Law on State Budget No. 83/2015/QH13

LAW

STATE BUDGET

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On the basis of the Constitution of the Socialist Republic of Vietnam;

The National Assembly promulgates the State Budget Law.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Law stipulates on the preparation, implementation, auditing, settlement, and supervision of the state budget; the tasks and authorities of agencies, organizations, units, and individuals related to the state budget sector.

Article 2. Applicability

1. State agencies, political organizations, and political-social organizations.

2. Political-social-professional organizations, social organizations, and social-professional organizations supported by the state budget according to the tasks assigned by the State.

3. Public service units.

4. Other organizations and individuals related to the state budget.

Article 3. Application of Law

1. The preparation, implementation, auditing, settlement, and supervision of the state budget must comply with the provisions of this Law and other relevant laws.

2. In cases where international treaties to which the Socialist Republic of Vietnam is a party have different provisions from those of this Law, the provisions of such international treaties shall apply.

Article 4. Definitions

In this Law, the following terms shall be understood as follows:

1. State budget deficit includes the central government budget deficit and provincial-level local government budget deficit. The central government budget deficit is determined by the excess of total central government expenditures excluding debt repayment over total central government revenues. The provincial-level local government budget deficit is the aggregate of each provincial-level local government budget deficit, determined by the excess of total provincial-level local government expenditures excluding debt repayment over total provincial-level local government revenues.

2. Commitment to allocate the state budget expenditure estimate is the approval in accordance with the law of the competent state agency regarding the allocation of the state budget expenditure estimate for the following year or subsequent years for programs, projects, and tasks.

3. National reserve expenditure is the state budget expenditure task to purchase goods for national reserves in accordance with the law on national reserves.

4. Development investment expenditure is the state budget expenditure task, including basic construction investment expenditure and other development investment expenditure tasks as prescribed by law.

5. Basic construction investment expenditure is the state budget expenditure task to implement infrastructure economic and social investment programs and projects and investment programs and projects serving economic and social development.

6. Regular Expenses is the state budget expenditure task aimed at ensuring the operation of the state apparatus, political organizations, political-social organizations, supporting the activities of other organizations, and implementing regular state tasks on economic and social development, national defense, and security.

7. Debt repayment expenditure is the state budget expenditure task to repay maturing debts, including principal, interest, fees, and other costs arising from borrowing.

8. State budget contingency fund is an unallocated item in the state budget expenditure estimate that has been decided by the competent authority at each level of the budget.

9. Primary budget unit is a budget unit that is allocated a state budget by the Prime Minister or the People's Committee.

10. Budget unit is an agency, organization, or unit that is allocated a state budget by the competent authority.

11. Budget user unit is a budget unit directly managing and using the budget.

12. Budget surplus is the excess of total budget revenue over total budget expenditure of each level of the budget after the end of the fiscal year.

13. Local budget consists of state budget revenues allocated to local levels, supplementary revenues from the central budget for local budgets, and state budget expenditures under the responsibility of local levels.

14. State budget encompasses all revenues and expenditures of the State that are budgeted and implemented within a specific period determined by the competent state authority to ensure the performance of the State's functions and tasks.

15. Central budget consists of state budget revenues allocated to the central level and state budget expenditures under the responsibility of the central level.

16. Budget management decentralization refers to the determination of the scope, responsibilities, and authorities of various levels of government and budget units in managing the state budget in accordance with the economic and social management decentralization.

17. Financial reserve fund is a fund of the State formed from the state budget and other financial sources as prescribed by law.

18. State budget fund is the total amount of money of the State, including borrowed funds, on the accounts of state budgets at all levels at a given time.

19. Non-budget state financial fund is a fund established by the competent authority, operating independently from the state budget, with its own sources of revenue and expenditure tasks to fulfill specific tasks as prescribed by law.

20. Supplementary balance adjustment for the budget is the budget supplement from a higher level to a lower level to ensure that the lower-level government can balance its own budget to perform assigned tasks.

21. Targeted supplementary amount is the budget supplement from a higher level to a lower level to support the implementation of specific programs, projects, and tasks.

22. Budget revenue and expenditure verification figure is the state budget revenue and expenditure figure announced by the competent authority to each level of the budget, agencies, organizations, and units as the basis for preparing the annual state budget estimate and the three-year financial and budget plan.

23. Local budget stabilization period is the five-year period during which the percentage share of revenues between budget levels and the supplementary balance adjustment from higher-level budgets to lower-level budgets remain stable, coinciding with the five-year socio-economic development plan or as decided by the National Assembly.

24. Percentage share of revenues between budget levels is the percentage share that each budget level receives from the total shared revenues between budget levels.

Article 5. Scope of State Budget

1. State budget revenue includes:

a) All tax and fee revenues;

b) All service fees collected from activities carried out by state agencies, where costs are allocated, such fees can be deducted; service fees collected from activities carried out by public service units and state-owned enterprises and submitted to the state budget in accordance with the provisions of the law;

c) Non-repayable aid grants from governments, organizations, and individuals outside the country to the Government of Vietnam and local authorities;

d) Other revenues as prescribed by law.

2. State budget expenditure includes:

a) Investment development expenditure;

b) National reserve expenditure;

c) Recurrent expenditure;

d) Interest payment expenditure;

đ) Aid expenditure;

e) Other expenditures as prescribed by law.

3. State budget deficit.

4. Total borrowing of the state budget, including borrowing to offset the budget deficit and borrowing to repay the principal of the state budget debt.

Article 6. State Budget System

1. The state budget consists of the central budget and local budgets.

2. Local budgets consist of the budgets of various levels of local authorities.

Article 7. Principles of State Budget Balance

1. Tax, fee, and other revenues as prescribed by law are fully consolidated into the state budget balance, according to the principle of not being tied to specific expenditure tasks. In cases where certain revenues need to be tied to specific expenditure tasks as prescribed by law, they are allocated correspondingly from these revenues in the state budget expenditure plan for implementation. Issuing budget revenue policies must ensure the principle of medium-term and long-term budget balance and implement international integration commitments.

2. The state budget is balanced according to the principle that total tax, fee, and levy revenues must exceed total recurrent expenditure and contribute increasingly to investment development expenditure; in cases of deficit, the deficit amount must be smaller than investment development expenditure, moving towards balancing revenue and expenditure in the state budget; in special cases, the Government shall submit to the National Assembly for consideration and decision. In cases of surplus in the state budget, it may be used to repay the principal and interest on state budget loans.

3. Borrowing to offset the state budget deficit can only be used for investment development, not for recurrent expenditure.

4. Central government budget deficit is offset by the following sources:

a) Domestic borrowing from issuing government bonds, national construction bonds, and other domestic borrowings as prescribed by law;

b) Foreign borrowing from loans from foreign governments, international organizations, and issuing government bonds on the international market, excluding loans for onward lending.

5. Local government budget deficit:

a) Provincial local government budget expenditure can have a deficit; the local government budget deficit can only be used to invest in projects included in the medium-term public investment plan decided by the People's Council at the provincial level;

b) The local government budget deficit is offset by domestic borrowings from issuing local government bonds, onward lending from the government's borrowed funds for onward lending, and other domestic borrowings as prescribed by law;

c) The local government budget deficit is consolidated into the state budget deficit and decided by the National Assembly. The Government shall specify the conditions for allowing local government budget deficits to ensure compatibility with the local repayment capacity and the total state budget deficit.

6. Level of debt borrowing of the local government budget:

a) For Hanoi City and Ho Chi Minh City, it does not exceed 60% of the local government budget revenue received under the revenue-sharing arrangement;

b) For localities where the local government budget revenue received under the revenue-sharing arrangement exceeds the local government recurrent expenditure, it does not exceed 30% of the revenue received under the revenue-sharing arrangement;

c) For localities where the local government budget revenue received under the revenue-sharing arrangement is equal to or less than the local government recurrent expenditure, it does not exceed 20% of the revenue received under the revenue-sharing arrangement.

Article 8. Principles of State Budget Management

1. The State budget shall be managed uniformly, centrally, democratically, efficiently, economically, transparently, and fairly; there shall be division of management responsibilities; and powers shall be linked with the responsibilities of state administrative agencies at all levels.

2. All revenue and expenditure items of the State budget must be included fully in the budget estimate.

3. Revenue for the State budget shall be collected in accordance with tax laws and collection regulations prescribed by law.

4. Expenditure from the State budget may only be implemented when approved by the competent authority and must comply with the established standards and expenditure limits set by the competent state agency. At all levels, budgetary units and budget users may not undertake expenditure tasks without financial sources, and budget estimates that would result in arrears in construction investment or regular expenditure.

5. Priority shall be given to allocating the budget to implement Party and State policies on economic development; poverty alleviation; ethnic policies; gender equality goals; agricultural, rural, education, training, health, science, and technology development, and other important policies during each period.

6. Allocate the budget to fulfill tasks related to economic and social development; ensure national defense, security, diplomacy, and operational funding for the state apparatus.

7. The State budget shall ensure balanced funding for the activities of political organizations and socio-political organizations.

8. Funding for the activities of socio-professional organizations, social organizations, and socio-professional organizations shall be self-funded according to the principle; the State budget will only support tasks assigned by the Government.

9. Ensure payment of interest-bearing debts due within the scope of State budget expenditures.

10. Decisions on investment and program/project expenditure using State budget funds must be consistent with the Public Investment Law and relevant legal provisions.

11. The State budget does not provide operating funds for state financial funds outside the budget. In cases where the State budget provides capital contributions in accordance with the law, it must be commensurate with the State budget's capacity and can only be implemented when the following conditions are met: established and operated in accordance with the law; have independent financial capability; have revenue and expenditure tasks that do not overlap with those of the State budget.

Article 9. Principles of Division of Management Authority over Revenue Sources, Expenditure Tasks, and Relationships between Levels of Budgets

1. The central budget and the budget of each level of local government shall be allocated specific revenue sources and expenditure tasks.

2. The central budget plays a leading role, ensuring the implementation of national expenditure tasks, supporting localities that cannot balance their budgets, and providing support to localities as stipulated in Clause 3, Article 40 of this Law.

3. Local budgets shall be allocated revenue sources to ensure autonomy in implementing assigned expenditure tasks. The People's Council of the province shall decide on the allocation of revenue sources and expenditure tasks among levels of the local budget in accordance with the economic and social management division, national defense, security, and the management capacity of each level within its territory.

4. Expenditure tasks belonging to a certain level of budget shall be guaranteed by that level's budget; the issuance and implementation of new policies and systems that increase budget expenditure must ensure financial resources and be consistent with the budget's balancing capacity at each level; decisions on investment in programs and projects using budget funds must be within the budget range as allocated.

5. When a state management agency at a higher budget level delegates a state management agency at a lower budget level to carry out its expenditure tasks, it must allocate and assign a budget estimate to the delegated agency to perform these tasks. The agency receiving delegated funds must settle accounts with the delegating agency for these funds.

6. Implement proportional distribution percentages (%) for revenue items divided between levels of budgets and supplementary amounts from higher-level budgets to lower-level budgets based on ensuring fairness and balanced development among regions and localities.

7. During the stable budget period:

a) Do not change the percentage (%) distribution of revenue items between levels of budgets;

b) Annually, based on the balancing capacity of the higher-level budget, the competent authority decides to increase the supplementary balancing amount from the higher-level budget to the lower-level budget compared to the first year of the stable budget period;

c) Targeted supplementary amounts from the higher-level budget to the lower-level budget are determined according to principles, criteria, and budget allocation standards and expenditure standards, limits, and the capacity of the higher-level budget and the balancing capacity of each lower-level locality;

d) Localities may use the annual increased revenue that the local budget receives according to the allocation to increase spending on economic and social development tasks and to ensure national defense and security. For the increase in revenue compared to the actual implementation estimate as stipulated in Clause 2, Article 59 of this Law.

In special cases, if new projects entering operation during the stable budget period generate significant additional revenue for the local budget, the additional revenue must be remitted to the higher-level budget. The Government shall submit to the National Assembly, and the Provincial People's Committee shall submit to the Provincial People's Council to decide on remitting the additional revenue to the higher-level budget and implementing targeted supplements to the lower-level budget as stipulated in Point d, Clause 3, Article 40 of this Law to support infrastructure investment in the locality according to the project approved by the competent authority;

đ) In cases where the local budget experiences revenue shortfalls compared to the estimate due to objective reasons, it shall be handled in accordance with the provisions of Clause 3, Article 59 of this Law.

8. After each budget stabilization period, localities must enhance their ability to balance themselves, develop the local budget, gradually reduce the proportion of supplementary balancing from higher-level budgets compared to the total expenditure of the local budget, or increase the percentage (%) of revenue submitted to higher-level budgets for revenue sharing between levels to increase resources for higher-level budgets to fulfill national expenditure tasks and promote balanced development among localities.

9. It is not allowed to use the budget of this level to fund tasks of another level, nor to use the budget of one locality to fund tasks of another locality, except in the following cases:

a) The lower-level budget supports units under the management of higher-level authorities located within its territory in urgent situations requiring the mobilization of higher-level forces when natural disasters, calamities, epidemics, and other emergencies occur to ensure economic and social stability, security, and public safety in the locality;

b) Units under the management of higher-level authorities located within its territory, while performing their functions, also carry out certain tasks at the request of lower-level authorities;

c) Using the local government's contingency reserve to support other localities in overcoming the consequences of severe natural disasters and calamities.

10. In cases where the implementation of international treaties leads to a reduction in revenue for the central budget, the Government shall submit to the National Assembly for adjustment of the revenue distribution between the central budget and local budgets to ensure the leading role of the central budget.

Article 10. Contingency Reserve of the State Budget

1. The allocation of the contingency reserve ranges from 2% to 4% of the total expenditure of the state budget at each level.

2. The contingency reserve of the state budget is used for:

a) Expenditure on prevention, control, and mitigation of natural disasters, calamities, epidemics, famine relief, and important defense and security tasks, and other necessary tasks within the expenditure responsibilities of the budget at that level which have not been included in the budget estimate;

b) Supporting the lower-level budget to implement the tasks specified in point a of this clause, after the lower-level budget has used its own contingency reserve but still cannot meet the needs;

c) Supporting other localities according to the provisions of point c of Clause 9 of Article 9 of this Law.

3. Authority to decide on the use of the contingency reserve of the state budget:

a) The Government stipulates the authority to decide on the use of the central government's contingency reserve, regularly reports to the Standing Committee of the National Assembly on the use of the central government's contingency reserve, and reports to the National Assembly at the nearest session;

b) People's Committees at all levels decide on the use of their own contingency reserve, regularly report to the Standing Committee of the People's Council and report to the same-level People's Council at the nearest session.

Article 11. Financial Reserve Fund

1. The Government and Provincial People's Committees (hereinafter referred to as provincial level) establish a financial reserve fund from increased revenues, budget surpluses, allocations in annual budget estimates, and other financial sources as prescribed by law, with the balance of the financial reserve fund at each level not exceeding 25% of the annual budget estimate of that level.

2. The financial reserve fund is used in the following cases:

a) To provide the budget with temporary advances to meet budgetary expenditure needs according to the budget estimate when revenue has not yet been collected in time and must be repaid immediately within the fiscal year;

b) In cases where state budget revenue or borrowing to cover budget deficits does not reach the level decided by the National Assembly or People's Council and to implement emergency tasks such as prevention, control, and mitigation of widespread natural disasters, calamities, epidemics, defense, security tasks, and other urgent tasks outside the budget estimate, after rearranging the budget and using up the contingency reserve, if there is still a shortfall, the financial reserve fund may be used to meet expenditure needs, but the maximum amount used in a year should not exceed 70% of the beginning-of-year balance of the fund.

3. The Government stipulates the authority to decide on the use of the financial reserve fund.

Article 12. Conditions for Implementing State Budget Revenue and Expenditure

1. State budget revenue must be implemented in accordance with the provisions of this Law, tax laws, and other legal regulations on state budget revenue.

2. State budget expenditure can only be implemented when it is included in the assigned budget estimate, except in cases provided for in Article 51 of this Law; it has been decided by the head of the budget-using unit, the project owner, or the authorized person to make such decisions, and meets the conditions specified below in each case:

a) For construction investment expenditure, it must comply with the conditions stipulated by the laws on public investment and construction.

b) For regular expenditure, it must ensure compliance with the prescribed budget expenditure standards, norms, and systems set by competent state agencies; in cases where agencies and units have been permitted by authorized authorities to operate under an autonomous mechanism and bear responsibility for their own staffing and funding, they shall implement internal expenditure regulations and align with the assigned autonomous budget estimates.

c) For national reserve expenditure, it must meet the conditions stipulated by the laws on national reserves.

d) For tender packages within tasks, programs, and projects that require bidding to select contractors for consultancy services, goods procurement, and construction works, tenders must be organized in accordance with the laws on bidding.

đ) For expenditures related to work carried out through the government's ordering method or plan assignment, it must follow the price or fee and service charge regulations issued by the competent authority.

Article 13. Accounting and Settlement of State Budget Revenue and Expenditure

1. State budget revenue and expenditure shall be recorded in Vietnamese Dong. In cases where state budget revenue and expenditure are in foreign currency, they shall be converted into Vietnamese Dong at the accounting exchange rate prescribed by the competent authority for recording purposes at the time of occurrence.

2. All state budget revenue and expenditure items must be fully, promptly, and accurately accounted for and settled in accordance with the prescribed system.

3. State budget accounting and settlement shall be uniformly conducted in accordance with the state accounting system, state budget item list, and the provisions of this Law.

4. Financial vouchers for state budget revenue and expenditure shall be issued, used, and managed in accordance with the provisions of the law.

Article 14. Fiscal Year

The fiscal year begins on January 1 and ends on December 31 of the Gregorian calendar year.

Article 15. Transparency of State Budget

1. The draft state budget submitted to the National Assembly and People's Councils; the draft state budget approved by the competent authority; reports on the implementation of the state budget; the final accounts of the state budget approved by the National Assembly and People's Councils; the draft, implementation status, and final accounts of budgetary units, organizations supported by the state budget, and construction investment programs and projects funded by the state budget shall be disclosed according to the following provisions:

a) The content of disclosure includes: data and explanatory reports of the draft state budget submitted to the National Assembly and People's Councils, the approved draft state budget, the implementation status of the state budget, and the final accounts of the state budget; results of implementing the recommendations of the State Audit Agency; excluding detailed data and explanatory reports in the fields of national defense, security, and national reserves.

b) Disclosure of the state budget shall be carried out through one or more forms: announcement at meetings, posting at the offices of agencies, organizations, and units; publication in printed materials; notification in writing to relevant agencies, organizations, units, and individuals; uploading to electronic information websites; announcement on mass media.

c) Reports on the draft state budget must be disclosed no later than five working days from the date the Government sends them to National Assembly deputies and the People's Councils send them to People's Council deputies.

Reports on the approved draft state budget, approved final accounts of the state budget, audit results of the state budget, and results of implementing the recommendations of the State Audit Agency must be disclosed no later than thirty days from the date of issuance of the document.

Quarterly and semi-annual reports on the implementation status of the state budget must be disclosed no later than fifteen days from the end of the quarter and six months.

Annual reports on the implementation status of the state budget must be disclosed when the Government submits them to the National Assembly during the mid-year session.

2. Transparency of state budget procedures:

a) Entities required to disclose include revenue collection agencies, financial agencies, and the State Treasury.

b) The content of disclosure includes: regulations on procedures and processes for declaration, collection, payment, reduction, extension, and refund of revenues; advance payments, disbursements, and settlements of state budget funds.

c) Disclosure shall be carried out through posting at transaction locations and announcements on the electronic information website of the agency.

3. Disclosed content must be complete according to the indicators and formats prescribed by the Ministry of Finance.

4. Responsible entities must disclose in accordance with the provisions of Clause 1 and Clause 2 of this Article; if they fail to disclose fully and on time, they will be subject to legal sanctions.

5. The Government shall provide detailed regulations on the transparency of the state budget.

Article 16. Community Oversight of State Budget

1. The state budget is overseen by the community. At all levels, the Vietnam Fatherland Front shall take the lead in organizing the community's oversight of the state budget. The content of the community's oversight of the state budget includes:

a) Compliance with legal provisions on the management and use of the state budget;

b) The implementation situation of the annual state budget estimate;

c) The implementation of public disclosure of the state budget in accordance with Article 15 of this Law.

2. The Government shall provide detailed regulations on the community's oversight of the state budget.

Article 17. Five-Year Financial Plan

1. The five-year financial plan is a financial plan established within a five-year period together with the five-year socio-economic development plan. The five-year financial plan sets out general and specific financial and state budget targets; major directions for finance and state budget; domestic revenue and its structure, crude oil revenue, export-import balance revenue; expenditure and its structure for investment development, debt repayment, regular expenditure; direction on state budget deficit; national foreign debt limit, public debt, government debt; main solutions to implement the plan.

2. The five-year financial plan is used for:

a) Implementing the national, sectoral, and local socio-economic development goals; balancing and using state financial resources and the state budget effectively over the medium term; promoting transparency in the state budget;

b) Serving as a basis for competent authorities to consider and decide on the medium-term investment plan funded by the state budget;

c) Guiding the preparation of the annual state budget estimate and the three-year financial and state budget plan.

3. The five-year financial plan consists of the national five-year financial plan and the provincial five-year financial plan under the central government.

4. The Ministry of Finance is responsible for leading the construction of the national five-year financial plan to be reported to the Government and submitted to the National Assembly for consideration; the Department of Finance is responsible for preparing the local five-year financial plan to be reported to the People's Council at the same level for consideration and decision-making along with the submission of the first year's budget estimate during the planning period.

5. The Government shall provide detailed regulations on the preparation of the five-year financial plan.

Article 18. Prohibited Acts in the Field of State Budget

1. Exploiting positions and powers to embezzle or negligently cause damage to state budget revenues.

2. Collecting taxes and other state budget revenues contrary to tax laws and other legal provisions on revenue collection; improperly dividing revenue sources between different levels of budgets; retaining state budget revenues contrary to regulations; arbitrarily setting up revenue items contrary to legal provisions.

3. Expenditure without a budget estimate, except as provided for in Article 51 of this Law; expenditure not in accordance with the allocated budget estimate; expenditure contrary to regulations, standards, and quotas, not in accordance with the purpose; arbitrarily setting up expenditure items contrary to legal provisions.

4. Deciding on investment programs and projects using state budget funds beyond authority or without clearly identifying the funding source.

5. Borrowing contrary to legal provisions; borrowing exceeding the budget's balancing capacity.

6. Using the state budget for lending, advance payments, or capital contributions contrary to legal provisions.

7. Delaying budget expenditure when all conditions for expenditure have been met according to legal provisions.

8. Accounting incorrectly according to the state accounting system and the state budget schedule.

9. Submitting the state budget estimate and final accounts late compared to the prescribed deadlines.

10. Approving and auditing the state budget final accounts contrary to legal provisions.

11. Withdrawing state budget funds from the State Treasury for expenditures not included in the approved budget estimate, except for temporary budget advances and pre-budget appropriations for the following year as stipulated in Articles 51 and 57 of this Law.

12. Other prohibited acts in the field of state budget as prescribed by relevant laws.

Chapter II

DUTIES, POWERS OF STATE ORGANIZATIONS

AND RESPONSIBILITIES, OBLIGATIONS OF ORGANIZATIONS, INDIVIDUALS

REGARDING THE STATE BUDGET

Article 19. Duties and powers of the National Assembly

1. Enacting and amending laws in the financial-budgetary sector.

2. Deciding on basic policies regarding state finance and budget; prescribing, amending, or abolishing taxes; deciding on the safe limit for national debt, public debt, and government debt.

3. Deciding on the five-year financial plan.

4. Deciding on the state budget estimate:

a) The total revenue of the state budget, including domestic revenue, crude oil revenue, revenue from export and import activities, and non-repayable aid revenue;

b) The total expenditure of the state budget, including central budget expenditure and local budget expenditure, detailed according to development investment expenditure, national reserve expenditure, regular expenditure, interest payment expenditure, aid expenditure, and supplementary financial reserve fund expenditure; within development investment expenditure and regular expenditure, specific expenditure levels for education-training and vocational training; science and technology fields;

c) The state budget deficit, including the central budget deficit and local budget deficit, detailed by each locality; sources to cover the state budget deficit;

d) The total amount of borrowing of the state budget, including borrowing to cover the state budget deficit and borrowing to repay the principal of the state budget.

5. Deciding on the allocation of the central budget:

a) The total expenditure of the central budget allocated; development investment expenditure by field; regular expenditure by field; national reserve expenditure; interest payment expenditure, aid expenditure; supplementary financial reserve fund expenditure; budget reserve;

b) The estimate of development investment expenditure, regular expenditure, national reserve expenditure, and aid expenditure of each ministry, agency at the level of ministries, and other agencies under the central government by field;

c) The level of supplementation from the central budget to each local budget, including balanced budget supplementation and targeted supplementation.

6. Deciding on the percentage ratio (%) between the central budget and each local budget for revenues specified in Clause 2 of Article 35 of this Law.

7. Approving the policy on investment in national target programs and important national projects funded from the state budget.

8. Deciding on adjustments to the state budget estimate when necessary.

9. Approving the final accounts of the state budget.

10. Supervising the implementation of the state budget, basic policies on national finance and budget, and resolutions of the National Assembly on the state budget.

11. Abolishing documents issued by the President, Standing Committee of the National Assembly, Government, Prime Minister, Supreme People's Court, and Supreme People's Procuracy concerning finance and budget that contravene the Constitution, laws, and resolutions of the National Assembly.

Article 20. Duties and powers of the Standing Committee of the National Assembly

1. Issuing ordinances and resolutions on finance and budget matters as prescribed by law.

2. Giving opinions on draft laws, reports, and other projects on finance and budget presented to the National Assembly by the Government.

3. Issuing regulations on the preparation, examination, and decision-making of the state budget estimate, the distribution plan of the central budget, and the approval of the final accounts of the state budget.

4. Giving opinions on important budget expenditure systems with wide-ranging impacts related to the implementation of national socio-economic tasks presented by the Government.

5. Deciding on:

a) Principles, criteria, and standards for allocating the state budget;

b) Supplementing the increased revenue estimate of the state budget; distributing and using the increased revenue and savings from the central budget, reporting to the National Assembly at the nearest session.

6. Supervising the implementation of laws, resolutions of the National Assembly; ordinances, resolutions of the Standing Committee of the National Assembly on finance and budget.

7. Suspending the enforcement of government and Prime Minister's regulatory legal documents on finance and budget that contravene the Constitution, laws, and resolutions of the National Assembly, and submitting to the National Assembly at the nearest session to decide on the cancellation of those documents.

8. Abolishing government and Prime Minister's regulatory legal documents on finance and budget that contravene ordinances and resolutions of the Standing Committee of the National Assembly.

9. Abolishing provincial People's Council resolutions on finance and budget that contravene the Constitution, laws, resolutions of the National Assembly, ordinances, and resolutions of the Standing Committee of the National Assembly.

Article 21. Tasks and Authorities of the National Assembly's Finance and Budget Committee

1. Review draft laws, ordinances, and other reports and projects related to finance and budget assigned by the National Assembly and the Standing Committee of the National Assembly.

2. Chair the review of the state budget estimate, central budget allocation plan, state budget estimate adjustment plan, report on state budget implementation, and state budget settlement, principles, criteria, and standards for central budget allocation, and plans for using additional revenue and savings from the central budget submitted by the Government to the National Assembly and the Standing Committee of the National Assembly.

3. Review important budget expenditure systems with wide-ranging impacts related to national socio-economic tasks submitted by the Government to the Standing Committee of the National Assembly.

4. Supervise the implementation of laws, resolutions of the National Assembly, ordinances, and resolutions of the Standing Committee of the National Assembly concerning finance and budget; supervise the implementation of the state budget and financial policies.

5. Supervise normative legal documents of the Government, Prime Minister, Ministers, Heads of ministerial-level agencies, and joint normative legal documents between competent central agencies concerning finance and budget.

6. Propose issues within the scope of finance and budget.

Article 22. Tasks and Authorities of the National Ethnic Council and Other Committees of the National Assembly

1. Within their respective tasks and authorities, coordinate with the National Assembly's Finance and Budget Committee and relevant government agencies to review draft laws, ordinances, state budget estimates, central budget allocation plans, reports on state budget implementation, state budget settlements, and other projects and reports on finance and budget assigned by the Government to the National Assembly and the Standing Committee of the National Assembly.

2. Supervise the implementation of laws, resolutions of the National Assembly, ordinances, and resolutions of the Standing Committee of the National Assembly concerning finance and budget; supervise the implementation of the state budget and financial policies within their areas of responsibility.

3. Propose issues related to financial-budget matters within their respective areas of responsibility.

Article 23. Tasks and Authorities of the State Audit Agency

1. Conduct audits of the state budget and report audit results to the National Assembly and the Standing Committee of the National Assembly; send audit reports to the President of the State, the Government, the Prime Minister, the National Ethnic Council, the National Assembly's committees, and other relevant agencies as prescribed by the Law on State Audit.

2. Submit to the National Assembly an audit report on the state budget settlement for the National Assembly to consider and approve the state budget settlement.

3. Participate with the National Assembly's Finance and Budget Committee and other government agencies in reviewing reports on the state budget estimate, central budget allocation plan, and state budget estimate adjustment plan.

Article 24. Tasks and Authorities of the President of the State

1. Announce laws and ordinances concerning finance and budget.

2. Perform tasks and authorities stipulated by the Constitution and laws in conducting negotiations, signing, deciding to ratify or submitting to the National Assembly for approval international treaties concerning finance and budget.

3. Request the Government to convene meetings regarding state finance and budget activities when necessary.

Article 25. Tasks and Authorities of the Government

1. Submit to the National Assembly and the Standing Committee of the National Assembly draft laws, ordinances, and other reports and projects related to finance and state budget; issue regulatory legal documents on finance and state budget within its authority.

2. Prepare and submit to the National Assembly the five-year financial plan and the three-year state financial and budgetary plan.

3. Prepare and submit to the National Assembly the annual state budget estimate and the central budget allocation plan; adjust the state budget estimate when necessary.

4. Based on the National Assembly's resolution on the state budget estimate and central budget allocation, decide on the revenue and expenditure tasks for each ministry, agency at ministerial level, government agency, and other central agencies according to the provisions set out in point b, Clause 5, Article 19 of this Law; the revenue and expenditure tasks, deficit, percentage (%) division between the central budget and local budgets for shared revenues and additional allocations from the central budget for each province and centrally-administered city according to the provisions set out in points a, b, c, and d, Clause 4, point c, Clause 5, and Clause 6, Article 19 of this Law.

5. Uniformly manage the state budget, ensuring close coordination between sectoral management agencies and localities in implementing the state budget.

6. Decide on measures and organize the implementation of the state budget as decided by the National Assembly; inspect the implementation of the state budget; report to the National Assembly and the Standing Committee of the National Assembly on the implementation of the state budget, national target programs, and important national projects decided by the National Assembly on investment policies.

7. Report to the National Assembly and the Standing Committee of the National Assembly on finance and budgeting when requested.

8. Prescribe procedures and processes for preparing budget estimates, revenue collection, control, payment of expenditures, finalization of the budget; advance budget estimates for the following year; use budget reserves; use the financial reserve fund and other state financial funds according to the provisions of this Law and other relevant laws.

9. Decide on important budget expenditure systems with wide-ranging impacts, related to the implementation of national socio-economic tasks after seeking opinions from the Standing Committee of the National Assembly.

10. Decide on unified standards and norms for budget expenditures nationwide; for certain budget expenditure standards and norms, to suit local characteristics, prescribe frameworks and delegate provincial People's Councils to make specific decisions.

11. Establish principles, criteria, and norms for budget allocation to prepare draft budgets and allocate budgets for ministries, agencies at ministerial level, government agencies, and other central agencies and localities, to be decided by the Standing Committee of the National Assembly as a basis for budget preparation and allocation.

12. Guide and inspect People's Councils in implementing higher-level state agency documents; inspect the legality of People's Council resolutions.

13. Prepare and submit to the National Assembly the finalization of the state budget, finalization of important national programs and projects decided by the National Assembly on investment policies.

14. Issue regulations on examining and deciding on local budget estimates and allocations, approving local budget finalizations.

15. Prescribe the implementation of budget management based on the results of task completion.

Article 26. Tasks and Authorities of the Ministry of Finance

1. Prepare draft laws, ordinances, five-year financial plans, three-year state budget plans, and other projects related to finance and budget, submit them to the Government; issue legal regulatory documents on finance and budget matters within its authority.

2. Establish principles, criteria, and standards for the allocation of regular expenditures from the state budget; systems, standards, and norms for state budget spending, financial and budgetary management mechanisms, accounting, payment, settlement, state budget item lists, reporting systems, and public disclosure of finance and budget matters to be submitted to the Government for promulgation or to be issued according to the Government's tiered authority for uniform implementation nationwide.

3. Decide on the issuance of systems, standards, and norms for state budget spending for sectors and fields after reaching consensus with sectoral and field management ministries; in cases where there is no consensus, the Ministry of Finance shall submit to the Prime Minister for consideration and opinion before making a decision.

4. Draft and submit to the Government the state budget estimate, central budget allocation plan, and adjusted state budget estimate when necessary. Organize the implementation of the state budget; uniformly manage and direct tax collection, fees, charges, loans, and other revenues of the budget, international aid sources; organize the implementation of state budget spending according to the assigned estimate. Aggregate and prepare the state budget settlement report to submit to the Government.

5. Lead in building and submitting to the competent authority for approval the objectives and directions for borrowing and using capital and managing public debt in each five-year period; medium-term debt management programs; a system of indicators for monitoring government debt, public debt, and foreign debt of the country; annual borrowing and repayment plans of the Government.

6. Inspect financial and budget regulations of ministries, ministerial-level agencies, People's Councils, People's Committees, and Chairpersons of provincial-level People's Committees; in cases where provisions in these documents contravene the Constitution, laws, resolutions of the National Assembly, ordinances, and resolutions of the Standing Committee of the National Assembly, and higher-level state agency documents, it has the right:

a) To recommend that the Minister or Head of a ministerial-level agency suspend the enforcement or revoke documents issued by ministries or ministerial-level agencies;

b) To recommend that the Prime Minister suspend the enforcement of resolutions of provincial-level People's Councils;

c) To recommend that the Prime Minister revoke provisions of People's Committees and Chairpersons of provincial-level People's Committees as stipulated by law.

7. Conduct financial and budget inspections, handle violations or recommend competent authorities to handle violations according to the law regarding financial and budget management systems of ministries, ministerial-level agencies, government agencies, other central-level agencies, localities, economic organizations, administrative units, public service units, and other entities obligated to pay into and use the state budget.

8. Manage the state budget fund, national reserve fund, and other state funds as prescribed by law.

9. Evaluate the effectiveness of state budget spending.

10. Implement public disclosure of the state budget as provided for in Article 15 of this Law.

Article 27. Tasks and Authorities of the Ministry of Planning and Investment

1. Establish principles, criteria, and budget allocation standards for state investment development funds to be submitted to the Government; prepare plans for allocating central government investment budgets.

2. Coordinate with the Ministry of Finance and relevant ministries and agencies in developing five-year financial plans, annual state budget estimates, and three-year state financial-budget plans.

Article 28. Tasks and Authorities of the State Bank of Vietnam

1. Coordinate with the Ministry of Finance in formulating and implementing plans for borrowing to offset state budget deficits.

2. To temporarily advance funds to the state budget to address temporary shortages in the state budget fund according to the Prime Minister's decision.

Article 29. Tasks and Authorities of Ministries, Agencies Equivalent to Ministries, Government Agencies, and Other Central Agencies

1. Prepare annual state budget estimates and three-year state financial-budget plans for their respective agencies.

2. Coordinate with the Ministry of Finance and relevant ministries and agencies during the process of compiling state budget estimates, annual central government budget allocation plans, five-year financial plans, three-year state financial-budget plans, and annual final accounts within their respective sectors and fields of responsibility.

3. Monitor the implementation of the budget within their respective sectors and fields of responsibility.

4. Report on the results and effectiveness of budget utilization within their respective sectors and fields of responsibility.

5. Issue technical-economic norms as a basis for managing the budget based on the results of tasks within their respective sectors and fields of responsibility.

6. Coordinate with the Ministry of Finance in establishing systems, standards, and budget expenditure norms within their respective sectors and fields of responsibility.

7. Manage, organize the implementation, and settle accounts and disclose information regarding allocated budgets; ensure effective use of state budgets.

8. Ministers, Heads of Agencies Equivalent to Ministries, Government Agencies, and Other Central Agencies must implement assigned financial-budget tasks accurately and bear responsibility for any violations within their management scope according to the law.

Article 30. Tasks and Authorities of People's Councils at All Levels

1. Based on the budget revenue and expenditure tasks assigned by superiors and the actual situation in the locality, to decide:

a) Annual state budget revenue estimate on their territory, including domestic revenue, crude oil revenue, export-import activity revenue, non-reimbursable aid revenue, ensuring it does not fall below the state budget revenue estimate assigned by higher authorities;

b) Local state budget revenue estimate, including local state budget revenues that they enjoy 100%, the portion of local state budget revenues from shared revenue items, and additional revenue from higher-level budgets;

c) Local state budget expenditure estimate, including expenditures of their own level and lower-level local state budgets, detailed by development investment expenditures, regular expenditures, debt interest payments, supplementary financial reserve fund expenditures, and budget reserves. Within development investment expenditures and regular expenditures, specific amounts are allocated for education-training and vocational training, science and technology fields;

d) Total borrowing amount of local state budgets, including borrowing to offset local state budget deficits and borrowing to repay local state budget principal debts.

2. Decision on the allocation of the local state budget estimate at its own level:

a) Total figures; development investment expenditures and regular expenditures by sector; supplementary local financial reserve fund expenditures; budget reserves;

b) Development investment and regular expenditure estimates of each agency and unit under their jurisdiction by sector;

c) Additional funding for directly subordinate local budgets, including balanced budget supplements and targeted supplements.

3. Approve local state budget final accounts.

4. Decide on policies and measures to implement local state budgets.

5. Decide on adjustments to local state budget estimates when necessary.

6. Supervise the implementation of budgets decided upon by the People's Council.

7. Repeal financial-budget normative legal documents issued by People's Committees, Chairmen of People's Committees, and directly subordinate People's Councils that contravene the Constitution, laws, resolutions of the National Assembly, ordinances, resolutions of the Standing Committee of the National Assembly, and higher-level state agency documents.

8. Decide on the list of programs and projects under the medium-term investment plan funded by the state budget at their level; decide on important local investment programs and projects funded by the state budget.

9. For Provincial People's Councils, in addition to the tasks and authorities stipulated in Articles 1, 2, 3, 4, 5, 6, 7, and 8 of this Article, they also have the following tasks and authorities:

a) Decide on five-year financial plans including general and specific goals of the five-year financial plan; state budget revenue capacity on their territory; local state budget revenue and expenditure, local state budget deficit, and borrowing limits; main solutions to implement the plan;

b) Local state budget deficit and sources to offset the local state budget deficit annually;

c) Decide on the allocation of revenue sources and expenditure responsibilities for each level of local budget according to Clause 3 of Article 9 of this Law;

d) Decide on the percentage distribution between local government budgets for the portion of local state budget revenues from shared revenue items as stipulated in Clause 2 of Article 37 of this Law and other shared revenue items between local budget levels;

đ) Decide on fees, charges, and contributions from citizens as prescribed by law;

e) Decide on principles, criteria, and budget allocation standards for local budgets;

g) Decide on specific provisions for certain systems, standards, and budget expenditure norms within the framework established by the Government;

h) Decide on budget expenditure systems for certain special-purpose tasks at the local level outside the systems, standards, and budget expenditure norms issued by the Government and the Minister of Finance to implement economic-social development tasks, ensure social order and safety, consistent with the local budget balance capacity.

The Government shall provide detailed regulations on this point.

Article 31. Tasks and Authorities of People's Committees at all levels

1. Prepare the local budget estimate, allocation plan for their own level budget according to the contents specified in Clause 1 and Clause 2 of Article 30 of this Law; adjust the local budget estimate when necessary, submit to the same-level People's Council for decision and report to the administrative state agencies and the higher-level financial agency.

2. Prepare the final account of the local budget, submit to the same-level People's Council for approval and report to the administrative state agencies and the higher-level financial agency.

3. Inspect the resolutions of lower-level People's Councils on finance-budget matters.

4. Based on the resolutions of the same-level People's Council, decide on the assignment of revenue and expenditure tasks for each subordinate agency and unit; revenue and expenditure tasks, supplementary amounts for lower-level budgets, and the percentage (%) distribution among different levels of budgets within the locality for shared revenues.

5. Decide on measures and organize the implementation of the local budget estimate decided by the People's Council; inspect and report on the implementation of the local budget.

6. Coordinate with higher-level state agencies in managing the state budget within their jurisdiction.

7. Report and disclose the state budget in accordance with the provisions of the law.

8. Implement budget management based on the results of task performance as prescribed by the Government.

9. For provincial People's Committees, in addition to the tasks and authorities stipulated in Clauses 1, 2, 3, 4, 5, 6, 7, and 8 of this Article, they also have the task:

a) Prepare and submit to the same-level People's Council for decision the contents specified in Clause 9 of Article 30 of this Law;

b) Prepare the three-year state finance-budget plan as provided for in Article 43 of this Law;

c) Decide on the use of the financial reserve fund and other financial funds of the State in accordance with this Law and other relevant laws.

10. Direct the local financial agency to take the lead in coordinating with related agencies to assist the People's Committee in performing the tasks as stipulated in Clauses 1, 2, 3, 4, 5, 6, 7, 8, and 9 of this Article.

11. The Chairpersons of People's Committees at all levels shall organize the implementation of the assigned tasks and authorities in the field of finance-budget and bear responsibility for any violations within their management scope as prescribed by law.

Article 32. Tasks and Authorities of Budgetary Units

1. Prepare annual revenue and expenditure budget estimates; implement the budget estimate allocation assigned by the competent authority to subordinate units and adjust the allocation according to authority; prepare the three-year state finance-budget plan within the management scope as provided for in Article 43 of this Law.

2. Organize the implementation of the assigned revenue and expenditure budget estimates; pay all required budget payments fully and on time as prescribed by law; spend according to regulations, policies, purposes, and objects, ensuring economy and effectiveness.

3. Guide and inspect the implementation of revenue and expenditure for subordinate units.

4. Adhere to the accounting and statistical regulations of the law; report, settle accounts, and disclose the budget as prescribed by law; approve the settlement accounts of subordinate budgetary units.

5. For public service organizations, in addition to the tasks and authorities stipulated in Clauses 1, 2, 3, and 4 of this Article, they may independently use lawful revenue sources such as fees to develop and improve the quality and efficiency of operations as prescribed by the Government.

6. For public service organizations and state agencies implementing the self-management mechanism, they must issue internal expenditure regulations consistent with the self-managed budget estimate as prescribed by law.

7. Heads of budgetary units shall implement the assigned tasks and authorities in the field of finance-budget correctly and bear responsibility for any violations within their management scope as prescribed by law.

Article 33. Tasks and Authorities of the Project Investor

1. Implement investment projects through the stages of the investment process: investment preparation, project preparation, project implementation, acceptance, handover, in compliance with the laws on state budget management, public investment, construction, and other relevant laws.

2. Strictly comply with the laws on contracts, accounting, statistics, reporting, settlement, transparency, and archiving of project files.

Article 34. Authorities and Obligations of Agencies, Organizations, Units, and Individuals Related to the State Budget

1. Pay all taxes, fees, charges, and other amounts due to the state budget in full and on time as prescribed by law.

2. In cases where they receive government subsidies, capital, and funds from the state according to the approved budget, they must manage and use these funds for their intended purposes, in accordance with regulations, economically, and efficiently, and settle accounts with the financial agency.

3. Comply with the provisions of the law on accounting, statistics, and budget disclosure.

4. Be provided with information and participate in community financial-budgetary oversight as prescribed by law.

Chapter III

SOURCES OF REVENUE AND EXPENDITURE RESPONSIBILITIES OF BUDGETS AT VARIOUS LEVELS

Article 35. Sources of Revenue for the Central Government Budget

1. Central budget revenue items that the central government enjoys 100%:

a) Value-added tax collected from imported goods;

b) Export tax, import tax;

c) Special consumption tax collected from imported goods;

d) Environmental protection tax collected from imported goods;

đ) Resource tax, corporate income tax, dividends paid to the host country, and other revenues from oil and gas exploration and exploitation activities;

e) Non-reimbursable aid from governments of other countries, international organizations, other organizations, and individuals abroad to the Government of Vietnam;

g) Fees collected from service activities conducted by central state agencies, which may be deducted if cost-sharing arrangements are in place; fees collected from service activities by public institutions and central state-owned enterprises may be retained partially or entirely, with the remainder remitted to the budget in accordance with laws on fees and charges and other relevant laws;

h) Fees collected by central state agencies, except for land registration fees as stipulated in point h, Clause 1, Article 37 of this Law;

i) Proceeds from administrative penalties, fines, and other confiscations as prescribed by law, carried out by central state agencies;

k) Revenues from the sale of state assets, including land use fees attached to assets on land managed by central agencies, organizations, and units;

l) Revenues from assets established as state property by central agencies, organizations, and units;

n) Revenues from the central financial reserve fund;

o) Surpluses of the central government budget;

p) Transferred revenues from the previous year to the central government budget;

q) Other revenues as prescribed by law.

2. Revenues divided between the central budget and local budgets according to a percentage ratio (%):

a) Value-added tax, excluding value-added tax as specified in point a, Clause 1, of this Article;

b) Corporate income tax, excluding corporate income tax as specified in point đ, Clause 1, of this Article;

c) Personal income tax;

d) Special consumption tax, excluding special consumption tax as specified in point c, Clause 1, of this Article;

đ) Environmental protection tax, excluding environmental protection tax as specified in point d, Clause 1, of this Article.

3. The Government shall provide detailed regulations on this Article.

Article 36. Central budget expenditure tasks

1. Development investment expenditures:

a) Investment in projects, including inter-regional and regional projects of ministries, ministerial-level agencies, government agencies, and other central agencies in the fields specified in Clause 3 of this Article;

b) Investment and capital support for enterprises providing public goods and services ordered by the State; economic organizations; central financial organizations; state capital investment in enterprises in accordance with the provisions of the law;

c) Other development investment expenditures as prescribed by law.

2. National reserve expenditure.

3. Regular expenditure of ministries, ministerial-level agencies, government agencies, and other central agencies classified in the following areas:

a) National defense;

b) Security and social order, social safety;

c) Education and training affairs and vocational training;

d) Science and technology affairs;

đ) Health, population, and family affairs;

e) Cultural information affairs;

g) Broadcasting, television, and news agency affairs;

h) Physical education and sports affairs;

i) Environmental protection affairs;

k) Economic activities;

l) Activities of state management agencies, political organizations, and political-social organizations; support for activities of socio-professional organizations, social organizations, and socio-professional organizations in accordance with the provisions of the law;

m) Social security expenditure, including expenditure to implement social policies in accordance with the provisions of the law;

n) Other expenditures as prescribed by law.

4. Interest payment on loans made by the Government.

5. Aid expenditure.

6. Expenditure for loans in accordance with the provisions of the law.

7. Expenditure to supplement the central financial reserve fund.

8. Expenditure to transfer the central budget source to the next year.

9. Expenditure to balance the budget and targeted supplementary expenditure for local budgets.

Article 37. Sources of local budget revenue

1. Local budget revenues receiving 100%:

a) Resource tax, except resource tax from oil and gas exploration and exploitation activities;

b) Business registration fee;

c) Agricultural land use tax;

d) Non-agricultural land use tax;

đ) Land use fee, except for land use fees at point k, Clause 1 of Article 35 of this Law;

e) Land rental and water surface rental fees;

g) Fees from renting and selling state-owned housing;

h) Stamp duty;

i) Revenue from lottery operations;

l) Revenue from the local financial reserve fund;

m) Revenue from the sale of state assets, including land use fees attached to land assets managed by local agencies, organizations, and units;

n) Non-reimbursable aid from international organizations, other organizations, and individuals abroad directly to localities;

o) Fees from service activities carried out by local state agencies, where operating costs are allocated, they can be deducted; fees from service activities carried out by public service organizations and state-owned enterprises represented by provincial People's Committees may retain a portion or all, with the remainder to be remitted to the budget in accordance with the law on fees and charges and other relevant laws;

p) Fees collected by local state agencies;

q) Revenue from administrative fines, penalties, and other confiscations according to the law carried out by local state agencies;

r) Revenue from property established as state ownership by local agencies, organizations, and units;

s) Revenue from public land funds and other public asset income;

t) Mobilization of contributions from agencies, organizations, and individuals in accordance with the law;

u) Local budget surplus revenue;

v) Other revenues as prescribed by law.

2. Revenues divided between the central budget and local budgets in percentages as stipulated in Clause 2 of Article 35 of this Law.

3. Supplementary revenue to balance the budget and targeted supplementary revenue from the central budget.

4. Revenue transferred from the previous year's local budget.

Article 38. Expenditure tasks of local budgets

1. Development investment expenditures:

a) Investment in projects managed by localities in accordance with the fields specified in Clause 2 of this Article;

b) Investment and capital support for enterprises providing public goods and services ordered by the State, economic organizations, and financial organizations of localities in accordance with the provisions of the law;

c) Other expenditures as prescribed by law.

2. Recurrent expenditures of agencies and units at the local level classified in the following areas:

a) Education and training affairs and vocational training;

b) Science and technology affairs;

c) National defense, security, public order, social safety, parts managed by localities;

d) Health, population, and family affairs;

đ) Cultural information affairs;

e) Broadcasting and television affairs;

g) Physical education and sports affairs;

h) Environmental protection affairs;

i) Economic activities;

k) Activities of state management agencies, political organizations, and political-social organizations; supporting activities for socio-professional organizations, social organizations, and socio-professional organizations in accordance with the provisions of the law;

l) Social security expenditures, including expenditures to implement social policies as prescribed by law;

m) Other expenditures as prescribed by law.

3. Interest payments on debts incurred by local authorities.

4. Supplementary funding for local financial reserves.

5. Transfers to the next fiscal year from the local budget.

6. Supplementary balance adjustments to the budget and targeted supplementary allocations to lower-level budgets.

7. Support for implementing certain tasks stipulated in Points a, b, and c of Clause 9, Article 9 of this Law.

Article 39. Principles for the allocation of revenue sources and expenditure tasks between local government budgets at different levels

1. Based on the revenue sources and expenditure tasks of the local budget as prescribed in Articles 37 and 38 of this Law, the Provincial People's Council decides on the specific allocation of revenue sources and expenditure tasks between local government budgets at different levels according to the following principles:

a) Consistent with the division of economic and social tasks, national defense, and security responsibilities for each field and the economic, geographic, demographic characteristics, and management capacity of each region and locality;

b) The village and town budgets shall be allocated revenues from land use tax for non-agricultural purposes; business license fees collected from individuals and households engaged in business; agricultural land use tax collected from households; and registration fees for houses and land;

c) Village and district budgets shall not have research and development expenditure tasks;

d) In allocating expenditure tasks for towns and cities under provinces, there must be investment construction tasks for public primary and secondary schools, street lighting, water supply and drainage, urban transportation, urban sanitation, and other public welfare facilities.

2. Based on the percentage ratio assigned by the Government for shared revenue and the full revenue sources of the local budget, the Provincial People's Council decides on the percentage ratio for the allocation of shared revenue among local government budgets at different levels.

Article 40. Determining the amount of supplementary balance adjustments to the budget, targeted supplements, and the percentage ratio for the allocation of revenue among local government budgets at different levels

1. Local budgets may use revenue sources they fully enjoy, the shared revenue allocated according to the percentage ratio, and supplementary balance adjustments from higher-level budgets to balance their own revenue and expenditure, ensuring the assigned economic and social, national defense, and security tasks.

2. The percentage ratio for the allocation of revenue and supplementary balance adjustments is determined based on:

a) Calculating the revenue sources and expenditure tasks as prescribed in Articles 35, 37, and 38 of this Law according to budget revenue collection systems, principles, criteria, and budget allocation standards, and budget expenditure systems, standards, and allocation criteria, taking into account the population, natural conditions, economic and social conditions of each region; paying special attention to remote areas, border regions, revolutionary bases, areas with large ethnic minority populations, and difficult areas; areas with large rice-growing land areas; protective forests, special-use forests; key economic zones;

b) For local budget revenue sources as prescribed in Points đ and i of Clause 1, Article 37 of this Law, these shall not be used to determine the percentage ratio for the allocation of revenue between the central and local budgets and to determine the supplementary balance adjustment amount from the central budget to the local budget.

3. Targeted supplementary amounts from higher-level budgets to lower-level budgets are determined according to budget allocation principles, criteria, and standards, and budget expenditure systems, standards, and allocation criteria; the financial capacity of the higher-level budget and the financial balancing capacity of each lower-level locality, to support lower-level budgets in the following cases:

a) Implementing new policies and systems issued by higher levels that were not included in the initial budget estimate for the first year of the budget stabilization period;

b) Implementing national target programs and other programs and projects of higher levels assigned to lower levels;

c) Supporting expenditures to mitigate widespread natural disasters, epidemics beyond the financial balancing capacity of lower-level budgets;

d) Supporting the implementation of major and particularly important programs and projects with significant impacts on local economic and social development. The level of support is specifically determined for each program and project. The total annual investment development support from the central budget to the local budget under this provision shall not exceed 30% of the total basic construction expenditure of the central budget.

Chapter IV

 PREPARATION OF THE STATE BUDGET ESTIMATE

Article 41. Basis for preparing the annual state budget estimate

1. Tasks for economic and social development and ensuring national defense, security, foreign affairs, gender equality.

2. Specific tasks of ministries, ministerial-level agencies, government agencies, central-level organizations, and local agencies, organizations, and units.

3. Legal provisions on taxes, fees, charges, and state budget revenue collection systems; budget allocation standards, regulations, and expenditure standards and norms of the state budget.

4. Allocation of revenue sources, expenditure tasks of the state budget, and the percentage (%) distribution of shared revenues and the level of supplementary balanced budget transfers from higher-level budgets to lower-level budgets.

5. Legal documents of state authorities at various levels guiding the preparation of plans for economic and social development and the annual state budget estimate.

6. Five-year financial plan, three-year financial and state budget plan, medium-term investment plan from the state budget.

7. Implementation status of the state budget in the previous year.

8. The amount of budget revenue and expenditure estimates notified to relevant levels, agencies, organizations, and units.

Article 42. Requirements for preparing the annual state budget estimate

1. The state budget estimate must be compiled according to each revenue and expenditure item and according to the structure of development investment expenditures, recurrent expenditures, national reserve expenditures, debt repayment and aid expenditures, supplementary financial reserve fund expenditures, and budget reserves.

2. The state budget estimates of budgetary units at all levels must fully reflect all revenue and expenditure items in accordance with the prescribed forms and deadlines set by authorized state agencies. Among them:

a) The state budget revenue estimate is based on macroeconomic indicators and related indicators, legal provisions on taxes, fees, charges, and state budget revenue collection systems;

b) The development investment expenditure estimate is based on approved planning, programs, and projects; five-year financial plans, medium-term investment plans from the state budget, the ability to balance resources within the budget year, legal provisions on public investment, construction, and other relevant legal provisions;

c) The recurrent expenditure estimate is based on assigned tasks and tasks approved by authorized agencies, expenditure standards and norms prescribed by state agencies. Budgetary units under the self-management system, which are responsible for staffing and administrative management expenses, and public service units exercising autonomy and responsibility for implementing tasks, organizational structures, staffing, and finances, shall comply with government regulations;

d) The state budget expenditure for education, training, vocational training, science, and technology sectors must ensure the stipulated ratios under relevant laws;

đ) The estimate for implementing national target programs is based on the list of programs, total funding for national target programs in each phase decided by the National Assembly, objectives, contents, tasks, and detailed component projects for each national target program;

e) The debt repayment estimate is based on ensuring the payment of maturing debts in the budget year;

g) The estimate for borrowing to cover budget deficits must be based on the state budget balance, the capacity of each borrowing source, the ability to repay debts, and within the safe debt limit as decided by the National Assembly.

Article 43. Three-year State Financial-Budget Plan

1. The three-year State Financial-Budget Plan is the annual State Financial-Budget Plan established for a period of three years based on the five-year financial plan, starting from the budget year and the following two years, through a rolling method. This plan is established at the same time as the annual State Budget preparation to guide the annual State Budget preparation process; set priorities for resource allocation for each sector and each task, activity, regime, policy for each sector in the medium term.

2. The three-year State Financial-Budget Plan includes the national three-year State Financial-Budget Plan and the provincial three-year State Financial-Budget Plan of centrally governed cities. Contents include: macroeconomic indicators forecast, important fiscal policies; revenue and expenditure forecasts and revenue and expenditure structure; government budget deficit forecast; determination of principles for balancing the State budget and priority order for allocating budget resources, ceiling for expenditures in various fields, development investment expenditure tasks, debt repayment expenditure, regular expenditure; forecast of contingent liabilities and main solutions to implement the plan within the three-year period.

3. Ministries, ministerial-level agencies, government agencies, central-level agencies, provincial-level agencies, units establish the three-year State Financial-Budget Plan, including: objectives, tasks, main regimes and policies of the industry, agency, unit; forecast of financial resources, including forecast of assigned revenues, requirements for budget expenditure to implement; demonstrate principles and methods for determining and prioritizing the implementation of tasks, activities, regimes, policies and projected allocation of funds within the total expenditure ceiling determined by the competent authority; main solutions to balance budget expenditure needs with the expenditure ceiling within the three-year period.

4. The Ministry of Finance takes the lead and coordinates with the Ministry of Planning and Investment to compile the national three-year State Financial-Budget Plan, report to the Government for submission to the National Assembly; the Department of Finance takes the lead and coordinates with the Department of Planning and Investment to compile the provincial three-year State Financial-Budget Plan of centrally governed cities, report to the Provincial People's Council for submission to the same-level People's Council for reference during discussions, examination, and approval of the annual State Budget and budget allocation plan.

5. The Government stipulates the establishment of the three-year State Financial-Budget Plan.

Article 44. Timeframe for Directing the Preparation, Construction, Consolidation, Decision-Making, and Allocation of the Annual State Budget

1. Before May 15, the Prime Minister issues regulations on the construction of economic and social development plans and the next year's State Budget.

2. Before September 20, the Government submits the required reports under Clause 1 of Article 47 of this Law to the Standing Committee of the National Assembly for comments.

3. Government reports are sent to National Assembly deputies at least 20 days before the opening of the National Assembly's final session of the year.

4. Before November 15, the National Assembly decides on the next year's State Budget and the central budget allocation plan.

5. Before November 20, the Prime Minister allocates the next year's budget revenue and expenditure to each ministry, ministerial-level agency, government agency, central-level agency, and each province and centrally governed city.

6. Before December 10, the Provincial People's Council decides on the local budget and provincial budget allocation for the next year. Lower-level People's Councils decide on their local budgets and budget allocations for the next year no later than ten days after the higher-level People's Council decides on the budget and allocation.

7. Within five working days from the date the People's Council decides on the State Budget, the same-level People's Committee allocates the next year's State Budget to each subordinate agency and unit and lower level; simultaneously, report to the superior People's Committee and finance agency, and the Provincial People's Committee reports to the Ministry of Finance about the State Budget decided by the Provincial People's Council.

8. Before December 31, ministries, ministerial-level agencies, government agencies, central-level agencies, and all levels of People's Committees must complete the allocation of the next year's State Budget to each subordinate agency and unit and lower-level People's Committees.

Article 45. Responsibilities of agencies, organizations, and units in preparing annual budget estimates

1. Local revenue collection agencies at all levels shall prepare local state budget revenue estimates within their jurisdiction and submit them to higher-level revenue collection agencies and same-level financial agencies. Central revenue collection agencies shall prepare national state budget revenue estimates for their assigned sectors and submit them to the Ministry of Finance for consolidation and preparation of the national state budget estimate.

2. Agencies, organizations, units, and project sponsors shall prepare budget revenue and expenditure estimates within their assigned tasks and report to higher-level management agencies for consolidation and reporting to same-level financial agencies.

3. Financial agencies at all local levels shall examine budget estimates from same-level agencies, organizations, and units, as well as lower-level local budgets; take the lead in coordinating with relevant agencies in consolidating and preparing local budgets and their own budget allocation plans according to the criteria specified in Clause 1 and Clause 2 of Article 30 of this Law, and report to the People's Councils at the same level.

4. People's Councils at all levels shall consolidate and prepare local budget estimates, report to the Standing Committee of the People's Councils at the same level for review and comments. Provincial People's Councils shall send the consolidated national state budget estimates to the Ministry of Finance, the Ministry of Planning and Investment, and other relevant agencies as required for consolidation and preparation of the national state budget estimates to be submitted to the Government; simultaneously sending them to the National Assembly Delegation for supervision.

5. Central and local sectoral and field management agencies shall coordinate with same-level financial agencies and planning and investment agencies in preparing the national state budget estimates according to their assigned sectors and fields.

6. The Ministry of Finance shall examine budget estimates from ministries, ministerial-level agencies, government agencies, and other central and local agencies; take the lead and coordinate with the Ministry of Planning and Investment and related ministries and sectors in consolidating and preparing the national state budget estimates and central budget allocation plans to be submitted to the Government according to the provisions set out in Clause 1 of Article 47 of this Law.

Article 46. Discussion and Decision on the National State Budget Estimate and Annual Budget Allocation Plan

1. Ministries, ministerial-level agencies, government agencies, and other central agencies and local agencies and units shall organize discussions with their subordinate agencies and units.

2. Financial agencies at all levels shall take the lead in organizing:

a) Discussions on annual budget estimates with same-level agencies and units;

b) Discussions on the first-year budget estimate during the budget stabilization period with lower-level People's Councils directly under them to determine the percentage (%) of revenue division between upper-level and lower-level budgets, and the amount of supplementary balance transferred from the upper-level budget to the lower-level budget as a basis for preparing subsequent years' budget estimates;

c) For subsequent years during the budget stabilization period, financial agencies shall organize meetings with lower-level People's Councils directly under them when such People's Councils request.

3. During the discussion process on budget estimates and budget allocation plans, if there are revenues and expenditures in the estimates that do not comply with legal regulations, are not suitable for budget capacity, and do not align with economic and social development orientations, financial agencies shall require adjustments. In cases where there are differing opinions between financial agencies and same-level agencies and units and lower-level People's Councils, local financial agencies shall report to the same-level People's Council for decision-making; the Ministry of Finance shall report to the same-level People's Council for decision-making; the Ministry of Finance shall report to the Prime Minister for decision-making.

4. Examination and submission to the National Assembly for decision on the national state budget estimate and central budget allocation plan:

a) The Government shall discuss and provide comments on draft reports submitted by the Ministry of Finance before submitting them to the National Assembly Standing Committee;

b) The National Assembly's Finance and Budget Committee shall take the lead in examining the Government's reports submitted to the National Assembly Standing Committee and the National Assembly;

c) Based on the examination opinions of the National Assembly's Finance and Budget Committee and the Standing Committee of the National Assembly, the Government shall complete the reports to be submitted to the National Assembly;

d) The National Assembly shall discuss and decide on the national state budget estimate and the central budget allocation plan for the following year. During the discussion and decision-making process on the national state budget estimate and the central budget allocation plan, in cases where decisions are made to adjust revenues and expenditures, the National Assembly shall decide on measures to ensure budget balance.

5. The procedures and processes for examination by National Assembly agencies on the national state budget estimate and central budget allocation plan shall be stipulated by the National Assembly Standing Committee.

6. The examination and decision-making on local budget estimates and local budget allocation plans shall be carried out in accordance with the Government's regulations.

Article 47. Documents for the State budget estimate and budget allocation plan

1. The documents that the Government submits to the National Assembly on the State budget estimate and the central budget allocation plan include:

a) An assessment of the implementation of the State budget in the current year; bases for building the State budget estimate and central budget allocation; key contents and solutions to implement the State budget estimate;

b) The State budget revenue estimate, along with measures to mobilize sources of revenue for the State budget;

c) The State budget expenditure estimate, specifying the main objectives and important programs of the national economy and major policies of the Party and the State related to the State budget;

d) The State budget deficit and sources to offset it; the ratio of the deficit to the gross domestic product;

đ) A five-year financial plan for the first year of the planning period;

e) A three-year state financial-budget plan;

g) A report on public debt information according to the Public Debt Management Law, including the amount of debt due for repayment, overdue debt, interest payable in the year, additional debt arising from borrowing to offset the State budget deficit, the ability to repay debt in the year, and the debt at the end of the year;

h) A report on the implementation of the financial plan and the projected financial plan for the following year of state financial funds outside the budget managed by the central government;

i) Specific policies and measures to stabilize the finances and the State budget;

k) A list, progress, and annual investment budget estimate for important national programs and projects using State budget capital decided by the National Assembly;

l) The expenditure budget estimate for each ministry, agency equivalent to a ministry, agency under the Government, and other agencies at the central level by field; revenue and expenditure tasks, deficit rate, percentage (%) distribution of shared revenues, and additional funding from the central budget for each province and centrally-administered city;

m) Other documents clarifying the State budget revenue and expenditure estimates and the central budget allocation plan; information on tax exemptions and reductions in the State budget estimate report submitted to the National Assembly.

2. The Government shall specify the documents that People's Committees submit to the People's Councils at the same level regarding the local budget estimate and budget allocation plan.

Article 48. Re-preparation of the State budget estimate

1. In cases where the State budget estimate and the central budget allocation plan have not been decided by the National Assembly, the Government shall re-prepare the State budget estimate and the central budget allocation plan to be submitted to the National Assembly at the time determined by the National Assembly.

2. In cases where the local budget estimate and the budget allocation plan of their own level have not been decided by the People's Council, the People's Committee shall re-prepare the local budget estimate and the budget allocation plan of their own level to be submitted to the People's Council at the time determined by the People's Council, but not later than the deadline set by the Government.

Chapter V

IMPLEMENTATION OF THE STATE BUDGET

Article 49. Allocation and assignment of the State budget estimate

1. After being assigned the State budget estimate by the Government and People's Committee, primary budget units at the central and local levels shall allocate and assign the State budget estimate to subordinate budget-using units and lower-level budget units when authorized to perform expenditure tasks, and send it to the same-level finance authority, while also sending it to the State Treasury office handling the transaction for implementation. The allocation and assignment of the budget estimate must comply with the deadlines and requirements stipulated in Article 50 of this Law.

2. The same-level finance authority shall inspect the primary budget unit's allocation of the budget estimate to budget-using units. If discrepancies are found in the total amount and detailed allocation by field and task of the allocated budget estimate; if they do not comply with established policies and regulations, the primary budget unit shall be required to adjust within no more than ten working days from the date of receipt of the allocation report from the budget unit.

3. Apart from the authorized body assigning the State budget estimate, no organization or individual may change the assigned budget tasks.

Article 50. Requirements and deadlines for allocation and assignment of state budget estimates

1. The allocation and assignment of estimates to budget-using units must ensure:

a) Compliance with the total and detailed estimates assigned across all fields and revenue and expenditure tasks;

b) Compliance with policies, systems, standards, and expenditure norms;

c) Adequate funding and expenses to recover pre-allocated amounts due for recovery within the year, and counterpart funds for official development assistance (ODA) projects according to commitments made by foreign sponsors;

d) For investment development allocations, ensure compliance with requirements stipulated by laws on public investment, construction, and other relevant laws;

đ) For supplementary allocations from higher-level budgets to lower-level budgets, ensure compliance with objectives, target groups, and implementation of commitments or regulations regarding local budget allocation for those objectives;

2. Deadlines for allocation and assignment of state budget estimates:

a) For estimates assigned pursuant to Clauses 5 and 7 of Article 44 of this Law, primary budget units must complete the allocation and assignment of estimates to subordinate budget-using units before December 31 of the preceding year as prescribed in Clause 8 of Article 44 of this Law;

b) In cases where supplementary estimates are assigned, the upper-level budget unit and the People's Committee at the lower level must complete the allocation and assignment of estimates within ten working days from the date of receiving the supplementary estimates, in accordance with the provisions;

Article 51. Provisional Budget Allocation

1. In cases where the state budget estimate and the budget allocation plan have not been decided upon by the National Assembly or People's Councils at the beginning of the fiscal year, financial agencies and State Treasury agencies at all levels shall temporarily allocate the budget for non-deferrable expenditure tasks until the state budget estimate is decided upon by the competent authority:

a) Salaries and other allowances of a salary nature;

b) Business operation fees and public service fees;

c) Supplementary balance adjustments for lower-level budgets;

d) Certain necessary expenditures to ensure the operation of the state machinery, excluding procurement of equipment and maintenance;

đ) Expenditures for ongoing national target programs' projects, important national projects; critical and urgent investment continuation projects to address the aftermath of natural disasters, catastrophes, and epidemics;

2. The maximum monthly provisional allocation for the tasks specified in Points a, b, c, and d of Clause 1 of this Article shall not exceed the average expenditure of one month of the previous year;

3. For investment programs and projects using ODA and preferential loans from sponsors that have not been budgeted or exceed the allocated budget, the Government shall report to the Standing Committee of the National Assembly for comments prior to implementation and report to the National Assembly at the nearest session;

Article 52. Adjustment of State Budget Estimates

1. Comprehensive adjustment of the state budget in cases where there are significant changes in the budget compared to the allocated estimates necessitating a comprehensive adjustment:

a) The Government shall prepare a comprehensive adjusted state budget estimate for the National Assembly to decide;

b) Based on the National Assembly's resolution on the comprehensive adjusted state budget estimate and the revenue and expenditure tasks assigned by superiors, People's Committees at all levels shall prepare a comprehensive adjusted local budget estimate for the People's Councils at the same level to decide;

2. The Government shall request the Standing Committee of the National Assembly to decide on the adjustment of revenue and expenditure tasks for some ministries, ministerial-level agencies, government agencies, central-level agencies, and certain provinces and centrally-administered cities under the following circumstances:

a) If it is anticipated that revenues will fall short of the estimates approved by the National Assembly, requiring a reduction in certain expenditure items;

b) There are urgent requirements for national defense and security or objective reasons necessitating an adjustment;

3. The People's Committee shall request the Standing Committee of the People's Council at the same level to decide on the adjustment of the local budget estimate and report to the People's Council at the nearest session under the following circumstances:

a) If it is anticipated that revenues will fall short of the estimates approved by the People's Council, requiring a reduction in certain expenditure items;

b) The Standing Committee of the National Assembly decides to adjust the budget estimates of certain provinces and centrally-administered cities as stipulated in Clause 2 of this Article;

c) When it is necessary to adjust the budget estimates of certain budgetary units or lower-level regions;

4. The Government requests the Provincial People's Council to adjust the budget estimate if the allocation of the local budget does not comply with the resolutions of the National Assembly;

5. The People's Committee requests the lower-level People's Council to adjust the budget estimate if the allocation of the local budget does not comply with the resolutions of the higher-level People's Council.

Article 53. Adjusting the budget estimates allocated to budget-using units

1. The budget estimates already allocated to budget-using units under the following circumstances shall be adjusted:

a) In accordance with the adjustment of the budget estimate as stipulated in Article 52 of this Law;

b) When the financial authority requests the first-level budget unit to adjust the budget estimate according to Clause 2 of Article 49 of this Law;

c) The first-level budget unit adjusts the budget estimate among subordinate units within the total amount and detailed allocation for each spending area as allocated.

2. The adjustment of the budget estimate must ensure the requirements for allocation and allocation of budget estimates as stipulated in Clause 1 of Article 50 of this Law. After completing the adjustment of the budget estimate, the first-level budget unit shall submit it to the same-level financial authority for inspection, and at the same time send it to the State Treasury where transactions take place for implementation.

3. The adjustment of the budget estimate allocated to budget-using units must be completed before November 15 of the current year.

Article 54. Organizing the management of the state budget

1. All agencies, organizations, units, and individuals within their respective duties and powers have the responsibility to propose necessary measures to ensure the completion of assigned revenue and expenditure tasks, implement thrift, prevent waste and corruption; strictly comply with financial discipline and regulations.

2. Every agency, organization, unit, and individual must fulfill their obligation to pay taxes according to the provisions of the law; use budget funds for the intended purpose, in accordance with regulations, thriftily, and effectively.

3. The financial authority has the responsibility to ensure sufficient sources to promptly settle expenditures according to the budget.

Article 55. Organizing the collection of the state budget

1. The tax collection agency is the financial authority, the tax agency, the customs agency, and other agencies authorized or entrusted by competent state authorities to organize the task of collecting the state budget.

2. Only the tax collection agency can organize the collection of the state budget.

3. The tax collection agency has the following responsibilities and powers:

a) Coordinate with relevant state agencies to organize the correct, full, and timely collection of taxes as prescribed by law; subject to the direction, supervision of the Ministry of Finance, superior management agencies, People's Committees, and the People's Councils' oversight on tax collection work in localities; cooperate with the Vietnam Fatherland Front and its member organizations to promote and mobilize organizations and individuals to strictly fulfill their tax payment obligations as stipulated by this Law and related laws;

b) Manage and implement the collection of taxes, fees, and other revenues directly deposited into the State Treasury. In cases where they are permitted to collect through direct debit, they must deposit fully and on time into the State Treasury as prescribed by the Ministry of Finance;

c) The tax collection agency has the responsibility to urge and inspect agencies, organizations, units, and individuals to fully and timely pay all revenues due to the state budget;

d) Inspect and control revenue sources for the state budget; inspect and audit compliance with declarations, collections, and payments to the state budget, and handle violations according to the law.

4. The State Treasury may open accounts at the State Bank of Vietnam and commercial banks to concentrate state budget revenues; record all revenues fully and promptly into the budget, and allocate revenues to budgets at various levels according to the prescribed regulations.

Article 56. State budget expenditure organization

1. Budgetary funds for tasks included in the budget estimate shall be ensured according to the implementation schedule and within the scope of the allocated budget estimate.

2. For investment projects and other urgent tasks, advance funding may be temporarily provided for the execution of works under signed contracts. The amount of advance funding shall be based on the value of the contract and within the scope of the allocated budget estimate, and in accordance with relevant laws. Advance funding shall be recovered upon settlement of the volume of work and completion of the task.

3. Lower-level budgets may be temporarily advanced from higher-level budgets to execute tasks according to the allocated budget estimate when necessary.

4. Based on the allocated budget estimate and the requirements for task execution:

a) The head of the budget-using unit decides to make expenditures sent to the State Treasury for implementation;

b) Lower-level financial agencies withdraw additional amounts from higher-level budgets at the State Treasury.

5. The State Treasury checks the legality of required documents in accordance with the law and implements state budget expenditures when all conditions specified in Clause 2, Article 12 of this Law are met, through direct payment or advance payment as stipulated in Clauses 2 and 3 of this Article.

6. The head of the State Treasury agency refuses to settle payments for expenditures that do not meet the conditions specified in Clause 2, Article 12 of this Law and bears responsibility for their decisions in accordance with the law.

Article 57. Advance allocation of the next year's state budget estimate

1. Central, provincial, and district budgets may advance the next year's state budget estimate to implement important national projects, urgent central and local projects under the medium-term investment plan funded by the state budget, which have been decided by the competent authority. The advance amount shall not exceed 20% of the construction investment budget estimate for basic construction projects under the medium-term investment plan funded by the state budget, which have been approved. When allocating the next year's budget estimate, sufficient estimates must be arranged to recover the entire advanced amount; advance allocation of the next year's budget estimate shall not be made before recovering the entire advanced state budget.

2. The Government shall specify detailed principles, criteria, and conditions for advancing the next year's state budget estimate.

Article 58. Handling temporary shortfalls in the state budget fund

1. In case of a temporary shortfall in the central state budget fund, it may be temporarily advanced from the central financial reserve fund and other legitimate sources to handle the situation and must be repaid within the fiscal year; if the central financial reserve fund and other legitimate sources cannot meet the needs, the State Bank of Vietnam shall provide an advance to the central state budget according to the Prime Minister's decision. The advance from the State Bank of Vietnam must be repaid within the fiscal year, except in special cases decided by the Standing Committee of the National Assembly.

2. In case of a temporary shortfall in the provincial state budget fund, it may be temporarily advanced from the local financial reserve fund, the central financial reserve fund, and other legitimate sources to handle the situation and must be repaid within the fiscal year.

3. In case of a temporary shortfall in the district and commune state budget funds, it may be temporarily advanced from the local financial reserve fund and other legitimate sources to handle the situation and must be repaid within the fiscal year.

Article 59. Handling of Increased or Decreased Revenue and Expenditure Compared to Budget Estimates During the Implementation of the State Budget

1. In cases where it is anticipated that revenue will not meet budget estimates as decided by the National Assembly and People's Councils, adjustments shall be made to reduce certain expenditures according to points a of Clause 2 and point a of Clause 3 of Article 52 of this Law.

2. The increased revenue, excluding increased revenue from local budgets due to new sources of income from projects starting operations during the period of stable budget which must be remitted to higher-level budgets, and the savings in expenditure compared to the budget estimate shall be utilized in the following order of priority:

a) Reducing the deficit, increasing expenditure for debt repayment, including principal and interest payments;

b) Supplementing the financial reserve fund;

c) Supplementing the source for implementing salary policies;

d) Implementing certain social welfare policies;

đ) Increasing investment in important projects;

e) Implementing tasks specified in Clauses 3 and 4 of this Article.

The Government shall develop a plan for using the increased revenue and savings from the central budget, report to the Standing Committee of the National Assembly for decision-making, and report to the National Assembly at the nearest session. The People's Committees shall develop a plan for using the increased revenue and savings from their respective budgets, report to the Standing Committee of the People's Councils for decision-making, and report to the People's Councils at the nearest session. For the increased revenue from local budgets due to new sources of income arising during the period of stable budget, implementation shall be carried out according to the provisions of point d of Clause 7 of Article 9 of this Law.

3. At the end of the fiscal year, in cases where local budgets have lower revenues than budget estimates due to objective reasons, after adjusting to reduce certain expenditures according to Clause 1 of this Article and utilizing other legitimate financial resources of the locality but still failing to ensure balance in the local budget, the higher-level budget shall provide support to the lower-level budget within its capacity.

4. Rewards for exceeding budget estimates on shared revenue items between different levels of budgets:

a) In cases where the central budget increases revenue compared to the budget estimate from shared revenue items between the central budget and local budgets, the central budget shall allocate a portion not exceeding 30% of the increased revenue as rewards for localities with increased revenue, but not exceeding the increase in revenue compared to the previous year's actual performance.

Based on the reward level decided by the Standing Committee of the National Assembly, the People's Committees at provincial level shall report to the same-level People's Councils for decisions on using the excess revenue rewards to invest in building infrastructure programs and projects, implement important tasks, and reward lower-level budgets.

b) The People's Committees at provincial level shall submit to the same-level People's Councils regulations regarding rewards for exceeding budget estimates from shared revenue items between different levels of budgets within the locality.

Article 60. Reporting on the Implementation of the State Budget

1. Tax authorities and customs offices at all levels shall regularly report to the same-level finance agencies and relevant agencies on the implementation of state budget revenue collection as prescribed by law.

2. The State Treasury shall regularly report to the same-level finance agencies and relevant agencies on the implementation of state budget revenue and expenditure as prescribed by law.

3. Primary budget units shall regularly report to the same-level finance agencies and relevant agencies on the implementation of state budget revenue and expenditure as prescribed by law.

4. Local finance agencies at all levels shall regularly report to the same-level People's Committees and relevant agencies on the implementation of local budget revenue and expenditure; report to higher-level finance agencies on the use of supplementary funds with specific purposes from higher-level budgets as prescribed by law.

5. Local People's Committees at all levels shall report to the Standing Committee of the same-level People's Councils on the contents stipulated in Clause 3 of Article 52 and Clause 2 of Article 59 of this Law; report to the same-level People's Councils on the implementation of the local budget at the final-year session and submit additional evaluation reports at the mid-year session the following year.

6. Lower-level People's Committees shall regularly report to higher-level finance agencies on the implementation of local budget revenue and expenditure; provincial-level People's Committees shall regularly report to the Ministry of Finance on the implementation of state budget revenue collection in their regions, and the implementation of local budget revenue and expenditure.

7. The Ministry of Finance shall regularly report to the Government and relevant agencies on the implementation of state budget revenue and expenditure as prescribed by law.

8. The Government shall report to the Standing Committee of the National Assembly on the contents stipulated in Clause 2 of Article 52 and Clause 2 of Article 59 of this Law; the Government shall report to the National Assembly on the implementation of state budget revenue and expenditure at the final-year session and submit additional evaluation reports on the implementation of state budget revenue and expenditure at the mid-year session the following year.

Article 61. Management and Use of Budget by Budgetary Units

1. The head of budgetary units shall be responsible for managing and using the budget according to the assigned estimates, evaluating the results of tasks performed, ensuring efficiency, thriftiness, compliance with policies, regulations, standards, and budget expenditure norms.

2. Financial and accounting personnel at budgetary units shall have the duty to implement financial management systems, state accounting systems, internal audit systems, and shall be responsible for preventing, detecting, and recommending to the unit's head and the same-level finance authority to handle violations.

Article 62. State Treasury Fund Management

1. The state treasury fund consists of all amounts of money of the State held in accounts opened by the State Treasury at the State Bank of Vietnam and commercial banks, and cash at State Treasury units. The state treasury fund is formed from budget funds at various levels and deposits of state financial funds, units, and economic organizations at the State Treasury.

2. The State Treasury manages the state treasury fund centrally and uniformly to meet fully and promptly the payment and disbursement needs of the state budget and transaction units at the State Treasury; ensuring safe management and effective use of the state treasury fund.

3. The Government shall stipulate the system of state treasury fund management.

Chapter VI

ACCOUNTING, AUDITING AND SETTLEMENT

STATE BUDGET

Article 63. Accounting and Settlement of the State Budget

1. Agencies, organizations, units, and individuals related to state budget revenue and expenditure must organize accounting entries, reporting, and settlement of the state budget in accordance with the state accounting system and the provisions of this Law.

2. The finance authority has the right to temporarily suspend budget expenditures of agencies, organizations, and budgetary units at the same level that fail to comply with the accounting reporting, settlement, and other financial reporting systems and shall be responsible for their decisions.

3. The State Treasury organizes accounting entries for the state budget; compiles revenue and expenditure data of the state budget, reports to the same-level finance authority and relevant agencies according to prescribed regulations.

Article 64. Handling of State Budget Revenue and Expenditure at Year-end

1. At the end of the fiscal year, agencies, organizations, units, and individuals related to state budget revenue and expenditure shall close their accounting books and prepare the state budget settlement report.

2. The period for adjusting the state budget settlement ends on January 31 of the following year.

3. Unspent budgetary allocations, including supplementary allocations during the year, by the end of the fiscal year, including the adjustment period for the state budget settlement as stipulated in Clause 2 of this Article, shall be canceled, except for certain allocations that can be transferred to the next year for implementation and recorded in the settlement of the next year's budget:

a) Development investment expenditures transferred to the next year in accordance with the Public Investment Law;

b) Procurement expenditures for equipment with complete procurement documentation and contracts signed before December 31 of the year in which the budget estimate was implemented;

c) Sources for implementing salary policies;

d) Autonomous funding allocated to public service units and state agencies;

đ) Budgetary allocations supplemented after September 30 of the year in which the budget estimate was implemented;

e) Research and scientific study funds.

4. Increased revenues and savings shall be used in accordance with Clause 2 of Article 59 of this Law; if the competent authority decides to use them in the following year, they may be transferred to the next year's budget for implementation.

5. The Government shall provide detailed regulations on transferring sources to the next year's budget.

Article 65. Request for Settlement of State Budget

1. The figures for settlement of the state budget must be accurate, truthful, and complete.

2. The settlement revenue figure of the state budget is the amount of revenue actually paid in and the amount of revenue recorded as state budget revenue according to regulations. Revenue from previous years' budgets that is paid into the following year's budget must be recorded as revenue of the following year's budget. The settlement expenditure figure of the state budget is the amount of expenditure actually settled and the amount of expenditure recorded as state budget expenditure according to regulations.

3. The settlement figures of budget-using units, project sponsors, and budgets at all levels must be cross-checked and confirmed with the State Treasury where transactions take place.

4. The contents of the report on settlement of the state budget must comply with the contents recorded in the assigned state budget estimates and according to the state budget classification.

5. The report on settlement of the district-level and commune-level budgets shall not settle expenditures exceeding revenues.

6. The report on settlement of budget-using units, higher-level budgetary units, and budgets at all levels must be accompanied by an explanation and evaluation of the results and effectiveness of budget expenditures linked to the actual performance of the unit, locality, sector, program, and objectives entrusted.

7. The report on settlement of state financial funds outside the budget must be accompanied by an explanation and evaluation of the results and effectiveness of the fund's performance.

8. Any state budget revenues collected in violation of legal provisions must be refunded to the agencies, organizations, units, or individuals who made the payments; any state budget revenues that should have been collected but were not must be fully recovered for the budget; any state budget expenditures that do not conform to legal provisions must be fully recovered for the budget.

Article 66. Approval of Settlement of State Budget

1. The examination and approval of annual settlement shall be carried out according to the following contents:

a) Examination and approval of each revenue and expenditure item occurring at the unit;

b) Revenues must comply with legal provisions on taxes, fees, and charges and other collection systems of the State;

c) Expenditures must ensure the conditions for expenditure stipulated in Clause 2 of Article 12 of this Law;

d) Revenues and expenditures must be recorded according to the national accounting system, correctly classified under the state budget, and within the fiscal year;

đ) Receipts and payment vouchers must be lawful, the figures in the accounting books and settlement reports must match the vouchers and match the figures of the State Treasury;

2. The agency examining and approving annual settlement:

a) Higher-level budgetary units examine and approve the settlement of lower-level budgetary units under their jurisdiction according to regulations;

b) In cases where a first-level budgetary unit is also a budget-using unit, the finance agency at the same level approves the budget settlement according to regulations applicable to first-level budgetary units at the same level;

3. When examining and approving settlement, the examining agency has the right:

a) To request the National Audit Office or to hire an independent auditing unit according to audit laws to audit the settlement reports of large-scale projects and programs to provide additional grounds for examination and approval;

b) To require the unit to explain or provide necessary information and figures to carry out the examination and approval of settlement;

c) To require the unit to immediately pay any amounts due to the state budget according to regulations and to reverse any expenditures made in violation of regulations or not in accordance with approved estimates; to handle according to authority or to propose the competent authority to handle the head of the unit who violates regulations causing loss to the state budget;

d) To adjust any errors or to require lower-level units to prepare new settlement reports if deemed necessary.

4. Upon completion of the examination and approval of annual settlement, the higher-level budgetary unit issues a notice of approval of settlement to the lower-level budgetary unit; for first-level budgetary units, it sends the notice to the lower-level budgetary unit and sends it to the finance agency at the same level for review according to regulations.

The finance agency issues a notice of examination and approval of settlement for first-level budgetary units that are also budget-using units.

5. The head of the agency examining and approving settlement shall be responsible for the results of the approval of settlement; if violations occur without detection or are detected but not handled, they will be dealt with according to the provisions of the law.

Article 67. Audit of final accounts of state budget

1. Auditing bodies:

a) Financial agencies at all levels shall audit the annual final accounts of primary budgetary units under their own level's budget, except for cases stipulated in point b, Clause 2, Article 66 of this Law;

b) Financial agencies at provincial and district levels shall audit the annual final accounts of lower-level budgets;

c) For the annual final accounts of provincial and centrally-administered city budgets, the Ministry of Finance shall not conduct audits.

2. Financial agencies at all levels shall audit the annual final accounts of primary budgetary units under their own level's budget according to the following contents:

a) Verify the completeness and consistency of final account figures in accordance with regulations; ensure consistency between the final account figures of primary budgetary units and the approved final account figures of subordinate agencies and organizations, and the confirmation of figures by the State Treasury;

b) Examine and determine the accuracy and legality of final account figures of increases and decreases compared to allocated budgets;

c) Comment on the annual final accounts.

3. Financial agencies at provincial and district levels shall audit the lower-level budgets according to the following contents:

a) Verify the completeness and consistency of final account figures in accordance with regulations;

b) Examine and determine the accuracy and legality of final account figures of increases and decreases compared to allocated budgets;

c) Comment on the annual final accounts.

4. When auditing final accounts, financial agencies have the right:

a) To request primary budgetary units and lower-level financial agencies to provide necessary information and figures for the audit of final accounts;

b) To request responsible agencies to refund improperly disbursed funds and require immediate payment of amounts due to the state budget according to prescribed regulations;

c) To request approving agencies to adjust the final account figures of budgetary units if there are errors;

d) To request refunds or propose competent authorities to request refunds of improperly paid amounts to the state budget.

5. Upon completion of the final account audit process, the financial agency shall issue an audit report on final accounts along with comments and recommendations sent to primary budgetary units or lower-level People's Councils for implementation.

In case of errors discovered, the financial agency shall require primary budgetary units to correct the final account figures; for lower-level budget final accounts, higher-level financial agencies shall require lower-level People's Councils to submit to the same-level People's Assembly for correction of final account figures.

In case of violations discovered, the financial agency shall handle according to its authority or propose competent authorities to handle according to the provisions of the law.

6. For the final accounts of provincial and centrally-administered city budgets, during the consolidation of national state budget final accounts, in case of errors discovered, the Ministry of Finance shall require provincial People's Councils to submit to the same-level People's Assembly for correction of final account figures. In case of violations discovered, the Ministry of Finance shall handle according to its authority or propose competent authorities to handle according to the provisions of the law.

Article 68. Preparation of final accounts of state budget by budgetary units and project sponsors

1. Budget-using units shall prepare final accounts of state budget revenues and expenditures of their own units and send them to the higher-level budgetary agency directly in charge.

2. Project sponsors of investment construction programs, national target programs, and key national projects:

a) At the end of the fiscal year, they must report on the final accounts of utilized funds, final accounts of state budget funds, usage situation, and completed value volume already finalized in the year, sending these reports to the capital disbursement agency for basic construction investment, the higher-level agency of the project sponsor, and the financial agency at the same level;

b) Upon completion of basic construction programs and national target programs, key national projects, they must prepare comprehensive final accounts of all funds, final accounts of state budget funds, accompanied by explanatory reports on fund usage, and send them to the capital disbursement agency for basic construction investment and the agency with authority to approve final accounts of construction projects, programs, and projects according to prescribed regulations;

c) For national target programs and key national projects decided on investment policies by the National Assembly, in addition to the provisions in points a and b of this clause, they must also prepare final accounts reports for submission to the Government for consideration and submission to the National Assembly.

3. Based on the approved final accounts of budget-using units, higher-level budgetary units shall prepare final accounts reports of state budget within their management scope and send them to the higher-level budgetary agency directly in charge; for primary budgetary units, send them to the financial agency at the same level.

Primary budgetary units shall specify deadlines for subordinate budgetary units to submit final accounts reports, but must ensure that final accounts reports are submitted to the financial agency at the same level according to the prescribed deadlines.

Article 69. Time Limit and Procedure for Finalizing Local Budgets

1. On the basis of reports from the State Treasury, the results of examination and verification of finalization reports of first-level budget units under their jurisdiction, and finalization reports of lower-level budgets that have been approved by the People's Council, the local financial authority shall compile and prepare finalization reports of local budgets to submit to the People's Committee at the same level.

2. The People's Committee shall send the finalization report of the local budget to the Committee of the People's Council at the same level for review; simultaneously sending it to the higher-level financial authority.

3. The People's Committee shall report to the Standing Body of the People's Council at the same level on the finalization of the local budget for comments before submitting it to the People's Council.

4. The finalization report of the local budget by the People's Committee and the review report of the Committee of the People's Council shall be sent to the representatives of the People's Council at the same level no later than five working days before the opening date of the mid-year session of the People's Council.

5. The People's Council of the commune shall examine and approve its own finalization report of the budget no later than five working days from the date of approval of the finalization report, and send it to the People's Committee of the district. The People's Committee of the district shall compile and prepare the finalization report of the district budget to submit to the People's Council of the district for approval, and send it to the People's Committee of the province no later than five working days from the date of approval of the finalization report. The People's Committee of the province shall compile and prepare the finalization report of the local budget to submit to the People's Council of the province for approval of the finalization of the local budget no later than December 31 of the following year.

The People's Council of the province shall specify the time limit for approving the finalization of the commune and district budgets and specify the time limit for the People's Committee to send the finalization report of the local budget to the authorities specified in Clause 2 and Clause 3 of this Article.

6. In cases where the finalization of budgets at various levels in the locality has not been approved by the People's Council, the People's Committee at the same level and the State Audit Agency which has conducted an audit of that level's budget must continue to clarify the contents requested by the People's Council and resubmit them within the time frame decided by the People's Council, but not later than thirty days from the deadline stipulated in Clause 5 of this Article.

Article 70. Time Limit and Procedure for Finalizing the National Budget

1. First-level budget units under the central budget shall prepare finalization reports of revenue and expenditure within their management scope and submit them to the Ministry of Finance and the State Audit Agency no later than October 1 of the following year.

2. The People's Committee of the province shall send the finalization report of the local budget to the Ministry of Finance and the State Audit Agency no later than October 1 of the following year.

3. No later than five working days from the date the People's Council of the province approves the finalization report of the local budget, the People's Committee of the province shall send the finalization report of the local budget to the Ministry of Finance and the State Audit Agency.

4. Based on reports from the State Treasury, the results of reviewing finalization reports of first-level budget units under the central budget and the finalization reports of local budgets that have been approved by the People's Council of the province, the Ministry of Finance shall compile and prepare the finalization report of the national budget to submit to the Government and send it to the State Audit Agency no later than fourteen months after the end of the fiscal year.

5. The Government shall report to the Standing Committee of the National Assembly on the finalization of the national budget no later than sixteen months after the end of the fiscal year for comments before submitting it to the National Assembly.

6. The finalization report of the national budget by the Government shall be sent to the National Assembly deputies no later than twenty days before the opening date of the mid-year session of the National Assembly.

7. The National Assembly shall examine and approve the finalization of the national budget no later than eighteen months after the end of the fiscal year.

8. The procedures and formalities for the review by the National Assembly agencies regarding the approval of the finalization of the national budget shall be prescribed by the Standing Committee of the National Assembly.

9. In cases where the finalization of the national budget has not been approved by the National Assembly, the Government within its assigned tasks and powers and the State Audit Agency must continue to clarify the contents requested by the National Assembly and resubmit them within the time frame decided by the National Assembly.

Article 71. Audit of final accounts reports on state budget and local budgets

1. The State Audit Organization shall conduct an audit of the final accounts report on the state budget before it is submitted to the National Assembly for consideration and approval.

2. The State Audit Organization shall conduct an audit of the final accounts report on the local budget before it is sent to the People's Council at the provincial level for consideration and approval.

Article 72. Handling of surplus in the state budget

1. The surplus in the central budget and provincial budget shall be used to repay the principal and interest of loans taken by the state budget. In cases where there is still a surplus, 50% shall be allocated to the financial reserve fund at the same level; the remaining 50% shall be included in the revenue of the following year's budget; if the financial reserve fund has already reached 25% of the annual budget expenditure estimate, the remaining surplus shall be recorded in the revenue of the following year's budget.

2. The surplus in the district and commune budgets shall be recorded in the revenue of the following year's budget.

Article 73. Handling of revenues and expenditures from the state budget that do not comply with regulations after the final accounts report on the state budget has been approved

After the final accounts report on the state budget and the budgets of local levels have been approved by the competent authority, in cases where revenues and expenditures from the state budget are found to not comply with regulations, they shall be handled according to the provisions of Clause 8, Article 65 of this Law and shall be settled in the budget of the year in which the handling takes place.

Chapter VII

IMPLEMENTING PROVISIONS

Article 74. Guidance on implementation for certain special contents

1. Based on the provisions of this Law, the Government shall stipulate management and use of the budget for certain activities under the defense, security, foreign affairs sectors, and certain special financial-budget mechanisms and policies for Ho Chi Minh City, some provinces and centrally-run cities, and special administrative-economic units, and report to the Standing Committee of the National Assembly for comments before implementation, and report to the National Assembly at the nearest session.

2. Hanoi City shall implement certain special financial-budget mechanisms and policies according to the provisions of the Law on the Capital City.

Article 75. Transitional Provisions

1. For the final accounts of the years 2015 and 2016, the provisions of the State Budget Law No. 01/2002/QH11 shall apply.

2. The period of stability for the budget 2011-2015 shall be extended until the end of 2016. The next period of budget stability shall run from 2017 to 2020. As for the budget estimates for 2016 of ministries, ministerial-level agencies, government agencies, other central agencies, and localities, the following shall apply:

a) For the budget estimate for regular spending, the standard allocation rate for regular spending in the state budget shall be applied according to Decision No. 59/2010/QĐ-TTg dated September 30, 2010 of the Prime Minister.

b) For the budget estimate for investment development spending, the principles, criteria, and standard allocation rates for capital investment from state budget funds for the period 2016-2020 shall be applied according to the Resolution of the Standing Committee of the National Assembly. The budget estimate for investment development spending in 2016 must fall within the medium-term investment plan framework 2016-2020 and be allocated in accordance with the growth rate of state budget spending in 2016 compared to 2015.

Article 76. Effective Date

1. This Law shall take effect from the 2017 fiscal year.

2. The State Budget Law No. 01/2002/QH11 shall cease to be effective from the date this Law comes into force.

Article 77. Detailed provisions

The Government shall provide detailed regulations for the Articles and Clauses assigned in this Law.

This Law was passed by the National Assembly of the Socialist Republic of Vietnam, XIIIth term, ninth session, on June 25, 2015./.