Circular No. 7726/TC/NSNN regarding guidelines for implementing budget allocation standards.

LETTER

OF THE MINISTRY OF FINANCE NO. 7726 TC/NSNN ON JULY 15, 2002
GUIDING THE IMPLEMENTATION OF BUDGET ALLOCATION STANDARDS

To: - Ministries and central agencies

- People's Committees of provinces and centrally-administered cities

In accordance with the new regulations on financial management for public institutions as stipulated in Decree No. 10/2002/NĐ-BTC dated January 16, 2002 by the Government, and Circular guiding No. 25/2002/TT-BTC dated March 21, 2002 by the Ministry of Finance; in line with the regulations of the Prime Minister on expanding pilot programs for administrative expense quotas and personnel quotas as per Decision No. 192/2001/QĐ-TTg dated December 17, 2001 by the Prime Minister and Circular Jointly Issued No. 17/2002/TTLT-BTC-BTCCBCP dated February 8, 2002 by the Ministry of Finance and the Government Office Organization-Civil Service Department; the Ministry of Finance provides detailed guidance on certain aspects regarding the implementation of budget allocation standards as follows:

1. The budget allocation standard established by the Ministry of Finance is the budget allocation standard for ministries, central agencies, provinces, and centrally-administered cities to be implemented during the period of stabilizing the state budget (for local government budgets at all levels). During this period, each year, based on the national budget's capacity and development requirements in various fields, the state budget will supplement the expenditure budget for ministries, central agencies, and localities beyond the established standards. 2. Ministries, central agencies, People's Committees of provinces, and centrally-administered cities shall base their budget allocation standards on the general budget allocation standard set by the Ministry of Finance to establish specific budget allocation standards for subordinate units and lower-level budgets as follows:

- The budget allocation must be based on the approved budget estimates without exceeding the allocated amount for each expenditure category.

- The budget allocation must fit the actual characteristics of different types of institutions, industries, and regions; taking into account the nature, operational requirements, scope of activities, scale of units, number of subordinate units under management,... to establish appropriate budget allocation standards. When establishing budget allocation standards, attention should be paid: for public service institutions and administrative management entities with permitted retained income according to regulations, specific budget allocation standards should be established accordingly.

- The issued budget allocation standard must ensure sufficient funds to fulfill assigned tasks and meet the requirements of thriftiness and waste prevention.

- Budget allocation standards need to remain stable for a certain period (3-5 years). During this period, based on budget capacity and task requirements (including new regulations), appropriate supplementary budgets should be provided according to each industry or unit.

3. Budget allocation standards for some fields may be implemented based on the following main criteria:

- For healthcare: Establish budget allocation standards for medical facilities based on population with regional differentiation (for local government budgets) or bed capacity plans for each level and type of medical service, along with revenue potential of each facility.

- For education and training: Establish budget allocation standards based on population with regional differentiation (for local government budgets) or the number of students at each educational level, according to region and area depending on ease or difficulty. Consider revenue potential for each type of institution, ensuring a reasonable relationship between salary expenses, allowances, and service costs related to teaching and learning activities, determined by class size, grade level, and region.

- For administrative state management, the Party, and mass organizations: Allocate based on staffing levels and operational characteristics in administrative management at each administrative level and for each type of agency. Pay attention to specific features such as scale of operations, scope of activities, number of staff positions, number of subordinate administrative units, regional characteristics,...

- For administrative state management, the Party, and mass organizations: allocation is based on staffing levels and the nature of activities in administrative management at each level of administration and for each type of agency. Consider specific characteristics and nature regarding the scale of operations, scope requirements, number of staff positions, number of subordinate administrative units, geographical features,...

The ministries, central agencies, People's Committees of the provinces and centrally governed cities are requested to organize and implement this directive. During implementation, any difficulties or feedback should be reported to the Ministry of Finance for timely resolution.