Circular No. 90/2013/TT-BTC guiding the preparation of the state budget estimate for 2014

CIRCULAR

Guidelines for preparing the state budget estimate for 2014

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Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the Law on State Budget;

Pursuant to the Government Decree No. 118/2008/NĐ-CP dated November 27, 2008 stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

To implement Directive No. 13/CT-TTg dated June 25, 2013 of the Prime Minister on the preparation of plans for economic and social development and the state budget estimate for 2014;

At the proposal of the Director of the State Budget Department;

The Minister of Finance issues this Circular guiding the preparation of the state budget estimate (NSNN) for 2014 as follows:

PART I

ASSESSMENT OF THE IMPLEMENTATION OF THE STATE BUDGET TASKS IN 2013

Article 1. General Provisions

1. Basis for assessing the state budget tasks in 2013:

a) The state budget tasks for 2013 were approved by the National Assembly through Resolution No. 32/2012/QH13 dated November 10, 2012 of the 13th National Assembly, fourth session on the state budget estimate for 2013, Resolution No. 33/2012/QH13 dated November 15, 2012 of the 13th National Assembly, fourth session on the allocation of the central budget for 2013, Decision No. 1792/QĐ-TTg dated November 30, 2012 of the Prime Minister on the allocation of the state budget estimate for 2013, Decision No. 1902/QĐ-TTg dated December 19, 2012 of the Prime Minister on the allocation of capital investment development funds from the state budget for 2013, Decision No. 2081/QĐ-TTg dated December 26, 2012 of the Prime Minister on the allocation of the central budget estimate for 2013 to implement the National Target Program on Responding to Climate Change and the National Target Program on Pollution Control and Environmental Improvement; other decisions of the Prime Minister on supplementing the budget during the implementation of the state budget in 2013.

b) Directives of the Government and the Prime Minister include: Resolution No. 01/NQ-CP dated January 7, 2013 on key measures to guide and manage the implementation of the plan for economic and social development and the state budget estimate for 2013; Resolution No. 02/NQ-CP dated January 7, 2013 on certain measures to address difficulties in production and business operations, support the market, and resolve bad debts; Directive No. 09/CT-TTg dated May 24, 2013 of the Prime Minister on strengthening guidance and management of financial-state budget tasks in 2013.

c) Circular No. 222/2012/TT-BTC dated December 24, 2012 of the Ministry of Finance on the organization of implementing the state budget estimate for 2013.

d) The situation of financial-state budget task implementation in the first six months of the year; measures to strive to complete the state budget estimate 2013 at the highest level decided by the National Assembly and People's Councils in the last six months of the year.

2. In line with the Government's guidance in managing economic and social affairs, based on the situation of revenue and expenditure of the state budget in the first six months of the year, ministries, central agencies, and localities should assess the results of state budget revenue and expenditure in 2013, the implementation of conclusions and recommendations of auditing and inspection agencies; proactively propose amendments and supplements to state budget revenue and expenditure policies and other relevant policies (if any) to be submitted to the Ministry of Finance and related ministries and agencies for study and amendment or to be submitted to competent authorities for timely amendment to address difficulties and promote production development.

Article 2. Evaluation of the Implementation of Revenue Collection Tasks for the State Budget

Based on the results of state budget revenue in the first six months of the year, forecasting the situation of production and business operations, price trends in the market, review and evaluate factors affecting increases and decreases in revenue, propose measures to manage revenue to strive to achieve the highest possible level of the state budget revenue estimate approved by the National Assembly and People's Councils at all levels. When evaluating, focus on the following main contents:

a) Analyze thoroughly the reasons affecting state budget revenue in 2013 due to factors such as the situation of production and business operations, import and export activities of industries and enterprises under various economic sectors; the results of achieving production volume and consumption targets of major products; selling prices, profits; the growth rate of total retail sales of goods and service revenue; the growth rate of industrial value added; the increase or decrease in investment capital of various economic sectors; review to consider new investment projects, expanded investment, deepened investment, and investment projects that have completed their preferential period.

b) Evaluate the implementation of measures for revenue collection according to Resolution No. 01/NQ-CP of the Government; forecast the impact on state budget revenue from the implementation of Resolution No. 02/NQ-CP of the Government regarding tax deferral, reduction in tax rates, tax incentives, reduction in land rental fees, refund of environmental protection taxes to address difficulties in production and business operations of enterprises.

c) Evaluate the handling of overdue tax in 2013: Determine the amount of overdue tax as of December 31, 2012, estimate the amount of new overdue tax in 2013, the amount of overdue tax recovered in 2013, and the amount of overdue tax as of December 31, 2013. Summarize and classify accurately the amount of overdue tax according to regulations (overdue tax by type of enterprise; overdue tax by type of tax; overdue tax by industry).

d) Evaluate the results of cooperation among levels and sectors related to state budget revenue management and the organization of revenue recovery, inspection, and control work, anti-evading, anti-smuggling, anti-commercial fraud, anti-transfer pricing; the amount of tax proposed for recovery through inspection and audit work; the amount of tax proposed for recovery by the State Audit Office, the Government Inspectorate, and the expected amount to be paid into the state budget; propose measures to adjust management mechanisms, strengthen sanctions, improve the effectiveness of tax laws; enhance and diversify forms of tax law publicity, support, and advisory services for enterprises and society.

đ) Evaluate the declaration and refund of value-added tax up to the end of 2013; the amount of VAT refund generated by enterprises' declarations in 2013; the estimated amount to be refunded to enterprises; analyze the sudden increase or decrease in VAT refunds compared to the previous year; propose adjustments to refund mechanisms and policies.

e) Evaluate the results of implementing mechanisms and policies for revenue collection; new tax policies issued, amended, or supplemented in 2012 and 2013 that affect revenue outcomes; propose recommendations to adjust mechanisms and policies (if necessary).

f) Evaluate the results of fee and charge collection, administrative violation fines for six months and the whole year of 2013.

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

1. Evaluate the work of allocating and organizing the implementation of basic construction investment capital in 2013:

a) Evaluate the situation of allocating and budgeting basic construction investment expenditure (BCIE) for 2013:

- The allocation and arrangement of BCIE capital for projects and works completed in 2012 or earlier; the arrangement of counterpart funds for ODA projects; works and projects completed in 2013, ongoing projects, and newly initiated projects.

- Time of allocation and plan assignment to project owners (consistent with assigned total investment amount indicators; domestic and foreign capital structure; economic sector structure).

- Results of budget allocation for recovery of advance budgeted funds and settlement of CICB debts from state budget sources.

b) Evaluate the implementation of BCIE expenditure tasks in 2013:

- Evaluate the implementation of the 2013 investment plan including the value of completed volume up to the end of Quarter II/2013, payments made up to the end of Quarter II/2013 (including payment for completed volume and advance payment), estimated volume to be implemented and payments to be made by December 31, 2013; accompanied by detailed appendices for each project, including approved total investment amount, cumulative payments up to the end of the 2012 plan, 2013 capital plan according to the above contents.

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

- Report on the reduction of expenditures to recover supplementary national reserve and provincial reserve funds for investment capital allocated in the budget but not distributed or improperly distributed by June 30, 2013; investment capital under the 2013 plan already distributed but not implemented by June 30, 2013, in accordance with Directive No. 09/CT-TTg dated May 24, 2013, of the Prime Minister.

- Evaluate the implementation of projects extended from the 2012 capital plan to be settled by September 30, 2013, as announced in Notification No. 196/TB-VPCP dated May 17, 2013, of the Government Office.

- Evaluate the implementation from pre-allocated funds in 2013 for investment projects based on decisions by competent authorities.

- Summarize and evaluate the situation and results of handling outstanding investment BCIE volumes in accordance with Directive No. 27/CT-TTg dated October 10, 2012, of the Prime Minister; propose and recommend solutions to handle outstanding debts.

- Evaluate the settlement of completed investment projects, specifying: the number of projects completed but not settled according to regulations by the end of June 2013 and projected by the end of 2013; specify the time since completion until settlement, reasons, and solutions for handling.

- Evaluate the mobilization, recovery, and repayment of various sources of funds (including retained advances at State Treasury) to implement infrastructure investment projects and works.

2. Evaluate the results of implementing support development expenditure tasks in 2013:

a) Situation of implementing preferential state investment credit (total credit growth rate, sources of funds for implementing the credit growth plan including recovered loan repayments, funds raised from domestic and foreign organizations and individuals, state budget subsidies for interest rate differences,...); beneficiaries; scope of benefits; responsible bodies for implementing credit policy; measures for adjusting and balancing funds; credit quality; interest rates (basis for determining interest rates, interest rate levels, preferential credit interest rate policies in case market interest rates change); administrative reform in investment approval procedures and loan approval procedures.

b) Situation of implementing social policy credit for poor households, near-poor households, and other social policy beneficiaries; student and youth credit, preferential credit for particularly difficult ethnic minority households, poor households building houses,... (scope, beneficiaries; activity results, loan balances, deposit interest rates, newly generated interest rate differences subsidies; loan conditions,...).

c) Evaluate the implementation of the pilot export credit insurance policy pursuant to Decision No. 2011/QĐ-TTg dated November 5, 2010, of the Prime Minister (percentage of export turnover covered by export credit insurance; beneficiaries, products, markets; degree of dependence of domestic insurance companies implementing export credit insurance on foreign reinsurance companies from risk assessment, underwriting,...).

d) Evaluate the implementation of the pilot agricultural insurance policy pursuant to Decision No. 315/QĐ-TTg dated March 1, 2011, and Decision No. 358/QĐ-TTg dated February 28, 2013, of the Prime Minister (expanding participation conditions for certain beneficiaries; amending and supplementing the scope and beneficiaries; adjusting insurance premium rates for certain crops, livestock; main causes of losses; level of state budget support;...).

đ) Implementation status of the Program for Strengthening Irrigation Channels, Rural Transportation Infrastructure, Aquaculture Infrastructure, and Village Craft Infrastructure in Rural Areas (including additional loans of VND 100 trillion to supplement funding for strengthening irrigation channels, developing rural transportation infrastructure, electric pumping stations serving agriculture production, aquaculture infrastructure, and village craft infrastructure, and expanding loan recipients to include projects for constructing bridges and rural transportation infrastructure (including inter-village and inter-district roads) in accordance with Resolution No. 02/NQ-CP dated January 7, 2013, of the Government.

e) The situation regarding the implementation of national reserves in 2013 (national reserves by physical goods according to each group of items; levels of reserve for certain essential items); plans for export, import, exchange of reserve goods, free distribution, purchase to replenish, and increase in reserve goods (details on types, quantities, values) to strengthen the national reserve force to promptly meet requirements for prevention, response, and mitigation of natural disasters, fires, epidemics; ensure food security; guarantee national defense, security, and social order and safety;...

Article 4. Evaluation of the Implementation of Regular Expenditure Tasks

1. Evaluate the implementation of the state budget estimate for the first six months of the year and the forecast for the whole year 2013 (implementation of budget allocation and disbursement, execution of the budget estimate,...) by sector as assigned by the State to Ministries, central agencies, and localities in 2013. Assess the results of implementing objectives, tasks, major programs, and projects of each Ministry, sector, field, and locality; difficulties encountered and proposals for solutions.

2. Evaluate the results of implementation and difficulties arising from the execution of tasks, mechanisms, policies, and expenditure regimes while proposing immediate solutions within 2013, specifically:

a) For social welfare systems and policies: Social assistance policy; health insurance support policy for the poor, children under six years old, near-poor individuals; policy for those who participated in wars to protect the country and international missions; housing support policy for households with war veterans facing housing difficulties; health insurance for household members engaged in agriculture, forestry, fisheries, and salt production; Law on Persons with Disabilities; policy for poor and near-poor households, ethnic minorities, and people in particularly difficult areas such as poverty reduction programs for poor districts, housing support for poor households; land for production, residence, houses, and clean water for poor ethnic minority households; unemployment insurance policy; support for disease prevention and disaster response, flood relief, and famine relief for the people; support for fishermen encountering risks when fishing in distant waters; interest rate subsidy policy and interest rate compensation policy to reduce post-harvest losses for agricultural and aquatic products;... Overall assessment of all policies and systems, identifying overlapping and redundant contents to propose integration or abolition of unsuitable policies and systems.

b) The situation and results of implementing the self-management mechanism and responsibility for personnel establishment and administrative expenses according to Decree No. 130/2005/NĐ-CP dated October 17, 2005 of the Government. Evaluate the implementation of the self-management system and responsibility for task performance, organizational structure, personnel establishment, and finance for public service units according to Government Decrees and Decision No. 39/2008/QĐ-TTg dated March 14, 2008 of the Prime Minister promulgating the Procurement Regulations for Public Services Using State Budget Funds. Evaluate the implementation of the Government's action program issued according to Resolution No. 40/NQ-CP dated August 9, 2012 of the Government to implement the "Reform Mechanism for Public Service Units and Promote Socialization of Certain Types of Public Services."

c) Evaluate the expenditure from fines collected for administrative violations in the first six months; unspent revenue (if any); calculate the operating costs of functional forces for administrative violation handling in the last six months to recommend relevant authorities to ensure funds in accordance with the Law on Administrative Violation Handling and guiding documents.

4. Evaluate the additional savings in regular expenditures in the last months of the year according to Resolution No. 60/NQ-CP dated May 10, 2013 of the Government, Directive No. 09/CT-TTg dated May 24, 2013 of the Prime Minister, and Circular No. 6684/BTC-NSNN dated May 27, 2013 of the Ministry of Finance.

Evaluate the situation of savings and the use of savings to allocate for salary reform and the implementation of social welfare policies as stipulated in Clause 4, Article 4 of Decision No. 1792/QĐ-TTg dated November 30, 2012 of the Prime Minister on the allocation of the state budget estimate for 2013.

5. Report on the amount cut from expenditures to recover supplementary reserves for the State Treasury and local budgets for regular expenditures allocated in the 2013 budget but not allocated or improperly allocated by June 30, 2013, and the additional 10% savings in regular expenditures in the last months of the year according to Directive No. 09/CT-TTg dated May 24, 2013 of the Prime Minister and Circular No. 6684/BTC-NSNN dated May 27, 2013 of the Ministry of Finance.

6. Evaluate the implementation of socialization mechanisms and policies, focusing on analyzing trends and sustainability of general criteria: total resources and resource structure invested by society for development in sectors and fields; number of facilities funded through socialized resources; economic and social benefits achieved from these socialized facilities; existing issues, causes, and measures needed to adjust. For some sectors with conditions for rapid socialization, focus on detailed analysis of causes to provide specific recommendations.

a) Higher Education: Evaluate mechanisms and solutions to promote investment in research and technology at reputable universities with extensive experience. The ability to continue decentralizing higher education management between the Ministry of Education and Training and other ministries, agencies, and localities towards granting more autonomy to higher education institutions meeting the required conditions.

b) Science and technology: Specifically assess the work of converting public science and technology organizations to an autonomous self-responsibility mechanism as prescribed in Decree 115/2005/NĐ-CP dated September 5, 2005 of the Government, Decree 96/2010/NĐ-CP dated September 20, 2010 of the Government amending and supplementing Decree 115/2005/NĐ-CP, and Decree 80/2007/NĐ-CP dated May 19, 2007 of the Government on science and technology enterprises; support mechanisms for potential young research groups and strong research groups from universities and research institutes in fostering technology and forming science and technology enterprises; the ability to form and develop the science and technology market.

Article 5. Evaluation of the implementation of National Target Programs, Programs, and Projects carried out by ministries, central agencies, and localities approved by the Prime Minister to be implemented until 2015.

1. Ministries, central agencies, and localities shall evaluate the allocation, assignment, and implementation of budget expenditures for national target programs, programs, and projects in 2013; advantages, difficulties, and obstacles (if any) in implementation.

Evaluate the results of implementing each national target program and each program and project over the three years 2011-2013. On this basis, propose ways to integrate some contents of projects, national target programs, programs, and projects with similar objectives; propose ways to amend certain criteria of the National Target Program on New Rural Areas to suit local conditions.

2. For national target programs, Programs, and Projects implemented with both domestic and foreign sources, carefully evaluate the disbursement of foreign funds, and any recommendations (if any). Assess the effectiveness of using foreign funds for training, capacity building, drafting regulatory legal documents, strengthening institutions, and communication.

3. Evaluate the ability to balance local budgets and mobilize communities to implement national target programs, programs, and projects in the locality. In cases where mobilization levels are lower than expected, propose practical solutions to ensure funding for the implementation of program targets in the locality.

Article 6. Estimate the budget for implementing the basic salary level (replacing the minimum wage) at 1,150,000 VND/month.

1. Report on staffing, salary fund, and determine the financial needs for salary reform at the basic salary level of 1,150,000 VND/month starting July 1, 2013.

2. Estimate the results of implementing financial measures to generate resources for salary reform: Saving 10% of regular expenses (excluding salaries and allowances with salary characteristics); retaining 35-40% of revenue according to regulations; utilizing 50% of increased local government revenue (excluding land use fees) in 2013; unused sources from previous years according to regulations to implement the basic salary level of 1,150,000 VND/month in 2013. Based on this, determine the remaining sources to be transferred to 2014 (if any).

3. Estimate the needs and sources for implementing the basic salary level of 1,150,000 VND/month by sector; the additional amount from the State Budget to implement the basic salary level and various allowances adjusted according to the basic salary level for each sector in 2013.

Article 7. Certain specific points in evaluating the implementation of the State Budget for the year 2013 by provinces and centrally governed cities

In addition to the requirements mentioned above, provinces and centrally governed cities shall focus on evaluating the following additional contents:

1. Assessing the ability to balance local budgets compared to the budget estimate, measures already taken and those planned to ensure local budget balance including: striving to increase revenue, economizing on expenditures, cutting expenditures, utilizing remaining financial resources of the locality (salary reform fund, surplus from 2012, financial reserve fund, etc.). Please clarify each source, the amount used, and the remaining surplus (if any).

2. Results of implementing Resolution No. 30a/2008/NQ-CP dated December 27, 2008 of the Government on the Program to Quickly and Sustainably Reduce Poverty in 62 Poor Districts; Decree No. 49/2010/NĐ-CP dated May 14, 2010 of the Government on Exemption and Reduction of School Fees, Support for Educational Expenses, and Mechanism for Collection and Utilization of School Fees for Educational Institutions under the National Education System; social assistance policies; Decision No. 60/2011/QĐ-TTg dated October 26, 2011 of the Prime Minister stipulating certain policies for developing preschool education during the period 2011-2015; Law on the Elderly, Law on Persons with Disabilities; policies supporting boarding and semi-boarding students; electricity subsidies for poor households; transferring sources for purchasing cars and equipment from 2012 to 2013;...

3. The allocation of budget expenditure to implement state mechanisms and policies aimed at economic and social development, poverty reduction such as: health insurance policy for the poor, ethnic minorities, children under six years old, support for near-poor individuals to participate in health insurance, support for members of farming, forestry, fishery, and salt production households to participate in health insurance, unemployment insurance policy, fisherman support policy, assistance policy for social welfare beneficiaries; the situation of capital allocation for planning work,...

4. Evaluating the budget allocation (including the central government's targeted budget support for local budgets if applicable) and the use of reserves to fulfill security and defense tasks; prevention, response, and mitigation of natural disasters, epidemics affecting people and livestock, poultry, crops; the situation of budget reserve usage up to June 30, 2013.

5. Accurately calculating the need for additional funding to support rice producers and localities producing rice as stipulated in Decree No. 42/2012/NĐ-CP dated May 11, 2012 of the Government on the management and use of paddy land.

6. Evaluating the implementation of policies exempting water resource fees in the locality; the implementation of policies exempting contributions as stipulated in Directive No. 24/2007/CT-TTg dated November 1, 2007 of the Prime Minister on strengthening the enforcement of laws on fees and charges, policies for mobilizing and using contributions from the public.

7. Evaluating the implementation of spending from land use fee revenues for local infrastructure projects, conducting cadastral surveys, issuing land use right certificates, and allocating the land development fund from land use fees and land rental fees as stipulated in Decree No. 69/2009/NĐ-CP dated August 13, 2009 of the Government.

8. The situation of mobilizing investment capital for infrastructure (including the situation of mobilizing and allocating funds to repay principal and interest up to June 30, 2013) as stipulated in Clause 3, Article 8 of the State Budget Law, including: beginning-of-year debt balance, annual mobilization, timely repayment, estimated mobilized debt balance by December 31, 2013 (for Hanoi and Ho Chi Minh City, evaluate investment capital mobilization according to the special financial-budget mechanism of the locality); the situation of debt, borrowing to repay debt of the local budget detailed by each source of borrowing (issuing bonds, borrowing back foreign loans of the Government, borrowing from the Vietnam Development Bank, borrowing from the treasury and other borrowings); projected sources of repayment for the year.

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

10. Evaluating the implementation of saving 10% from the state budget expenditure estimate for 2013 as per Decision No. 1792/QĐ-TTg dated November 30, 2012 of the Prime Minister on the state budget estimate for 2013 and additional savings of 10% of regular local budget expenditures in the last seven months of 2013, proposing tasks to be funded from the local budget reserve and savings.

11. Reordering expenditure tasks by priority to propose options for reducing or delaying the implementation of unnecessary expenditure tasks in case of significant revenue shortfall despite active budget management and efforts to increase revenue.

12. Evaluating and analyzing the situation of income and expenditure from lottery proceeds from various perspectives: the proportion of lottery revenue compared to the local state budget revenue; distribution of lottery revenue (taxes, prizes for customers, sales agent expenses, ticket printing costs, enterprise management expenses, and establishment of funds); rate of unsold tickets; utilization of lottery revenue for important social welfare projects, adequate and appropriate investment in educational and healthcare facilities as per Resolution No. 68/2006/NQ-QH11.

Chapter II

BUILDING THE STATE BUDGET ESTIMATE FOR 2014

Article 8. Objectives, Requirements

Year 2014 is the fourth year of implementing the Resolution of the 11th Party Congress, the five-year socio-economic development plan and state budget for 2011-2015, and the ten-year socio-economic development strategy and financial strategy for 2011-2020. Economic forecasts predict continued difficulties impacting the state budget in 2014. Accordingly, the construction of the state budget estimate for 2014 must ensure the following principles:

1. Implementing proactive and flexible fiscal policies to contribute to social stability, financial security, and reasonable growth promotion.

2. Continuing to restructure state budget expenditures, requiring reviews to integrate systems, policies, and tasks to ensure effectiveness, avoid overlap and waste; implementing savings from the initial budget allocation phase for development investment and regular expenditures.

3. Ministries, central agencies, and localities shall base their plans on the goals and tasks for economic and social development in 2014, closely align with the goals and tasks for the period from 2011 to 2015 within their respective sectors, fields, and regions, along with the requirements of strict and effective public expenditure, to prepare the State Budget revenue estimate for 2014 in accordance with the key activities of their agencies and units; in compliance with current state regulations and policies; with a spirit of thorough thrift; ensuring the timeframes stipulated by the State Budget Law; the budget revenue estimate must clearly and specifically explain the sources of revenue and expenditure tasks.

Article 9. Building the State Budget Revenue Estimate

The State Budget revenue estimate for 2014 must be built based on a thorough assessment of the actual performance of revenue collection in 2013; forecasts regarding the growth rate of production in various industrial, commercial, and service sectors, consumption conditions in these sectors, inventory levels of goods, purchasing power, and enterprises' access to capital; investment, production and business development, and trade activities in 2014; simultaneously, calculate specific factors affecting revenue increases or decreases due to the implementation of newly amended tax laws (Tax Administration Law, Personal Income Tax Law, Corporate Income Tax Law, and Value Added Tax Law amendments), tax exemptions, reductions, extensions, and adjustments according to National Assembly and Government resolutions. Strengthen monitoring, inspection, and control of tax declarations by organizations and individuals to promptly identify and address cases of incorrect or incomplete tax declarations; resolutely combat revenue losses, recover overdue taxes from previous years, revenues from expired preferential investment projects, and revenues discovered through inspections, audits, etc.

On this basis, the domestic revenue estimate (excluding oil revenue and land use fee revenue) aims to increase by approximately 12-13% compared to the estimated actual performance in 2013, while the revenue estimate from import and export activities aims to increase by approximately 8-9% compared to the estimated actual performance in 2013. The specific rate of revenue increase will depend on the conditions, characteristics, and alignment with the economic growth rate in each locality.

1. Building the Domestic Revenue Estimate

When localities build the State Budget revenue estimate for their areas in 2014, they must ensure all the aforementioned requirements and consolidate all revenue sources generated in their areas (including revenue at commune, ward, and town levels). The State Budget revenue estimate for 2014 must be based on a comprehensive evaluation of the actual results achieved in 2012; the target efforts and implementation capacity in 2013, and the verified revenue estimates for 2014. The revenue estimate must ensure accuracy and completeness for each revenue sector and each type of tax according to tax laws, collection systems, and administrative penalties, paying particular attention to new collection policies and regulations issued and amended (details of legal documents issued from late 2012 to early 2013 significantly impacting State Budget revenue, serving as the basis for building the domestic revenue estimate for 2014, attached as Appendix I).

2. Building the Revenue Estimate from Export-Import Activities:

It is constructed based on analyzing and assessing the trends in exports and imports of taxable goods affecting the budget; the sustainability of the volume of main export and import goods; the facilitation of trade and investment, and harmonization of standards when entering and expanding export markets; the decline in demand in key markets; the increasing competitiveness of some countries in the region; the schedule for implementing tariff reductions to fulfill international economic integration commitments; the impact of international trade regulations (technical standards, technical specifications, conformity assessment procedures, sanitary and phytosanitary regulations).

Analyze and forecast the impacts on State Budget revenue due to price and exchange rate fluctuations, increases or decreases in the quantity of exported goods, specifically for each product within each export commodity group (agriculture, forestry, fisheries; fuels and minerals; processed industry), and by market.

Analyze the impact on State Budget revenue due to changes in exchange rates, prices, and increases or decreases in the quantity of imported goods, specifically for each product within each import commodity group (import-controlled goods, restricted import goods, necessary import goods, other goods) in the domestic enterprise sector (100% domestic capital) and foreign-invested enterprises, and by importing market.

The revenue estimate must be established based on the correct implementation of customs procedures; customs inspection and supervision, export duties, import duties, and tax management for exported and imported goods as stipulated in Circular No. 194/2010/TT-BTC dated December 6, 2010, issued by the Ministry of Finance; the tariff rates of the Export Tariff Schedule and Preferential Import Tariff Schedule according to the list of taxable goods specified in Circular No. 157/2011/TT-BTC dated November 14, 2011, issued by the Ministry of Finance, and related documents. Promote simplification of administrative procedures in the customs sector to shorten clearance times and reduce costs for exported and imported goods. Enhance measures to combat revenue loss such as debt recovery, anti-smuggling, tax evasion, and trade fraud.

3. Revenues retained for expenditure under the regime (tuition fees, other fees and charges, and other contributions, specifically in the healthcare sector, service fees for medical examination and treatment):

Ministries, central agencies, and localities shall base their revenue estimates for 2014 on the actual revenue collected in 2012, the estimated revenue for 2013, planned adjustments to revenue levels in 2014, contributions from service users, and anticipated factors affecting revenue in 2014 to construct appropriate and proactive revenue estimates. Service-related revenue that has a business nature and does not belong to State Budget revenue sources should not be included in the revenue estimate for fees and charges under the State Budget but must be separately budgeted for tracking and management.

Article 10. Budget Expenditure Planning

Ministries, central agencies, and localities shall develop plans to implement key political tasks and priorities that can be carried out in 2014, based on which they shall prepare budget expenditure estimates in accordance with current legal regulations on financial systems, standards, and budgetary norms, within the scope of funds approved by authorized agencies, and proactively arrange the order of expenditures according to priority levels; they must practice thrift and prevent waste from the very stage of preparing the budget estimates.

To promptly serve the work of building the state budget for 2014, ministries managing sectors and fields shall undertake the following responsibilities:

- Continue to review economic and technical norms within their managed sectors and fields to amend, supplement, or abolish them according to their authority or submit to higher authorities for abolition or amendment and supplementation of norms that are inconsistent with reality.

- Conduct comprehensive evaluations of all policies and systems issued recently (especially social welfare policies), on the basis of which integrate these policies, abolish them according to their authority or submit to higher authorities for immediate abolition of overlapping and ineffective policies and systems; minimize the issuance of new policies and systems (including expanding the target groups and application scopes of existing social welfare policies and systems) that increase state budget expenditures. Only submit policies to higher authorities for decision-making when resources are balanced and implementation is feasible.

The preparation of the state budget expenditure plan for 2014 for specific areas and tasks shall be carried out as follows:

1. Construction of the Development Investment Expenditure Estimate:

Investment capital allocated in the state budget for 2014 must be concentrated and linked to the restructuring of public investment, enhancing the effectiveness of state budget investment. When ministries, central agencies, and localities prepare investment development expenditure budgets, they must closely align with the goals and tasks of the socio-economic development plan for 2014 and pay attention to the following contents:

a) Strictly control the scope and scale of each investment project according to the approved objectives, fields, and programs, only deciding to invest when clear sources of funding and the ability to balance funds at each level of the budget have been determined.

b) Review projects and works to determine the list of priority investment projects in 2014 ensuring concentration and efficiency. Among them:

- Concentrate capital on projects and works completed, handed over, and put into use in 2013 but not fully funded; resolutely implement measures to handle overdue construction debts according to Directive No. 27/CT-TTg dated October 10, 2012 of the Prime Minister.

- Prioritize capital for important and urgent projects expected to be completed in 2014 (according to the progress in the investment decision, the ability to balance funds, and the possibility of implementation in 2014); counterpart funds for ODA projects according to the project's progress; projects using government bond funds for the period 2012-2015 but not fully funded from government bond sources to complete the projects.

- Recover overdue advances.

- Remaining funds allocate to ongoing projects according to the approved schedule; only prepare investment expenditure budgets for truly urgent new projects that have clearly identified funding sources and the ability to balance funds at each level of the budget and must meet the required investment procedures; the allocation of funds must ensure that Group C projects are completed within three years and Group B projects within five years.

c) Prepare investment expenditure budgets from the proceeds of the reorganization and disposal of state-owned real estate according to Decision No. 09/2007/QĐ-TTg dated January 19, 2007 and Decision No. 140/2008/QĐ-TTg dated October 21, 2008 of the Prime Minister.

d) Ministries, central agencies, and localities responsible for implementing projects using government bond funds shall actively assess and summarize the implementation of government bonds in 2013, including projects permitted to use advance government bonds for 2014, and prepare plans to use remaining bond funds for 2014-2015 to repay advanced budget funds and ensure completion of projects according to the plan, and send these plans to the Ministry of Planning and Investment and the Ministry of Finance for reporting to the Government and the National Assembly.

đ) Project sponsors funded through government loans must secure sufficient counterpart funds for these projects in line with signed agreements and domestic financial management regulations to avoid impacting implementation schedules.

e) For the budget estimate of interest rate subsidies for development credit and state policy credit, base the estimate on the actual situation in 2013, anticipated policy changes, and tasks for 2014 to build the budget estimate according to prescribed regulations.

f) For the budget estimate of supplementary national reserves: Based on assigned national reserve targets, requirements for preventing and mitigating natural disasters, epidemics, ensuring national defense and security, and social welfare, departments and agencies managing national reserve goods shall assess and determine the level of national reserves managed by departments, agencies, and units up to December 31, 2013; forecast the level of supplementary reserves for each type of essential goods, materials, and equipment, prepare the state budget estimate for increasing national reserves, costs for storing goods, and plans for rotating and updating national reserve goods in 2014.

2. Recurrent expenditures:

a) Throughout the country, develop the budget for expenditures on the development of educational and vocational training, science and technology, health care, culture and information, environment according to the Resolutions of the Party and the National Assembly; prioritize expenditures on national defense and security in the new situation; ensure expenditures on social welfare; manage state administrative expenditures strictly and economically. Ministries, central agencies, and localities shall base their regular expenditure budgets on their political tasks and economic and social development plans for 2014, following the regular expenditure allocation standards set forth in the Prime Minister's Decision and specific policies and regulations issued by competent authorities. Among these, salary payments and allowances based on the basic monthly salary level of 1,150,000 VND, and deductions from salaries (social insurance, health insurance, unemployment insurance, trade union fees) shall be implemented in accordance with the Law on Health Insurance, the adjustment schedule of the Law on Social Insurance, and guiding documents.

b) Review programs and projects to integrate them, reduce overlaps, duplication, and waste. Reorganize and reallocate expenditure tasks in line with the State Budget's balancing capacity. Agencies and units, particularly sectoral and field management ministries and localities, shall clearly define services provided by public service organizations and those provided by non-public entities; establish fee frameworks for public service organizations categorized to adjust prices and fees to cover salaries, salaries plus part or all of management costs and depreciation of fixed assets. Based on this, classify public service organizations according to price and fee levels to determine appropriate budget support.

c) Ministries, sectors, localities, agencies, units, and organizations using the budget shall prepare regular expenditure budgets accurately reflecting the nature of funding sources, thoroughly economizing, especially budgets for purchasing expensive equipment and facilities, minimizing the number and scale of festivals, conferences, seminars, summaries, signing ceremonies, groundbreaking ceremonies, awarding honors, hosting guests, domestic and foreign trips, and other unnecessary urgent tasks; budgets for these tasks shall not increase compared to the actual expenditures in 2013 (after reducing the 2013 budget by 30%).

d) Develop the budget for economic public services based on the volume of tasks assigned by competent authorities and the prescribed budget expenditure standards; focus on allocating funds for important tasks: maintenance and repair of key economic infrastructure systems (transportation, irrigation, etc.) to extend usage time and investment efficiency; planning implementation funds; agricultural, forestry, fisheries, and industry promotion tasks; surveying, mapping, land registration, and land use rights certification tasks. Strictly comply with legal provisions on bidding, ordering, and task assignment in organizing and implementing these tasks.

đ) Develop and consolidate the budget for ensuring the operations of functional forces tasked with administrative violation penalties as stipulated by law within the regular expenditure budgets of relevant ministries, central agencies, and localities.

e) In addition to the general provisions above, when developing budgets, ministries and central agencies must provide detailed explanations on the following additional contents:

- Funds for special tasks, programs, and projects in the areas of expenditure: Based on the volume of work approved by competent authorities, progress schedules, calculation bases, and commitments to mobilize resources outside the budget.

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

+ The number of authorized personnel up to the budget preparation date, including the number of personnel actually present at the budget preparation date, the number of personnel yet to be recruited according to the approved quota (if any), and the number of people working under indefinite-term contracts in state administrative agencies, Party agencies, and social-political organizations as stipulated in Government Decree No. 68/2000/NĐ-CP dated November 17, 2000, regarding the implementation of indefinite-term contract systems in state administrative agencies and public service units.

+ Determine the Salary Fund and Allowances based on the basic monthly salary level of 1,150,000 VND (for a full year) guaranteed by the State Budget, including:

* The Salary Fund and Allowances of the authorized personnel actually present at the budget preparation date, determined based on the salary grade, rank, position; allowance according to the system; contributions according to the system (social insurance, unemployment insurance, health insurance, trade union fees).

* The Salary Fund and Allowances of the authorized personnel yet to be recruited, estimated based on the basic monthly salary level of 1,150,000 VND, a salary coefficient of 2.34/personnel, and contributions according to the system (social insurance, unemployment insurance, health insurance, trade union fees).

* The Salary Fund and Allowances of individuals working under indefinite-term contracts as stipulated in Government Decree No. 68/2000/NĐ-CP, determined similarly to the authorized personnel actually present at the budget preparation date.

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

- For educational and training activities: Provide detailed explanations on the basis for preparing the budget estimate for implementing the policy of granting seniority allowances in the education sector, expenses for implementing mechanisms to waive and reduce tuition fees and support learning costs for specified groups under Decree No. 49/2010/NĐ-CP dated May 14, 2010 of the Government on tuition fee waivers and reductions, support for learning costs, and mechanisms for collecting and using tuition fees at educational institutions within the national education system; funds to implement Decree No. 19/2013/NĐ-CP dated February 23, 2013 of the Government on policies for teachers and educational managers in areas with extremely difficult socio-economic conditions; funds to implement Prime Minister's Decisions on developing education (Decision No. 239/QĐ-TTg dated February 9, 2010 on universalizing preschool education for five-year-olds from 2010 to 2015, Decision No. 60/2011/QĐ-TTg dated October 26, 2011 on certain policies for developing preschool education from 2011 to 2015; Decision No. 12/2013/QĐ-TTg dated January 24, 2013 on supporting students in areas with extremely difficult socio-economic conditions; Decision No. 85/2010/QĐ-TTg dated December 21, 2010 on certain policies to support boarding students and boarding general secondary schools for ethnic minorities; Decision No. 1558/QĐ-TTg dated August 18, 2010 approving the Project on Training and Developing Human Resources in the Field of Atomic Energy; Decision No. 911/QĐ-TTg dated June 17, 2010 approving the Project on Training Doctorate-Level Lecturers for Universities and Colleges from 2010 to 2020; Decision No. 472/QĐ-TTg dated April 12, 2010 approving the Project on Training National Defense and Security Education Teachers for Secondary Schools, Vocational Colleges, and Technical Secondary Schools from 2010 to 2016; Decision No. 1505/QĐ-TTg dated October 15, 2008 approving the Project on Training According to Advanced Programs at Some Vietnamese Universities from 2008 to 2015 and Projects on Training Overseas Vietnamese Students; Decision No. 799/QĐ-TTg dated May 25, 2011 approving the Project on Training Military Cadres at People's Militia Units at Commune, Ward, and Town Levels to Bachelor's and Master's Degree Levels in Basic Military Subjects until 2020 and subsequent years).

- For scientific research: The funding for implementing research projects, programs, and tasks must be based on the decision of the competent authority regarding the list and budget estimates; provide detailed descriptions of the content and phased implementation according to each year. Regular activity funding must clearly state the contents that have increased or decreased compared to the 2013 budget estimate along with the reasons and calculation bases.

3. Mechanism for generating funds for salary reform:

Ministries, central agencies, and localities continue to proactively implement the mechanism for generating sources for salary reform as prescribed: savings from 10% of regular expenditures excluding salaries and other salary-like payments; a portion of income retained according to the regulations of administrative agencies and public institutions; 50% of increased local government revenue (excluding increased land use fees); unused sources from previous years' salary reforms (if any) to implement the basic salary (replacing the minimum wage) up to VND 1,150,000 per month in 2014 for a full twelve months.

4. Preparing the budget for national target programs:

Ministries managing national target programs shall base their actions on the goals, tasks, timeframes, and resources allocated for each national target program as approved, and the results of the three-year period (2011-2013) reported to the Ministry of Planning and Investment and the Ministry of Finance for reporting to the Government and proposing funding for the implementation of these programs and projects, focusing capital and funding on key tasks of the programs; detailing according to the nature of investment and public service funds, domestic and foreign funds. Do not increase funding for conference, seminar, mid-term review, final review, study tours, etc., tasks compared to the 2013 budget (after saving 30% of the funding allocated for these tasks); do not include travel abroad budgets in the national target program budget. Strengthen decentralization and enhance the responsibility of localities in integrating, allocating, and utilizing assigned funds to achieve the common goals of the programs, ensuring efficient and economical use of funds.

5. Building the central budget estimate for programs and projects implemented by ministries, central agencies, and localities:

a) Based on the Prime Minister's decisions approving the programs and projects; the amount of funding allocated from the start of implementation until 2013. Ministries and agencies responsible for the programs and projects shall prepare the budget estimate for implementing the programs and projects in 2014 in accordance with their implementation capacity and consolidate it in the 2014 State Budget Estimate of central ministries and agencies (detailing according to the nature of the funding source) and submit it to the Ministry of Finance and the Ministry of Planning and Investment.

b) Based on the anticipated allocation of funding for the programs and projects announced by the Ministry of Finance and the Ministry of Planning and Investment, ministries and central agencies managing the programs and projects shall propose detailed plans for allocating the budget estimate for the programs and projects in 2014 to central ministries and agencies and localities (detailing according to the nature of the funding source) and submit them to the Ministry of Finance and the Ministry of Planning and Investment for consideration and consolidation. Do not increase funding for conference, seminar, mid-term review, final review, study tours, etc., tasks compared to the 2013 budget (after saving 30% of the funding allocated for these tasks); do not include travel abroad budgets in the program and project budget estimate.

6. For programs and projects using official development assistance (ODA) and concessional loan funds:

Implement the preparation of the 2014 state budget estimate fully and in accordance with the prescribed procedures under the State Budget Law, the Public Debt Management Law, and other guiding documents, Government Decrees on investment management and basic construction, management and utilization of official development assistance (ODA) funds and preferential loans, disbursement progress in program/project documents, signed financial agreements, and the capacity to implement in 2014, including detailed estimates of ODA funds, preferential loans, and counterpart funds according to programs/projects and the nature of the funds (basic construction investment and operating expenses).

7. State budget reserve estimate:

The central budget and local budgets at all levels allocate reserves in accordance with the provisions of the State Budget Law to proactively respond to natural disasters, floods, epidemics, and to carry out important and urgent tasks outside the budget estimate.

8. Estimate of expenditures from retained revenue sources:

Ministries, central agencies, and localities shall prepare revenue estimates (tuition fees, other fees and charges, and contributions raised, specifically service charges for medical examination and treatment in the health sector) and expenditure estimates from retained revenue sources in accordance with the provisions set forth in Clauses 1, 2, and 3 of this Article and consolidate them within the revenue and expenditure estimates of ministries, central agencies, and localities.

9. Based on the verification of revenue and expenditure in the 2014 state budget, ministries, central agencies, and localities must develop detailed expenditure estimates for each task and each subordinate budget-using unit; after working with the Ministry of Finance and the Ministry of Planning and Investment, ministries, central agencies, and centrally-administered cities and provinces shall immediately proceed with the work of preparing the budget allocation plan for the 2014 state budget of their respective ministries, agencies, and localities so that when they receive the state budget allocated by the Prime Minister, they can proactively submit it to the competent authority for decision-making and allocation of the state budget to budget-using units before December 31, 2013, in accordance with the provisions of the State Budget Law.

Ministries, central agencies, and localities must focus on directing a thorough review of all aspects of the budget allocation, management, and utilization process, particularly capital investment and borrowed and aid funds, to ensure accurate and appropriate budget allocation in line with objectives, regulations, and beneficiaries; strict and effective budget management and utilization, along with reporting, auditing, and inspection systems, must be implemented to prevent losses and waste.

Article 11. Preparation of Local Government Budget Estimates at All Levels

The 2014 local government budget estimates will be prepared to ensure sufficient resources to implement established policies and regulations issued by competent authorities and in accordance with the State Budget Law, contributing positively to the central government's efforts to stabilize macroeconomic conditions, ensure social welfare, and gradually restructure the economy to promote reasonable and sustainable economic growth.

1. Construction of the State Revenue Estimate:

Based on the socio-economic development goals for the 2011-2015 period approved by Party Congresses at all levels, the ability to achieve socio-economic targets and the state budget in 2013, and forecasts of economic growth rates and revenues in 2014 for each industry and sector, and new revenue sources arising in each locality, accurately calculate each revenue area, each revenue item according to regulations. Analyze and evaluate specific impacts on revenue increases or decreases affecting the 2014 state budget revenue estimate by region, sector, and revenue item, tax type.

2. Regarding the preparation of local government budget expenditure estimates: In 2014, which is within the period of stabilizing local government budgets (2011-2015) as stipulated by the State Budget Law and resolutions of the National Assembly and the Standing Committee of the National Assembly, local People's Councils at all levels shall actively prepare their own local government budget estimates based on stable revenue sources and assigned expenditure tasks; the 2014 local government budget estimates will be prepared based on: determined revenue sources based on the percentage (%) distribution of shared revenue between budget levels, local government revenue sources receiving 100% as prescribed by the State Budget Law, and supplementary balanced transfers from higher-level budgets to lower-level budgets (if any) stabilized at the level of the 2013 budget estimate decided by the National Assembly, the Standing Committee of the National Assembly, and the Higher-level People's Councils, and assigned by the Prime Minister and higher-level People's Councils. Based on the socio-economic development tasks of the locality in 2014, current policy regimes, and expenditure standards; prepare specific 2014 local government budget expenditure estimates by sector, prioritizing tasks, while implementing the following main contents:

a) Continue to review and classify projects to prioritize funding for economically and socially effective projects, projects serving structural economic transformation, disaster recovery,... projects capable of completion in 2014. Strictly review and monitor the allocation of budget estimates for economic infrastructure construction projects such as economic zones, industrial parks, where infrastructure projects have significant implications for socio-economic development not only for the locality but also for the entire region, before implementation, actively seek advice and supervision from central agencies, critical opinions from professional organizations and related localities to ensure overall economic efficiency for the region, avoiding fragmented investments with limited spatial (administrative boundaries) and temporal (term of implementation) perspectives. Focus on poverty reduction, job creation, addressing social evils;... allocate sufficient counterpart funds for ODA projects and preferential loans as required by localities to allocate from local budgets; reserve funds in the construction investment expenditure estimate to address construction investment debts, advance payments, and due repayments.

b) Allocate the budget for basic construction investment expenditures from land use fees to invest in economic and social infrastructure projects, resettlement projects, and land preparation for construction; proactively allocate funds to establish a land development fund in accordance with Decree No. 69/2009/NĐ-CP dated August 13, 2009; prioritize sufficient funding to accelerate land surveying, establish a land registry database, and issue land use right certificates in accordance with the Land Law and the National Assembly's Resolution.

c) For revenues from lottery tickets, continue to be used to invest in social welfare projects, focusing on education and healthcare sectors as prescribed, and manage income and expenditure through the state budget (without including it in the state budget balance).

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

đ) Prepare the budget for investment from government bonds for transportation projects, water conservancy projects, health facilities, school reinforcement, and teachers' housing in accordance with approved programs; actively allocate local budget sources (lottery revenue, investment spending within the local budget balance) to implement school reinforcement and teachers' housing projects at the ratio specified by the Ministry of Finance.

e) For infrastructure investment tasks based on Prime Minister's Decisions, Central Committee Resolutions, etc., refer to the objectives, tasks, and investment capital needs as stipulated; based on the results of investments up to the end of 2012, the ability to implement in 2013, localities should proactively develop and calculate tasks for 2014, actively arranging and allocating local budgets and financial resources as prescribed to fulfill these tasks, gradually reducing dependence on subsidies from the central budget.

f) For tasks, programs, and projects under Resolution 30a/2008/NQ-CP dated December 27, 2008 of the Government on the program to rapidly and sustainably reduce poverty in poor districts, Decision 615/QĐ-TTg dated April 25, 2011 of the Prime Minister on policies for seven poor districts, and Decision 293/QĐ-TTg dated February 5, 2013 of the Prime Minister on policies for twenty-three poor districts: Based on the objectives, tasks, and investment capital needs, existing policies and regulations, and the ability to implement in 2013, localities should develop and calculate tasks for 2014, proposing levels of central budget support along with explanations of the calculation bases.

g) Allocate funds to implement the National Assembly's Resolution No. 37/2004/QH11 dated December 3, 2004 on education, the Central Committee's Resolution No. 2 (Session VIII) on science and technology, and Resolution No. 41-NQ/TW dated November 15, 2004 of the Political Bureau on environmental protection tasks, which are part of the local budget expenditure.

h) Prepare the budget for implementing social security tasks (funds for implementing policies stipulated in the Elderly People Law, the Disabled People Law, Decree No. 67/2007/NĐ-CP dated April 13, 2007 of the Government on assistance policies for social welfare beneficiaries, Decree No. 13/2010/NĐ-CP dated February 27, 2010 of the Government amending and supplementing certain articles of Decree No. 67/2007/NĐ-CP, Decision No. 60/2011/QĐ-TTg dated October 26, 2011 of the Prime Minister on some policies for developing preschool education from 2011 to 2015, tuition fee exemptions according to Decree No. 49/2010/NĐ-CP, funds for awards, party badges, and association activities in particularly difficult socio-economic areas, funds for purchasing health insurance cards for children under six years old, the poor, near-poor households, farming, forestry, fishery, and salt-making households; funds for social welfare, student scholarships, exemption of water resource fees,...), national defense, and security (the Civil Defense Law, Village Police Ordinance), where localities proactively allocate local budget sources and propose levels of central budget support.

i) Develop the 2014 budget expenditure plan, localities should proactively calculate and allocate sources to implement salary reform expenditures as guided in Clause 3, Article 10 of this Circular.

k) Allocate contingency reserves for the local budget; replenish the financial reserve fund in accordance with the State Budget Law to proactively respond to natural disasters, floods, epidemics, and urgent tasks at the local level.

3. On balancing the local budget:

a) Provinces and centrally-administered cities should prepare the local budget expenditure plan based on the local budget revenue they receive and the additional balance supplements (if any) from the central budget to the local budget at the stable level as allocated by the Prime Minister for the year 2013. At the same time, for provinces receiving balance supplements from the central budget, specifically propose emergency support levels for their locality according to Point 20, Section II of the 2011 State Budget Regular Expenditure Allocation Standards issued with Decision No. 59/2010/QĐ-TTg dated September 30, 2010 of the Prime Minister.

b) For provinces and centrally-administered cities requiring additional capital mobilization to increase development investment, they must prepare the budget in accordance with Clause 3, Article 8 of the State Budget Law, ensuring that the total debt mobilization (including the amount expected to be mobilized in 2013) does not exceed 30% (for Hanoi and Ho Chi Minh City, it is 100%) of the local budget's basic construction investment expenditure forecast; simultaneously, allocate sources to repay all due amounts (both principal and interest).

4. For local administrative levels implementing pilot programs without organizing People's Councils, the content of preparing the budget estimate for the year 2013 shall be carried out in accordance with the provisions of this Circular; regarding procedures and time limits for implementation 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 district, town, and ward budgets where People's Councils are not organized.

Chapter III

IMPLEMENTATION

Article 12. Responsibilities of Ministries, agencies managing national target programs, programs, and projects implemented from central government budgets and jointly executed by multiple central ministries and agencies.

1. Coordinate with central ministries and agencies and relevant localities to forecast tasks and funding levels for the implementation of national target programs, programs, and projects in 2014, and submit them to the Ministry of Finance and the Ministry of Planning and Investment before July 20, 2013.

2. Prepare budget allocation plans for expenditures in 2014 for each central ministry and agency and each province and centrally-administered city, and submit them to the Ministry of Finance and the Ministry of Planning and Investment for consolidation within the time limit specified in the notification of funding levels for 2014 for national target programs, programs, and projects issued by the Ministry of Finance and the Ministry of Planning and Investment.

Article 13. Responsibilities of central ministries and agencies and localities

1. Based on the control numbers that have been announced, ministries, central agencies, and provincial People's Committees shall guide and announce control 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 2014 budget for development spending, including the allocation plan for development spending (including the allocation plan for capital investment in national target programs), and submit it to the Ministry of Finance before September 10, 2013.

3. Implement reforms in the program of budget preparation work to ensure quality and efficient use of resources in organizing the 2014 budget preparation process. Professional agencies under the Ministry of Finance shall not discuss with Provincial Financial Departments. The organization, compilation, and reporting of the 2014 budget estimate shall comply with the provisions of the State Budget Law, guiding documents, and the contents stipulated in this Circular; report all required content and forms as prescribed in Circular No. 59/2003/TT-BTC dated June 23, 2003 of the Ministry of Finance and related forms prescribed in this Circular; submit to the Ministry of Finance and the National Audit Office before July 20, 2013 for central ministries and agencies, and before July 25, 2013 for provinces and centrally-administered cities, and register for discussions on the budget estimates between the provincial People's Committee leadership and the Ministry of Finance during the budget stabilization period (if necessary).

Article 14. Regarding the forms for preparing and reporting the 2014 state budget estimate.

1. For central ministries and agencies: Aggregate and report the state budget estimate to the Ministry of Finance according to the forms and deadlines specified in Circular No. 59/2003/TT-BTC, additional forms (Form Nos. 2, 5, and 11) stipulated 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; particularly, build detailed budget estimates down to each budget-using unit (according to Form No. 02 - Appendix No. 2 - Circular No. 59/2003/TT-BTC) and important tasks of ministries and agencies to explain their budget estimates to the National Assembly.

2. For localities: Aggregate and prepare local budget estimates, and report to the Ministry of Finance according to the forms (Form Nos. 01, 02, 06, 07, 10, 12, 13, 14, 16, 17, 18, 19, 20, 21, 22, 23 - Appendix No. 6) and deadlines specified in Circular No. 59/2003/TT-BTC, additional forms (Form Nos. 01, 03, 04, 06, 07, 08, 09, 10, 12, 13, and 14) stipulated in this Circular, and forms (Form Nos. 1.07, 1.08, 1.13 - Appendix I; Form Nos. 2.01, 2.02 - Appendix II) prescribed in Circular No. 53/2011/TT-BTC dated April 27, 2011.

Article 15. Implementation Provisions

1. This Circular takes effect from August 14, 2013. The content, procedures, and time limits for preparing the 2014 state budget estimate shall be carried out in accordance with the provisions of the State Budget Law, guiding documents of the Law, and the guidance provided in this Circular.

2. During the process of preparing the 2014 state budget, if new policies and regulations are issued, the Ministry of Finance will issue supplementary guidance notifications; if there are difficulties in organizing the preparation of the 2014 state budget, central ministries and agencies, localities, economic groups, and state-owned corporations are requested to reflect these issues to the Ministry of Finance for timely resolution.