Circular No. 90/2010/TT-BTC guiding the preparation of the state budget estimate for 2011

Circular

Guidelines for preparing the state budget estimate for 2011

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- Based on Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the Law on State Budget;
- Based on Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;
- To implement Directive No. 854/CT-TTg dated June 11, 2010 of the Prime Minister on the preparation of plans for economic and social development and the state budget estimate for 2011;
The Ministry of Finance guides the work of evaluating the implementation of state budget tasks in 2010 and preparing the state budget estimate (NSNN) for 2011 as follows:

PART I

EVALUATION OF THE IMPLEMENTATION OF STATE BUDGET TASKS IN 2010

Article 1. General provisions:

1. Basis for evaluating state budget tasks in 2010:

- The state budget tasks for 2010 were approved by the National Assembly through Resolution No. 37/2009/QH12 of the National Assembly on the state budget estimate for 2010 and Decision No. 1908/QĐ-TTg dated November 19, 2009 of the Prime Minister on the allocation of the state budget estimate for 2010.

- Government directives, including: Resolution No. 03/NQ-CP dated January 15, 2010 on key measures to guide and manage the implementation of the plan for economic and social development and the state budget estimate for 2010; Resolution No. 18/NQ-CP dated April 6, 2010 on measures to ensure macroeconomic stability, prevent high inflation, and achieve an economic growth rate of approximately 6.5% in 2010.

- Circular No. 224/2009/TT-BTC dated November 26, 2009 of the Ministry of Finance on the organization and implementation of the state budget estimate for 2010.

- Directives from central ministries and agencies, and localities implementing the resolutions of the National Assembly, the Government, and People's Councils on economic and social development and the state budget for 2010.

- The situation of state budget task implementation in the first six months of the year; measures aimed at achieving the targets in the second half of the year.

2. Along with the implementation of state budget tasks in 2010, central ministries and agencies, provincial and municipal people's committees under the central government organize summaries and evaluations of the results of state budget task implementation during the 2006-2010 period and the 2001-2010 period, serving as a basis for building the Five-Year Plan 2011-2015 and the Ten-Year Strategy 2011-2020.

3. On the basis of the results of evaluating the implementation of state budget tasks in 2010, the implementation of revenue and expenditure policies and other related policies applied during the 2006-2010 period; the results of implementing conclusions and recommendations of auditing and inspection agencies; central ministries and agencies and localities proactively amend and supplement or propose specific amendments and supplements to revenue and expenditure policies and other related policies; recommend guidance, direction, and organization of state budget task implementation, to be sent to the Ministry of Finance and relevant ministries and agencies for study and timely amendment and supplementation or submission to competent authorities for approval.

Article 2. Evaluation of the implementation of state budget revenue tasks in 2010:

Based on the results of state budget revenue in the first six months of the year, evaluate the implementation of state budget revenue in 2010 based on completing the national assembly's decision and the prime minister's allocation exceeding the target by at least 5% (excluding crude oil and land use fees). When evaluating, focus on the following main contents:

1. Evaluate and analyze the impact of the economy and structural transformation on the implementation of state budget revenue in 2010 such as: business production and operation situation, import and export activities of enterprises in the area; results of implementing key product production and consumption indicators; cost, price, profit; review to consider new investment projects, expansion investments, deepening investments, investment projects that have completed tax incentives; results of implementing financial land management plans; real estate transaction situation; stock market activity, ...

2. Evaluate and analyze the impact of implementing tax deferral policies for enterprises according to Decisions No. 16/2009/QĐ-TTg dated January 21, 2009, Decision No. 58/2009/QĐ-TTg dated April 16, 2009 of the Prime Minister issuing several tax measures to implement the policy of stimulating investment and consumption, preventing economic decline, resolving difficulties for enterprises, Decision No. 12/2010/QĐ-TTg dated February 12, 2010 of the Prime Minister on extending corporate income tax payment deadlines to continue resolving difficulties for enterprises and promoting economic development in 2010; the management of import and export policies, including adjusting taxes to limit trade deficits, exporting raw materials, and adjusting tax rates to fulfill international commitments.

3. Evaluate the situation of tax arrears and tax debt resolution in 2010: clearly identify tax arrears as of December 31, 2009, forecast tax arrears for 2010, and tax arrears recovered in 2010. Accurately compile tax arrears, classify tax arrears according to the criteria specified in the tax debt management process. Recommend measures to resolve tax arrears thoroughly.

4. Evaluate the results of cooperation among levels and sectors related to state budget revenue management and the organization of inspection, audit, and tax recovery activities, anti-evading, anti-smuggling, and anti-commercial fraud; cooperation in price verification; number of entities inspected and audited in the first six months and forecast for the whole year; tax amount recommended for recovery through inspection and audit activities of the tax authority; tax amount recommended for recovery by the State Audit Office, the Government Inspectorate, and forecast for the year. Recommend measures to enhance cooperation and improve the effectiveness of these activities.

5. Evaluate the declaration and refund of value-added tax; forecast VAT refunds generated in the year; VAT refunds made in the first six months; analyze clearly the reasons for increased or decreased VAT refunds compared to the previous year.

6. Evaluate the results of implementing new tax policies issued, amended, and supplemented in 2009 and 2010, and their impact on revenue outcomes.

7. Through the implementation of revenue collection activities, propose recommendations to adjust revenue mechanisms and policies (if necessary).

Article 3. Evaluation of the situation in fulfilling investment development expenditure tasks:

1. Evaluation of the work of allocating and organizing the implementation of basic construction investment capital in 2010:

a) Evaluation of the situation of allocating and budgeting investment development construction (XDCB) expenditure for 2010:

- Evaluation of the allocation, distribution of capital, and budgeting of investment XDCB expenditure for projects and works in 2010 (including capital from state budget sources, lottery revenue, government bond capital), especially for important and urgent projects that need to be completed according to schedule in 2010; evaluation of the appropriateness of capital allocation in line with the development goals of ministries and sectors, ensuring adequate funding for projects with complete investment procedures, consistent with implementation progress.

- Evaluation of the time taken to allocate and plan for project sponsors. Simultaneously, evaluate the alignment with assigned indicators regarding total investment amount, domestic and foreign capital structure, economic sector structure, etc.

- Evaluation of the situation of allocating official development assistance (ODA) capital, including the allocation of counterpart funds and foreign capital.

- Evaluation of the allocation of capital for settling investment construction debts from state budget sources.

- Evaluation of the situation and results of recovering advance payments to the state budget (in accordance with the principles stipulated in Clause 4, Article 1 of Decision No. 1908/QĐ-TTg dated November 19, 2009 on the allocation of the state budget for 2010) to repay the temporarily advanced capital as prescribed.

b) Evaluation of the results of reviewing and rearranging investment development expenditure plans in accordance with Resolution No. 18/NQ-CP dated April 6, 2010 of the Government on measures to ensure macroeconomic stability, preventing high inflation, and achieving a growth rate of approximately 6.5% in 2010. Focus on evaluating:

- The results of re-examining investment projects using state budget capital, capital originating from the state budget, and government bonds to reallocate capital towards concentrating funds for important and urgent projects that must be completed in 2010.

- The results of utilizing the capital allocated in 2010 for investing in important and urgent projects.

- The results of inspecting investment and management of investment capital at central ministries, agencies, localities, state-owned economic groups, and state-owned enterprises.

c) Evaluation of the fulfillment of investment development expenditure tasks in 2010:

- General evaluation of the implementation of the investment development expenditure plan in 2010, including the value of completed work volume up to the end of the second quarter of 2010, capital payments up to the end of the second quarter of 2010 (including payment for completed work volume and advance capital payments), projected work volume and capital payments by December 31, 2010, and by the end of the fiscal year 2010; accompanied by detailed appendices for each project, including figures on approved total investment amounts, cumulative capital payments up to the end of the 2009 plan, and the 2010 capital plan according to the above contents.

- Evaluation of the implementation of programs and projects using official development assistance (ODA) capital; allocation of counterpart funds for ODA projects according to commitments; disbursement progress of ODA capital and counterpart funds.

- Evaluation of the ability to implement investment development expenditure in 2010 from various sources such as the state budget, government bonds, land use revenue, lottery revenue, etc.

d) Summary and evaluation of the situation and results of handling outstanding investment development expenditure; proposals and recommendations for solutions to resolve outstanding debts; evaluation of the effectiveness of investment development expenditure in 2010 and previous years; analysis of existing issues, causes, and solutions.

đ) Evaluation of the situation of finalizing accounts for completed investment projects, specifying: the number of projects completed but not finalized according to regulations by the end of June 2010 and projected by the end of 2010; specifying the duration since completion without finalization, reasons, and solutions.

e) Evaluation of the situation of advance capital loans, recovery, and repayment of advance capital loans held by the State Treasury in accordance with Circular No. 49/2005/TT-BTC dated June 9, 2005 of the Ministry of Finance to implement infrastructure projects and works that generate revenue to repay advance capital loans approved by competent authorities to attract domestic and foreign economic organization investments.

2. Evaluation of the results of fulfilling support development expenditure tasks in 2010:

- Implementation status of preferential credit from the state, credit for poor households and social policy beneficiaries, student credit (activity results, loan balances, deposit interest rates, newly generated interest rate differential subsidies, etc.).

- Expenditure for preferential lending (for particularly difficult ethnic minority households, poor households building houses, loans for poor households in the Mekong Delta region to develop production-business, loans for projects under the Program of Canal and Rural Road Reinforcement, Aquaculture Infrastructure, and Rural Craft Village Infrastructure, etc.).

- Implementation status of trade promotion, investment, and tourism support policies; support policies for businesses providing public goods and services, etc.

- Implementation status of national reserves in 2010; quantity and value of purchased and distributed goods (details by type, quantity, value); national reserve forces as of December 31, 2010; capability to respond to emergencies.

Article 4. Evaluation of the implementation of regular expenditure tasks:

1. Evaluate the situation of implementing the state budget estimate for the first six months of the year and the forecast for the whole year 2010 (the process of allocating and assigning the state budget, withdrawing estimates; the implementation of reallocation and reduction of expenditures for funds not allocated to other programs and tasks; ...) according to each index and task assigned by the State to Ministries, central agencies, localities, and units in 2010. Evaluate the results of implementing important tasks, major programs, and projects of each Ministry, sector, field, and locality; difficulties and obstacles encountered and proposed measures to address them.

2. Report on the practice of thrift in regular expenditures, including a detailed report on the implementation of cutting unnecessary expenses such as: expenses for meetings, festivals, overseas trips that are not truly necessary, etc. On this basis, concentrate resources to ensure funding for newly emerging tasks, especially those ensuring social welfare, supporting and encouraging production and exports as prescribed by law.

3. Evaluate the results and difficulties and obstacles arising from the implementation of mechanisms, policies, and expenditure systems in 2010 to fulfill the tasks of Ministries, central agencies, localities, and units. Among these, pay particular attention to evaluating the following mechanisms and policies:

- The implementation of social welfare policies, focusing on evaluating the implementation of social assistance policies under Decree No. 67/2007/ND-CP dated April 13, 2007 of the Government on assisting social welfare beneficiaries and Decree No. 13/2010/ND-CP dated February 27, 2010 of the Government amending and supplementing certain articles of Decree No. 67/2007/ND-CP; for poor households, near-poor households, ethnic minority groups, and people in particularly difficult areas such as: the program to quickly and sustainably reduce poverty in 62 poor districts, support for housing for poor households; state support for near-poor households, students, and college students purchasing health insurance; support for production land, residential land, housing, and drinking water for poor ethnic minority households with difficult living conditions; unemployment insurance policy; support for disease prevention and disaster prevention, mitigation, and relief, famine relief for the people, etc.

- The situation and results of implementing Decree No. 130/2005/ND-CP dated October 17, 2005 of the Government on the mechanism of self-management and self-responsibility for the use of staffing and administrative management costs. Evaluate the situation of organizing and implementing the system of self-management and self-responsibility for the performance of tasks, organizational structure, staffing, and finance for public service units under Decree No. 43/2006/ND-CP dated April 25, 2006 of the Government, Decree No. 115/2005/ND-CP dated September 5, 2005 of the Government, and Decision No. 1926/QD-TTg dated November 20, 2009 of the Prime Minister.

4. Evaluate the implementation of Resolution No. 05/2005/NQ-CP dated April 18, 2005 of the Government on promoting socialization in educational, healthcare, cultural, and sports activities and Decision No. 39/2008/QD-TTg dated March 14, 2008 of the Prime Minister promulgating the Procurement Regulations for the provision of public services funded by the state budget; Decree No. 69/2008/ND-CP dated May 30, 2008 of the Government on policies to encourage socialization in education, vocational training, healthcare, culture, sports, and environmental activities within the sectors and fields managed; Decision No. 1466/QD-TTg dated October 10, 2008 of the Prime Minister promulgating the detailed list of types, scale criteria, and standards of facilities implementing socialization in the fields of education and training, vocational training, healthcare, culture, sports, and environment. Pay particular attention to evaluating and analyzing the total resources and resource structure invested by society for development in the sector and field, the results of mobilizing social resources for development in the sector and field; existing problems, causes, and solutions in the future to effectively mobilize social resources for development in the sector and field.

5. Evaluate the implementation of the work to reform administrative procedures according to Project 30 in state budget management in 2010; clearly state the shortcomings, causes, and solutions to overcome them.

Article 5. Evaluation of the implementation of national target programs, Program 135 (Phase II) and the Project to plant five million hectares of new forest:

1. Evaluate the situation of budget allocation for the national target programs and projects in 2010; based on the allocated budget and progress of implementation, relevant ministries and agencies responsible for the national target programs and projects shall coordinate with central agencies and localities to organize summaries and evaluations of the effectiveness of these programs and projects during the period from 2006 to 2010. On this basis, propose the list, objectives, and contents of the national target programs and projects for the period from 2011 to 2015, establish the scope, contents, principles, criteria for budget allocation, review procedures, management mechanisms, monitoring, and evaluation of the national target programs and projects to be submitted to competent authorities for consideration and decision-making as a basis for implementation starting from 2011.

2. For national target programs implemented using domestic and foreign funds, it is necessary to carefully evaluate both the disbursement of foreign funds (advantages, difficulties, causes, and solutions).

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

1. Report on the results of reviewing and determining the financial needs to implement the salary reform.

2. Evaluate the results of implementing financial measures to create sources for salary reform from: saving 10% of regular expenses (excluding salaries and allowances with salary-like characteristics); 35-40% of retained revenue according to regulations; 50% of increased local government budget revenue (excluding land use fees); ... in 2010 and the period from 2007 to 2010, identify unused sources from previous years (after ensuring sufficient funding to implement the minimum monthly salary of 730,000 VND in 2010) to be carried over to 2011 (if applicable) to continue creating sources for salary reform (with detailed numerical data reports).

Article 7. Some special points in evaluating the implementation of the State Budget tasks in 2010 by provinces and centrally-administered cities:

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

1. Local solutions and measures for managing the local budget to ensure the approved local budget expenditure plan.

2. Assess the demand and resources for development of the locality; work on mobilizing financial resources at the local level to fulfill the tasks of economic and social development of the locality.

3. Results of implementing policies and systems according to Decisions No. 24/2008/QĐ-TTg, No. 25/2008/QĐ-TTg, No. 26/2008/QĐ-TTg, No. 27/2008/QĐ-TTg, and Decision No. 113/2009/QĐ-TTg dated September 11, 2009 of the Prime Minister amending and supplementing some provisions of Decisions No. 24/2008/QĐ-TTg, No. 25/2008/QĐ-TTg, No. 26/2008/QĐ-TTg, No. 27/2008/QĐ-TTg on issuing certain mechanisms and policies to support economic and social development in the North Central Coast and Central Coast regions, the Central Highlands, the Mekong Delta, and the Midland and Northern Mountainous region until 2010; results of implementing the Program to provide production land, residential land, housing, and clean water for poor households in ethnic minority areas (Program 134), the Program for socio-economic development in extremely difficult communes in mountainous and remote areas (Program 135 - Phase II); results of implementing Resolution No. 30a/2008/NQ-CP dated December 27, 2008 of the Government on the Program to reduce poverty quickly and sustainably in 62 poor districts; results of implementing the policy to support poor households with housing according to Decision No. 167/2008/QĐ-TTg dated December 12, 2008 of the Prime Minister, ...

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

5. Evaluate the budget allocation (including the amount of targeted central budget support to the local budget - if any) and the use of reserves to fulfill security and defense tasks; prevention, response, and mitigation of natural disasters, epidemics affecting people, livestock, poultry, crops, ...

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

7. Evaluate the implementation of expenditures from land use fee revenues for investment in local infrastructure projects, implementation of cadastral surveys, establishment of land ownership records, and the allocation of land development funds as stipulated in Decree No. 69/2009/NĐ-CP dated August 13, 2009 of the Government.

8. Evaluate the implementation of lottery revenues; the allocation and use of these revenues for social welfare projects in the locality.

9. The situation of mobilizing investment capital for infrastructure (including the situation of mobilizing and allocating capital to repay principal and interest by June 30, 2010) as stipulated in Clause 3, Article 8 of the State Budget Law, including: beginning-of-year debt balance, annual mobilization, repayment of maturing debts, estimated debt balance mobilized by December 31, 2010 (for Hanoi and Ho Chi Minh City, evaluate the mobilization of investment capital according to the special financial-budget mechanism of the locality).

10. Evaluate the implementation of the program to reinforce irrigation channels, rural transportation, village industry infrastructure, and aquaculture infrastructure (including results achieved and repayment of principal and interest when due).

11. BASED ON THE ASSESSMENT OF THE ECONOMIC AND SOCIAL RESULTS AND THE STATE BUDGET EXECUTION IN 2010, AS WELL AS THE ASSESSMENT OF THE IMPLEMENTATION OF THE DEVELOPMENT PLAN FOR THE PERIOD 2006-2010 COMPARED TO THE RESOLUTION OF THE PARTY CONGRESS. FOCUS ON ASSESSING ACHIEVEMENTS, LIMITATIONS, AND THE REASONS FOR EXISTING ISSUES TO GUIDE THE DEVELOPMENT PLAN FOR THE PERIOD 2011-2015.

Chapter II

BUILDING THE STATE BUDGET ESTIMATE FOR 2011

Article 8. OBJECTIVES AND PRINCIPLES

1. THE STATE BUDGET ESTIMATE FOR 2011 SHALL BE IMPLEMENTED IN CONJUNCTION WITH THE PROCESS OF IMPLEMENTING THE RESOLUTION OF THE 11TH PARTY CONGRESS, THE ECONOMIC AND SOCIAL DEVELOPMENT PLAN, THE FINANCIAL AND BUDGETARY PLAN FOR THE 2011-2015 PERIOD, THE STRATEGY FOR ECONOMIC AND SOCIAL DEVELOPMENT, AND THE FINANCIAL STRATEGY FOR THE 2011-2020 PERIOD. THIS IS OF GREAT IMPORTANCE IN PROMOTING SUSTAINABLE GROWTH FOR THE ENTIRE PERIOD, IMPROVING THE QUALITY OF LIFE FOR THE PEOPLE. ACCORDINGLY, THE WORK OF BUILDING THE STATE BUDGET ESTIMATE FOR 2011 MUST CLEARLY REFLECT THE GOAL OF PROMOTING SUSTAINABLE GROWTH, ENHANCING THE EFFECTIVENESS OF STATE MANAGEMENT, THROUGH THE IMPLEMENTATION OF POLICIES TO RAISE FUNDS EFFICIENTLY TO ENCOURAGE AND UNBLOCK RESOURCES FOR DEVELOPMENT, FOCUSING RESOURCES TO CONTRIBUTE TO ADJUSTING THE ECONOMIC STRUCTURE TOWARDS INCREASED EFFICIENCY AND COMPETITIVENESS, RAPID AND SUSTAINABLE DEVELOPMENT, INCREASING THE LEVEL AND PROPORTION OF THE STATE BUDGET INVESTED IN HUMAN CAPITAL, IMPLEMENTING SOCIAL SECURITY POLICIES, MAINTAINING NATIONAL DEFENSE AND SECURITY, AND ENSURING THE SAFETY OF THE NATIONAL FINANCIAL SYSTEM.

2. THE ESTIMATE OF STATE BUDGET REVENUE FOR 2011 MUST BE BUILT ON THE BASIS OF:

a) CLOSELY FOLLOWING FORECASTS OF INVESTMENT AND DEVELOPMENT OF BUSINESS OPERATIONS; ACCORDING TO POLICIES AND REGULATIONS; CORRECTLY AND COMPLETELY CALCULATING ALL STATE BUDGET REVENUES FROM ENTERPRISES, ORGANIZATIONS, AND INDIVIDUALS GENERATED IN 2011, WITH SPECIAL ATTENTION TO REVENUES GENERATED IN 2010 BUT ALLOWED TO BE POSTPONED IN PAYMENT, AND REVENUES FROM INVESTMENT PROJECTS THAT HAVE COMPLETED THEIR TAX INCENTIVE PERIODS.

b) THE ESTIMATE OF STATE BUDGET REVENUE MUST BE BUILT ACTIVELY, SOLIDLY, WITH HIGH FEASIBILITY, WITH A LEVY RATE OF OVER 23% OF GDP, WHEREIN TAX AND FEE REVENUES REACH OVER 21% OF GDP. THE ESTIMATE OF DOMESTIC REVENUE ACROSS THE COUNTRY (EXCLUDING OIL REVENUE AND LAND USE FEE REVENUE) MUST INCREASE BY AT LEAST 17-19% ON AVERAGE COMPARED TO THE PROJECTED REALIZATION OF 2010 (EXCLUDING FACTORS AFFECTED BY THE EXTENSION OF TAX PAYMENTS IN 2009 AND 2010).

c) PROPOSING SPECIFIC MEASURES AND TIMELINES TO HANDLE TAX DEBTS; COMBATING TAX EVASION AND FRAUDULENT TRADE PRACTICES; STRENGTHENING AUDITS, INSPECTIONS, AND TIMELY DISCOVERY AND HANDLING OF VIOLATIONS.

3. REGARDING EXPENDITURE, THE 2011 ESTIMATE MUST BE BUILT ON THE BASIS OF:

THE ESTIMATE OF STATE BUDGET EXPENDITURE MUST BE BUILT ON THE BASIS OF THE SYSTEM OF CRITERIA AND ALLOCATION STANDARDS FOR THE STATE BUDGET IN 2011 (THE FIRST YEAR OF THE NEW BUDGET STABILITY PERIOD); CURRENT LEGAL REGULATIONS ON EXPENDITURE POLICIES AND REQUIREMENTS FOR FUNDS TO IMPLEMENT IMPORTANT AND STRATEGIC GOALS AND TASKS PLANNED FOR 2011 AND THE 2011-2015 PERIOD. BASED ON THIS:

a) BASED ON THE SYSTEM OF CRITERIA AND ALLOCATION STANDARDS FOR THE 2011 STATE BUDGET ACCORDING TO THE DECISION OF THE PRIME MINISTER, EXPENDITURE REGULATIONS AND TASKS ASSIGNED, MINISTRIES, SECTOR MANAGEMENT ORGANIZATIONS, AND LOCALITIES AT THE CENTRAL LEVEL AND PROVINCES AND CITIES DIRECTLY UNDER THE CENTRAL GOVERNMENT MUST PREPARE THE 2011 STATE BUDGET EXPENDITURE ESTIMATE WITHIN THE SCOPE OF THE CHECKED 2011 STATE BUDGET EXPENDITURE ESTIMATE ANNOUNCED BY THE MINISTRY OF FINANCE (EXCEPT FOR EXPENDITURE FROM FOREIGN SOURCES, WHICH MUST BE PREPARED ACCORDING TO THE DISBURSEMENT SCHEDULE OF LOAN AND ASSISTANCE PROJECTS). THE ESTIMATE MUST BE DETAILED BY SECTOR (INCLUDING BOTH STATE BUDGET BALANCED EXPENDITURE AND EXPENDITURE FROM RETAINED REVENUE ACCORDING TO REGULATIONS), AND MAJOR EXPENDITURE TASKS (WITH PRIORITIZED ORDER) TO ENSURE COMPLIANCE WITH CURRENT LEGAL REGULATIONS AND TO PRACTICE ECONOMY AND AVOID WASTE FROM THE BUDGET ESTIMATION STAGE.

b) WHEN BUILDING THE STATE BUDGET EXPENDITURE ESTIMATE, MINISTRIES, CENTRAL ORGANIZATIONS, AND LOCALITIES MUST PROACTIVELY ANTICIPATE FULL NEEDS FOR FUNDS TO IMPLEMENT ESTABLISHED POLICIES AND NEW TASKS ARISING. FOR POLICIES AND TASKS ISSUED BY AUTHORIZED AUTHORITIES DURING THE BUDGET ESTIMATION PROCESS, THEY MUST PREPARE THE EXPENDITURE ESTIMATE ACCORDING TO THE GUIDANCE OF THE AUTHORIZED AUTHORITIES. NO SUPPLEMENT FROM THE RESERVE FUND WILL BE PROVIDED FOR TASKS THAT MINISTRIES, CENTRAL ORGANIZATIONS, AND LOCALITIES DID NOT FULLY PROVIDE FUNDS FOR IN THE BUDGET ESTIMATION AND ALLOCATION PROCESS AS REQUIRED BY REGULATIONS.

c) DURING THE BUDGET ESTIMATION PROCESS FOR 2011, WHEN PROPOSING MODIFICATIONS, ADDITIONS, OR NEW POLICIES, MINISTRIES, CENTRAL ORGANIZATIONS, AND LOCALITIES MUST CONDUCT SURVEYS TO GRASP THE NUMBER OF BENEFICIARIES AND ANTICIPATE FUND NEEDS; CALCULATE THE INTEGRATION BETWEEN PROPOSED POLICY CHANGES OR NEW POLICIES AND CURRENT POLICIES, COORDINATE WITH FINANCIAL AUTHORITIES TO CALCULATE AND ENSURE THE ABILITY TO PROVIDE SUFFICIENT FUNDS BEFORE SUBMITTING TO AUTHORIZED AUTHORITIES FOR ISSUANCE.

d) CONTINUE TO REORGANIZE EXPENDITURE ITEMS TOWARDS ECONOMY AND EFFECTIVENESS, ENHANCE THE EFFECTIVENESS OF BUDGET INVESTMENT TO PROMOTE SUSTAINABLE GROWTH, MAINTAIN MACRO-ECONOMIC STABILITY, ENSURE SOCIAL SECURITY AND PUBLIC ORDER; ENSURE FUNDS FOR EDUCATION, SCIENCE AND TECHNOLOGY, HEALTHCARE, CULTURE, ENVIRONMENTAL PROTECTION ACCORDING TO PARTY AND NATIONAL ASSEMBLY RESOLUTIONS; INCREASE NATIONAL RESERVES TO BE PREPARED FOR NATURAL DISASTER AND EPIDEMIC RESPONSE; ALLOCATE FUNDS TO CONTINUE IMPLEMENTING SALARY REFORM.

4. MINISTRIES AND CENTRAL ORGANIZATIONS MUST PREPARE THE ESTIMATE OF STATE BUDGET REVENUE AND EXPENDITURE AND PROVIDE DETAILED EXPLANATIONS OF THE BASIS FOR THE ESTIMATE ACCORDING TO IMPLEMENTING UNITS AND IMPORTANT EXPENDITURE TASKS (BASED ON POLICIES AND REGULATIONS, IMPLEMENTATION RESULTS, BUDGET ALLOCATION LEVELS FOR 2011 AND SUBSEQUENT YEARS, ETC.), AND SEND THEM TO THE MINISTRY OF FINANCE AND THE MINISTRY OF PLANNING AND INVESTMENT FOR COMBINED REPORTING TO THE PRIME MINISTER.

5. THE STATE BUDGET MUST BE BALANCED POSITIVELY, HEALTHILY, AND SOLIDLY; ENSURING NATIONAL FINANCIAL SECURITY AND THE SAFETY OF LOCAL BUDGETS.

Article 9. Construction of the 2011 State Budget Revenue Estimate:

1. Domestic revenue estimate:

When localities construct the State budget revenue estimate on their territory, they must base it on the analysis and forecast of economic growth, structural economic transformation to increase production capacity in 2011 for each economic sector, each industry, each revenue field, key economic bases of the locality, and must consolidate all revenue sources generated within the territory (including the revenue at commune, ward, town level). The construction of the 2011 State budget revenue estimate must be based on a comprehensive evaluation of the actual results achieved in 2009; the requirements and capabilities for implementation in 2010 and the audit results of the 2011 revenue estimate that have been announced. The revenue estimate must ensure accuracy and completeness for each revenue field, each tax type according to the provisions of the tax laws, revenue regulations, paying particular attention to new revenue policies and regulations such as follows:

a) Regarding corporate income tax: Implement according to the provisions of Decree No. 53/2010/NĐ-CP dated May 19, 2010 of the Government on investment incentives, tax incentives for newly established administrative units due to the adjustment of administrative boundaries by the Government; Circulars of the Ministry of Finance such as Circular No. 177/2009/TT-BTC dated September 10, 2009 guiding the determination of taxable income from foreign currency exchange rate differences of foreign currency payable debts; Circular No. 201/2009/TT-BTC dated October 15, 2009 guiding the handling of foreign currency exchange rate differences in enterprises; Circular No. 203/2009/TT-BTC dated October 20, 2009 guiding the management, use, and depreciation of fixed assets; Decision No. 3027/QĐ-BTC dated December 3, 2009 regarding the correction of Circular No. 130/2008/TT-BTC dated December 26, 2008; Circular No. 06/2010/TT-BTC dated January 13, 2010 guiding corporate income tax for golf ticket and membership card sales activities; Circular No. 38/2010/TT-BTC dated March 19, 2010 guiding the implementation of tax regulations for organizations and individuals transferring exploration, exploitation, and processing rights of mineral resources; Decision No. 12/2010/QĐ-TTg dated February 12, 2010 of the Prime Minister on extending the payment deadline for corporate income tax to continue resolving difficulties for businesses and promoting economic development in 2010; Circular No. 39/2010/TT-BTC dated March 22, 2010 of the Ministry of Finance guiding the implementation of Decision No. 12/2010/QĐ-TTg dated February 12, 2010; Circular No. 40/2010/TT-BTC dated March 23, 2010 guiding the determination of taxable income from asset revaluation; Circular No. 55/2010/TT-BTC dated April 16, 2010 guiding value-added tax and corporate income tax for Vietnam Television and provincial and municipal radio and television stations.

Tax obligations applicable to foreign organizations and individuals conducting business or earning income in Vietnam: Implement according to the provisions of Circular No. 197/2009/TT-BTC dated October 9, 2009 of the Ministry of Finance supplementing Circular No. 134/2008/TT-BTC dated December 31, 2008 guiding the implementation of tax obligations applicable to foreign organizations and individuals conducting business or earning income in Vietnam; Circular No. 64/2010/TT-BTC dated April 22, 2010 of the Ministry of Finance amending and supplementing Circular No. 134/2008/TT-BTC dated December 31, 2008 guiding the implementation of tax obligations applicable to foreign organizations and individuals conducting business or earning income in Vietnam.

Tax obligations for Vietnamese investors investing abroad: Implement according to the provisions of Circular No. 11/2010/TT-BTC dated January 19, 2010 of the Ministry of Finance guiding the implementation of tax obligations for Vietnamese investors investing abroad.

b) Regarding natural resource tax: Calculate and prepare the estimate according to the provisions of Law No. 45/2009/QH12 dated November 25, 2009 of the National Assembly on Natural Resource Tax, Resolution No. 928/2010/UBTVQH12 of the Standing Committee of the National Assembly on the issuance of the tax rate table for natural resource tax; Decree No. 50/2010/NĐ-CP dated May 14, 2010 of the Government detailing and guiding the implementation of certain provisions of the Natural Resource Tax Law; Decision No. 588/QĐ-BTC dated March 22, 2010 of the Ministry of Finance on announcing the average retail electricity price applied as the basis for calculating natural water resource tax for hydroelectric power production in 2010.

c) Regarding personal income tax: Implement according to the provisions of Circulars of the Ministry of Finance such as Circular No. 161/2009/TT-BTC dated August 12, 2009 guiding personal income tax for certain cases of property transfer, inheritance, and gift; Circular No. 164/2009/TT-BTC dated August 13, 2009 guiding personal income tax for winners in prize games; Circular No. 176/2009/TT-BTC dated September 9, 2009 guiding the reduction of personal income tax for individuals working in economic zones; Circular No. 02/2010/TT-BTC dated January 11, 2010 guiding the supplementation of Circular No. 84/2008/TT-BTC dated September 30, 2008 guiding the implementation of certain provisions of the Personal Income Tax Law and guiding the implementation of Decree No. 100/2008/NĐ-CP dated September 8, 2008 of the Government detailing certain provisions of the Personal Income Tax Law.

d) Stamp duty: Implement according to the provisions of Circular No. 68/2010/TT-BTC dated April 26, 2010 of the Ministry of Finance guiding stamp duty.

đ) Regarding oil and gas revenue: Implement according to the provisions of Decree No. 100/2009/NĐ-CP dated November 3, 2009 of the Government on additional charges for oil profit shares of oil contractors when crude oil prices fluctuate upwards; Circular No. 22/2010/TT-BTC dated February 12, 2010 of the Ministry of Finance guiding Decree No. 100/2009/NĐ-CP dated November 3, 2009 of the Government.

Regarding regulated revenue for the Dung Quat oil refinery: Implement according to specific guidance from the Ministry of Finance.

e) Regarding agricultural land use tax: Temporarily calculate and construct the revenue estimate according to the current mechanism being applied from 2003 to 2010.

f) Regarding fees and charges: Implement according to the Ordinance on Fees and Charges and current laws. For consular fees and charges, implement in accordance with the provisions of Circular No. 236/2009/TT-BTC dated December 15, 2009, issued by the Ministry of Finance, guiding the collection, payment, and management of consular fees and charges applicable at Vietnamese diplomatic and consular agencies abroad; environmental protection fees for mineral exploitation shall be implemented in accordance with the provisions of Decree No. 82/2009/NĐ-CP dated October 12, 2009, issued by the Government amending and supplementing certain articles of Decree No. 63/2008/NĐ-CP dated May 13, 2008, concerning environmental protection fees for mineral exploitation, and Circular No. 238/2009/TT-BTC dated December 21, 2009, issued by the Ministry of Finance, guiding the implementation of Decree No. 82/2009/NĐ-CP dated October 12, 2009, of the Government; airport concession fees for air cargo terminals shall be implemented in accordance with the provisions of Circular No. 240/2009/TT-BTC dated December 25, 2009, issued by the Ministry of Finance.

g) Specifically, the budget estimate for land use revenue must ensure consistency with the implementation of the approved land use plan (as stipulated in Decree No. 69/2009/NĐ-CP dated August 13, 2009, issued by the Government, providing supplementary regulations on land use planning, land prices, land recovery, compensation, support, and resettlement), and the anticipated progress in conducting land auction sales, allocating land, and collecting land use fees.

h) Revenue from lottery tickets: Continue to build the budget estimate based on current legal provisions and manage revenue through the State Budget (without incorporating it into the State Budget balance).

2. Budget estimate for revenue from import and export activities:

a) Shall be built based on an assessment of the impact on state budget revenue without analyzing or forecasting global economic conditions and import-export volumes of taxable goods; the impact of adjusting tariff and non-tariff barriers to curb trade deficits and promote exports, and the implementation of the schedule for reducing tariffs to fulfill international economic integration commitments.

b) The budget estimate must be built based on compliance with customs procedures; customs inspection and supervision, export duties, import duties, and tax management for exported and imported goods as stipulated in Circular No. 79/2009/TT-BTC dated April 20, 2009, issued by the Ministry of Finance, and related documents. Strengthen administrative simplification in the customs sector to shorten clearance time and reduce costs for exported and imported goods. Enhance measures to prevent revenue loss such as debt collection, anti-smuggling, tax evasion, and commercial fraud.

3. Revenues retained for expenditure under the regime (tuition fees, medical fees, contributions, etc.): Ministries, central agencies, and localities shall base their budget estimates on actual revenues collected in 2009, estimated revenues for 2010, proposed adjustments to revenue levels (including tuition fees implemented according to Decree No. 49/2010/NĐ-CP dated May 14, 2010, issued by the Government regarding exemptions and reductions in tuition fees, support for educational expenses, and mechanisms for collecting and using tuition fees for educational institutions within the national education system from the 2010-2011 academic year to the 2014-2015 academic year), and factors expected to affect revenue in 2011 to build appropriate and positive budget estimates. Service charge revenues that have the nature of business operations of agencies and units and do not belong to state budget revenue sources should propose separate budget estimates, not included together in the state budget fee and charge revenue estimates.

Article 10. Construction of the budget for State budget expenditures in 2011:

1. Construction of the budget for development investment expenditures in 2011:

a) Construction of the budget for development investment expenditures of Ministries and central agencies based on ensuring capital for ongoing programs and projects; allocating sufficient capital for group C projects to be completed within three years, and group B projects to be completed within five years; limiting allocation of capital for new projects that are not truly necessary. Construction of the budget for development investment expenditures of provinces and centrally-administered cities based on a system of criteria and standards for allocating development investment capital from the State budget in 2011, including additional targeted capital for development investment from the central budget to local budgets and other additional targeted capital according to the Prime Minister's decision.

b) Units when constructing the budget for development investment expenditures in 2011 need to continue to thoroughly review, rearrange, and adjust the allocation of investment capital to enhance the efficiency of State budget capital usage, contribute to macroeconomic stability, promote rapid and sustainable economic growth; focus on allocating investment expenditures to achieve the socio-economic development goals in 2011 and the 2011-2015 period, prioritizing the budget for national key projects, agricultural and rural development, poverty reduction, and sustainable development; continue to prioritize investment capital for human resource development in education and training, healthcare, science and technology, environmental protection, security, defense, etc.

c) Prioritize capital allocation for implementing social welfare policies; ensure sufficient counterpart capital for programs and projects using ODA funds according to commitments; concentrate capital on effective ongoing projects, key projects, urgent projects related to dike construction, water conservancy, rural transportation development, infrastructure in flood-prone areas, tourism infrastructure, etc.

d) Ensure capital for investment preparation work; settle debts for completed basic construction works; allocate repayment of advance counterpart capital according to regulations; at the same time, ensure no new construction debts arise during implementation.

đ) The remaining capital will be allocated for newly initiated projects, prioritizing key national projects; firmly postpone initiation of projects not included in approved planning, lacking required procedures, having many investment procedure issues, incomplete land clearance, non-critical and low-efficiency projects.

e) Project sponsors funded through government loans must arrange sufficient counterpart capital for these projects in accordance with signed agreements and domestic financial management regulations to avoid impacting project progress.

g) For the budget for compensating interest rate differences for development credit and state policy credit, base on the actual situation in 2010, anticipate changes in policy and tasks for 2011 to construct the budget according to prescribed regulations.

h) For the budget for supplementing state reserves: Based on the National Reserve Development Strategy, assigned state reserve tasks, requirements for preventing and mitigating natural disasters, epidemics, relevant ministries and sectors managing state reserves have the responsibility to assess and determine the level of state reserves managed by ministries, sectors, and units as of December 31, 2010; estimate the level of supplementary reserves for essential goods, materials, and equipment; prepare the state budget for increasing state reserves, goods preservation costs, and plans for rotating and updating state reserves in 2011.

i) Implement targeted capital supplementation for development investment from the State budget according to criteria and standards for allocating the 2011 State budget development investment expenditure, decided by the Prime Minister, to implement national target programs, national programs for the 2011-2015 period, the rapid and sustainable poverty reduction program for 62 poor districts, and other large programs and projects implemented in the 2011-2015 period; support part of the counterpart capital for ODA projects; support localities in investing in industrial zone infrastructure, upgrading provincial health systems, etc.; prioritizing capital supplementation for local budgets in midland and northern mountainous regions, North Central and Central Coast, Central Highlands, Southwest, and difficult ethnic minority regions, truly difficult localities.

k) Ministries, central agencies, and localities assigned tasks for investment in construction from government bonds must prepare the budget for investment from government bond capital in 2011 for transportation, water conservancy, medical facility systems, solidifying school buildings, and building housing for teachers and students as approved by competent authorities. At the same time, they must focus on directing implementation to ensure compliance with specified timelines and objectives.

2. Construction of the budget for regular expenditures in 2011:

a) Construction of the budget for developing educational, cultural, health, environmental, scientific and technological affairs, social security; defense and security; administrative management, party, and mass organizations' expenditures must be based on political tasks, socio-economic development plans for 2011 of each Ministry, central agency, and locality, according to the standards for allocating regular State budget expenditures in 2011 decided by the Prime Minister, and specific systems and policies issued by competent authorities.

b) For recurrent expenditures without allocation quotas, the 2011 budget is established based on an assessment of the implementation of the state budget in 2010, the anticipated tasks for 2011 (clarifying expenditures that only occurred in 2010 and did not occur in 2011, increases in expenditures in 2011 according to regulations and fields approved by competent authorities), the amount of budget inspection announced in 2011, and current standards and expenditure quotas. The budget should prioritize funding for existing systems and policies, important tasks assigned by the Prime Minister and competent authorities to each sector and field.

c) Nationwide, the state budget for 2011 (including development investment expenditures, recurrent expenditures, and salary reform expenditures) for education, training, and vocational training shall reach 20% of total state budget expenditures (including expenditures from lottery revenues); culture and information shall reach at least 1.8%; science and technology shall reach at least 2%; environmental protection activities shall exceed 1%; and health expenditures shall increase at a higher rate than the average increase in state budget expenditures, with priority given to preventive healthcare funding.

d) The budget for economic public services is based on the volume of tasks assigned by competent authorities and the prescribed budget expenditure standards; it focuses on funding important tasks: maintenance and repair of key economic infrastructure systems (transportation, water resources, etc.) to extend their usage time and investment efficiency; funds for planning work; implementing agricultural, forestry, fishery, and industry promotion tasks; surveying, mapping, land registration, and issuing land use rights certificates, etc., contributing to promoting growth and restructuring the economy. Efforts should be made to implement the tendering, procurement, and assignment of public service provision tasks using state budget funds as stipulated in Decision No. 39/2008/QĐ-TTg dated March 14, 2008 of the Prime Minister.

đ) During the process of building the 2011 state budget, ministries, sectors, and localities must adjust state budget expenditure tasks appropriately based on the mechanism of self-management and responsibility for staffing and administrative management expenses as stipulated in Decree No. 130/2005/NĐ-CP dated October 17, 2005 of the Government, aiming to enhance autonomy linked with responsibility, improve financial management efficiency, and operational performance. Public service units must comply with Decree No. 43/2006/NĐ-CP dated April 25, 2006 of the Government regarding self-management and responsibility for task implementation, organizational structure, staffing, and finance for public service units, and Decree No. 115/2005/NĐ-CP dated September 5, 2005 of the Government and other relevant regulations concerning the mechanism of self-management and responsibility for public scientific and technological organizations; simultaneously, pilot programs should be implemented to convert certain public service units with appropriate conditions to operate under enterprise mechanisms.

e) State administrative agencies and public service units with revenue as prescribed by law must prepare complete budgets for revenue and expenditures for tasks funded by fees, charges, and other retained revenues.

g) For research and development expenditures, expenditures for state-assigned tasks, and other important expenditures, units must prepare budget expenditures according to current regulations and guidelines in this Circular, while providing detailed explanations of the calculation bases.

h) For some special expenditure tasks:

- Ministries and central agencies with detachments integrated into overseas Vietnamese representative offices are responsible for preparing budgets to ensure operating funds for these detachments, which they will send to the Ministry of Foreign Affairs for consolidation into the overall budget of the Ministry of Foreign Affairs for approval by competent authorities to allocate to overseas Vietnamese representative offices in accordance with the spirit of the Prime Minister's Directive No. 367/CT-TTg dated March 19, 2010.

- Prepare budgets for information technology application expenditures as prescribed in Decree No. 64/2007/NĐ-CP dated April 10, 2007 of the Government on the application of information technology in state agency operations and guidelines in Joint Circular No. 43/2008/TTLT-BTC-BTTTT dated May 26, 2008 of the Ministry of Finance and the Ministry of Information and Communications.

- Develop necessary budget funds to implement the Law Popularization and Legal Education Program from 2008 to 2012 approved by the Prime Minister in Decision No. 37/2008/QĐ-TTg dated March 12, 2008.

- Prepare budgets for implementing the Project to Modernize Statistical Indicators Systems as stipulated in Decision No. 312/QĐ-TTg dated March 2, 2010 of the Prime Minister.

- Prepare budgets from the state budget to implement the mechanism of tuition fee exemptions and reductions and support for educational expenses for specified groups as prescribed in Decree No. 49/2010/NĐ-CP dated May 14, 2010 of the Government regarding tuition fee exemptions, reductions, support for educational expenses, and the mechanism for collecting and using tuition fees for educational institutions in the national education system from the academic year 2010-2011 to 2014-2015.

3. Budget preparation for programs and projects using ODA funds:

Full budget preparation must be carried out strictly in accordance with the procedures, forms, and decisions on state budget management as prescribed by the State Budget Law, the Public Debt Management Law, and guiding documents and decrees of the Government on investment management and basic construction, borrowing and repaying foreign debts, paying particular attention to detailing ODA and counterpart funds for each program and project, distinguishing between ODA funds for investment and construction and those for public services, ensuring alignment with implementation schedules; these should be submitted to the Ministry of Planning and Investment and the Ministry of Finance for consolidation into the 2011 state budget for decision by the Government and the National Assembly.

4. Budget for implementing salary reform in 2011:

In 2011, ministries, central agencies, localities, and units using the State budget continue to proactively implement fully and in accordance with regulations all measures to create sources for salary reform under the Salary Reform Project for the period 2008-2012. Accordingly: allocate a portion of the revenue retained in 2011 according to the regime; save 10% of regular expenditure in 2011 (excluding salaries and allowances with salary characteristics); local budgets use 50% of the actual increase in revenue compared to the local budget estimate for 2010 (excluding increases from land use fees), while transferring unused sources from previous years' salary reform (if any) to 2011 for continued implementation. All funds must be recorded and managed separately to create sources for continued salary reform, and shall not be used for other purposes. The Ministry of Finance will issue specific guidance on calculating and determining the sources of funds allocated for salary reform in 2011 following the Government's new Decree on adjusting the minimum wage.

5. Budget for implementing national target programs and important projects:

a) Ministries and management agencies of the programs and projects base on the documents of the competent authority deciding the national target programs and large programs and projects to be implemented during the 2011-2015 period, coordinate with the Ministry of Planning and Investment to clearly define specific goals and tasks for 2011 for national target programs and important large programs and projects to submit to the Prime Minister for decision as the basis for guiding the preparation of the State budget estimate for 2011.

For the National Target Program on Energy Saving and Efficiency; the National Target Program on Climate Change Response: the preparation of the budget estimate for 2011 and the 2011-2015 period continues to be carried out according to the Decisions approved by the Prime Minister.

b) Based on the goals, tasks, and current financial regulations, ministries, central agencies, and localities prepare the budget estimate for the needs of implementing programs and projects in 2011, send them to the central agencies managing the programs and projects for consolidation and submission to the Ministry of Finance and the Ministry of Planning and Investment.

c) Based on the proposed allocation of funds for each program and project announced by the Ministry of Finance and the Ministry of Planning and Investment, ministries and central agencies responsible for managing programs and projects prepare the budget estimate for spending in 2011 for each program and project; at the same time propose plans for allocating the budget estimate for target programs and projects in 2011 to ministries, central agencies, and localities (for programs implemented with foreign capital, the detailed allocation plan includes both domestic and foreign capital), send them to the Ministry of Planning and Investment and the Ministry of Finance for review and consolidation.

6. State budget reserve estimate:

Central and local government budgets at all levels allocate reserves according to the provisions of the State Budget Law and the standard for regular expenditure allocation of the State budget for 2011 to proactively prevent, control, and mitigate the consequences of natural disasters, epidemics, and handle urgent tasks outside the budget estimate. Allocate and record separately in the State budget expenditure estimate for 2011 of ministries, central agencies, and local agencies and units the funds for search and rescue, disaster relief activities according to Decision No. 118/2008/QD-TTg dated August 27, 2008, issued by the Prime Minister on Financial Management Regulations for Search and Rescue, Disaster Relief Activities, and Circular No. 92/2009/TT-BTC dated May 12, 2009, issued by the Ministry of Finance guiding the payment of expenses from the State budget for organizations and individuals participating in search and rescue, disaster relief activities.

7. Estimates of expenditures from retained revenue (tuition fees, medical fees, contributions, etc.):

Ministries, central agencies, and localities must prepare estimates of expenditures for each source of revenue, detailing according to each task and field of expenditure, and consolidate into the estimates of ministries, central agencies, and localities to submit to the competent authority for approval.

8. Based on the verification of revenue and expenditure of the State budget in 2011, ministries, central agencies, and localities must prepare detailed estimates of expenditures for each task and subordinate budget-using unit; after working and reaching consensus with the Ministry of Finance and the Ministry of Planning and Investment, ministries, central agencies, and centrally-administered cities and provinces immediately implement the work of preparing plans for allocating the 2011 State budget estimate of their ministries, agencies, and localities so that when receiving the State budget estimate assigned by the Prime Minister, they can proactively submit to the competent authority for approval of the allocation and assignment of the State budget to budget-using units before December 31 in accordance with the provisions of the State Budget Law.

Ministries, central agencies, and localities must focus on directing a thorough review of all stages in the process of budget allocation, management, and utilization, especially investment capital and loans and aid, to ensure accurate budget allocation according to objectives, regulations, and recipients; strict, effective budget management and utilization with reporting, inspection, and auditing systems to prevent loss and waste.

Article 11. Construction of the local budget estimate for 2011:

The year 2011 is the first year of the new period of local budget stabilization according to the provisions of the State Budget Law; the construction of the local budget revenue and expenditure estimates must closely adhere to the goals and tasks of the state budget for 2011 as stated above and based on available resources according to the allocation standards for the 2011 budget, in accordance with the provisions of the State Budget Law and guiding documents of the Law to construct the 2011 budget estimate and the period from 2011 to 2015; the local budget estimate for 2011 must ensure the development of the local budget, guarantee sufficient resources to implement central policies and systems already promulgated, and comply strictly with the provisions of the State Budget Law.

In addition to general guidelines on the preparation of state budget estimates, the establishment and construction of local budget estimates need to pay attention to the following main contents:

1. Construction of local budget revenue estimates:

Based on the draft plan for socio-economic development for the 2011-2015 period at the national level and of each ministry, sector, and locality, the ability to achieve socio-economic targets and the state budget in 2010, on the basis of forecasting economic growth rates and revenue sources in 2011 for each industry and field, the economic bases of each locality, and new revenue sources arising within the locality, accurately calculate each revenue area and each revenue item according to regulations; the domestic revenue estimate from tax and fee revenues (excluding oil revenue and land use fee revenue) should increase by a minimum of 17%-19% compared to the estimated actual performance in 2010 (excluding factors affecting the extension of tax deadlines in 2009 and 2010); the revenue estimate from import and export activities should increase by a minimum of 7%-9% compared to the estimated actual performance in 2010 (excluding factors affecting the extension of tax deadlines in 2009 and 2010).

2. Regarding the construction of local budget expenditure estimates:

- Based on the local state budget revenue estimate, the local budget revenue received at 100% according to the provisions of the State Budget Law, the level of balanced budget expenditures for localities according to criteria and allocation standards for the 2011 budget as decided by the Prime Minister to determine the percentage (%) distribution of shared revenue between the central budget and the local budget, the amount of supplementary balance transferred from the central budget to the local budget (if any), and stabilized during the new budget period according to the provisions of the State Budget Law and guiding documents of the Law. On this basis, based on the socio-economic development tasks of the locality for the 2011-2015 period and the socio-economic development goals for 2011, current expenditure policies, and the actual situation of each locality, the Department of Finance will coordinate with the Department of Planning and Investment to advise the provincial People's Council to decide: the division of revenue sources and expenditure tasks for the new budget stabilization period and the allocation standards for the 2011 local budget for each lower-level local government, stabilize the supplementary balance transferred from higher-level budgets to lower-level budgets, and the percentage (%) distribution of shared revenue among local government levels for the years in the new stabilization period. At the same time, ensure that the allocation standards for important expenditure tasks (education and training, science and technology, environment) are not lower than the requirements set out in Party resolutions, National Assembly decisions, and directives from the Prime Minister.

- Prioritize funding for infrastructure construction tasks, focusing investment on key projects and works of the locality to be completed and put into use as soon as possible (transportation, water conservancy, works serving economic restructuring, disaster recovery works, etc.); proactively allocate local budget funds to implement school consolidation programs, invest in solidifying irrigation canals and rural roads, village industry infrastructure, and tourism; develop crop and livestock varieties; transform economic structures; promote trade, expand and seek export markets; focus on implementing social welfare tasks such as poverty alleviation, job creation, etc.

- Allocate counterpart funds for ODA projects on the locality's responsibility as decided by the Prime Minister; proactively calculate and allocate in the budget for investment in construction and infrastructure to settle outstanding construction debts and debts due for repayment when they become due.

- Allocate the local budget's construction and infrastructure investment budget from land use fees to invest in economic and social infrastructure projects, resettlement projects, and land preparation for construction; proactively allocate and establish a land development fund according to Decree No. 69/2009/ND-CP dated August 13, 2009 of the Government; prioritize allocating sufficient funds to accelerate cadastral surveying, establishing land ownership data, and issuing land use certificates according to the Land Law and National Assembly resolutions.

- For lottery revenue, continue to be used for social welfare projects; focusing on education and healthcare fields as stipulated and managing revenue and expenditure through the state budget (without being included in the state budget balance).

- Develop plans to mobilize capital for local infrastructure investment, ensuring that the local budget allocates sufficient funds to repay all due debts (both principal and interest) according to Clause 3, Article 8 of the State Budget Law and Decree No. 60/2003/ND-CP dated June 6, 2003 of the Government, ensuring that the total debt raised (including projected amounts for the year) does not exceed 30% of the local budget's construction and infrastructure investment estimate (except for Hanoi and Ho Chi Minh City, which should not exceed 100%).

- Prioritize allocating funds to implement policies issued to develop the economy and society in accordance with Party resolutions, National Assembly resolutions, and Prime Minister decisions.

- When constructing the 2011 budget expenditure estimate, localities should proactively calculate various sources to implement salary reform expenditures according to Clause 4, Article 10 mentioned above.

3. For local administrative levels that pilot the non-establishment of People's Councils, the content of preparing the budget estimate for the year 2011 shall be carried out in accordance with the provisions of this Circular; regarding procedures and time limits for implementation, it shall be carried out in accordance with the provisions of Circular No. 63/2009/TT-BTC dated March 27, 2009 of the Ministry of Finance on the work of preparing budget estimates, organizing the implementation of budgets, and finalizing accounts for districts, towns, and wards where People's Councils are not organized.

Chapter III

IMPLEMENTATION

Article 12. Responsibilities of Ministries and central agencies managing national target programs, Program 135, and key national programs and projects:

1. Coordinate with other Ministries, central agencies, and related localities to forecast tasks and funding levels for implementing programs and projects in 2011 and submit them to the Ministry of Planning and Investment and the Ministry of Finance before July 20, 2010.

2. Prepare budget allocation plans for expenditures in 2011 for each Ministry, central agency, and each province and centrally-administered city and submit them to the Ministry of Finance and the Ministry of Planning and Investment before July 30, 2010.

3. Proactively develop, issue, and perfect guiding documents within their authority to complete in 2010 as the basis for organizing and implementing programs and projects from 2011 in accordance with regulations.

Article 13. Responsibilities of Ministries, central agencies, and localities:

1. Based on the verification numbers already announced, Ministries, central agencies, and provincial and municipal People's Committees guide and announce verification numbers for budget revenue and expenditure estimates to subordinate budget units and lower-level budgets in accordance with regulations.

2. The Ministry of Planning and Investment shall take the lead and coordinate with the Ministry of Finance to prepare the 2011 budget for development spending and proposals for allocating development spending for certain sectors of the central budget assigned to them, and submit them to the Ministry of Finance before September 10, 2010.

3. Organize the work of developing, compiling, and reporting the 2011 state budget estimate in accordance with the provisions of the State Budget Law, guiding documents, and the contents specified in this Circular; report all content and forms as required by Circular No. 59/2003/TT-BTC dated June 23, 2003 of the Ministry of Finance and relevant forms prescribed in this Circular; submit to the Ministry of Finance and the National Audit Office before July 20, 2010 for Ministries and central agencies, and before July 25, 2010 for provinces and centrally-administered cities.

Article 14. Regarding forms for preparing and reporting the 2011 state budget estimate:

1. For Ministries and central agencies: Compile and report to the Ministry of Finance the state budget estimate according to the forms and deadlines stipulated in Circular No. 59/2003/TT-BTC dated June 23, 2003 of the Ministry of Finance, additional forms (Form 2 and Form 5) prescribed in this Circular, and forms prescribed in Joint Circular No. 03/2006/TTLT-BTC-BNV dated January 17, 2006 of the Ministry of Finance and the Ministry of Home Affairs guiding the implementation of Decree No. 130/2005/NĐ-CP dated October 17, 2005 of the Government, and Circular No. 71/2006/TT-BTC dated August 9, 2006 of the Ministry of Finance guiding the implementation of Decree No. 43/2006/NĐ-CP; pay attention to preparing detailed budget estimates down to each budget-using unit (according to Form 02 - Appendix 2 - Circular No. 59/2003/TT-BTC) and important tasks of Ministries and agencies to explain and report to the National Assembly about the budget estimates of each Ministry and central agency. After the Prime Minister assigns the 2011 state budget, allocate and assign the budget to budget-using units before December 31, 2010 in accordance with the State Budget Law.

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

Article 15. Implementation provisions:

1. This Circular takes effect from the date of issuance.

2. During the process of compiling the State budget estimate for 2011, if new policies and regulations are issued, the Ministry of Finance will issue supplementary guidance notices; if any difficulties arise in organizing the compilation of the State budget estimate for 2011, it is requested that ministries, central agencies, localities, economic groups, and state-owned corporations report to the Ministry of Finance for timely resolution./.