according to plan and estimated actual performance, detailed by each source of funding mentioned above.

11. The collection and expenditure from lottery revenue in 2018 and the cumulative three years from 2016 to 2018; the use of lottery revenue to invest in important social welfare projects of the locality, focusing on investments in education, healthcare, and rural agricultural infrastructure according to regulations in 2018 and the cumulative three years from 2016 to 2018.

12. The implementation status of national target programs, target programs, programs, and projects using foreign sources of funding: evaluation of the implementation status in 2018 and the cumulative implementation status from 2016 to 2018 compared to the five-year plan from 2016 to 2020 assigned (if applicable) or according to the approved program, project, and task. In particular:

a) National Target Program on New Rural Development: implementation costs, detailed by each source (State Treasury, specifically central government capital; local budget and other mobilized sources), number of communes completing the program objectives; in cases where the local budget balance and other mobilized sources are lower than expected, the reasons and responsibilities of relevant agencies must be clarified.

b) Implementation status of the National Target Program on Sustainable Poverty Reduction: implementation costs, detailed by each source (State Treasury, specifically central government capital; local budget and other mobilized sources); in cases where the local budget balance and other mobilized sources are lower than expected, the reasons and responsibilities of relevant agencies must be clarified.

c) Implementation status of target programs: implementation costs, detailed by each source (State Treasury, specifically central government capital; local budget and other mobilized sources); in cases where the local budget balance and other mobilized sources are lower than expected, the reasons and responsibilities of relevant agencies must be clarified.

d) In cases where the locality has foreign funding to implement national target programs, target programs, and other programs and projects, report specifically on the allocated budget estimates, allocation status, disbursement status, detailed by ODA funding (ODA aid, ODA loans), preferential loans.

Chapter II
BUDGET ESTIMATE FOR THE STATE BUDGET IN 2019

Article 9. Requirements

1. The year 2019 is the year to implement synchronously all resolutions of the Central Committee of the Party, Term XII; continue implementing Resolution No. 07-NQ/TW; it is the fourth year of implementing Resolutions No. 142/2016/QH13, No. 25/2016/QH14, and No. 26/2016/QH14, which are significant for achieving the goals of economic and social development and state budget finance over the five-year period from 2016 to 2020.

2. The State Budget estimate for 2019 is built in accordance with the provisions of the State Budget Law and guiding documents on procedures, deadlines, legal basis explanations, calculation bases, and justifications; ensuring consistency with the progress up to December 31, 2018; the objectives and tasks of the five-year plans approved for the period 2016-2020; aligning with the development orientation and targets and tasks set for 2019 as directed.

3. The construction of the State Budget revenue and expenditure estimates for 2019 must comply with the laws governing budget revenue and expenditure management; based on principles, criteria, and budget allocation standards; strictly adhering to the policy of thorough thrift and waste prevention right from the budget preparation stage.

4. Ministries, central agencies, and localities, based on their assessment of the implementation of economic and social development tasks in 2018, cumulative implementation of the three years 2016-2018, closely following the economic and social development goals and tasks for 2019 and the period 2016-2020 of their respective sectors, fields, and regions, medium-term public investment plans for the period 2016-2020, should determine key priorities to be implemented in 2019 consistent with the restructuring of the budget during the period 2016-2020 according to Resolution No. 07-NQ/TW, Resolution No. 25/2016/QH14, and the implementation of Resolutions No. 18-NQ/TW and No. 19-NQ/TW; proactively arrange the priority order of expenditures, programs, projects, and proposals approved by competent authorities according to their urgency, importance, and feasibility of implementation in 2019 based on allocated state budget resources and other legitimate sources.

5. Ministries and central agencies managing sectors and fields, when building estimates, need to consider reviewing comprehensively existing systems and policies (especially social security policies) to abolish or integrate them within their authority, or propose to competent authorities to abolish or integrate overlapping, redundant, and ineffective policies; not proposing policies that reduce state budget revenues; only proposing to issue policies increasing state budget expenditures when truly necessary and with guaranteed funding; proactively forecasting full financial requirements for implementing new policies, systems, and tasks decided by competent authorities.

Article 10. Building the State Budget Revenue Estimate

The State Budget revenue estimate for 2019 must be constructed in accordance with current policies and systems, based on a thorough assessment of the actual performance of state budget revenue collection in 2018; simultaneously analyzing and forecasting macroeconomic conditions domestically and internationally, particularly factors affecting investment, production and business development, and trade activities including import and export in 2019; calculating specific factors contributing to increases or decreases in revenue due to changes in tax and fee policies and the implementation of tax reduction schedules to fulfill international economic integration commitments; implementing reforms and modernizing revenue management, promoting the widespread use of electronic invoices, strengthening inspections and audits, combating tax evasion, smuggling, and commercial fraud, strictly managing taxable prices, detecting and preventing transfer pricing and tax evasion; intensifying debt collection; reviewing revenues from investment projects that have completed their preferential periods.

Strive to achieve a ratio of tax and fee revenue to Gross Domestic Product (GDP) at approximately 21% in 2019.

Domestic revenue estimate (excluding oil revenue, land use fee revenue, lottery revenue, proceeds from selling state-owned shares in enterprises, dividends, and post-tax profits) for 2019 nationwide should increase by a minimum of 12-14% compared to the estimated actual performance in 2018. The specific rate of increase depends on the conditions, characteristics, and alignment with the economic growth rate of each locality. The domestic revenue estimate from import and export activities should increase by a minimum of 4-6% compared to the estimated actual performance in 2018.

1. Building the domestic revenue estimate:

a) Localities must construct the State Budget revenue estimate for their areas in 2019, in addition to meeting the above goals and requirements, clearly identifying revenues within and outside the scope of the State Budget, thereby fully consolidating revenues within the State Budget scope generated locally (including revenue from village, town, and township budgets, taxes from foreign contractors and domestic contractors operating projects in the area, and taxes from newly operational projects).

Based on a comprehensive evaluation of actual performance in 2017, the development plan for the period 2016-2020, the effort and capacity to achieve economic and social and budgetary tasks in 2018, cumulative performance over the three years 2016-2018, forecasted economic growth in 2019, and the preliminary revenue estimate for 2019 announced by the competent authority.

b) The State Budget revenue estimate for 2019 must be built based on a database of taxpayers; ensuring accuracy and completeness for each revenue item, tax type, and sector for each locality, detailing revenue from newly operational factories according to current tax, fee, and non-budget revenue regulations; adjustments to policies continuing to impact State Budget revenue in 2019 and proposed amendments and supplements to be applied in 2019; notably, the Law Amending and Supplementing Certain Provisions of the Value-Added Tax Law, which increases the excise tax rate on cigarette and cigar products and other tobacco derivatives.

c) Fully consolidate revenue from fees for mineral resource exploitation rights and water resource exploitation rights (including revenue from permits issued by the central government and provincial people's committees); fines and penalties collected by central and local state agencies according to the law.

d) The budget estimate for land use fees and land rental fees is based on the auction plan for land use rights as prescribed by the laws on land. The budget estimate for revenue from the reorganization and disposal of real estate assets of agencies, organizations, units, and enterprises is made according to the Law on Management and Use of State Property and related guiding documents. All revenues from the reorganization and disposal of state property (including real estate) and revenues from the exploitation of infrastructure assets (after deducting related costs) must be submitted to the State Budget and prioritized for allocation in the State Budget expenditure estimate for investment purposes as prescribed.

đ) Ministries, central agencies, and localities must consider revenue sources linked to the vigorous implementation of measures to strengthen the collection and enforcement of tax arrears recovery, inspection, and anti-tax evasion, anti-smuggling, anti-commercial fraud, supervision and management of VAT refund claims, enhanced monitoring and management to prevent revenue loss from businesses and individuals operating in the trade and service sectors, as directed by the Government, Prime Minister, and Ministry of Finance; revenue sources from urging the implementation of audit recommendations, government inspections, and functional agencies, and the amount of additional taxes collected and refunded, and anticipated tax arrears recovery for the State Budget.

e) For fees and charges paid into the State Budget and retained for expenditure as prescribed, ministries, central agencies, and localities should estimate the actual fee and charge revenue for 2018, anticipate factors affecting revenue in 2019 to build appropriate, proactive, and detailed revenue estimates for each fee and charge item (detailing total revenue, the amount retained for expenditure according to detailed expenditure areas, and the amount submitted to the State Budget as prescribed by the State Budget Law and related guiding documents), but only consolidate the portion to be submitted to the State Budget as prescribed.

g) For tuition fees, healthcare service prices, and other public service fees (not included in the list of fees and charges under the Law on Fees and Charges), these are not indicators for allocating State Budget revenue and expenditure estimates to ministries, central agencies, and localities, but separate budgets must be prepared and usage plans submitted to the competent authority as prescribed. Ministries, central agencies, and localities continue to implement mechanisms to generate funds from these revenues and other retained revenues to implement salary reform as prescribed.

2. Building the budget estimate for revenue from import and export activities:

a) Based on forecasts of the growth rate of the value of goods and services subject to taxation in the context of integration, promoting trade promotion activities, consolidating and expanding export markets; the structural shift in product categories, especially traditional products with significant revenue and newly emerging products.

b) Considering factors such as expected price fluctuations domestically and internationally for major revenue-generating products; exchange rates between the Vietnamese dong and the currencies of strategic trading partners; reduced revenue due to the application of special preferential tariff rates, implementing tariff reduction schedules under signed and enforced Free Trade Agreements in 2019; the level of trade facilitation and the impact of technical barriers; the scale and progress of key investment projects involving raw material and equipment imports,...

3. Building the budget estimate for VAT refunds as prescribed by the Law on Value Added Tax:

Based on economic and social conditions, the capacity for business development, and business plans in the region, particularly for export-oriented enterprises that frequently generate VAT refunds, and enterprises with investment projects to accurately calculate VAT refunds generated within their regions according to current policies and new policies that have come into effect. Build the budget estimate for VAT refunds in conjunction with strengthening VAT refund management, supervision, inspection, and post-refund audits.

4. Building the budget estimate for non-reimbursable aid:

Based on signed ODA agreements and non-governmental foreign aid agreements; the progress and disbursement of foreign aid-funded programs and projects in the first six months of 2018 and projected through the end of 2018; ministries, central agencies, and localities should build the 2019 non-reimbursable aid revenue budget for their respective ministries, agencies, and regions in accordance with signed agreements and practical realities.

Ministries, central agencies, and localities can only spend from non-reimbursable aid sources if there is a revenue budget estimate. In cases where aid revenue arises after the submission of the budget estimate, they must report to the Ministry of Planning and Investment (for aid for investment projects) or the Ministry of Finance (for aid for regular expenditures) for consolidation and reporting to the Government and the Standing Committee of the National Assembly for supplementary budget revenue estimates to serve as the basis for supplementary budget expenditure estimates as prescribed.

Article 11. Budget preparation for state budget expenditures

1. Budget preparation for public investment expenditure:

a) Prepare the budget for public investment expenditure from the state budget (including official development assistance (ODA) funds, preferential loans, aid funds, government bonds, lottery revenues, proceeds from selling state-owned shares in certain enterprises, land use fees) to meet the goals and tasks of the socio-economic development plan for 2019, the five-year socio-economic development plan for the 2016-2020 period, and the national financial plan for the 2016-2020 period as stipulated in Resolution No. 25/2016/QH14, Resolution No. 1023/NQ-UBTVQH13 dated August 28, 2015 of the Standing Committee of the National Assembly, and Decision No. 40/2015/QĐ-TTg dated September 14, 2015 of the Prime Minister on principles, criteria, and allocation standards for public investment expenditure from the state budget for the 2016-2020 period; particularly, pay attention to the total annual support for public investment expenditure from the central state budget for local state budgets to implement major programs and projects with significant impacts on local society not exceeding 30% of the total central state budget construction investment expenditure.development   Based on the progress of implementation in 2016-2018, prepare the budget for public investment expenditure in 2019, propose adjustments to the medium-term public investment plan (if necessary) to align with actual conditions and requirements to achieve socio-economic development goals set by ministries, central agencies, and local agencies but within the scope of the medium-term public investment plan already assigned/approved.

The budget for public investment expenditure from the state budget should be detailed according to spending areas in accordance with the State Budget Law and prioritize projects: (i) allocate sufficient funds according to the phased implementation of national target programs and programs; accelerate progress and complete important national projects and those with significant impact on socio-economic development as soon as possible; (ii) allocate adequate counterpart funds for projects using ODA and preferential loans from foreign donors; state investment in projects implemented under the Public-Private Partnership (PPP) model; address outstanding construction debts and recover advance payments; (iii) only allocate funds for new projects if there are available resources and all required investment procedures are completed.

c) Ministries, central agencies, and local agencies permitted to use revenue from the reorganization and disposal of state-owned property for investment must prepare the budget for public investment expenditure from this source (including unused revenue expected in 2018) and incorporate it into the overall budget for public investment expenditure of ministries, central agencies, and local agencies to submit to the Planning and Investment Department and the Finance Department at the same level for consolidation and submission to the competent authority for decision.

In addition, ministries and central agencies must prepare separate reports detailing revenue sources and investment needs from the sale of assets, including land use fees tied to land-based assets, to be submitted to the Ministry of Finance (sent to the Department of Defense and Security Finance for the Ministry of National Defense and the Ministry of Public Security; sent to the State Asset Management Department for other ministries and central agencies).

For the budget for interest rate subsidy and additional funding for preferential credit programs, base the preparation on the regulations of the competent authority, the implementation situation in 2018, and anticipated changes in target groups, policies, and tasks for 2019 to prepare the budget in accordance with the prescribed regulations.

e) Implement planning work: Carry out in accordance with the Law on Planning dated November 24, 2017, and Government Resolution No. 11/NQ-CP dated February 5, 2018 on implementing the Law on Planning.

2. Budget preparation for national reserve expenditure:

Based on the National Reserve Development Strategy until 2020, national reserve targets, state budget balance capacity, and economic and social forecasts, as well as forecasts of relief and aid requirements, ministries and central agencies responsible for managing national reserves must develop plans and budgets for purchasing national reserve goods for 2019, focusing on strategic and essential items; prioritize national reserve items for disaster prevention, mitigation, and response, disease control, and national defense and security.

3. Budget preparation for regular expenditure:

a) Ministries, central agencies, and localities must prepare the budget for regular expenditure for each spending area based on political tasks, the socio-economic development plan for 2019, and the estimated revenue and expenditure budget for 2019, ensuring compliance with state budget expenditure policies, standards, and norms, meeting important political tasks, fully implementing state policies and systems, including multi-dimensional poverty reduction policies approved by the competent authority.

Ministries, central agencies, localities, and agencies using state budget funds must prepare the budget for regular expenditure accurately according to spending areas and the nature of the funding sources, striving for maximum efficiency. The budget for procurement, maintenance, and repair of assets must comply with regulations on asset standards, norms, and management and usage systems; limit the purchase of official vehicles and expensive equipment, expand the implementation of vehicle usage cost contracts; minimize the organization of conferences, festivals, seminars, ceremonial events, and overseas missions; promote administrative reform towards modernization linked to the fourth industrial revolution.

For the budget for maintenance, repair, renovation, upgrading, and expansion of infrastructure, ministries, central agencies, and localities must follow the guidelines issued by the Ministry of Finance.

The budget for inspection, testing, and destruction of unsafe food products, anti-smuggling, anti-fraud, and anti-counterfeiting activities in the field of food safety, and rewards for organizations and individuals contributing to food safety management.

Budget estimate for implementing inspection, testing, disposal of unsafe food, inspection and anti-smuggling, commercial fraud, fake goods in the field of food safety, and rewards for organizations and individuals with outstanding achievements in food safety management and assurance.

b) Budget for operational expenses of state administrative agencies, the Party, and mass organizations shall be prepared in conjunction with the objectives and tasks of reducing staff establishments as set forth in Conclusion No. 17-KL/TW; the review and reorganization of organizational structures in accordance with Resolution No. 18-NQ/TW, detailing the implementation of specific goals and tasks in 2019; determining the level of funding allocated in connection with the achievement of these goals and tasks in 2019. Specifically:

- In accordance with Resolution No. 18-NQ/TW: (i) The restructuring and consolidation of certain organizations and internal units within each organization towards reducing organizational levels, minimizing intermediate levels, and reducing deputy positions; amending, supplementing, and perfecting relevant regulations concerning functions, tasks, and organizational structures to eliminate overlapping and conflicting functions and management areas; (ii) Reforming organizational structures and concurrently holding positions to streamline organizational levels, enhance effectiveness and efficiency of operations; (iii) Rationalizing and consolidating administrative units at the commune level that have not met 50% of the standards regarding population size and natural area, and reducing the number of villages and residential wards.

- Staff reduction according to Resolution No. 39-NQ/TW; Notification of Conclusion No. 30-TB/TW dated May 23, 2017 on the results of inspecting the implementation of Resolution No. 39-NQ/TW of the Politburo; Conclusion No. 17-KL/TW; Circular No. 5470/BNV-TCBC dated October 13, 2017 of the Ministry of Home Affairs, according to which the reduction in staff establishment for 2019 is determined as the minimum reduction per year for each corresponding group of agencies.

Estimating the funds allocated from reduced personnel costs, operational machinery costs, infrastructure costs... as well as the financial needs to implement staff reduction policies in accordance with current systems and policies.

c) Budget for operational expenses of public service units shall be based on the progress achieved during the period 2016-2018; the objectives and tasks of reducing staff establishments of organizations within the political system as set forth in Conclusion No. 17-KL/TW; the objectives of reforming public service units according to Resolution No. 19-NQ/TW, Resolution No. 10/NQ-CP, Decree No. 16/2015/NĐ-CP; detailing the implementation of specific goals and tasks in 2019; determining the level of budget reduction in connection with the achievement of these goals and tasks in 2019. Specifically:

- Staff reduction according to Conclusion No. 17-KL/TW, whereby the reduction in staff establishment for 2019 is determined as the minimum reduction per year for each corresponding group of agencies.

- Reforming management mechanisms, financial mechanisms, and restructuring public service units (issuing regulatory documents as stipulated in Decree No. 16/2015/NĐ-CP and Decision No. 695/QĐ-TTg dated May 21, 2015 of the Prime Minister on the issuance of the Implementation Plan for Decree No. 16/2015/NĐ-CP).

Reducing the number of public service units; reducing the number of labor contracts that do not comply with regulations in public service units (except those units that have ensured financial autonomy).

The roadmap for calculating service fees for public services (including salaries, direct costs, management costs, and depreciation of assets) in key areas such as healthcare, education-training, vocational education. Based on this, increasing the number of units fully autonomous in investment and recurrent expenditures, fully autonomous in recurrent expenditures; increasing the degree of financial autonomy of remaining public service units.

Estimating the funds allocated for each target, detailing reductions in personnel costs, operational machinery costs, reductions tied to the roadmap for increasing service fees, and transitioning groups of units to full autonomy... as well as the financial needs to implement staff reduction policies in accordance with current systems and policies.

The conversion of economic public service units and other public service units meeting the conditions into joint-stock companies (excluding hospitals and schools).

d) Some additional notes when preparing the State Budget for 2019:

- Expenditure on science and technology affairs: Preparing the budget for scientific and technological tasks approved by competent authorities and detailing national, ministerial, provincial, and grassroots-level tasks, as well as regular and non-regular tasks of science and technology organizations. Building the budget for supporting public science and technology institutions in accordance with Decree No. 54/2016/NĐ-CP and implementing guidelines.

- Expenditure on education and training affairs and vocational training: Detailing the basis for preparing the budget to implement policies on tuition fee exemptions and reductions, and support for educational expenses, subsidies for experienced teachers, preferential policies for teachers and educational managers in particularly difficult economic and social regions.

- Expenditure on health affairs, population, and family: Detailing the basis for calculating the need for expenditure to implement programs and projects of the health sector; estimating the amount of recurrent expenditure reduction for health public service units according to the roadmap for adjusting medical service prices; the need for State Budget funds to ensure payment of salaries and special allowances not included in medical service prices, special allowances for epidemic control as prescribed.

Forecasting the impact on the State Budget for 2019 when implementing Circular No. 02/2017/TT-BYT dated March 15, 2017 of the Ministry of Health on the maximum price range for medical examination and treatment services not covered by the Health Insurance Fund in state-run medical facilities and guiding the application of prices and cost reimbursement in certain cases.

- Allocate economic activities: Based on the volume of tasks assigned by the competent authority and the budget expenditure regulations; concentrate resources for important tasks: maintenance and repair of key economic infrastructure systems (transportation, irrigation) to increase usage time and investment efficiency; ensure traffic safety; search and rescue operations; storage of national reserve goods; planning implementation costs; implement agricultural, forestry, fisheries, and industry promotion tasks; support policies for aquaculture development. Prepare the state budget estimate for ordering services and assigning tasks to public economic institutions in accordance with Decree No. 141/2016/NĐ-CP and Circular No. 145/2017/TT-BTC dated December 29, 2017, guiding the financial mechanism of public institutions under Decree No. 141/2016/NĐ-CP.

- Proactively forecast the funding needs to implement multi-dimensional poverty standards according to the approval of the competent authority and the Government's Resolution;

- Allocate funds for the activities of state management agencies, political parties, and social organizations: Clearly explain the following contents:

+ The number of staff positions in 2019 (equal to the number assigned by the competent authority in 2018 minus (-) the number of positions to be streamlined in 2019 according to the minimum reduction rate/year for each sector and unit as stipulated in Conclusion No. 17-KL/TW, including the actual number of staff present at the time of preparing the budget estimate, the number of unfilled positions according to the approved quota in 2018 (if any).

+ Determine the salary fund, allowances, and contributions according to the prescribed system (social insurance, health insurance, unemployment insurance, trade union fees) based on the basic salary of 1.39 million VND/month (for a full year) guaranteed by the State budget, including: (i) The salary fund of the actual number of staff present at the time of preparing the budget estimate (within the approved quota), determined based on the salary scale, grade, position, allowance, and contributions according to the system (social insurance, unemployment insurance, health insurance, trade union fees); (ii) The salary fund of the approved but unfilled positions, estimated based on the basic salary of 1.39 million VND/month, the salary coefficient of 2.34/staff and contributions according to the system; (iii) The amount to be reduced from the salary fund according to the implementation schedule of Conclusion No. 17-KL/TW.

+ Explain the basis for preparing the budget estimates for special expense items (legal basis, content of expenses, expenditure levels, other related contents) in 2019 in the spirit of thrift and effectiveness.

- For political and social-professional organizations, social organizations, and social-professional organizations supported by the budget for their activities, the state budget estimate for 2019 is determined based on the increase or decrease in tasks assigned by the competent authority in 2019.

4. Ministries managing sectors and fields, in addition to preparing the state budget revenue and expenditure estimates for 2019 (the part directly implemented by the ministry), need to calculate and determine the funding requirements to implement mechanisms and policies issued by the competent authority and effective in 2019, accompanied by detailed explanations of the calculation bases.

5. Prepare the budget estimates for implementing national target programs and programs:

a) For national target programs and programs that have been approved:

Based on the program's objectives, tasks, total capital, approved funding, cumulative implementation from 2016 to 2018, medium-term plan assigned (if any), and the 2019 inspection results, Decision No. 48/2016/QĐ-TTg dated October 31, 2016, of the Prime Minister stipulates the principles, criteria, and allocation standards for central budget capital and local budget matching capital for the National Target Program on Sustainable Poverty Reduction for the period 2016-2020, Decision No. 12/2017/QĐ-TTg dated April 22, 2017, of the Prime Minister stipulates the principles, criteria, and allocation standards for central budget capital and local budget matching capital for the National Target Program on New Rural Development for the period 2016-2020, ministries and central agencies responsible for national target programs and programs guide other ministries, central agencies, and localities to prepare the budget estimates for implementing the programs in line with the program's objectives and tasks.

Ministries, central agencies, and localities base on the tasks assigned in the decision approving each national target program and program, and additional guidance from the program's main agency, prepare detailed budget estimates for implementing the programs, broken down by each source of capital, project, content, task, operating expenses, investment capital, central budget sources, local budget matching capital, foreign capital (if any), and submit them to the Ministry of Planning and Investment, the Ministry of Finance, and the main program agency as required.

The main agencies of national target programs and comprehensive programs propose the capital and funding needs for implementing national target programs and programs and send them to the Ministry of Planning and Investment and the Ministry of Finance.

The budget estimates must include detailed explanations of the indicators, tasks, principles, criteria, and allocation standards for each project and task.

b) For programs and projects without approval decisions:

Based on Resolution No. 73/NQ-CP dated August 26, 2016, of the Government approving the investment plans for target programs for the period 2016-2020; the decision allocating the medium-term investment plan for state budget capital for the period 2016-2020; on the basis of the proposed content, progress in approving target programs; the main agencies of target programs guide ministries, central agencies, and localities to prepare the target program budget estimates for 2019 in accordance with regulations. Specifically, for the operating expenses budget estimates, the main agency of the target program reviews the requirements and tasks to prepare the budget estimates consistent with the allocated investment capital for the program.

The ministries, central agencies, and localities shall base on the guidance of the program’s main agency to prepare the budget for implementing the programs, detailing according to each source of funds, each project, content, task, public expenditure, investment capital, state budget resources, counterpart budget resources, foreign sources of funds (if any), and submit to the Ministry of Planning and Investment, the Ministry of Finance, and the program’s main agency as prescribed.

The main agencies of the target programs shall submit the budget for implementing the target programs to the Ministry of Planning and Investment and the Ministry of Finance, accompanied by detailed explanations of indicators, tasks, principles, criteria, and investment capital allocation standards, public expenditure of each project and task.

6. For programs and projects using ODA funds (including loans and grants), preferential loan funds, and non-governmental foreign aid:

a) Based on the provisions of the State Budget Law, the Public Investment Law, the amended Government Debt Management Law, and the guiding documents, based on the signed agreements with the donors, cumulative implementation from 2016 to 2018; the ability to implement the project in 2019 within the limit of foreign funds in the medium-term public investment plan for the period of 2016-2020; on the basis of the financial mechanisms of the programs and projects; ministries, central agencies, and localities shall prepare budgets for programs and projects using foreign funds, detailing foreign loan debts (including ODA loans and preferential loans), grant funds, and counterpart funds; distinguishing between construction investment expenditures and public expenditure; prioritizing sufficient funding plans for projects concluding agreements within the planning year, for new programs and projects, only proceed if truly effective and appropriate to the disbursement capacity under the signed agreement and approved by the Prime Minister.

Ministries, central agencies, and localities shall not propose signing new loan agreements for regular expenditures.

b) For programs and projects that are mixed with funds allocated from the state budget and funds for relending, the agency responsible for managing the programs and projects must guide the preparation and consolidation of budgets for each portion of the funds.

c) For programs and projects involving multiple ministries, central agencies, and localities, these entities shall prepare budgets for expenditures from foreign funds and send them to the main management agency of the programs and projects for consolidation and explanation of the allocation basis, which will be submitted to the Ministry of Finance and the Ministry of Planning and Investment for consolidation and submission to the competent authority for decision-making.

d) For programs and projects, the main project component agencies have the responsibility to build detailed budgets for the implementation costs of the project components, sending them to the main management agency of the programs and projects for consolidation and submission to the Ministry of Planning and Investment and the Ministry of Finance, detailing according to the sources of funds and tasks as with ordinary programs and projects, and by each ministry, central agency, and locality.

đ) Preparing budgets for expenditures from foreign funds must ensure accuracy, completeness, and within the limits specified in the five-year national medium-term public investment plan and the five-year national financial plan.

e) In cases where ongoing projects are assessed as likely to fail to meet or exceed the medium-term plan targets already assigned; or there are projects that have been approved for implementation, signed agreements, and loan agreements, capable of being disbursed in the years 2019-2020 but not included in the medium-term plan for 2016-2020, then the ministries, sectors, and localities must report specifically to consider adjusting the medium-term plan within the total limit of loans (both domestic and foreign) decided by the competent authority.

7. Prepare the budget for generating sources for salary reform in 2019:

a) Central ministries and agencies shall implement savings of 10% of the additional regular expenditure budget (excluding salaries, allowances attached to salaries, items with the nature of salaries, and expenditures for people according to regulations); part of the retained revenue according to regulations; remaining sources from previous years' salary reforms;

b) Localities continue the mechanism of saving 10% of regular expenditures (excluding salaries, allowances attached to salaries, items with the nature of salaries, and expenditures for people according to regulations); 50% of the increased revenue from the local budget (excluding land use fees and lottery proceeds); part of the retained revenue according to regulations of the agencies and units; remaining sources from previous years' salary reforms;

c) Regular expenditure sources reserved in connection with implementing Resolution No. 18-NQ/TW and Resolution No. 19-NQ/TW, detailing for each resolution, according to each goal, including sources reserved due to restructuring organizational structures, reducing staff establishments, and increasing the autonomy of public service units based on adjusting service fees according to Decree No. 16/2015/NĐ-CP and other decrees of the Government stipulating the autonomy rights of units in specific fields.

8. Allocate contingency reserves for the state budget:

The central budget and local budgets at all levels shall allocate contingency reserves according to the provisions of the State Budget Law to proactively respond to natural disasters, floods, epidemics, and to carry out important and urgent tasks outside the budget.

9. Budget for expenditures from retained revenues according to regulations:

Ministries, central agencies, and localities shall prepare budgets for expenditures from retained revenues and report to the competent authority according to the form specified in Circular 342/2016/TT-BTC dated December 30, 2016, issued by the Ministry of Finance, providing detailed guidance on implementing certain provisions of Decree No. 163/2016/NĐ-CP, but not consolidated into the budget expenditures of ministries, central agencies, and localities.

10. BASED ON THE 2019 BUDGET REVENUE AND EXPENDITURE AUDIT NUMBER, MINISTRIES, CENTRAL AGENCIES, PROVINCES, AND CITIES DIRECTLY UNDER THE CENTRAL GOVERNMENT SHALL DEVELOP A TIGHT AND DETAILED SPENDING BUDGET FOR EACH FIELD AS PROVIDED IN THE STATE BUDGET LAW, EACH TASK, AND EACH SUBORDINATE BUDGET-FUNDING UNIT; AFTER DISCUSSING WITH THE MINISTRY OF FINANCE AND THE MINISTRY OF PLANNING AND INVESTMENT, THEY SHALL PROMPTLY IMPLEMENT THE WORK OF ESTABLISHING THE BUDGET ALLOCATION PLAN FOR THE 2019 BUDGET OF THEIR MINISTRY, AGENCY, OR LOCALITY; ONCE RECEIVING THE PRIME MINISTER'S ASSIGNED BUDGET, THEY SHALL INITIATIVELY SUBMIT TO THE AUTHORIZED AUTHORITY FOR DECISION ON ALLOCATING THE BUDGET TO EACH FIELD AND ASSIGNING THE BUDGET TO BUDGET-FUNDING UNITS TO ENSURE COMPLETION BEFORE DECEMBER 31, 2018, IN ACCORDANCE WITH THE STATE BUDGET LAW.

ARTICLE 12. PREPARATION OF REPORTS ON NON-BUDGET NATIONAL FINANCIAL FUNDS

MINISTRIES, CENTRAL AGENCIES, AND LOCAL AUTHORITIES RESPONSIBLE FOR MANAGING NON-BUDGET NATIONAL FINANCIAL FUNDS MUST PREPARE REPORTS ON THE FINANCIAL SITUATION OF THE YEAR 2018 AND THE PROJECTED FINANCIAL PLAN FOR THE YEAR 2019 FOR SUCH FUNDS UNDER THEIR MANAGEMENT, AND SEND THESE REPORTS ALONG WITH THEIR OWN 2019 STATE BUDGET PROJECTIONS TO THE SAME LEVEL FINANCIAL AUTHORITIES IN ACCORDANCE WITH THE STATE BUDGET LAW AND GUIDING DOCUMENTS.

ARTICLE 13. PREPARATION OF THE DEVELOPMENT BUDGET PROJECTION

THE PREPARATION OF THE 2019 DEVELOPMENT BUDGET PROJECTION MUST BE CLOSELY LINKED TO THE NATIONAL AND LOCAL ECONOMIC AND SOCIAL DEVELOPMENT GOALS AND TASKS FOR THE YEAR 2019 AND THE 2016-2020 PERIOD; THE NATIONAL FINANCIAL PLAN FOR FIVE YEARS AND THE MID-TERM PUBLIC INVESTMENT PLAN FOR 2016-2020; THE DISTRIBUTION OF REVENUES AND EXPENSES AS PROVIDED BY THE STATE BUDGET LAW AND GUIDING DOCUMENTS; THE STATE BUDGET EXPENDITURE REGULATIONS AND POLICIES TO ENSURE SUFFICIENT RESOURCES FOR IMPLEMENTING THE REGULATIONS AND POLICIES ISSUED BY THE CENTRAL GOVERNMENT AND IN ACCORDANCE WITH THE STATE BUDGET LAW.

IN ADDITION TO GENERAL GUIDELINES FOR THE PREPARATION OF THE STATE BUDGET PROJECTION, THE PREPARATION AND CONSTRUCTION OF THE DEVELOPMENT BUDGET PROJECTION NEED TO PAY ATTENTION TO THE FOLLOWING MAIN CONTENTS:

1. Construction of the State Revenue Estimate:

LOCALITIES MUST PREPARE THE PROJECTION BASED ON THE TOTAL AMOUNT OF TAXES, FEES, AND OTHER REVENUES COLLECTED ON THEIR TERRITORY IN ACCORDANCE WITH ARTICLE 7 OF THE STATE BUDGET LAW AND RELATED LEGAL PROVISIONS.

THE PEOPLE'S COMMITTEES OF PROVINCES AND CITIES MUST DIRECT THE FINANCE, TAX, CUSTOMS AUTHORITIES TO STRICTLY COMPLY WITH THE PREPARATION OF THE BUDGET REVENUE PROJECTION AND BE RESPONSIBLE TO THE PRIME MINISTER FOR THE PREPARATION OF THE STATE BUDGET REVENUE PROJECTION.

THE PEOPLE'S ASSEMBLIES AND PEOPLE'S COMMITTEES OF PROVINCES AND CITIES MUST REVIEW AND PREPARE AN ACTIVELY REALISTIC BUDGET REVENUE PROJECTION, FULLY AGGREGATING NEW REVENUES GENERATED ON THEIR TERRITORIES TO ACCURATELY AND COMPLETELY CALCULATE THE REVENUE SOURCES, WITHOUT LEAVING ROOM FOR LOCALITIES TO SELF-DEFINE EFFORT TARGETS FOR REVENUE COLLECTION; USE THE LEGISLATIVE REVENUE TARGETS SET BY THE NATIONAL ASSEMBLY AND ASSIGNED BY THE PRIME MINISTER AS THE BASIS FOR DIRECTING AND MANAGING THE REVENUE TASKS ON THEIR TERRITORIES.

2. REGARDING THE PREPARATION OF THE DEVELOPMENT BUDGET EXPENDITURE PROJECTION, LOCAL PEOPLE'S COMMITTEES AT ALL LEVELS MUST TAKE THE INITIATIVE:

PREPARE THE DEVELOPMENT BUDGET EXPENDITURE PROJECTION BASED ON THE SHARED REVENUE FROM THE DEVELOPMENT BUDGET, THE PERCENTAGE OF REVENUE DISTRIBUTION BETWEEN THE NATIONAL TREASURY AND THE DEVELOPMENT BUDGET, THE SUPPLEMENTARY BALANCE FROM THE NATIONAL TREASURY TO THE DEVELOPMENT BUDGET FOR 2018; THE GOALS OF THE MID-TERM ECONOMIC AND SOCIAL DEVELOPMENT PLAN FOR 2016-2020 AND THE GOALS AND TASKS OF THE ECONOMIC AND SOCIAL DEVELOPMENT PLAN FOR 2019 OF THE LOCALITY; THE ESTIMATED PERFORMANCE OF LOCAL BUDGET REVENUE AND EXPENDITURE TASKS IN 2018 AND THE ACCUMULATED PERFORMANCE OVER THE THREE-YEAR PERIOD 2016-2018, PREPARE A DETAILED DEVELOPMENT BUDGET EXPENDITURE PROJECTION FOR EACH EXPENDITURE FIELD IN ACCORDANCE WITH THE STATE BUDGET LAW, ENSURING PRIORITIZATION IN ALLOCATING THE BUDGET TO MEET THE NEEDS OF IMPLEMENTING COMMITTED PROJECTS AND POLICIES ALREADY ISSUED;

LOCALITIES MUST REPORT IN DETAIL THE REQUIREMENTS, RESOURCES, SURPLUS, AND SHORTFALLS OF FUNDS TO IMPLEMENT NEW POLICIES OR ADJUSTMENTS TO CURRENT POLICIES INCREASED LEVELS OR WIDER BENEFICIARY GROUPS IN 2018 AND THE REQUIREMENTS FOR 2019 IN ACCORDANCE WITH THE REGULATIONS, TO PROVIDE A BASIS FOR ALLOCATING ADDITIONAL TARGETED FUNDS FROM THE NATIONAL TREASURY TO THE DEVELOPMENT BUDGET ACCORDING TO THE PRINCIPLES STATED IN DECISION 579/QĐ-TTg.

At the same time, implement the following main contents:

a) FOR THE DEVELOPMENT BUDGET EXPENDITURE PROJECTION: BASED ON THE PROVISIONS OF THE PUBLIC INVESTMENT LAW AND THE MID-TERM PUBLIC INVESTMENT PLAN 2016-2020, THE ACCUMULATED AMOUNT ALREADY SPENT IN 2016-2018; PREPARE THE DEVELOPMENT BUDGET EXPENDITURE PROJECTION FOR THE BALANCED DEVELOPMENT BUDGET SOURCE ACCORDING TO DECISION NO. 40/2015/QĐ-TTg DATED SEPTEMBER 14, 2015, ISSUED BY THE PRIME MINISTER TO ISSUE THE PRINCIPLES, CRITERIA, AND ALLOCATION RATES FOR PUBLIC INVESTMENT FUNDS FROM THE STATE BUDGET FOR THE 2016-2020 PERIOD AND THE ABILITY OF THE LOCAL DEVELOPMENT BUDGET RESOURCES DURING THE BUDGET STABILIZATION PERIOD.

IF THE ACCUMULATED AMOUNT OF PUBLIC INVESTMENT EXPENDITURE ALREADY SPENT IN 2016-2018 AND THE PROJECTED PUBLIC INVESTMENT EXPENDITURE FOR 2019 FROM THE BALANCED DEVELOPMENT BUDGET IS GREATER THAN THE LOCAL MID-TERM PUBLIC INVESTMENT PLAN FOR 2016-2020, THE LOCALITY MUST REPORT IN DETAIL THE ADDITIONAL FUNDS FOR PUBLIC INVESTMENT COMPARED TO THE MID-TERM PUBLIC INVESTMENT PLAN, ADVISE ON ADJUSTING THE LOCAL MID-TERM PUBLIC INVESTMENT PLAN, AND DETAIL THE ALLOCATION OF ADDITIONAL FUNDS COMPARED TO THE MID-TERM PUBLIC INVESTMENT PLAN FOR EACH INVESTMENT PROGRAM AND PROJECT; HANDLE THE DELAYED CONSTRUCTION PAYMENTS; RECOVER LOAN FUNDS.

FOR EXPENDITURES FROM LOAN FUNDS (DOMESTIC AND FOREIGN), ANY REQUEST TO ADJUST THE MID-TERM PUBLIC INVESTMENT PLAN (IF APPLICABLE) MUST BE WITHIN THE TOTAL MID-TERM LOAN AMOUNT ALREADY ASSIGNED.

b) FOR DEFENSE AREA DRILLS FUNDING: LOCALITIES MUST BASE THEIR PROJECTIONS ON THE DEFENSE AREA DRILL PLAN APPROVED BY THE MINISTRY OF NATIONAL DEFENSE OR MILITARY REGION, PREPARE A DETAILED STATE BUDGET EXPENDITURE PROJECTION FOR EACH SPECIFIC DRILL TASK, AND PROACTIVELY USE THE LOCAL DEVELOPMENT BUDGET TO IMPLEMENT THEM, WITH THE NATIONAL TREASURY SUPPORTING ONLY DIFFICULT LOCALITIES THAT HAVE NOT YET BALANCED THEIR BUDGETS.

c) SECURE THE MATCHING FUNDS FOR ODA PROJECTS ON THEIR TERRITORY AS REQUIRED BY THE LOCALITY; PROACTIVELY CALCULATE AND ALLOCATE FUNDS TO RESOLVE OUTSTANDING CONSTRUCTION PAYMENTS AND LOANS OF THE LOCAL DEVELOPMENT BUDGET THAT ARE DUE.

d) Allocate the budget for investment in economic and social infrastructure projects, resettlement projects, land clearance for construction, and the National Target Program on New Rural Areas Development from land use fees; proactively allocate the land development fund in accordance with Decree No. 43/2014/ND-CP dated May 15, 2014 of the Government; use at least 10% of the land use fee revenue to carry out land surveying, registration, establishment of cadastral database, and issuance of land use right certificates as directed by the Prime Minister in Directive No. 1474/CT-TTg dated August 24, 2011 and Directive No. 05/CT-TTg dated April 4, 2013 (the State Treasury will not provide additional support to localities that fail to allocate at least 10% as required). Prime Minister at Directive No. 1474/CT-TTg dated August 24, 2011, and Directive No. 05/CT-TTg dated April 4, 2013 (the central government will not provide additional support to localities in cases where localities fail to allocate 10% as required).

đ) For lottery revenue sources:

Localities should include this revenue source in their balanced budget revenue forecast, using it entirely for investment in public works, including: Northern, Central, and Central Highlands provinces should allocate at least 60%, while Southern East and Mekong Delta provinces should allocate at least 50% of the forecasted revenue from lottery activities decided by the Provincial People's Councils to invest in education and training and healthcare.

Localities should allocate at least 10% of the forecasted revenue from lottery activities to supplement capital for tasks under the National Target Program on New Rural Areas Development.

After ensuring completion of investment projects in the aforementioned fields approved by competent authorities, the remaining funds should be allocated for climate change response projects and other important projects funded by the state budget.

e) For infrastructure investment tasks according to resolutions of the Politburo and decisions of

g) For regular expenditure budgets, reduce the budget for state agencies and public service units based on the reduction of staff quotas, restructuring, and reform of public service units in 2019, determined based on cumulative results from 2016 to 2018, the objectives of Resolution No. 18-NQ/TW and Resolution No. 19-NQ/TW, specifically the minimum reduction quota per year according to Conclusion No. 17-KL/TW, with funds reserved for salary reform in 2019 if current regulations are insufficient, and to support policy beneficiaries accessing public services when prices and service fees increase.

Localities should develop plans to use the reduced regular expenditure budget directly allocated to health and education-training and vocational training public service units according to the schedule for adjusting medical and educational service fees in 2019 as prescribed.

h) Funds for implementing multi-dimensional poverty standards as approved by the competent authority and the Government's resolution, detailing each type of multi-dimensional poverty standard, including the number of beneficiaries and the funding needs for 2019.

i) Subsidies for areas with special difficulties in socio-economic development according to Decision No. 131/QĐ-TTg dated January 25, 2017 and Decision No. 582/QĐ-TTg dated April 28, 2017 of

k) Establish a separate budget item for interest payments, fees, and other expenses: ensure timely and full payment of debts due; include detailed explanations of expenditures by each source of borrowing (if applicable), including foreign government loans passed on to localities, advance funds from the State Treasury, development credit for canal reinforcement, and local government bond issuance.

3. Develop the budget surplus/deficit forecast and debt repayment plan for the state budget:

The development of the budget surplus/deficit forecast and debt repayment plan for the state budget must comply strictly with the provisions of the State Budget Law and guiding documents; particularly noting the following points:

a) Provincial budgets may only incur deficits if they meet all stipulated requirements and conditions under the State Budget Law and related implementation guidelines.

Based on the debt limit, domestic borrowing capacity, and debt repayment sources, localities propose total borrowing needs for 2019, including deficit financing needs for provincial budgets (if any) and debt repayment needs, prioritizing external loans already signed and planned for disbursement in 2019. On this basis, the Ministry of Finance aggregates and forecasts the overall state budget deficit, including the central government deficit and local government deficits, to submit to the competent authority for review and decision.

For localities permitted to incur deficits, the borrowed funds to cover deficits must ensure at least 60% are medium- and long-term loans, detailed according to each borrowing source specified in point h, Clause 2 of this Article (if applicable).

b) Based on the estimated local government budget debt balance as of December 31, 2018, borrowing needs for public investment in 2019, and the local government budget's medium-term debt repayment capacity, localities must comprehensively assess the impact of local government debt before proposing new borrowings, ensuring the local government debt does not exceed the maximum allowable level set by regulations;

If the estimated local government budget debt balance as of December 31, 2018 exceeds the regulatory limit, then in the 2019 budget, localities must allocate part of the state budget revenue they receive according to the tiered system, reduce the medium-term public investment plan for 2016-2020, and increase debt principal repayment to ensure the debt does not exceed the local government's debt limit.

In cases where foreign government loans passed on to localities or other loans with specific usage conditions are involved, localities must actively coordinate with central ministries, agencies, or relevant units to complete loan agreement procedures to have a solid basis for allocating disbursement plans in the 2019 budget, and estimate the disbursement capacity of each loan to formulate appropriate debt borrowing and budget deficit plans.

In cases where localities have plans to borrow to repay principal debt (the locality does not have a budget deficit or the amount borrowed is greater than the budget deficit), but in reality, new loans are bound by the purpose of use, then the locality must establish a plan to reduce investment expenditure (DTPT) accordingly and/or use other legitimate financial sources of the locality as prescribed in Clause 1, Article 5 of Decree No. 163/2016/NĐ-CP to repay maturing principal debt in 2019 and use new borrowing to offset investment expenditure (DTPT).

In cases where the consolidated disbursement plan for foreign loans borrowed by the Government and lent back to localities according to signed loan agreements causes the total debt of the State Budget to exceed the limit prescribed, then the locality must establish a plan to increase expenditures to repay the principal of other debts to ensure the disbursement of capital from outside the country according to signed agreements, while ensuring the budget deficit level, total borrowing of the State Budget, and the total debt of the State Budget within the prescribed limits.

c) Localities proactively arrange expenditures to repay principal debt from sources as prescribed in Clause 1, Article 5 of Decree No. 163/2016/NĐ-CP of the Government, ensuring timely and full repayment of maturing debts, especially foreign loans borrowed by the Government and lent back to localities, while ensuring that the total debt of the State Budget remains within the prescribed limits; accompanied by detailed explanations of expenditures to repay principal debt according to the sources of borrowing as specified in Point h, Clause 2 of this Article (if applicable) and the sources of repayment, such as: new borrowing to repay old debt, from surplus revenue, increased revenue, and savings in State Budget expenditures.

Chapter III
ESTABLISHING THE FINANCIAL PLAN - STATE BUDGET FOR 2019 - 2021

Article 14. Requirements for establishing the plan

The year 2019 is the second year of implementing the three-year financial plan - State Budget. According to the provisions of the Law on State Budget 2015, Decree No. 45/2017/NĐ-CP of the Government detailing the establishment of the five-year financial plan and the three-year financial plan - State Budget, and Circular No. 69/2017/TT-BTC dated July 7, 2017 of the Ministry of Finance guiding the establishment of the five-year financial plan and the three-year financial plan - State Budget (Circular No. 69/2017/TT-BTC), the establishment of the three-year financial plan - State Budget for 2019 - 2021 must meet the following requirements:

1. Based on the three-year financial plan - State Budget 2018 - 2020 which has been reviewed and updated as of March 31, 2018, the ceilings for spending during the period 2019 - 2021 as updated and announced by the finance, planning, and investment authorities, ministries, sectors, central agencies, and provincial units shall develop the three-year financial plan - State Budget for 2019 - 2021 in accordance with the guidance provided in the aforementioned documents.

In cases where the spending needs of central ministries, agencies, and provincial units in the years 2019 - 2021 significantly increase or decrease compared to the 2018 budget estimates and the estimated actual spending in 2018, exceeding the financial resources of the State Budget as updated and announced by the finance and investment authorities for the 2019 - 2021 period, these ministries, central agencies, and provincial units must explain and justify, proposing measures to mobilize additional non-budgetary financial resources, ensuring that spending needs are balanced with corresponding resources.

2. Specifically for the year 2021, the construction of revenue targets, expenditure tasks, budget deficits, and borrowing will be based on the Law on State Budget, Laws on taxes, fees, and charges, the Law on Public Investment, the Law on Public Debt Management, related laws currently in effect, and guiding documents; orientations for restructuring the State Budget and managing public debt according to Resolution No. 07-NQ/TW; implementation schedules for Central Committee's Resolutions of the 12th Congress, particularly Resolutions No. 18-NQ/TW and No. 19-NQ/TW; existing systems, policies, tasks, programs, and projects funded by the State Budget being implemented according to approved phases; loan agreements and implementation commitments.

3. Establishing the three-year financial plan - State Budget for 2019 - 2021 is based on the forecast of some macroeconomic indicators for the period 2019 - 2021 as follows: in 2019 and 2020, growth rates aim to be higher than in 2018, ensuring the average growth rate for the period 2016 - 2020 at 6.5 - 7%; in 2021, economic growth rates may slow down due to the high scale of GDP and the trend of slower global economic growth; consumer price index stable at below 4% per year; the growth rate of import and export trade turnover tends to decline.

4. The process of establishing, reporting, consolidating, and submitting the three-year financial plan - State Budget for 2019 - 2021 will be carried out concurrently with the preparation of the 2019 State Budget estimate.

Article 15. Establishing the State Budget Revenue Plan for the 2019-2021 Period

1. The State budget revenue plan for the 2019-2021 period shall be established based on updating the three-year plan for 2018-2020; the State budget revenue estimate for 2019 and the expected growth rate for 2020 and 2021 as stipulated in Clause 2 of this Article; ensuring that all revenues from taxes, fees, charges, and other sources as prescribed must be fully consolidated and reflected in the State budget balance in accordance with the provisions of the State Budget Law.

2. The expected growth rate for the 2019-2021 period shall be determined in accordance with the current State budget revenue policies and regulations, while taking into account:

a) Updating the potential for national economic development, each industry, sector, and locality during 2019-2020, and the forecast for 2021, consistent with the macroeconomic context as stated in Clause 3 of Article 14 above; factors affecting investment capacity, production and business development, and trade activities including import and export operations each year; the impact of international integration processes.

b) Updating factors expected to increase or decrease revenue due to policy adjustments, expanding tax bases, and strengthening revenue management in line with the guidelines set out in Resolution No. 07-NQ/TW, Resolution No. 25/2016/QH14 of the National Assembly, and Resolution No. 51/NQ-CP dated June 19, 2016 of the Government promulgating the Program of Action of the Government to implement Resolution No. 07-NQ/TW; implementing the schedule for reducing tariffs according to commitments under international integration until 2021.

c) The impact on State budget revenue from adjusting prices and fees for public services according to the schedule for incorporating sufficient costs into the prices of public services as stipulated in Resolution No. 19-NQ/TW and Decree No. 16/2015/NĐ-CP.

On this basis, the target ratio of tax and fee revenue to the State budget compared to the average GDP for 2019-2021 should be approximately 21% per year; domestic revenue (excluding oil revenue, land use fee revenue, dividend and retained profit revenue, lottery revenue) should increase by at least 12-14% per year on average, and revenue from import and export activities should increase by 5-7% per year on average.

The specific revenue increase for each locality may be higher or lower than the average level, depending on local conditions, characteristics, and consistency with the economic growth rate in each locality.

3. For fees and charges paid into the State budget and retained for expenditure as prescribed, ministries, central agencies, and localities shall base their 2020 and 2021 revenue plans on the estimated revenue for 2019, building detailed plans for each fee and charge item (the amount collected, the amount retained for expenditure according to detailed expenditure regulations for corresponding sectors, the amount paid into the State budget) in accordance with the regulations and only consolidating the portion of fees and charges paid into the State budget into the State budget revenue estimate.

4. For tuition fees, healthcare service fees, and public service fees not included in the list of fees and charges, and for revenue transferred to a service pricing mechanism not considered part of State budget revenue, ministries, central agencies, and localities shall establish revenue plans and develop usage plans to submit to supervisory authorities and continue to use this revenue source to reform salaries in accordance with the regulations.

Article 16. Establishing the State Budget Expenditure Plan for the 2019-2021 Period for Ministries, Central Agencies, and Provincial-Level Units

1. The State budget expenditure plan for the 2019-2021 period for ministries, central agencies, and provincial-level units shall be established based on updating the financial-State budget plan for the 2018-2020 period, the estimated actual implementation for 2018, the ceiling for State budget expenditures for the 2019-2021 period announced by the competent authority; detailing specific expenditure needs that increase or decrease in conjunction with changes in mechanisms and policies approved by the competent authority; goals, tasks, programs, projects (including national target programs and target programs) that have ended or newly been approved, particularly noting the implementation of Resolution No. 18-NQ/TW, Resolution No. 19-NQ/TW, Plan No. 07-KH/TW, and Resolutions No. 08/NQ-CP and No. 10/NQ-CP of the Government promulgating actions of the Government to implement Resolutions No. 18-NQ/TW and No. 19-NQ/TW.

2. During the process of preparing the State budget expenditure estimate for 2019, ministries, central agencies, and provincial-level units shall simultaneously determine in detail the basic and new expenditures of their own ministry, agency, or unit for the 2019 estimate in accordance with Articles 5 and 6 of Circular No. 69/2017/TT-BTC of the Ministry of Finance to serve as the basis for determining basic and new expenditures and to consolidate the demand for investment and regular expenditure in the 2020 and 2021 expenditure plans.

For ministries managing industries and sectors, in addition to establishing annual State budget revenue and expenditure plans for the 2019-2021 period (the direct implementation portion), it is necessary to calculate and determine the funding requirements for mechanisms, policies, and tasks issued annually for the 2019-2021 period, accompanied by detailed explanations of the calculation basis.

3. Establishing the Investment and Construction Expenditure Plan: Based on the actual implementation of the years 2016-2018; the medium-term public investment plan already assigned; the disbursement achievement, non-achievement, or exceeding of the plan for each project; the actual negotiation and signing of loan agreements; ministries, sectors, central agencies, and provincial-level units propose adjustments to the investment plans for 2019-2020 in line with the development goals and requirements of the industry, sector, or locality within the scope of the medium-term loan capital plan 2016-2020 already assigned.

For 2021, the establishment of the investment plan will be based on the progress of implementing programs, projects, and investment tasks carried over or approved with investment decisions; linked to the implementation of strategic development goals for the industry, sector, and directions for economic reform and development according to the resolutions of the 12th Plenary Session of the Central Committee.

4. Establishing the Expenditure Plan for Implementing National Target Programs and Target Programs:

a) Ministries and central agencies managing national target programs and target programs shall base their plans for 2019-2020 on the program's goals, tasks, total funds, and approved budgets for the 2016-2020 period; the progress of implementation in 2016-2018 and the announced expenditure ceiling; guiding ministries, central agencies, and provincial-level units to prepare capital and budget plans for implementation in 2019-2020.

b) For the year 2021, no budget plan will be established for national target programs. The supplementary budget plans for these tasks will be updated after the competent authority has issued guidelines and decisions on implementing national target programs after 2020.

5. Establish budget plans for programs and projects using ODA funds (including both loans and grants), preferential loan funds, and non-governmental foreign aid:

Based on loan agreements, grant agreements signed with donors, and financial mechanisms of the programs and projects; actual implementation from 2016 to 2018; ministries, central agencies, provincial units shall establish detailed budget plans for programs and projects for the years 2019-2020, specifying the loan capital, non-repayable grant capital, counterpart capital of each program and project, and aligning with the nature of fund usage (investment capital and public service capital) according to corresponding expenditure fields; together with other loan debts, ensuring within the medium-term borrowing limit 2016-2020 that has been assigned.

For the year 2021, the establishment of budget plans from ODA funds, preferential loan funds, and non-governmental foreign aid sources will continue to follow the loan agreements, grant agreements, and financial mechanisms already approved by the competent authority.

6. Establish detailed regular expenditure plans:

Establish detailed plans for implementing ongoing objectives, tasks, policies, and systems still in effect or expired; new objectives, tasks, systems, and policies that have been approved by the competent authority.

Regarding the restructuring of ministries, agencies, reduction of staff establishments, and reform of public service units, based on the results of implementation from 2016 to 2018 and the targets to be achieved, ministries, central agencies, and localities shall determine implementation plans for each year, the annual budget allocated for administrative and public service units according to each target and task under Resolution No. 18-NQ/TW and Resolution No. 19-NQ/TW (specifying the budget allocation according to points b and c, Clause 3, Article 11 of this Circular).

Specifically for the goal of reducing staff establishments, the minimum annual reduction rate shall be in accordance with the Conclusion No. 17-KL/TW.

Article 17. Establishing the three-year 2019-2021 State Budget Financial Plan for provinces and centrally-administered cities

In addition to the relevant contents regarding the preparation of the three-year 2019-2021 State Budget revenue and expenditure plans as stipulated in Articles 15 and 16 of this Circular, the establishment of the three-year 2019-2021 State Budget Financial Plan for provinces and centrally-administered cities must also pay attention to the following matters:

1. Based on the socio-economic development goals and tasks of the locality for the five-year period 2016-2020 decided by the People's Council of the province, achievements during the 2016-2018 period, and the projected socio-economic development goals and tasks of the locality for 2019; on the basis of macroeconomic orientations set out in Clause 3, Article 14 of this Circular; the Provincial People's Committee shall direct the Department of Planning and Investment to forecast the socio-economic development situation in the locality for 2020 and 2021, to be sent to the Department of Finance as the basis for establishing the three-year 2019-2021 State Budget Financial Plan.

2. Based on the revenue assigned and the scope of State Budget revenue as prescribed by the Law on State Budget and guiding documents, the projected State Budget revenue on the locality for 2019, the Provincial People's Committee shall direct the Department of Finance to take the lead in coordinating with the Tax Service, Customs Service of the locality, and other related agencies at the locality level to establish the State Budget revenue plans for 2020 and 2021, including:

Analyzing and evaluating specifically the impacts of increases and decreases in revenue linked to socio-economic development goals and the expected implementation of new tax policies as stipulated in Resolution No. 07-NQ/TW and Resolution No. 51/NQ-CP of the Government to implement Resolution No. 07-NQ/TW on the locality.

For fee and charge revenues in 2020 and 2021, the budget estimates shall be carried out according to current regulations, tied to the schedule of fee increases based on the principle of accurately and sufficiently covering service costs, consolidating into the State Budget revenue estimate the portion of fees paid into the State Budget for the years 2020 and 2021; establishing separate plans for tuition fees, healthcare service prices, public service prices, and other charges (not included in the list of fees and charges) for management, monitoring, and requiring the creation of sources for salary reform for these groups.

Revenue decentralization shall be implemented according to the provisions of the Law on State Budget and guiding documents; for environmental protection tax revenue from domestically produced and imported gasoline, temporarily determined according to the ratio of 2018.

The share of State Budget revenue received in 2019 and 2020 shall be determined based on the above revenue decentralization and the percentage distribution of revenue items decided by the National Assembly for the stable period 2017-2020.

As 2021 is the first year of the new stable State Budget period, the percentage distribution of revenue items and the amount of additional balancing shall be determined according to the provisions of the Law on State Budget. For the 2021 State Budget balancing expenditure estimate, it shall be equal to the 2020 State Budget balancing expenditure estimate, except for investment spending from land use fees and lottery activities which shall be arranged according to the revenue.

3. Based on the projected revenue sources within the territory, local revenue under the decentralization regime, the ceiling for supplementary funding from the State Budget for the Local Budget announced by the competent authority for the years 2019-2021; the economic and social targets and tasks for the years 2020 and 2021; the cumulative financial and budgetary tasks implemented during the years 2016-2018; the People's Committee of the province shall direct the Department of Finance to take the lead, coordinate with the Department of Planning and Investment, the People's Committee of the district, and other relevant agencies at the locality to develop the expenditure plan for the Local Budget for the years 2019-2021, ensuring priority allocation of sufficient funds to implement existing systems, policies, and tasks that have been issued and committed to be funded (including special policies decided by the Provincial People's Council); determine the need for targeted supplementary funding from the State Budget for central-level systems and policies for each year of the period 2019-2021 as stipulated in Decision No. 579/QĐ-TTg; for new local expenditure tasks in each year of the period 2019-2021, allocate them according to priorities to achieve the key economic and social goals of the locality within the scope of available resources for each year 2019-2021. In particular:

- Regarding investment expenditures: Based on the cumulative implementation figures for the years 2016-2018, the medium-term plan assigned/approved for the period 2016-2020; review and consolidate adjustments made within the authority/recommendations for adjusting the public investment plan for the years 2019-2020 in accordance with economic and social development goals and actual implementation on the territory, within the scope of the medium-term loan capital plan (domestic and foreign) already assigned.

In cases where the cumulative investment expenditures for the years 2016-2018 and the plan for the years 2019-2020 exceed the medium-term plan for the period 2016-2020, the locality shall report specifically on the sources of implementation, additional allocations for programs, projects, and investment tasks; handle construction arrears; recover advance payments.

For the year 2021, develop the investment plan according to the decentralized mechanism as in the period 2017-2020; for ongoing programs, projects, and tasks according to progress; new programs, projects, and tasks fully complying with current investment procedures; aligning with the orientation to continue restructuring the budget and public debt for the period 2021-2030 as stipulated in Resolution No. 07-NQ/TW of the Politburo.

- Regarding regular expenditures: Develop detailed plans for implementing current objectives, tasks, policies, and systems; new objectives, tasks, systems, and policies approved by the competent authority; by sector; within the total approved amount for the entire period 2016-2020 (if applicable).

Summarize the implementation plans for Resolution No. 18-NQ/TW and Conclusion No. 17-KL/TW, Resolution No. 19-NQ/TW, and the Plans and Resolutions implementing these Resolutions on the territory; the allocated funds and the demand for streamlining the establishment on the territory as stipulated in Clause 3, Article 11 of this Circular.

4. Develop the plan for the source of implementation for salary reform: in accordance with the provisions of Clause 7, Article 11 of this Circular (except for the ratio of the increase in Local Budget revenue, which is implemented according to Resolution No. 27-NQ/TW dated May 21, 2018 on salary policy reform for civil servants, public officials, employees, and state-owned enterprise workers), noting the allocation of funds linked to the implementation of Resolution No. 18/NQ-TW and Resolution No. 19/NQ-TW as stipulated in Clause 3 of this Article.

For the source allocated linked to the implementation of Resolution No. 18/NQ-TW and Resolution No. 19/NQ-TW (including the revenue retained according to the appropriate regime in line with the schedule for incorporating cost into prices and service fees for public services according to Decree No. 16/2015/NĐ-CP), it is recommended to use for salaries in the years 2019-2020 (if current sources are insufficient), support policy beneficiaries to access public services and use for salaries after 2020.

5. The preparation of the deficit/surplus, borrowing, and repayment plans for the Local Budget for the years 2019-2021 shall be carried out strictly in accordance with the provisions of the Law on State Budget, Government Decree No. 45/2017/NĐ-CP, and Circular No. 69/2017/TT-BTC of the Ministry of Finance guiding the preparation of five-year financial plans and three-year financial-State Budget plans, and in accordance with the regulations on preparing the deficit/surplus, borrowing, and repayment plans for the Local Budget for the year 2019 as stipulated in Clause 3, Article 13 of this Circular, ensuring that the local debt level at the end of each year does not exceed the limit prescribed.

Chapter IV
IMPLEMENTATION

Article 18. Responsibilities of Ministries, Central Agencies, and Localities

1. 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 thereunder, and the provisions set forth in Clauses 2, 3, 4, and 5 of Article 17 of Decree No. 45/2017/NĐ-CP dated April 21, 2017 of the Government.

2. Responsibilities of ministries managing national target programs and other target programs

a) Based on the assigned inspection numbers, guide ministries, central agencies, and related localities to prepare budgets for implementing national target programs and target programs in 2019 and 2020, and submit them to the Ministry of Finance and the Ministry of Planning and Investment before July 20, 2018.

b) Aggregate the budgets for each national target program and target program under their management, and develop budget allocation plans for expenditures in 2019 and 2020 for each ministry, central agency, province, and centrally governed city, and submit them to the Ministry of Finance and the Ministry of Planning and Investment as prescribed.

Article 19. Regarding Forms for Preparing and Reporting the 2019 State Budget Estimate and the Three-Year Financial Plan - State Budget 2019-2021

1. For the 2019 estimate: apply the forms specified in Circular No. 342/2016/TT-BTC dated December 30, 2016 of the Ministry of Finance detailing and guiding the implementation of certain provisions of Decree No. 163/2016/NĐ-CP (with particular attention to the forms for public services from 12.1 to 12.5), and the forms numbered 01, 02, 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 and real estate: apply the forms numbered 04 and 05 issued together with this Circular.

3. For the three-year financial plan - state budget 2019-2021: apply the forms numbered 01 to 06 and forms numbered 13 to 19 issued together with Circular No. 69/2017/TT-BTC of the Ministry of Finance guiding the preparation of five-year financial plans and three-year financial plans - state budget.

Article 20. Implementation Provisions

1. This Circular takes effect from July 23, 2018. The content, procedures, and timeframes for preparing the 2019 state budget estimate and the three-year financial plan - state budget 2019-2021 shall be carried out in accordance with the State Budget Law 2015 and the guidance provided in this Circular.

2. During the process of drafting the 2019 state budget estimate and the three-year financial plan - state budget 2019-2021, if new policies and regulations are issued, the Ministry of Finance will issue supplementary guidance notices; if any difficulties arise during the implementation process, ministries, central agencies, localities, state economic groups, and state corporations should report to the Ministry of Finance for timely resolution./.