Resolution No. 973/2020/UBTVQH14 on principles, criteria, and allocation standards for state budget capital investment during the period from 2021 to 2025.

RESOLUTION

REGULATIONS ON PRINCIPLES, CRITERIA AND ALLOCATION RATES FOR PUBLIC INVESTMENT FUNDS FROM THE STATE BUDGET PERIOD 2021-2025

RESOLUTION ON PRINCIPLES, CRITERIA AND ALLOCATION RATES FOR PUBLIC INVESTMENT FUNDS FROM THE STATE BUDGET PERIOD 2021-2025

THE STANDING COMMITTEE OF THE NATIONAL ASSEMBLY

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

Pursuant to the State Budget Law No. 83/2015/QH13;

Pursuant to the Public Investment Law No. 39/2019/QH14;

RESOLUTION:

Chapter I GENERAL PROVISIONS

Article 1. Scope of Regulation

This Resolution stipulates principles, criteria and allocation rates for public investment funds from the state budget period 2021-2025.

Article 2. Applicability

This Resolution applies to:

1. Ministries, central agencies and localities as provided for in Clause 4, Article 4 of the Public Investment Law.

2. Organizations and individuals related to the preparation of medium-term and annual public investment plans from the state budget.

Chapter II PRINCIPLES, CRITERIA AND ALLOCATION RATES FOR PUBLIC INVESTMENT FUNDS FROM THE STATE BUDGET

Article 3. Sectors and Fields Using Public Investment Capital from the State Budget for the 2021-2025 Period

Public investment funds from the state budget are allocated to the objects specified in Article 5 of the Public Investment Law and are distributed according to sectors and fields as specified in Article 36 of the State Budget Law, specifically as follows:

1. National Defense: Tasks, programs, projects belonging to sectors and fields serving national defense objectives, cryptology, disaster response and search and rescue operations of central and local specialized units as prescribed.

2. Security and social order: Tasks, programs, projects belonging to sectors and fields serving security and social order objectives, fire prevention and firefighting, criminal investigation, execution of criminal sentences, disaster response and search and rescue operations of central and local specialized units as prescribed.

3. Education and training, vocational education: Tasks, programs, projects for constructing infrastructure, material facilities, equipment serving educational and training objectives from preschool to university level.

4. Science and technology: Tasks, programs, projects for constructing infrastructure, material facilities, equipment, technology serving science and technology development objectives, experiments, analysis, testing, standards, measurement, quality control, intellectual property, specialized design in natural sciences and engineering, application and transfer of technology, innovation centers, research and development, industrial development support, high-tech zones, agricultural, forestry, fishery zones applying high technology.

5. Health, population and family affairs: Tasks, programs, projects for constructing infrastructure, material facilities, equipment serving health objectives (including preventive healthcare; diagnosis, treatment, emergency care, rehabilitation; traditional medicine; medical, forensic, forensic psychiatric examinations; pharmaceutical, cosmetic product testing and other activities under the health sector), population, family, reproductive health, food safety.

6. Culture and Information: Tasks, programs, and projects serving the following objectives:

a) Culture: Protection and conservation of tangible and intangible cultural heritage, ethnic culture; development of literature, arts, cinema, libraries, museums, community culture, performance art forms; development of cultural institutions and cultural works;

b) Information: Infrastructure, material facilities, equipment serving state publication and press activities;

7. Radio, television, news agency: Tasks, programs, projects for constructing infrastructure, material facilities, equipment serving radio, television, news agency objectives to fulfill political tasks, social and public welfare tasks.

8. Physical Education and Sports: Tasks, programs, and projects for constructing infrastructure, material facilities, and equipment serving physical education and sports development objectives.

9. Environmental Protection: Tasks, programs, and projects serving the following objectives:

a) Environment: Infrastructure, material facilities, equipment for environmental monitoring, warning, resource protection, pollution remediation, waste and wastewater treatment, green growth, climate change response and sustainable development;

b) Natural Resources: Infrastructure, material facilities, equipment for surveying, mapping, meteorology, hydrology, geological exploration, natural resource protection;

10. Economic Activities: Tasks, programs, and projects serving the following objectives:

a) Agriculture, Forestry, Salt Industry, Water Conservancy and Fisheries: Infrastructure, material facilities, equipment for agriculture, forestry, salt industry, water conservancy and fisheries; rural economy (including new rural construction, provision of clean water and environmental sanitation in rural areas, development of rural industries and craft villages linked with households and cooperatives, resettlement of rural residents, stable settlement, free migration stabilization and resettlement); crop and livestock breeding development; planting, protecting and developing forests; prevention, mitigation of consequences of natural disasters, forest fires, and disease outbreaks;

b) Industry: Rural, mountainous and island electricity supply; tasks and projects in the oil and gas sector as decided by

c) Transportation: road, railway, inland waterway, maritime, and air transportation infrastructure;

d) Industrial zones and economic zones: coastal economic zone infrastructure, border economic zone infrastructure, industrial park infrastructure, and industrial cluster infrastructure;

d) Trade: People's markets, wholesale markets, logistics centers, exhibition centers, export and import infrastructure;

e) Water supply and drainage;

g) Warehousing: warehousing infrastructure, material assets, and equipment for specialized warehouses, national reserve warehouses, file and document storage, evidence storage;

h) Tourism: infrastructure aimed at sustainable tourism development in tourist areas and sites;

i) Telecommunications: telecommunications infrastructure, material assets, materials, and equipment serving telecommunications objectives to fulfill political, social, and essential public service tasks;

k) Postal services: postal infrastructure, material assets, materials, and equipment serving postal objectives to fulfill political, social, and essential public service tasks;

l) Information Technology: Digital information infrastructure, digital economy; modernization of information technology in Party and State agencies; application and development of information technology, databases; national platforms, applications, services; cybersecurity;

m) Planning: planning tasks;

n) Public works in urban areas;

o) Capital contribution to policy banks, state financial funds outside the budget; interest rate subsidy for preferential credit, management fees; support for enterprises investing in agriculture and rural areas; support for small and medium-sized enterprises as stipulated in the Small and Medium-Sized Enterprises Support Law; support for cooperatives as stipulated in the Cooperative Law.

11. Activities of state administrative agencies, public service units, political organizations and political-social organizations: Tasks, programs, projects serving the objectives of building, renovating, upgrading office premises, official residences, purchasing equipment for agencies within the political system and the state; projects for purchasing new, constructing and renovating office premises, renovating and upgrading housing, purchasing equipment for Vietnamese representative offices abroad.

12. Society: tasks, programs, investment projects for constructing, renovating, upgrading infrastructure, material facilities, purchasing equipment for nursing homes, rehabilitation centers, and care facilities for war veterans; employment support; health care and nursing for workers; construction, renovation, and upgrading of memorials for martyrs; detoxification centers and other social assistance facilities.

13. Other tasks, programs, and investment projects as prescribed by law: supporting investment for specific groups and other policies as decided.

Article 4. General Principles on the Allocation of State Budget Public Investment Funds

1. The allocation of state budget public investment funds for the period 2021-2025 must comply with the provisions of the Law on Public Investment, the State Budget Law, and related legal documents.

2. Ensuring centralized and unified management regarding objectives, mechanisms, and policies; implementing decentralization in investment management according to the law, creating autonomy for central ministries, agencies, and local authorities.

3. The allocation of state budget public investment funds must serve the implementation of national development goals set forth in the Socio-Economic Development Strategy for 2021-2030, the Socio-Economic Development Plan for 2021-2025, sectoral and regional plans, the five-year financial plan, the five-year borrowing and repayment plan, and planning regulations approved by competent authorities, ensuring sustainable and balanced development between economy and society.

4. Aligning with the ability to balance investment capital from the state budget within the five-year financial plan, ensuring macroeconomic balances, and public debt safety. Promoting restructuring of public investment, reasonably calculating the structure of central and local government budget resources, ensuring that the central budget plays a leading role; strengthening mobilization of non-state budget capital, promoting attraction of social capital for infrastructure investment projects.

5. Concentrating investment funding; avoiding dispersion; ensuring efficient use of investment capital. Only allocate capital plans for projects that have completed investment procedures and been decided by competent authorities according to the Public Investment Law and related legal documents. Programs and projects that have been decided on investment orientation by competent authorities, new projects must ensure that the time for allocating capital for project group A does not exceed six years, group B does not exceed four years, and group C does not exceed three years. In cases where these deadlines are not met,

6. Prioritizing the allocation of capital to implement, accelerate progress, and complete and utilize effectively national target program projects, important national projects, connecting programs and projects with inter-regional impacts, which promote rapid and sustainable socio-economic development, protect and improve people's health, prevent natural disasters, respond to climate change (soil erosion along riverbanks and coasts, saline intrusion, rising sea levels,...), and ensure water resource security.

7. Prioritizing the allocation of capital for mountainous regions, border areas, islands, ethnic minority regions, difficult and extremely difficult areas, in line with the National Target Program for Socio-Economic Development in Ethnic Minority and Mountainous Areas for 2021-2030, contributing to narrowing the gap in development levels, income, and living standards among regions nationwide.

8. The priority order for allocating state budget public investment funds for the period 2021-2025 shall be implemented as follows:

a) Allocating sufficient capital to settle outstanding construction debts as stipulated in Clause 4, Article 101 of the Public Investment Law (if applicable);

b) Allocating sufficient capital to repay advance payments without sources for repayment in the previous medium-term public investment plan (if any remain);

c) Allocating capital for completed projects handed over for use but lacking allocated capital; capital for Official Development Assistance (ODA) and preferential loans from foreign donors (including counterpart funds); state investment capital participating in projects under the public-private partnership model; ongoing projects carried out according to approved schedules; projects expected to be completed during the planning period;

d) Allocating capital to implement planning tasks;

đ) Allocating capital for preparatory investment to establish, review, and decide on investment orientation and to establish, review, and decide on investment programs and projects;

e) Allocating capital for new projects starting construction in accordance with the requirements stipulated in Clause 5, Article 51 of the Public Investment Law.

9. Ensuring transparency, fairness in the allocation of public investment capital plans, contributing to administrative reform and enhancing anti-corruption efforts, thrift, and prevention of waste.

Article 5. Principles, criteria, and standards for allocating central government budget capital for public investment

1. Principles of Capital Allocation: Implementing the contents prescribed in Article 51 of the Public Investment Law and Article 4 of this Resolution regarding general principles, priority order of capital allocation, and specific principles as follows:

a) Ensuring reasonable proportionality in the allocation of investment capital among central ministries, agencies, and sectors; central budget supplementary funds for localities; capital for specific tasks, programs, and projects including: national target programs, important national projects, connecting programs and projects with inter-regional impacts, which promote rapid and sustainable socio-economic development, protect and improve people's health, prevent natural disasters, respond to climate change, and ensure water resource security;

b) Central state budget public investment funds allocated to central ministries, agencies, and localities shall be distributed according to sectors and fields as prescribed in Article 3 of this Resolution;

c) Tasks, programs, and projects allocated central state budget public investment capital plans must ensure full compliance with investment procedures as stipulated by the Public Investment Law.

2. Criteria and standards for allocating central government budget capital for public investment:

a) Central state budget public investment funds allocated for tasks, programs, and projects under the central budget expenditure investment tasks as prescribed by the State Budget Law and the objects of public investment as stipulated in Article 5 of the Public Investment Law;

b) Budget allocation structure for the central government's budget:

- Allocate up to a maximum of 30% for targeted supplementation to localities and allocate according to sectors and fields, excluding capital for projects under the National Target Program and ODA funds, preferential loans from foreign sponsors;

- The remaining capital shall be allocated as follows:

+ Allocate to ministries and central agencies according to sectors and fields. Ministries and central agencies are responsible for specifically allocating capital for programs and projects, including domestic capital, ODA funds, and preferential loans from foreign sponsors in accordance with the provisions of the law and the principles and priority order specified in this Resolution;

+ Allocate to specific tasks, programs, and projects including: national target programs, important national projects, connecting programs and projects with inter-regional impacts that promote rapid and sustainable economic and social development, health care for the people, overall planning tasks, marine space planning, land use planning, sectoral planning, regional planning, central government budget payment obligations, other policies using public investment capital from the central government budget as prescribed by law;

Article 6. Principles, criteria, and standards for allocating capital for the National Target Programs

1. Ensure compliance with the State Budget Law and Public Investment Law.

2. The principles, criteria, and allocation standards for central budget capital for national target programs shall be implemented according to the investment policy of each program decided by the National Assembly.

Article 7. Principles and criteria for allocating public investment capital from the central government budget to ministries and central agencies

1. Implement as stipulated in Article 5 of this Resolution and allocate according to the following specific principles and criteria:

a) Prioritize allocating remaining capital from the mid-term investment plan for projects listed in the mid-term public investment plan for the 2016-2020 period transitioning to the 2021-2025 period; recover advance capital;

b) Allocate the remaining capital to new projects in the sectors and fields specified in Article 3 of this Resolution;

2. Public investment capital from the central government budget allocated to ministries and central agencies as stipulated in Clause 4 of Article 4 of the Public Investment Law shall be allocated according to the sectors and fields specified in Article 3 of this Resolution;

Article 8. Principles, criteria, and standards for allocating public investment capital from the central government budget for targeted supplementation to localities

1. Allocation principles: implement as stipulated in Article 5 of this Resolution and the following specific principles:

a) Ensure reasonable proportionality between the development of key economic regions, localities with high revenue, and high rates of central budget transfer, and prioritizing the Mekong Delta region, mountainous areas, border areas, islands, ethnic minority regions, and other difficult regions to contribute to narrowing the gap in development levels, income, and living standards between regions nationwide;

b) Localities are responsible for allocating targeted supplementary capital for programs and projects in the specified sectors and fields in accordance with the laws and the principles and priority order specified in this Resolution, and effectively utilize state budget investment capital to create conditions for attracting the maximum amount of other sources of capital for development;

c) Ensure transparency, fairness, and openness in the allocation of public investment capital;

d) The allocation of public investment capital from the central government budget for targeted supplementation to localities within the country shall be carried out as follows:

- Prioritize allocating remaining capital from the mid-term investment plan for projects listed in the mid-term public investment plan for the 2016-2020 period transitioning to the 2021-2025 period; recover advance capital;

- Allocate the remaining capital to new projects in the sectors and fields specified in Article 3 of this Resolution;

2. Criteria and standards for allocation:

a) Public investment capital from the central government budget for targeted supplementation to local budgets shall be allocated according to the sectors and fields specified in Article 3 of this Resolution;

b) Public investment capital from the central government budget for targeted supplementation to localities shall be allocated to projects with a scale of Group B or higher (excluding projects under the National Target Program). Other cases are determined by

c) Allocate to new projects in the sectors and fields of localities based on scoring according to the following criteria:

- Population criterion: Average population and number of ethnic minorities in localities (excluding Hanoi City and Ho Chi Minh City);

- Development level criterion: Poverty rate, domestic revenue (excluding revenue from land use and lottery), rate of central budget transfer, and balance adjustment supplement from the central budget to the local budget;

- Area criterion: Natural land area and forest coverage rate of localities;

- Administrative unit criterion at district level: Number of administrative units at district level, number of mountain districts, highland districts, island districts, and land border districts of each locality;

- Additional criteria include:

+ Criterion for ATK communes in the resistance base area (historical ATK);

+ Island commune criterion; land border commune criterion, including communes along the Vietnam-China, Vietnam-Laos, and Vietnam-Cambodia borders;

+ Regional criterion: regions affected significantly by natural disasters and climate change (landslides along riverbanks and coastlines, droughts, saline intrusion, rising sea levels, etc.);

Article 9. Local State Budget Investment Capital

1. Public investment capital from the local government budget shall be allocated according to sectors and fields as stipulated in Article 3 and the principles stipulated in Article 4 of this Resolution;

2. The 2021 public investment capital plan from the local government budget shall be developed in accordance with the laws on public investment and state budget, taking into account the expected local budget revenue at the decentralized level, the amount of balance adjustment supplement from the central budget to the local budget (if any), aligning with the five-year socio-economic development plan targets for 2021-2025 and the specific socio-economic development goals for 2021; the results of the local budget implementation in 2019 and the estimated implementation in 2020;

3. The public investment capital plan from the local government budget from 2022 to 2025 shall be determined annually based on the average five-year growth rate of local public investment capital compared to the 2021 public investment capital (excluding land use revenue and lottery revenue reported by localities).

Chapter III IMPLEMENTATION PROVISIONS

Article 10. Responsibilities of the Government

1. To organize and direct ministries, ministerial-level agencies, government agencies, and other central and local agencies to implement this Resolution.

2. To report on the implementation of this Resolution to the National Assembly and the Standing Committee of the National Assembly as required.

3. In cases where additional or amended principles, criteria, and allocation standards for state budget capital investment for the 2021-2025 period are provided outside the provisions of this Resolution, the Government shall report to the Standing Committee of the National Assembly for its decision.

Article 11. Responsibilities of the Prime Minister

1. Provide detailed regulations on allocation standards for each criterion, timeframes, and agencies providing data as the basis for determining central state budget capital investment supplements with specific purposes for localities during the 2021-2025 period; determine the average annual growth rate of local state budget capital investment over five years compared to the 2021 capital investment.

2. Provide detailed regulations on the implementation of this Resolution.

Article 12. Effective Date

This Resolution takes effect from the date of signature and applies to the fiscal years of the 2021-2025 period.

Article 13. Transitional Provisions

1. For projects that have not been completed, projects included in the medium-term public investment plan for the 2016-2020 period funded by the state budget but have not yet been allocated funds annually to implement, ministries, central agencies, and localities continue to allocate state budget funds to complete them according to the funding schedule decided by the competent authority.

2. For projects planned to be invested but not included in the medium-term public investment plan for the 2016-2020 period funded by the state budget, in cases where ministries, central agencies, and localities plan to continue allocating them in the medium-term plan for the 2021-2025 period funded by their own units, they shall follow the provisions of Article 101 of the Public Investment Law.

3. Projects under target programs included in the medium-term public investment plan for the 2016-2020 period which have been allocated annual public investment capital from the state budget but still lack transitional funds to carry over to the 2021-2025 period will be arranged into 13 sectors and fields according to the Appendix attached to this Resolution, depending on the nature and objectives of the projects.

Article 14. Oversight of the Implementation of the Resolution

The Standing Committee of the National Assembly, the Committee on Finance and Budget, the Committee for Ethnic Minorities, and other Committees of the National Assembly, Delegations of National Assembly Members, and National Assembly Members shall oversee the implementation of this Resolution within their respective duties and powers as prescribed by law./.