Decree No. 73/2003/NĐ-CP Issuing the Regulation on Examination, Decision on Budget Estimates and Allocation of Local Budgets, Approval of Local Budget Final Accounts

DECREE

Issuing the Regulation on examining and deciding the budget estimate

and allocating local budgets, approving final accounts of local budgets

 of local budgets

_______________

THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the State Budget Law number 01/2002/QH11 dated December 16, 2002;

At the proposal of the Minister of Finance,

DECREE:

Article 1. The Regulation on examining and deciding the budget estimate and allocating local budgets, and approving final accounts of local budgets is promulgated together with this Decree.

The Ministry of Finance shall provide specific guidelines for forms and templates to be used in preparing reports on budget estimates, allocation, and final accounts of local budgets.

Article 2. This Decree takes effect from the 2004 fiscal year.

The examination and approval of final accounts of local budgets for the fiscal years 2002 and 2003 shall be carried out in accordance with the provisions of this Regulation.

Article 3. Ministers, Heads of ministerial-level agencies and government-attached agencies, People's Councils at all levels, People's Committees at all levels are responsible for implementing this Decree./.

REGULATIONS
EXAMINING AND DECIDING THE BUDGET ESTIMATE AND ALLOCATING LOCAL BUDGETS, APPROVING FINAL ACCOUNTS OF LOCAL BUDGETS
(Issued together with Decree No. 73/2003/NĐ-CP dated June 23, 2003 of the Government)

Chapter 1:

GENERAL PROVISIONS

Article 1.

1. This Regulation stipulates:

- The tasks of people's committees at all levels in organizing the preparation, reporting of budget estimates, plans for allocation, and final accounts of local budgets.

- The tasks of the Economic and Budget Committee of the Provincial People's Councils (referred to as the Economic and Budget Committee), the Economic and Social Committee of the District, City, Town, and Provincial City People's Councils (referred to as the Economic and Social Committee); Chairpersons, Vice-Chairpersons of the Commune, Ward, and Town People's Councils, and other Committees of the People's Councils in reviewing the reports submitted by the People's Committees to the People's Councils.

- The review and consideration by the Standing Body of the People's Council of the budget reports submitted by the People's Committees and the review reports of the Economic and Budget Committee, the Economic and Social Committee.

- The content, procedure, method of discussion, and decision-making on the budget estimate, allocation plan, and approval of final accounts of local budgets by the People's Council.

Article 2. The review, examination, decision-making on the budget estimate, allocation plan, and approval of final accounts of local budgets by the People's Council must comply with the provisions of the State Budget Law and this Regulation.

Chapter 2:

PREPARATION OF BUDGET ESTIMATE, ALLOCATION, AND FINAL ACCOUNTS

 OF LOCAL BUDGETS

Article 3. Preparation of budget estimate, allocation plan, and final accounts of local budgets:

1. Each year, people's committees at all levels prepare the budget revenue estimate of the state budget on their respective territories (for district and commune levels, prepare the budget revenue estimate of the state budget for revenues under their management), the budget expenditure estimate of the local budget (for provincial and district levels, including their own budget and the budgets of lower levels); the allocation plan of their own budget and the final accounts of the state budget revenue on their territory, local budget expenditure to be submitted to the same level People's Council for examination, decision, and approval.

2. The budget revenue estimate of the state budget on the territory and the budget expenditure estimate of the local budget must be based on:

a) Goals, tasks of economic and social development and ensuring national defense and security;

b) Policies, systems of state budget revenue collection, budget allocation standards, and budget expenditure standards and norms;

c) The implementation situation of the current year's budget;

d) Revenue and expenditure tasks assigned by higher authorities; consolidated budget estimates from the budget estimates reported by subordinate agencies and units under their jurisdiction, and directly subordinate localities;

đ) Other bases as prescribed in Article 37 of the State Budget Law and guiding documents for the implementation of the State Budget Law.

3. The allocation plan must be based on:

a) The local budget estimate decided by the People's Council;

b) Specific tasks of agencies and units under their jurisdiction and directly subordinate localities;

c) Budget allocation standards and budget expenditure standards and norms prescribed by competent authorities;

d) Percentage ratios of revenue distribution and supplementary balance adjustment and targeted supplementary funds from higher-level budgets. For the first year of the budget stabilization period, it should also be based on the budget allocation system and the budget revenue and expenditure estimates of each directly subordinate locality.

4. Preparing the final accounts of the local budget must comply with the provisions of Articles 62, 63, 64, and 65 of the State Budget Law; based on the final account reports of lower-level budgets approved by the People's Council, final account reports of agencies and units under their jurisdiction audited by the same-level finance agency, and the transfer of budget expenditures of the local budget to the next year according to the State Budget Law.

5. The Economic and Budget Committee, the Economic and Social Committee, the Chairperson and Vice-Chairperson of the Commune People's Council, and other relevant Committees of the People's Council shall cooperate with the finance agency, planning and investment agency, and other relevant agencies of the People's Committee during the process of preparing the budget estimate, allocation, and final accounts.

6. The finance agency shall proactively coordinate with the planning and investment agency and other relevant agencies to submit to the People's Committee the budget revenue estimate of the state budget on the territory, local budget expenditure estimate; the allocation plan of their own budget and the final accounts of the state budget revenue on the territory, local budget expenditure; and simultaneously send these reports to the Economic and Budget Committee, the Economic and Social Committee, the Chairperson, Vice-Chairperson of the People's Council, and other relevant Committees of the People's Council.

7. The People's Committee convenes meetings to examine and discuss the budget estimate, allocation plan, and final accounts with the participation of the Economic and Budget Committee, the Economic and Social Committee, and the Chairperson of the People's Council (at the commune level).

Article 4. The People's Committee reports on the local budget:

1. Report on the implementation of the local budget in the current year, including:

a) Implementation of the budget revenue and expenditure estimate, including the mobilization of capital for construction of infrastructure projects as stipulated in Clause 3, Article 8 of the State Budget Law (if applicable);

b) Implementation of financial and budgetary measures as resolved by the National Assembly, the same-level and higher-level People's Councils, and administrative agencies of higher-level state authorities;

c) Additional measures to organize the implementation of the budget revenue and expenditure estimate of the current year.

2. Report on the budget estimate of the local budget for the following year, including:

a) Basis for preparing the budget estimate;

b) Objectives and tasks of the local budget;

c) Budget allocation plan;

d) Main policies and solutions to implement economic and social tasks and the next year's budget estimate.

3. The final account report and audit of the local budget, including:

a) Final account of state budget revenue on the territory and local budget expenditure;

b) Final account of national target programs;

c) Explanation of the final account of the local budget;

d) Report of the State Audit Agency on the results of auditing the final account of the local budget (if applicable).

4. Based on the requirements and contents stipulated in Clauses 1, 2, and 3 of this Article, the People's Committees at all levels must provide detailed explanations regarding the implementation of the budget, estimates, budget allocation at their level, and the final account of the local budget. Among these, the following items must be clearly stated:

a) Budget expenditure estimates for each agency and unit under their jurisdiction according to each field; budget expenditure estimates for supporting political-social organizations, social organizations, and social-professional organizations according to each field. For provincial budgets, it also includes investment budget expenditure estimates and support for enterprises, economic organizations, and state financial organizations as prescribed by law, supplementary funding for the provincial financial reserve fund, and payment of principal and interest on borrowed funds for investment as stipulated in Clause 3, Article 8 of the State Budget Law;

b) Revenue and expenditure tasks, percentage rates (%) for revenue sharing between different levels of the local budget and additional funding from the provincial budget for lower-level budgets (including balanced adjustment funding and targeted funding). For balanced adjustment funding, the basis for determining the first year of the local budget stabilization period must be provided;

c) List, total investment capital, progress, and investment plans for important projects and works funded by the local budget that have been decided by the People's Council at their level within their authority; detailing projects and basic construction works as prescribed by the provincial People's Council;

5. In addition to the above contents, the provincial People's Committee must submit to the same-level People's Council:

a) For the first year of the budget stabilization period: revenue classification and expenditure tasks for each level of the local budget; percentage rates (%) for revenue sharing between the provincial budget and the budgets of each district, county, town, city under the province, and each commune, ward, town; percentage rates (%) for revenue sharing between the budgets of each district, county, town, city under the province and each commune, ward, town;

b) Plan for collecting fees, charges, and contributions from the public as prescribed by law;

c) Budget allocation standards, regulations, and expenditure norms according to the central government's classification;

d) Plan for raising and finalizing investment capital for infrastructure construction projects as stipulated in Clause 3, Article 8 of the State Budget Law.

Article 5. Reports prescribed in Article 4 of this Regulation must be sent to the Economic and Budget Committee, the Economic-Social Committee, the Chairman, and Vice Chairmen of the People's Council (at the commune level) for review.

Chapter 3:

REVIEW OF BUDGET ESTIMATES, ALLOCATION PLANS, AND FINAL ACCOUNTS OF LOCAL BUDGETS

Article 6. The Economic and Budget Committee, the Economic-Social Committee, the Chairman, and Vice Chairmen of the People's Council (at the commune level) shall review reports on the budget:

1. Reviewing the assessment of the implementation of the current year's state budget revenue estimate on the territory and local budget expenditure, and the implementation of financial and budgetary measures as stipulated in the People's Council Resolution.

2. Reviewing the budget estimate concerning: objectives and tasks of the budget; bases for preparing the budget estimate and allocating the local budget.

3. Reviewing the allocation plan concerning: principles of allocation, fairness, rationality, and proactivity of the allocation plan.

4. Reviewing the plan for collecting fees, charges, and contributions from the public as prescribed by law; the plan for raising investment capital for infrastructure construction projects as stipulated in Clause 3, Article 8 of the State Budget Law concerning the necessity of raising funds, the amount to be raised, the form and time of raising, interest rate, usage plan for raised funds, and annual repayment rate.

5. For the first year of the budget stabilization period, reviewing the contents concerning revenue classification and expenditure tasks for each level of the local budget; percentage rates (%) for revenue sharing between the provincial budget and the budgets of each district and commune; percentage rates (%) for revenue sharing between the budgets of each district and each commune to ensure the principles stipulated in Articles 34 and 36 of the State Budget Law.

6. Reviewing the final account of the local budget concerning: accuracy, legality, and completeness of the final account of the local budget.

Article 7. Methods of reviewing reports:

1. For provincial and district levels:

a) The Economic and Budget Committee, the Economic-Social Committee, and other relevant committees of the People's Council organize reviews of the reports, with participation from the People's Committee and related agencies.

Relevant committees of the People's Council provide formal opinions on their respective fields; clearly stating points of agreement, points of agreement but requiring further clarification, points of disagreement, and recommendations.

b) Relevant agencies of the People's Committee are responsible for submitting supplementary reports: issues accepted, issues explained further to reach consensus, issues requiring further study and explanation in writing. Written follow-up or explanatory reports must be submitted to the Economic and Budget Committee and the Economic-Social Committee.

c) The People's Committee studies and accepts the review opinions of the committees of the People's Council, perfects the reports to submit to the Standing Committee of the People's Council. The Economic and Budget Committee and the Economic-Social Committee compile the opinions of other relevant committees into a review report to submit to the Standing Committee of the People's Council. The review report includes the following main contents:

Contents and figures agreed upon with the People's Committee's report.

The contents and figures proposed for additional clarification or those differing from the report of the People's Committee.

Comments on the report of the People's Committee.

Recommendations.

In cases where there are differing opinions, the Economic and Budget Committee, the Economic-Social Committee, and the People's Committee shall exchange views and clarify the remaining differing contents to be submitted to the Standing Body of the People's Council for consideration and comments before presenting to the People's Council.

2. For communes:

The method and procedure for examination shall be carried out in accordance with the provisions of Article 9 of this Regulation.

Article 8. The Standing Body of the People's Council provides comments on the reports of the People's Committee:

1. The Standing Body of the People's Council provides comments on the reports of the People's Committee in accordance with the provisions of Article 4 and the examination opinions of the Committees as stipulated in Article 7 of this Regulation.

For issues with differing opinions, the Standing Body of the People's Council provides comments for the Economic and Budget Committee, the Economic-Social Committee, and the People's Committee to perfect the reports to be submitted to the People's Council for consideration and decision.

2. Based on the specific situation of the locality, if deemed necessary, the Standing Body of the People's Council may organize meetings with the Economic and Budget Committee, the Economic-Social Committee, and other relevant Committees to examine and provide comments on the reports.

3. The reports of the People's Committee and the examination reports of the Economic and Budget Committee, the Economic-Social Committee are sent to the People's Council representatives according to the Operation Regulations of the People's Councils at all levels.

Article 9. The Chairman and Vice Chairmen of the People's Council at the commune level examine and provide comments on the reports of the People's Committee:

1. The Chairman and Vice Chairmen of the People's Council examine and provide comments on the reports of the People's Committee in accordance with the provisions of Articles 6, 7, and 8 of this Regulation.

2. Based on the comments of the Chairman and Vice Chairmen of the People's Council, the People's Committee reports on the issues accepted, the issues explained to clarify and perfect the reports, to be submitted to the People's Council.

3. The Chairman of the People's Council, in coordination with the People's Committee, completes the examination report and submits it to the People's Council.

4. The reports of the People's Committee submitted to the People's Council and the examination reports of the Chairman and Vice Chairmen of the People's Council are sent to the People's Council representatives according to the Operation Regulations of the People's Councils at all levels.

Chapter 4:

DISCUSSION AND DECISION ON THE PROPOSED BUDGET, DISTRIBUTION PLAN, AND APPROVAL OF THE FINAL ACCOUNTS OF THE LOCAL BUDGET

Article 10. The People's Council discusses and decides on the proposed budget, distribution plan of its own level, and approves the final accounts of the local budget:

1. Method of discussion:

a) The People's Committee presents the reports to the People's Council.

b) The Economic and Budget Committee, the Economic-Social Committee, and the Chairman of the People's Council (at the commune level) report the results of examining the reports of the People's Committee.

c) The People's Council organizes discussions on the reports of the People's Committee; the meeting secretary compiles the opinions of the representatives and sends them to the representatives of the People's Council, the Economic and Budget Committee, the Economic-Social Committee, the Chairman and Vice Chairmen of the People's Council (at the commune level), and sends them to the financial authority at the same level.

d) The People's Committee reports on accepting and explaining the opinions of the representatives of the People's Council.

2. Based on the examination reports of the Economic and Budget Committee, the Economic-Social Committee, the Chairman and Vice Chairmen of the People's Council (at the commune level), and the explanation reports of the People's Committee, the People's Council discusses and decides:

a) The proposed revenue budget of the state on the territory, expenditure of the local budget according to the indicators specified in Article 25 of the State Budget Law.

b) Based on the decided local budget expenditure, discuss and decide on the distribution plan of the local budget according to the indicators specified in Article 25 of the State Budget Law.

During the process of discussing and deciding on the proposed revenue budget of the state on the territory, expenditure of the local budget, and the distribution plan of the local budget, if the People's Council decides to increase expenditures or add new expenditures, they must simultaneously consider and decide on measures to ensure budget balance.

c) For the People's Council at the provincial level, in addition to the above contents, also discuss and decide on the contents prescribed in Clause 5, Article 4 of this Regulation.

d) Approve the final accounts of the revenue budget of the state on the territory, expenditure of the local budget of the previous year.

Article 11. Time to decide on the local budget, distribution plan of the local budget, and approval of the local budget final accounts:

1. The People's Council at the provincial level decides on the local budget and distribution plan of the local budget for the next year before December 10 of the current year; the lower-level People's Council decides on the local budget and distribution plan of the local budget for the next year no later than ten days after the upper-level People's Council decides on the budget and distribution plan.

2. The People's Council at the provincial level approves the final accounts of the local budget no later than twelve months after the end of the fiscal year and specifies the time limit for approving the final accounts of the local budget of the lower-level People's Council, but not later than six months after the end of the fiscal year.

3. Based on the time specified in Clause 1 and 2 of this Article, the People's Council at the provincial level specifically defines the time for sending the reports on the proposed budget, distribution plan, and final accounts of the local budget of the People's Committee at various levels to the People's Council at the same level.

Article 12. Resolution of the People's Council

1. Resolution on the proposed revenue budget of the state on the territory, expenditure of the local budget; distribution plan of the local budget.

2. Resolution approving the final accounts of the revenue budget of the state on the territory, final accounts of the expenditure of the local budget.