Resolution No. 68/2006/QH11 on the State Budget Estimate for 2007

 RESOLUTION

ON THE STATE BUDGET ESTIMATE FOR 2007

THE NATIONAL ASSEMBLY OF THE SOCIALIST REPUBLIC OF VIETNAM

Pursuant to Article 84 of the Constitution of the Socialist Republic of Vietnam promulgated in 1992, as amended and supplemented by Resolution No. 51/2001/QH10 dated December 25, 2001 of the 10th National Assembly, 10th session;

Pursuant to the State Budget Law;

After considering Report No. 21/BC-CP dated October 6, 2006 of the Government on the state budget estimate for 2007; Report No. 2953/UBKTNS dated October 12, 2006 of the Economic and Budget Committee of the National Assembly and the opinions of the National Assembly deputies.

RESOLUTION:

I. Approves the state budget estimate for 2007, as follows:

- Total revenue of the state budget: VND 281,900 billion (two hundred eighty-one thousand nine hundred billion dong), equivalent to 24.9% of gross domestic product (GDP); including VND 19,000 billion in transferred revenue from 2006 to 2007, the total state budget revenue will be VND 300,900 billion (three hundred thousand nine hundred billion dong);

- Total expenditure of the state budget: VND 354,900 billion (three hundred fifty-four thousand nine hundred billion dong); including VND 2,500 billion in transferred oil revenue, the total state budget expenditure will be VND 357,400 billion (three hundred fifty-seven thousand four hundred billion dong);

- The deficit of the state budget: VND 56,500 billion (fifty-six thousand five hundred billion dong), equivalent to 5% of gross domestic product (GDP).

(Annexes 1, 2, 3, 4, and 5 attached)

II. Approves the measures to implement the state budget estimate for 2007 by the Government, the measures stated in the Report of the Economic and Budget Committee submitted to the National Assembly, and emphasizes the following key issues:

1. The Government shall promptly organize the implementation of the state budget revenue tasks for 2007 as prescribed by law. Timely implement the Tax Management Law after its approval by the National Assembly to enhance effective tax collection management, prevent loss of state budget revenue. Vigorously resolve outstanding tax arrears. Rectify refund procedures, strengthen inspection, and strictly handle violations of laws related to state budget revenue. Proactively implement international commitments on taxation to meet the integration process.

2. Continue reviewing, amending, and supplementing mechanisms and policies related to finance and budget in accordance with commitments to join the World Trade Organization (WTO).

3. Accelerate the restructuring and reorganization of state-owned enterprises according to approved plans; adjust tax policies for state-owned enterprises after shareholding in a reasonable manner, in compliance with the law and authority, ensuring that overall revenue does not decrease.

4. Speed up the process of eliminating subsidies through pricing, implementing the principle of price management under market mechanisms. Closely monitor the price fluctuations of important goods on the world market to have solutions to stabilize the domestic market and prices, and proactively manage the state budget estimate. In cases where global oil prices fluctuate significantly affecting state budget revenue, the Government shall promptly direct the adjustment of import tax rates and domestic oil prices; gradually reduce subsidy levels, aiming to end business subsidies early; in cases where subsidies are still necessary, the Government shall direct the use of central government reserves to implement them.

5. Strictly implement the provisions of the State Budget Law; allocate the budget centrally, preventing dispersion causing waste and loss of capital; use the budget for its intended purpose, saving costs; improve and enhance the quality and effectiveness of inspection, audit work; clearly define the responsibilities of each organization and the heads of organizations in managing and operating the budget to strengthen discipline and order in the field of finance and budget; focus on reviewing, amending, supplementing, or issuing new standards, systems, and budget expenditure quotas.

6. Promptly complete the legal framework to increase the ability to mobilize and manage, effectively utilize external borrowing sources, especially official development assistance (ODA) funds, specifying the responsibilities of organizations and their leaders in managing and using allocated borrowing and ODA funds, ensuring efficiency; strengthen inspection, audit work on the implementation of projects funded from these sources.

7. Regularly review and promptly rectify to comply with regulations on land management and use, public offices, public housing, and other state assets to effectively exploit these revenue sources; strictly handle violations.

8. Continue implementing comprehensive measures to create resources to implement reforms in salary policy and social security policy.

9. Starting from 2007, lottery revenue will not be included in the state budget balance; manage and spend this revenue through the state budget. The Government shall direct the rectification of lottery activities. Provincial People's Councils and municipal people's councils directly under the Central Government shall allocate and use this revenue to invest in important social welfare projects in their localities, focusing on education and healthcare projects; do not use this revenue for other purposes.

10. In 2007, continue issuing government bonds to invest in projects and works within the approved plan; continue issuing educational bonds to complete the project of solidifying school buildings and classrooms. Based on disbursement capacity to reasonably mobilize funds, avoiding idle funds. Strengthen inspection, audit to ensure that these funds are used for their intended purposes and are effective.

11. The Government shall issue financial and budgetary mechanisms and policies to develop the economy and society, ensure national defense and security in the period 2006-2010 for the midland and mountainous region of Northern Vietnam, the Central Highlands, Southwest Vietnam, North Central Vietnam, and the coastal area of Central Vietnam. In cases exceeding authority, the Government shall report to the National Assembly and the Standing Committee of the National Assembly for consideration and decision.

12. Promote the implementation of the mechanism of autonomy and self-responsibility for the staffing and budget usage of state agencies and public service units; encourage and promote socialization in the fields of education and training, healthcare, culture, physical education and sports, and other relevant areas; implement pilot mechanisms for leasing and privatization to transform certain public service facilities that meet the conditions into business operations.

13. The Government shall organize and direct resolutely and effectively implement the action program to enforce the Law on Anti-Corruption and the Law on Thrift and Prevention of Waste.

14. During the implementation of the State budget for the year 2007, the Government shall instruct ministries, sectors, and localities to strive to exceed assigned revenue targets to supplement resources for disaster prevention, disease control, and urgent issues arising during the year at each level, and allocate funds for salary policy reform and social security policies.

III. Oversight of the Implementation of the State Budget for the Year 2007

The Standing Committee of the National Assembly, the Economic and Budgetary Committee, the Ethnic Council, and other Committees of the National Assembly, Delegations of National Assembly Members, and individual National Assembly Members shall carry out practical oversight activities on the implementation of the State budget in their respective fields and regions as prescribed by law.

Strengthen the activities of the State Audit Office both in scope and depth to promptly identify violations in the management and use of the State budget, timely propose recommendations to competent state agencies to improve mechanisms, strictly handle cases of violation, and enhance financial discipline.

This Resolution was adopted by the National Assembly of the Socialist Republic of Vietnam, the eleventh session, tenth meeting, on October 31, 2006./.