Circular No. 83/2011/TT-BTC guiding the preparation of the state budget estimate for 2012

Circular

Guidelines for preparing the state budget reserve for 2012

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- Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the Law on State Budget;
- Pursuant to Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;
- Implementing Directive No. 922/CT-TTg dated June 15, 2011 of the Prime Minister on the preparation of plans for economic and social development and the state budget estimate for 2012;
The Ministry of Finance guides the work of evaluating the implementation of state budget tasks in 2011 and the preparation of the state budget estimate (NSNN) for 2012 as follows:

PART I

EVALUATION OF THE IMPLEMENTATION OF STATE BUDGET TASKS IN 2011

Article 1. General Provisions

1. Basis for evaluating state budget tasks in 2011:

- The state budget tasks for 2011 were approved by the National Assembly through Resolution No. 52/2010/QH12 of the National Assembly on the state budget estimate for 2011, Resolution No. 53/2010/QH12 of the National Assembly on the allocation of the central state budget for 2011, Decision No. 2145/QĐ-TTg dated November 23, 2010 of the Prime Minister on the allocation of the state budget estimate for 2011, Decision No. 196/QĐ-TTg dated January 30, 2011 of the Prime Minister on the allocation of funds for implementing national target programs, and Decision No. 518/QĐ-TTg dated April 8, 2011 of the Prime Minister amending and supplementing Decision No. 196/QĐ-TTg.

- Directives from the Government include: Resolution No. 02/NQ-CP dated January 9, 2011 on key measures to guide and manage the implementation of the plan for economic and social development and the state budget estimate for 2011; Resolution No. 11/NQ-CP dated February 24, 2011 on certain key measures to focus on curbing inflation, stabilizing macroeconomic conditions, and ensuring social welfare in 2011.

Circular No. 202/2010/TT-BTC dated December 14, 2010 of the Ministry of Finance on the organization and implementation of the state budget estimate for 2011.

The situation of implementing state budget tasks in the first six months; solutions implemented in the last six months.

2. Adhering closely to the Government's guidance in managing the economy and society, the situation of implementing revenue and expenditure tasks of the state budget in the first six months, ministries, central agencies, and localities should evaluate the results of implementing conclusions and recommendations of auditing and inspection agencies; proactively propose specific amendments and supplements to revenue and expenditure policies of the state budget and other policies and systems to be sent to the Ministry of Finance and relevant ministries and agencies for study and amendment or submission to competent authorities for timely amendment.

Article 2. Evaluation of the implementation of state budget revenue tasks in 2011:

Based on the results of state budget revenue in the first six months, evaluate the implementation of state budget revenue in 2011 with the goal of exceeding the state budget estimate approved by the National Assembly and People's Councils at all levels, but at least striving to exceed by 7-8% compared to the revenue estimate approved by the National Assembly. When evaluating, focus on the following main contents:

- Evaluate and analyze the impact of the economy on the achievement of state budget revenue in 2011 such as: production and business situation, import and export activities of enterprises within the region; results of achieving key product production and consumption targets; selling prices, profits; review to consider new investment projects, expansion investments, deepening investments, and projects that have completed their tax incentive period; results of land financial planning tasks; real estate transaction situation; stock market activity situation.

- Evaluate and analyze the impact of tax deferral policies on state budget revenue in 2011 through the implementation of Decision No. 12/2010/QĐ-TTg dated February 12, 2010 of the Prime Minister on deferring corporate income tax payments to continue addressing difficulties for businesses and promoting economic development in 2010; Decision No. 21/2011/QĐ-TTg dated April 6, 2011 of the Prime Minister on deferring corporate income tax payments for small and medium-sized enterprises to address difficulties and promote economic development in 2011; management of import and export policies, including adjustments to taxes to limit trade deficits, export of raw materials, and adjustment of tax rates to fulfill commitments to integration.

- Evaluate the situation of overdue tax debts and their resolution in 2011: Clearly identify the amount of tax debt as of December 31, 2010, forecast the amount of new debt in 2011, the amount of tax debt recovered in 2011, and the amount of tax debt as of December 31, 2011. Fully and accurately compile and classify tax arrears according to regulations.

- Evaluate the results of cooperation among related levels and sectors in managing state budget revenue and organizing inspections, audits, and recovery of tax debts, preventing revenue loss, smuggling, and commercial fraud; coordination in price verification; number of entities inspected and audited in the first six months and projected for the year; tax revenue recommended for collection through tax inspections; tax revenue recommended for collection by the State Audit Office, Government Inspectorate, and projected to be collected into the state budget in the year. Propose measures to strengthen cooperation and improve the effectiveness of these activities.

- Evaluate the situation of value-added tax refunds; VAT refunds generated in 2011; estimated VAT refunds for enterprises in 2011; analyzing clearly the reasons for sudden increases or decreases in VAT refunds compared to the previous year.

- Evaluate the implementation of revenue mechanisms and policies; newly issued, amended, and supplemented tax policies in 2010 and 2011 affecting revenue outcomes; propose recommendations to adjust mechanisms and policies (if necessary).

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

1. Evaluation of the allocation and implementation of construction investment capital in 2011:

a) Evaluation of the allocation and allocation of the construction investment budget estimate (XDCB) for 2011:

- Evaluate the allocation and distribution of capital, the assignment of investment expenditure budgets for construction projects in 2011, including: capital from state budget sources (domestic capital - foreign capital), lottery revenue, government bond capital; allocation of capital for important and urgent projects that need to be ensured according to schedule, projects completed in 2011; counterpart funds for ODA projects.

- The time frame for allocating and assigning plans to project sponsors (consistent with the total investment amount indicators assigned; domestic and foreign capital structure; economic sector structure).

- Results of recovering advance budget funds pursuant to Decision No. 2145/QĐ-TTg dated November 23, 2010 of the Prime Minister on the state budget expenditure plan for 2011; allocation of capital to settle construction investment debts from state budget sources.

b) Evaluate the situation of reviewing and reducing investment capital (both state budget sources and government bonds) that are not truly urgent to reallocate capital for urgent projects to be completed in 2011 in accordance with Resolution No. 11/NQ-CP of the Government on key measures to control inflation, stabilize macroeconomic conditions, and ensure social welfare.

c) Evaluate the implementation of investment construction expenditure tasks in 2011:

- Overall assessment of the implementation of the investment construction plan in 2011, including the value of work completed up to the second quarter of 2011, capital payments up to the second quarter of 2011 (including payment for completed work volume and advance capital payments), projected work volume and capital payments by December 31, 2011; accompanied by detailed annex tables for each project, including approved total investment amounts, cumulative capital payments up to the end of the 2010 plan, and 2011 capital plans according to the above contents.

- Assessment of the implementation of programs and projects using official development assistance (ODA) funds: disbursement progress of ODA funds and the ability to ensure counterpart funds.

- Summarize and evaluate the situation and results of handling outstanding investment construction work volumes; propose recommendations for solutions to resolve outstanding debts definitively.

d) Evaluate the situation of finalizing accounts for completed investment projects, including: the number of projects completed but not yet finalized according to regulations by the end of June 2011 and projected by the end of 2011; specify the duration since completion until finalization, reasons, and resolution measures.

đ) Evaluate the situation of mobilizing, recovering, and repaying various sources of capital, including retained advances from the State Treasury for implementing infrastructure projects that generate revenue to repay advances approved by competent authorities to attract domestic and foreign economic organization investments.

2. Evaluate the results of implementing support development expenditure tasks in 2011:

- Implementation status of preferential state investment credit, loans for projects under the Program for Strengthening Irrigation Canals, Rural Transportation, Aquaculture Infrastructure, and Village Craft Infrastructure; implementation status of household poverty and social policy credit, student credit, preferential credit for particularly difficult ethnic minority households, poor households building houses... (activity results, loan balances, interest rates, interest rate differential compensation amounts,...).

- Evaluation of the implementation of Decree No. 41/2010/NĐ-CP dated April 12, 2010 of the Government on credit policies serving agricultural and rural development; analyze the impact of this policy on unlocking investment capital and promoting agricultural and rural development investment; ensuring food security goals and producing major agricultural export products.

- Implementation status of piloting agricultural insurance policies pursuant to Decision No. 315/QĐ-TTg dated March 1, 2011 of the Prime Minister, piloting export credit insurance policies pursuant to Decision No. 2011/QĐ-TTg dated November 5, 2010 of the Prime Minister.

- Implementation status of national reserves in 2011; quantity and value of goods purchased, issued, and provided free of charge (details by type, quantity, value); national reserve forces as of December 31, 2011; capacity to respond to emergencies.

Article 4. Evaluate the implementation of regular expenditure tasks:

1. Evaluate the implementation of the state budget expenditure plan for the first six months of the year and the forecast for the full year 2011 (the implementation of budget allocation and assignment, budget withdrawal; the implementation of budget transfers and reductions for undistributed program, task, and project funds;...) according to the specific tasks assigned by the state to ministries, central agencies, localities, and units in 2011. Evaluate the results of implementing important tasks, large programs, and projects of each ministry, sector, field, and locality; difficulties and obstacles encountered and proposed measures to address them.

2. Report on additional savings of 10% in regular expenditures for the remaining nine months of the 2011 state budget expenditure plan; the situation of reducing meeting, seminar, summary, and domestic and international travel expenses..., difficulties and obstacles encountered when implementing Resolution No. 11/NQ-CP of the Government and recommendations.

3. Evaluate the results and difficulties encountered in implementing tasks and mechanisms, policies, and expenditure systems in 2011, including a detailed evaluation of the results of implementing the following mechanisms and policies:

- The implementation of social welfare policies, focusing on evaluating the implementation of social assistance policies pursuant to Decree No. 67/2007/NĐ-CP dated April 13, 2007 of the Government on assisting social welfare beneficiaries; Decree No. 13/2010/NĐ-CP dated February 27, 2010 of the Government amending and supplementing certain articles of Decree No. 67/2007/NĐ-CP; Decision No. 09/2011/QĐ-TTg dated January 30, 2011 of the Prime Minister on issuing poverty and near-poverty standards applicable for the period 2011-2015; Decision No. 471/QĐ-TTg dated March 30, 2011 on providing hardship allowances to civil servants, public officials, employees, armed forces personnel, pensioners with low pensions, persons receiving preferential benefits, and poor households with difficult living conditions; Law on the Elderly and Law on Persons with Disabilities; policies towards poor households, near-poor households, ethnic minority groups, and people in particularly difficult areas such as programs to support rapid and sustainable poverty reduction in 62 poor districts, housing support for poor households; state support policies for near-poor households, students, and college students purchasing health insurance; land production, residential land, housing, and clean water support for poor ethnic minority households with difficult living conditions; unemployment insurance policy; support for disease prevention and disaster prevention, mitigation, and relief; electricity subsidies for poor households,...

- The situation and results of implementing Decree No. 130/2005/NĐ-CP dated October 17, 2005 of the Government on the mechanism of self-management and responsibility for the use of staff positions and administrative management funds. Evaluate the situation of organizing and implementing the self-management and responsibility system for performing tasks, organizational structure, staff positions, and finance for public service units pursuant to Decree No. 43/2006/NĐ-CP dated April 25, 2006 of the Government; Decree No. 115/2005/NĐ-CP dated September 5, 2005 of the Government, Decree No. 96/2010/NĐ-CP dated September 20, 2010 of the Government amending and supplementing certain articles of Decree No. 115/2005/NĐ-CP, and Decision No. 1926/QĐ-TTg dated November 20, 2009 of the Prime Minister for public scientific and technological organizations; and Decision No. 39/2008/QĐ-TTg dated March 14, 2008 of the Prime Minister promulgating the Procurement, Commissioning, and Assignment Regulations for Public Services Using State Budget Funds.

4. Evaluate the implementation of Resolution No. 05/2005/NQ-CP dated April 18, 2005 of the Government on promoting socialization in education, healthcare, culture, and sports activities; Decree No. 69/2008/NĐ-CP dated May 30, 2008 of the Government on policies encouraging socialization in educational, vocational training, healthcare, cultural, sports, and environmental activities within the sectors and fields under their management; Decision No. 1466/QĐ-TTg dated October 10, 2008 of the Prime Minister promulgating the detailed list of types, scale criteria, and standards of facilities implementing socialization in education-training, vocational training, healthcare, culture, sports, and environment. Pay particular attention to evaluating and analyzing the total resources and resource structure invested by society for sector development, the results of mobilizing social resources for sector development, existing issues, causes, and solutions in the future to effectively mobilize social resources for sector development.

5. Evaluate the implementation of the work to reform administrative procedures according to Project 30 in managing the State budget in 2011; clearly identify existing issues, causes, and solutions to address them.

Article 5. Evaluate the implementation of national target programs:

1. Ministries, central agencies, and localities evaluate the allocation, assignment, and implementation of budgets for national target programs; advantages, difficulties, and obstacles (if any) in implementation.

2. Ministries and agencies managing national target programs complete the evaluation of the effectiveness of programs and projects during the 2006-2010 period and in 2011, based on which propose the list, objectives, and contents of national target programs for the 2012-2015 period, and coordinate with the Ministry of Planning and Investment and the Ministry of Finance to submit to the competent authority for decision.

3. For national target programs implemented using both domestic and foreign sources, carefully evaluate the disbursement of foreign capital.

Article 6. Evaluate the results of implementing the salary reform system:

1. Report the results of reviewing staffing levels, salary funds, and determining the financial needs to implement salary reform at the minimum wage level of VND 830,000 per person per month from May 1, 2011.

2. Evaluate the results of implementing financial measures to generate resources for salary reform from: saving 10% of regular expenses (excluding salaries, salary-like payments, and expenses for generating resources for salary reform); 35-40% of retained revenue according to regulations; 50% of increased local government revenues (excluding land use fees) in 2011, identifying unused resources from previous years (after ensuring sufficient resources to implement the minimum wage of VND 830,000 per month in 2011) to be carried over to 2012 (if any) to continue generating resources for salary reform (with specific numerical data reports).

Article 7. Some special points in evaluating the implementation of the State budget task in 2011 by provinces and centrally-administered cities:

In addition to the above requirements, it is necessary to focus on evaluating the implementation of the following contents:

1. Local solutions and measures for managing local budgets (tax deferral, reduced revenue collection in some areas due to the impact of macroeconomic policies,...) to ensure that the local budget expenditure plans approved by the competent authority are met.

2. Evaluate the demand and development resources of the locality; the work of mobilizing financial resources at the local level to implement the task of economic and social development of the locality.

3. The results of implementing Resolution No. 30a/2008/NQ-CP dated December 27, 2008 of the Government on the Program to rapidly and sustainably reduce poverty in 62 poor districts; the results of implementing policies to support poor households with housing under Decision No. 167/2008/QĐ-TTg dated December 12, 2008 of the Prime Minister and Decision No. 67/2010/QĐ-TTg dated October 29, 2010 of the Prime Minister amending and supplementing certain provisions of Decision No. 167/2008/QĐ-TTg; the results of implementing Decree No. 49/2010/NĐ-CP dated May 14, 2010 on exemption, reduction of tuition fees, support for educational expenses, and mechanisms for collecting and using tuition fees for educational institutions under the national education system; the situation regarding the implementation of the Law on the Elderly, the Law on Persons with Disabilities; the Program for Developing Economic and Social Affairs in Communes with Special Difficulties in Ethnic Minority Areas and Mountainous Regions (Program 135 Phase II), the Program to Support Land for Production, Housing, and Drinking Water for Poor Households of Ethnic Minorities with Hard Livelihoods (Program 134).

4. The allocation of budget funds to implement state mechanisms and policies aimed at economic and social development, poverty alleviation such as health insurance policies for the poor, ethnic minorities, children under six years old, supporting near-poor individuals to participate in health insurance, unemployment insurance policies, fisherfolk support policies, assistance policies for social welfare beneficiaries; the allocation of capital for planning work,...

5. Evaluation of budget allocation (including central government's targeted financial support to local budgets if applicable) and the use of reserve funds to fulfill security and defense tasks; prevention, response, and mitigation of natural disasters, epidemics affecting people, livestock, poultry, and crops.

6. Evaluation of the implementation of policies exempting water resource fees in the locality; the implementation of exemptions from various contributions as stipulated in Directive No. 24/2007/CT-TTg dated November 1, 2007 of the Prime Minister to strengthen and rectify the implementation of laws on fees and charges, and policies on mobilizing and utilizing contributions from the public.

7. Evaluation of expenditures from land use fee revenues for local infrastructure projects, implementation of cadastral surveys, establishment of land ownership records, issuance of land use right certificates, and allocation of land development funds from land use fees and land rental fees as provided for in Decree No. 69/2009/NĐ-CP.

8. Evaluation of the collection and utilization of lottery proceeds.

9. The situation regarding the mobilization of investment capital for infrastructure (including the mobilization and allocation of funds to repay both principal and interest by June 30, 2011) as stipulated in Clause 3, Article 8 of the State Budget Law, including: beginning-of-year debt balance, annual mobilization amount, repayment of maturing debts, estimated debt balance mobilized by December 31, 2011 (for Hanoi City and Ho Chi Minh City, evaluate the mobilization of investment capital according to their special fiscal and budgetary mechanisms).

10. Evaluation of the implementation of programs to reinforce irrigation canals, rural transportation, village industry infrastructure, and aquaculture infrastructure (including results achieved and repayment of principal and interest upon maturity).

Chapter II

BUDGET ESTIMATION FOR THE STATE BUDGET IN 2012

Article 8. Objectives, requirements:

In 2012, the task of stabilizing the macro-economy, controlling inflation, ensuring social security and people's livelihood continues to be the central task in economic and financial management by the Government. Accordingly, the objectives, requirements, and contents of the work on building the state budget estimate for 2012 are as follows:

1. Objectives:

- Continuing to implement a tight fiscal policy to save, contributing to the stabilization of the macro-economy and control of inflation alongside monetary policy.

- Strengthening the ability to forecast revenues accurately and proactively; arranging expenditures strictly, saving, and enhancing the efficiency of public spending.

- Continuing to prioritize resources to implement salary reform policies; implementing social security policies, supporting the poor, and social welfare beneficiaries.

- Reducing the deficit ratio of the state budget compared to 2011, managing debt within safe limits.

2. Requirements: Ministries, central agencies, and localities must build the state budget estimate for 2012 closely aligned with the development goals and tasks of the economy and society in 2012 and the 2011-2015 period for each sector, field, and locality; linked to the key tasks and activities of the agency or unit; in accordance with current state regulations and policies; based on the spirit of thrift and waste prevention; ensuring the time frame stipulated by the State Budget Law; the state budget estimate must clearly and detailedly explain revenue and expenditure tasks. Among which:

a) The state budget revenue estimate for 2012 must be built on the basis of:

- Closely following forecasts of investment, production and business development, the recovery of the economy, and import-export activities in 2012; correctly, fully, and promptly calculating all tax revenues according to current policies and new policies that will take effect in 2012; domestic revenue from enterprises, organizations, and individuals generated and required to be paid in 2012, particularly focusing on calculating revenues arising from investment projects that have completed their tax incentive periods;

- The state budget revenue estimate must be actively, solidly, and realistically built with a mobilization rate reaching about 24% of GDP, including tax and fee revenues reaching about 23% of GDP. The domestic revenue estimate (excluding oil revenue and land use fee revenue) must increase by at least 16-18% compared to the estimated actual implementation in 2011 (excluding factors affected by tax deferral as per Decision No. 21/2011/QĐ-TTg), depending on the conditions and characteristics of each locality. The revenue estimate from import-export activities must increase by at least 7% compared to the estimated actual implementation in 2011. Revenue from construction aid should be based on the commitment of donors to disburse funds for existing and new aid commitments.

- Proposing specific measures and timelines to handle overdue tax debts; preventing tax evasion and trade fraud; strengthening inspections, audits, and timely handling of violations.

b) The state budget expenditure estimate for 2012 is built on the basis of:

The state budget expenditure estimate is built based on the system of criteria and allocation standards for the state budget in 2011 decided by the Prime Minister; current laws on budget expenditure policies and the funding requirements for important strategic national goals expected to be implemented in 2012. Continue to arrange expenditures towards thrift and effectiveness; ensuring funding for education-training, science-technology, healthcare, culture, environmental protection sectors according to Party and National Assembly resolutions; ensuring social security; increasing state reserves to proactively prevent, mitigate, and recover from natural disasters and epidemics; allocating funds to continue implementing salary reform. Based on this:

- Ministries, central management agencies, and provincial People's Committees must establish the state budget expenditure estimate for 2012 within the scope of the approved expenditure budget estimate for 2012 (except for expenditures from foreign sources, which must be estimated according to the progress of loan and aid projects), detailing by sector (including both centrally allocated state budget expenditures and retained revenue expenditures), major expenditure tasks (with prioritized order) ensuring compliance with current laws and practicing thrift and waste prevention from the outset of budget preparation.

- When building the state budget expenditure estimate for 2012, ministries, central agencies, and localities:

+ Proactively anticipate full funding needs for implemented policies and newly emerging tasks. Provide detailed explanations of the bases and grounds for budget estimates by implementing units and for important expenditure tasks (bases, policies, implementation results, 2012 budget allocations, and subsequent years). Do not supplement from the reserve fund for expenditure tasks where ministries, central agencies, and localities did not adequately allocate funds according to regulations when preparing and allocating the budget.

+ For proposals to amend, supplement, or issue new policies, thoroughly investigate and understand the number of beneficiaries to anticipate funding needs; integrate proposed amendments or new policies with existing policies, coordinate with finance authorities to ensure sufficient funding before submitting to competent authorities for issuance.

Article 10. Building the 2013 State Budget Revenue Estimate

Article 9. Building the state budget revenue estimate for 2012:

When building the State budget revenue estimate on their respective territories, localities must base it on analyses and forecasts of economic growth, structural economic changes that increase production capacity in 2013 for each economic sector, industry, revenue field, and key economic bases of the locality, and must consolidate all revenue sources generated within the territory (including revenue from communes, wards, and towns). The 2013 State budget revenue estimate must be based on a comprehensive evaluation of the actual results achieved in 2012; the requirements and capabilities for implementation in 2013, and the audit results of the 2013 revenue estimate that have been announced. The revenue estimate must ensure accuracy and completeness for each revenue field and tax type according to the laws on taxes and collection regulations, paying particular attention to new collection policies and regulations as follows:

Localities when building the budget estimate for state revenue on their territory must base it on the analysis and forecast of economic growth, structural economic transformation to increase production capacity in 2012 for each economic sector, each industry, each revenue field, key economic bases of the locality, and must consolidate all revenue sources arising on the territory (including the revenue at commune, ward, town level). When building the state revenue budget estimate for 2012, it must be based on a comprehensive evaluation of the actual results achieved in 2010; the requirements and capabilities for 2011 and the audit results of the 2012 revenue budget estimate that have been announced. The revenue budget estimate must ensure accuracy and completeness for each revenue field, each tax type according to the provisions of the Tax Law, revenue regulations, including paying attention to new revenue policies and regulations issued to amend and supplement as follows:

a) Regarding corporate income tax: Implement according to the provisions of Circular No. 151/2010/TT-BTC dated September 27, 2010 of the Ministry of Finance guiding the application of various types of taxes and payments to the state budget for the Land Development Fund stipulated in Article 34 of Decree No. 69/2009/NĐ-CP; Circular No. 186/2010/TT-BTC dated November 18, 2010 of the Ministry of Finance guiding the implementation of transferring profits abroad by foreign organizations and individuals with profits from direct investment in Vietnam as prescribed by the Investment Law; Circular No. 18/2011/TT-BTC dated February 10, 2011 of the Ministry of Finance amending and supplementing Circular No. 130/2008/TT-BTC dated December 26, 2008 of the Ministry of Finance guiding the implementation of certain provisions of the Corporate Income Tax Law No. 14/2008/QH12 and guiding the implementation of Decree No. 124/2008/NĐ-CP dated December 11, 2008 of the Government detailing and guiding the implementation of certain provisions of the Corporate Income Tax Law; Circular No. 15/2011/TT-BTC dated February 9, 2011 of the Ministry of Finance guiding the establishment, organization, operation, management, and use of the Science and Technology Development Fund of enterprises; Decision No. 21/2011/QĐ-TTg and Circular No. 52/2011/TT-BTC dated April 22, 2011 of the Ministry of Finance guiding Decision No. 21/2011/QĐ-TTg.

b) Regarding value-added tax: Implement according to the provisions of Circular No. 35/2011/TT-BTC dated March 15, 2011 of the Ministry of Finance guiding certain contents regarding value-added tax for telecommunications services; Circular No. 47/2011/TT-BTC dated April 7, 2011 of the Ministry of Finance guiding certain contents regarding value-added tax for electricity production and business activities.

c) Regarding natural resources tax: Calculate and prepare the budget estimate according to the guidance provided in the Natural Resources Tax Law No. 45/2009/QH12 dated November 25, 2009; Decree No. 50/2010/NĐ-CP dated May 14, 2010 of the Government detailing and guiding the implementation of certain provisions of the Natural Resources Tax Law; Circular No. 105/2010/TT-BTC dated July 23, 2010 of the Ministry of Finance guiding the implementation of certain provisions of the Natural Resources Tax Law and guiding the implementation of Decree No. 50/2010/NĐ-CP dated May 14, 2010 of the Government.

d) Regarding personal income tax: Implement according to the provisions of Circular No. 175/2010/TT-BTC dated November 5, 2010 of the Ministry of Finance amending and supplementing Circular No. 84/2008/TT-BTC dated September 30, 2008; Circular No. 12/2011/TT-BTC dated January 26, 2011 of the Ministry of Finance amending Circular No. 84/2008/TT-BTC and amending Circular No. 02/2010/TT-BTC dated January 11, 2010 of the Ministry of Finance guiding supplementary Circular No. 84/2008/TT-BTC.

Environmental protection tax: Implement according to the provisions of the Environmental Protection Tax Law No. 57/2010/QH12 dated November 15, 2010.

Non-agricultural land use tax: Implement according to the provisions of the Non-Agricultural Land Use Tax Law No. 48/2010/QH12 dated June 17, 2010.

Agricultural land use tax: Implement according to the guidance provided in Resolution No. 55/2010/QH12 dated November 24, 2010 of the National Assembly on exemption and reduction of agricultural land use tax; Decree No. 20/2011/NĐ-CP dated March 23, 2011 of the Government detailing and guiding the implementation of Resolution No. 55/2010/QH12 dated November 24, 2010 of the National Assembly on exemption and reduction of agricultural land use tax.

Petroleum: Implement according to the provisions of the Agreement between the Government of the Socialist Republic of Vietnam and the Government of the Russian Federation on continuing cooperation in the fields of geological exploration and oil exploitation on the continental shelf of the Socialist Republic of Vietnam within the framework of the Joint Venture Vietsovpetro in 2011.

Lottery revenue: Continue to build the budget estimate based on current legal provisions and manage revenue through the state budget (without incorporating into the state budget balance).

2. Budget revenue from import and export activities:

a) Must be built on the basis of assessing the impact on state revenue through analyzing and forecasting the world economic situation and import-export turnover of goods subject to taxation; the impact of implementing measures to limit the trade deficit as per Resolutions No. 02/NQ-CP and No. 11/NQ-CP of the Government; the impact of fluctuations in exchange rates and the implementation of the phased reduction of taxes to fulfill commitments under international economic integration.

b) The revenue budget estimate must be built based on the correct implementation of customs procedures; customs inspection, supervision, export duties, import duties, and tax management of exported and imported goods as prescribed in Circular No. 194/2010/TT-BTC dated December 6, 2010 of the Ministry of Finance; tariff rates of the Export Tariff, Preferential Import Tariff according to the list of taxable goods prescribed in Circular No. 184/2010/TT-BTC dated November 15, 2010 of the Ministry of Finance and related documents. Promote the simplification of administrative procedures in the customs area to shorten clearance time and reduce costs for exported and imported goods. Strengthen measures to prevent revenue loss such as: debt collection, anti-smuggling, tax evasion, and anti-commercial fraud.

3. Revenues to be retained for expenditure under the regime (tuition fees, medical fees, other contributions collected): Ministries, central agencies, and localities shall base on the actual revenue collection figures for 2010, the estimated revenue collection for 2011, the proposed adjustments to the levels of collection (including tuition fees implemented according to Decree No. 49/2010/NĐ-CP dated May 14, 2010 of the Government regarding exemption, reduction of tuition fees, support for educational expenses, and the mechanism for collecting and using tuition fees for educational institutions within the national education system from the 2010-2011 academic year to the 2014-2015 academic year), and the anticipated factors affecting revenue collection in 2012 to build an appropriate revenue budget that is positive. Revenue from public services with a commercial nature of agencies and units, not included in the State budget revenue sources, are requested to prepare separate budgets, not included in the unified fee and tax revenue budget.

Article 10. Building the State budget expenditure plan for 2012:

1. Building the State budget expenditure plan for development investment in 2012:

a) The construction of the State budget expenditure plan for development investment must be closely linked to the goals and tasks of the economic and social development plan for 2012 to enhance efficiency, avoid waste and loss of state investment capital, contribute to macroeconomic stability, curb inflation, and promote economic growth. Ministries, central agencies, and localities shall review and arrange sufficient funds according to the progress of national key projects, regional agricultural and rural development projects, poverty alleviation and sustainable development projects; allocate sufficient funds for important and urgent projects to be completed and put into use in 2012; ensure sufficient counterpart funds for ODA projects according to commitments; recover all overdue advances; concentrate remaining funds for key and urgent ongoing projects to ensure funding for group C projects to be completed within three years and group B projects within five years; minimize the allocation of funds for new projects if they are not truly urgent.

Provinces and centrally administered cities shall build the State budget expenditure plan for development investment, including supplementary targeted funds from the central budget to the local budget according to Decision No. 60/2010/QĐ-TTg dated September 30, 2010 of the Prime Minister.

b) Ensure funds for investment preparation work; settle debts for completed basic construction works of projects; at the same time, strictly implement without generating new construction debts.

c) Necessary new projects to start in 2012 must be approved by competent authorities and have complete investment procedures, prioritizing funds for national key projects. Firmly postpone the commencement of projects not included in approved plans, lacking required procedures, having unresolved procedural issues, incomplete land clearance, and projects not truly urgent or with low effectiveness.

d) Implement targeted supplementary investment development funds from the State Treasury according to criteria and allocation standards for the State budget expenditure plan for development investment to implement national target programs and projects for the 2011-2015 period decided by the Prime Minister.

đ) Ministries, central agencies, and localities assigned the task of investing in construction from government bond funds shall prepare the State budget expenditure plan for development investment from government bond funds in 2012 for projects already approved by competent authorities and submit them to ministries and central agencies responsible for managing investment programs funded by government bonds for consolidation and submission to the Ministry of Planning and Investment and the Ministry of Finance for reporting to competent authorities.

e) Project sponsors funded by government loans must arrange sufficient counterpart funds for these projects in accordance with signed agreements and domestic financial management regulations to not affect implementation schedules.

g) For the budget expenditure plan for compensating interest rate differences for development credit and policy credit provided by the State, base on the implementation situation in 2011, anticipate changes in policies and tasks for 2012 to build the expenditure plan according to prescribed regulations.

h) For the budget expenditure plan for supplementing the national reserve: Based on the objectives and tasks of the national reserve assigned, requirements for preventing and mitigating natural disasters, epidemics, ensuring national defense, security, and social welfare, departments and sectors managing state reserves shall assess and determine the level of national reserves managed by departments, sectors, and units up to December 31, 2012; propose the level of supplementation for each type of essential goods, materials, and equipment; prepare the State budget expenditure plan for increasing national reserves, preserving goods, and the plan for rotating and updating national reserves in 2012.

2. Building the State budget expenditure plan for regular expenses in 2012:

a) Nationwide, allocate the State budget expenditure plan for 2012 (including development investment, regular expenses, and salary reform costs) for the education, training, and vocational training sector to reach 20% of total State budget expenditures (including expenditures from lottery revenues); the culture and information sector to reach at least 1.8%; the science and technology sector to reach at least 2%; environmental protection activities over 1%; increase spending on the health sector higher than the average increase in State budget expenditures; increase spending on national defense and security to meet new tasks.

b) Ministries, central agencies, and local authorities shall establish the budget for expenditures on educational and training development, culture, health care, environmental protection, science and technology, social security; national defense and security; administrative management expenses of the state, party, and mass organizations based on their respective political tasks, economic and social development plans for the year 2012, according to the regular expenditure allocation standards of the State Budget as decided by the Prime Minister, and specific regulations and policies issued by competent authorities. Among these, salaries and allowances calculated based on the minimum wage of 830,000 VND/month; deductions from wages for health insurance, social insurance, and unemployment insurance shall be implemented in accordance with the Law on Health Insurance, the adjustment schedule of the Law on Social Insurance, and guiding documents.

c) The 2012 budget shall be established based on an assessment of the implementation of the 2011 budget, the anticipated tasks for 2012 (clarifying expenditures that only occurred in 2011 and will not occur in 2012, increases in expenditures in 2012 according to approved systems and fields), the announced 2012 budget inspection figures, and current standard and quota expense regulations. The budget should prioritize funding for tasks within each sector and field.

d) The budget for economic public services shall be established based on the volume of tasks assigned by competent authorities and the prescribed budget expenditure standards; focusing on allocating funds for important tasks such as maintaining and repairing key economic infrastructure systems (transportation, water resources, etc.) to increase usage time and investment efficiency; funding for planning work; implementing agricultural, forestry, fisheries, and industry promotion tasks; surveying, mapping, land registration, and issuing land use right certificates, contributing to promoting growth and restructuring the economy. Efforts should be made to apply tendering, ordering, and task assignment regulations for public service provision using the State Budget as stipulated in Decision No. 39/2008/QĐ-TTg dated March 14, 2008, and Decree No. 31/2005/NĐ-CP dated March 11, 2005, regarding the production and supply of public goods and services.

During the process of establishing the 2012 State Budget, ministries, sectors, and localities must adjust the State Budget expenditure tasks appropriately based on the implementation of autonomy and self-responsibility for staffing and administrative management expenses for state agencies, and reform mechanisms for public service units, while promoting socialization in certain types of public services.

Administrative state agencies and public service units with income as prescribed by law must prepare complete budgets for revenues and expenditures for tasks funded from fees, charges, and other retained revenues.

For research and scientific expenditure tasks, tasks assigned by the state, and other important expenditure tasks, units must prepare budget expenditure plans according to current regulations and this Circular, and provide detailed explanations of the calculation bases.

g) In addition to the above general provisions, ministries and central agencies need to provide additional explanations for some expenditure areas:

- Administrative management expenses: Provide detailed explanations on the following contents:

+ The number of staff positions approved up to the budget preparation date, including the number of staff present at the budget preparation date and the number of unfilled positions according to approved quotas (if any).

+ Determine the salary fund and allowances based on the minimum wage of 830,000 VND/person/month guaranteed by the State Budget, based on the salary fund and allowances at the minimum wage of 730,000 VND/month, plus the additional amount the State Budget supplements for the difference between 830,000 VND/month and 730,000 VND/month (for a full 12 months, after deducting salary reform sources as prescribed - if applicable).

+ Determine the number of beneficiaries and the budget guarantee level to implement the 10% duty allowance for a full 12 months (after deducting salary reform sources as prescribed).

+ The funding level guaranteed according to the standards set out in Decision No. 59/2010/QĐ-TTg dated September 30, 2010, of the Prime Minister.

+ Special expenses (if any): Explain the legal basis and provide detailed explanations of the calculation basis for each special expense.

- Educational and training public services: Explain clearly the basis for preparing the budget to implement the policy of seniority allowances in education and the mechanism of exemption, reduction of tuition fees, and support for learning expenses for specified groups under Decree No. 49/2010/NĐ-CP.

3. Budgeting for expenses of programs and projects using ODA funds:

Fully establish the budget in accordance with the correct procedures, forms, and decisions on the State Budget as stipulated by the Law on State Budget, the Law on Public Debt Management, and guiding documents and Government Decrees on investment management and basic construction, foreign borrowing and repayment, paying particular attention to detailing ODA and counterpart funds by program and project, according to the nature of investment and public service funding sources, ensuring alignment with implementation progress; submit to the Ministry of Planning and Investment and the Ministry of Finance for consolidation in the 2012 State Budget proposal to the Government and the National Assembly for decision.

4. Budget for implementing salary reform in 2012:

In 2012, ministries, central agencies, localities, and units using the State Budget shall continue to proactively implement all salary reform measures as prescribed in the Salary Reform Plan for the period 2008-2012. Accordingly, allocate a portion of the revenue retained in 2012 according to the system: saving 10% of regular expenditures in 2012 (excluding salaries and wage-like items), 50% of increased local government revenue annually (excluding increased land use fee revenue); simultaneously transfer unused salary reform funds from previous years (if any) to 2012 for continued implementation. All of these funds must be separately accounted for and managed to continue implementing salary reform, and not used for other purposes. The Ministry of Finance will issue separate guidance on calculating and determining the funds allocated for implementing salary reform in 2012.

5. Budget for implementing national target programs:

a) The ministries and management agencies of national target programs shall determine the list, objectives, scope, and budget for implementing national target programs during the period of 2012-2015, prepare relevant documents to submit to the Ministry of Planning and Investment and the Ministry of Finance for consolidation and submission to the competent authority for decision-making to have a basis for allocating the state budget expenditure plan for national target programs in 2012 in accordance with the time frame for preparation, allocation, submission, and assignment of the state budget for 2012.

b) Based on the objectives and tasks for 2012 and the current financial regulations, the ministries, central agencies, and localities shall prepare the budget estimate for expenditures to implement national target programs in 2012 and submit them to the ministries and central agencies managing the programs and projects for consolidation and submission to the Ministry of Finance and the Ministry of Planning and Investment.

c) Based on the anticipated allocation of funds for each program and project announced by the Ministry of Finance and the Ministry of Planning and Investment, the ministries and central agencies responsible for managing the programs and projects shall propose detailed plans for allocating the budget estimates for national target programs and projects in 2012 for the ministries, central agencies, and localities (for programs implemented using both domestic and foreign sources, the detailed allocation plan shall include both domestic and foreign funds) and submit them to the Ministry of Planning and Investment and the Ministry of Finance for review and consolidation.

6. The state budget estimate for central and local governments for implementing programs and projects:

a) Based on the Prime Minister's decision approving the programs and projects, the ministries and leading agencies of the programs and projects shall prepare the budget estimate for implementing the programs and projects in 2012 and consolidate it in the state budget expenditure plan for 2012 of the ministries and central agencies (detailed according to the nature of the funding source) and submit it to the Ministry of Finance and the Ministry of Planning and Investment.

b) Based on the anticipated allocation of funds for the programs and projects announced by the Ministry of Finance and the Ministry of Planning and Investment, the ministries and central agencies responsible for managing the programs and projects shall propose detailed plans for allocating the budget estimates for national target programs and projects in 2012 for the ministries, central agencies, and localities (detailed according to the nature of the funding source) and submit them to the Ministry of Planning and Investment and the Ministry of Finance for review and consolidation.

7. State budget reserve estimate:

The central and local government budgets at all levels shall allocate contingency reserves in accordance with the State Budget Law to proactively prevent, control, and mitigate the consequences of natural disasters, epidemics, and handle urgent tasks outside the budget estimate.

8. Budget for expenses from retained revenues (tuition fees, hospital charges, other fees and charges, contributions collected):

The ministries, central agencies, and localities shall prepare the budget estimates from this revenue source, detailing each expenditure task and sector, and consolidate them into the budget estimates of the ministries, central agencies, and localities for submission to the competent authority for decision-making.

9. Based on the verification of the budget revenue and expenditure in 2012, the ministries, central agencies, and localities shall build strict and detailed budget estimates for each task and each subordinate budget-using unit; after working and reaching consensus with the Ministry of Finance and the Ministry of Planning and Investment, the ministries, central agencies, and provincial-level cities directly under the Central Government shall promptly commence work on developing the detailed budget allocation plan for their ministries, agencies, and localities in 2012 so that upon receiving the state budget assigned by the Prime Minister, they can proactively submit to the competent authority for decision-making on the allocation and assignment of the state budget to budget-using units before December 31 in accordance with the provisions of the State Budget Law.

The ministries, central agencies, and localities must focus on directing a thorough review of all aspects of the budget allocation, management, and utilization process, particularly investment capital and borrowed and aid funds, to ensure that budget allocations meet the objectives, comply with regulations, and reach the intended recipients; budget management and utilization must be stringent, effective, and accompanied by reporting, auditing, and inspection systems to prevent losses and waste.

Article 11. Construction of the local budget estimate for 2012:

1. Construction of the State Revenue Estimate:

Based on the socio-economic development targets and plans for the 2011-2015 period approved by the Party Congresses at all levels, the ability to achieve economic and social indicators and the budget in 2011, based on forecasting the growth rate of the economy and revenue sources in 2012 for each industry and sector, the economic bases of each locality, and new revenue sources arising within the territory to accurately calculate each revenue field and each revenue item according to regulations; the domestic revenue estimate from tax and fee revenues (excluding oil revenue and land use fee revenue) shall increase by a minimum of 16-18% compared to the estimated actual performance in 2011 (excluding factors affecting due to tax deferral in 2011); the revenue estimate from import and export activities shall increase by a minimum of 7% compared to the estimated actual performance in 2011.

2. On the construction of the local budget expenditure estimate: The 2012 local budget is the second year in the stable budget period (2011-2015) as stipulated by the State Budget Law and the Resolution of the National Assembly. Local People's Councils at all levels shall proactively construct their own local budget estimates based on the revenue sources and expenditure tasks that have been stabilized at the decentralized level; the 2012 local budget estimates at all levels shall be constructed based on: revenue sources determined based on the percentage (%) allocation of shared revenue items between budget levels, local budget revenue sources enjoying 100% according to the State Budget Law, and additional balancing funds from higher-level budgets to lower-level budgets (if any) shall be stabilized at the 2011 budget estimate level decided by the National Assembly, the Standing Committee of the National Assembly, the Higher-level People's Councils, the Prime Minister, and the Higher-level People's Councils. Based on the local socio-economic development tasks for 2011 and the 2011-2015 period, current policies and expenditure standards; construct specific 2012 state budget expenditure estimates by sector, ensuring priority task order and the guidelines set out in Article 10 of this Circular, while implementing the main contents as follows:

a) Continue to review, classify, and arrange projects to prioritize budget estimates, paying particular attention to allocating budget estimates for infrastructure construction projects, key projects and works of the locality with effectiveness, feasibility, and potential for completion and use in 2012 (transportation, water conservancy, works serving economic structure transformation, works to mitigate natural disaster consequences,...); proactively allocate local budget funds to implement investment in solidifying irrigation canals and rural roads; village craft infrastructure, aquaculture infrastructure, electricity pumping stations serving state production irrigation; focus on implementing poverty reduction, job creation, and social evil handling tasks;...; allocate sufficient counterpart funds for ODA projects according to the regulations requiring localities to allocate from local budgets; reserve funds in the construction investment expenditure estimate to settle infrastructure construction debts, advance payments, and debt repayments due when they become due.

b) Allocate the local budget construction investment expenditure from land use fees to invest in economic and social infrastructure projects, resettlement projects, and land preparation for construction; proactively allocate and establish a land development fund according to Decree No. 69/2009/ND-CP; prioritize sufficient funding to accelerate cadastral surveying, establishing land administration data files, and issuing land use right certificates according to the Land Law and the National Assembly's Resolution.

c) For revenue from lottery tickets, continue to be used for social welfare investments; focusing on education and healthcare sectors as prescribed and managing revenue and expenditure through the state budget (without being included in the state budget balance).

d) Develop a plan to mobilize capital for infrastructure investment at the local level, ensuring that the local budget allocates sufficient funds to repay all due amounts (both principal and interest) according to Clause 3, Article 8 of the State Budget Law.

đ) Construct the construction investment expenditure estimate from government bonds for transportation, water conservancy projects, health facilities (as per Resolution No. 18/2008/QH12 dated June 3, 2008 of the National Assembly), solidifying school buildings and constructing teachers' housing according to approved programs; proactively allocate local budget funds (lottery ticket revenue, construction investment within the local budget balance) to implement investment in solidifying school buildings and constructing teachers' housing according to the ratio specified by the Ministry of Finance.

e) For infrastructure investment tasks according to Prime Minister's Decisions, Politburo Resolutions, etc., based on the objectives, tasks, and investment capital needs as prescribed; based on the results of investment up to the end of 2010, the ability to implement in 2011, localities shall construct and calculate the 2012 tasks, proactively arranging and allocating local budgets and financial resources according to regulations to implement these tasks, proposing the central budget support level along with explanations of the calculation bases.

f) For tasks, programs, and projects according to Government Resolution No. 30a/2008/NQ-CP dated December 27, 2008 on the program to rapidly and sustainably reduce poverty in 62 poor districts and Prime Minister's Decision No. 615/QD-TTg dated April 25, 2011 on mechanisms and policies for 7 poor districts, and the policy supporting poor households with housing according to Prime Minister's Decision No. 167/2008/QD-TTg dated December 12, 2008 and Decision No. 67/2010/QD-TTg: Based on the objectives, tasks, and investment capital needs, the policies and regulations already established, and based on the implementation capacity in 2011, localities shall construct and calculate the 2012 tasks, proposing the central budget support level along with explanations of the calculation bases.

g) Allocate funds to implement Resolution No. 37/2004/QH11 dated December 3, 2004 of the National Assembly on education, Central Resolution No. 2 (Term VIII) for the field of science and technology, and Resolution No. 41-NQ/TW dated November 15, 2004 of the Politburo for environmental protection tasks within the local budget expenditure.

h) Prepare the budget estimate for implementing social security assurance tasks (funds for medical examination and treatment for children under six years old, the poor; social welfare assistance funds, student scholarship systems, exemption from water resource fees,...), national defense, and security (Law on Militia and Self-Defense Forces, Ordinance on Public Security Police), with the initiative to utilize local government budgets and support needs from the central government budget.

i) Develop the 2012 local budget expenditure plan, localities should proactively calculate and allocate sources to implement salary reform expenditures as guided in Clause 4, Article 10 of this Circular.

k) Arrange a high level of local budget reserve; supplement the financial reserve fund according to the provisions of the State Budget Law to proactively respond to natural disasters, floods, epidemics, and urgent tasks at the local level.

3. On balancing the local budget:

a) Provinces and centrally-administered cities shall develop the local budget expenditure plan based on local revenue sources and the amount of supplementary balance (if any) from the central budget allocated to the local budget at the stable level as set forth in the 2011 budget plan assigned by the Prime Minister. At the same time, for localities receiving supplementary balance from the central budget, propose specific levels of emergency support for their locality according to Point 20, Section II of the 2011 State Budget Regular Expenditure Allocation Standards issued together with Decision No. 59/2010/QĐ-TTg dated September 30, 2010 of the Prime Minister.

b) For provinces and centrally-administered cities that need to mobilize additional capital to increase investment development, they must prepare the budget in accordance with Clause 3, Article 8 of the State Budget Law to ensure the level of debt mobilization (including the amount expected to be mobilized in 2010) does not exceed 30% (for Hanoi and Ho Chi Minh City, it is 100%) of the projected construction and investment budget of the provincial budget; at the same time, they must arrange sources to repay maturing amounts (both principal and interest).

4. For local authorities piloting the non-establishment of People's Councils, the content of the 2012 budget preparation shall be implemented according to this Circular; regarding procedures and deadlines, follow the provisions of Circular No. 63/2009/TT-BTC dated March 27, 2009 of the Ministry of Finance on budget preparation work, implementation, and settlement for districts, towns, and wards without People's Councils.

Chapter III

IMPLEMENTATION

Article 12. Responsibilities of ministries and agencies managing national target programs, programs, and projects implemented from the central budget and carried out by multiple central ministries and agencies:

1. Coordinate with central ministries and agencies and related localities to forecast tasks and funding levels for national target programs, programs, and projects in 2012, and submit them to the Ministry of Planning and Investment and the Ministry of Finance before July 20, 2011.

2. Prepare the budget allocation plan for 2012 for each central ministry and agency and each province and centrally-administered city, and submit it to the Ministry of Finance and the Ministry of Planning and Investment according to the deadline specified in the notification of funding levels for 2012 for national target programs, programs, and projects issued by the Ministry of Finance and the Ministry of Planning and Investment.

3. Take the lead or coordinate in drafting, issuing, and perfecting guiding documents so that national target programs can commence immediately from the beginning of 2012.

Article 13. Responsibilities of central ministries and agencies and localities:

1. Based on the inspection figures already announced, central ministries and agencies and provincial and municipal people's committees shall guide and announce inspection figures for budget revenue and expenditure plans to subordinate budget units and lower-level budgets according to regulations.

2. The Ministry of Planning and Investment shall take the lead and coordinate with the Ministry of Finance to prepare the 2012 budget for development spending, allocation plans for development spending in certain areas of the central budget assigned, and allocation plans for national target program spending, and submit them to the Ministry of Finance before September 10, 2011.

3. Organize the work of developing, compiling, and reporting the 2012 state budget plan in accordance with the provisions of the State Budget Law, guiding documents, and the contents directed by this Circular; report all content and forms as required by Circular No. 59/2003/TT-BTC dated June 23, 2003 of the Ministry of Finance and relevant forms stipulated in this Circular; submit to the Ministry of Finance and the State Audit Agency before July 20, 2011 for central ministries and agencies, and before July 25, 2011 for provinces and centrally-administered cities.

Article 14. Regarding the forms for preparing and reporting the 2012 state budget estimate:

1. For Ministries and central agencies: Aggregate and report to the Ministry of Finance the state budget estimate according to the forms and deadlines specified in Circular No. 59/2003/TT-BTC, the additional forms (Form No. 2 and 5) stipulated in this Circular, and the forms prescribed in Joint Circular No. 03/2006/TTLT-BTC-BNV dated January 17, 2006 of the Ministry of Finance and the Ministry of Home Affairs guiding the implementation of Decree No. 130/2005/NĐ-CP dated October 17, 2005 of the Government, Circular No. 71/2006/TT-BTC dated August 9, 2006 of the Ministry of Finance guiding the implementation of Decree No. 43/2006/NĐ-CP; particularly, it is necessary to prepare detailed budget estimates down to each budgetary unit (according to Form No. 02 - Appendix No. 2 - Circular No. 59/2003/TT-BTC) and important tasks of the Ministry or agency to explain and report to the National Assembly on the state budget estimate of each Ministry or central agency.

2. For localities: Aggregate and prepare the local budget estimate, report to the Ministry of Finance according to the forms (Form Nos. 01, 02, 06, 07, 10, 12, 13, 14, 16, 17, 18, 19, 20, 21, 22, 23 - Appendix No. 6) and the deadlines specified in Circular No. 59/2003/TT-BTC and the additional forms (Form Nos. 01, 03, 04, 06, 07, 08, 09, 10, 11) stipulated in this Circular.

Article 15. Clause of action:

1. This Circular takes effect from July 31, 2011. The procedures and timeframes for preparing the 2012 state budget estimate shall be carried out in accordance with the provisions ofLaw on State Budgetand guiding documents.

2. During the process of preparing the 2012 state budget estimate, if new policies and regulations are issued, the Ministry of Finance will issue supplementary guidance notices; if there are difficulties arising in organizing the preparation of the 2012 state budget estimate, please reflect these issues to the Ministry of Finance for prompt resolution./.