Circular No. 99/2012/TT-BTC guiding the preparation of the state budget estimate for 2013

CIRCULAR

Guidelines for preparing the state budget estimate for 2013

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

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

To implement Directive No. 19/CT-TTg dated June 18, 2012 of the Prime Minister on the preparation of plans for economic and social development and the state budget estimate for 2013;

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

The Minister of Finance hereby guides the work of evaluating the implementation of state budget tasks in 2012 and preparing the state budget estimate (NSNN) for 2013 as follows:

Chapter 1

EVALUATION OF THE IMPLEMENTATION OF STATE BUDGET TASKS IN 2012

Article 1. General Provisions

1. Basis for evaluating state budget tasks in 2012:

- The state budget tasks for 2012 were approved by the National Assembly Resolution No. 14/2011/QH13 dated November 10, 2011 of the 13th National Assembly, second session on the state budget estimate for 2012, Resolution No. 16/2011/QH13 dated November 14, 2011 of the 13th National Assembly, second session on the allocation of the central budget for 2012, Decision No. 2113/QĐ-TTg dated November 28, 2011 of the Prime Minister on the allocation of the state budget estimate for 2012, Decision No. 102/QĐ-TTg dated January 18, 2012 of the Prime Minister on the allocation of investment capital from the state budget for 2012, Decision No. 512/QĐ-TTg dated April 19, 2012 of the Prime Minister on the allocation of the central budget for implementing national target programs in 2012.

- Directives of the Government, including: Resolution No. 01/NQ-CP dated January 3, 2012 on key measures to guide and manage the implementation of the plan for economic and social development and the state budget estimate for 2012; Resolution No. 13/NQ-CP dated May 10, 2012 on certain measures to resolve difficulties for production and business operations and support the market.

- Circular No. 177/2011/TT-BTC dated December 6, 2011 of the Ministry of Finance on organizing the implementation of the state budget estimate for 2012.

- The situation of implementing state budget tasks in the first six months of the year; solutions to strive for implementation in the last six months of the year.

2. In accordance with the Government's guidance in managing the economy and society, the situation of implementing state budget revenue and expenditure tasks in the first six months of the year, ministries, central agencies, and localities must evaluate the results of implementing conclusions and recommendations of auditing and inspection agencies; direct subordinate agencies to review, rearrange, restructure production and business activities, reduce product costs, enhance competitiveness, and restore production; proactively propose amendments and supplements to state budget revenue and expenditure policies and other relevant policies (if any) to be sent to the Ministry of Finance and related ministries and agencies for study and amendment or submission to competent authorities for timely amendment to resolve difficulties and promote production development.

Article 2. Evaluation of the Implementation of State Budget Revenue Tasks in 2012

Based on the results of state budget revenue in the first six months of the year, forecast the situation of production and business operations, price trends in the market, conduct a thorough review and evaluation of factors affecting increases and decreases in revenue, propose management measures to strive for the completion and overachievement of the state budget revenue targets approved by the National Assembly and People's Councils at all levels. When conducting evaluations, focus on the following main contents:

- Evaluate and analyze the economic impacts on the achievement of state budget revenue in 2012 such as: the situation of production and business operations, export and import activities of enterprises within the region; the results of achieving production volume and consumption targets for major products; selling prices, profits; review to consider new investment projects, expansion investments, deepening investments, and investment projects that have completed their preferential periods; analyze the fundamental reasons affecting state budget revenue in 2012, especially revenues from production and business activities in the early months of 2012 when input costs increased, growth was lower than expected in some industries, and anticipated changes in the final months of the year; the situation of collecting export and import taxes on goods cleared through international border gates; the results of land finance planning tasks; the situation of real estate transactions; the operation of the securities market.

- Evaluate the implementation and results of measures concerning revenue according to Resolution No. 01/NQ-CP of the Government on key measures to guide and manage the implementation of the plan for economic and social development and the state budget estimate for 2012; forecast the impact of implementing Resolution No. 13/NQ-CP of the Government on reducing and exempting taxes to resolve difficulties for enterprise production and business operations and its effect on state budget revenue; evaluate the implementation of Directive No. 01/CT-BTC dated March 16, 2012 of the Minister of Finance on measures to strengthen tax revenue management, prevent tax evasion, and reduce tax arrears in 2012 in the tax sector.

- Evaluate the situation of tax arrears and their resolution in 2012: Determine the amount of tax arrears as of December 31, 2011, forecast the amount of new arrears in 2012, the amount of tax arrears recovered in 2012, and the amount of tax arrears as of December 31, 2012. Summarize and classify tax arrears accurately according to regulations (arrears by type of enterprise; arrears by type of tax; arrears by industry).

- Evaluate the results of cooperation among relevant levels and sectors in managing state budget revenue and organizing the implementation of inspection, audit, and tax recovery activities, preventing tax evasion, smuggling, and commercial fraud; cooperation in price inspections; the number of entities inspected in the first six months of the year and projected for the whole year; the amount of additional tax proposed through tax inspections; the amount of additional tax proposed by the State Audit Office and the Government Inspectorate and projected to be paid into the state budget in the year. Propose measures to strengthen cooperation and improve the effectiveness of these activities.

- Evaluate the situation of tax declaration and VAT refund; the amount of tax refunds generated in 2012; the expected refunds for enterprises in 2012; including a detailed analysis of the reasons for sudden increases or decreases in tax refunds compared to the previous year.

- Evaluate the results of implementing mechanisms and policies for revenue collection; new tax policies issued, amended, or supplemented in 2011 and 2012 that affect revenue outcomes; propose recommendations to adjust mechanisms and policies (if necessary).

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 2012:

a) Evaluate the situation of allocating and distributing the basic construction investment budget (BCIB) for 2012:

- Evaluate the allocation and distribution of capital, and the assignment of BCIB budgets to projects and works in 2012 according to the principles set forth in Directive No. 1792/CT-TTg dated October 15, 2011 of the Prime Minister, including: capital from state budget sources (domestic and foreign), lottery revenues, government bond capital (including an evaluation of the conversion of investment forms for some projects using state budget funds and government bond capital as per Circular No. 3263/BKHĐT-PC dated May 11, 2012 of the Ministry of Planning and Investment); allocation of capital for works and projects completed and handed over for use in 2011 but not fully funded; projects completed in 2012; counterpart funds for ODA 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 recovering state budget advance payments pursuant to Decision No. 102/QĐ-TTg dated January 18, 2012 of the Prime Minister regarding the allocation of development investment capital from the state budget for 2012; allocation of capital to settle BCIB debts from the state budget.

b) Evaluate the implementation of BCIB expenditure tasks in 2012:

- Provide a general assessment of the implementation of the BCIB investment plan in 2012, including the value of completed work volume up to the end of Q2/2012, capital payments up to the end of Q2/2012 (including payments for completed work volume and advance payments for investment), projected work volume and capital payments to December 31, 2012; accompanied by detailed appendices for each project, including figures on approved total investment costs, cumulative capital payments up to the end of the 2011 plan, and the 2012 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.

- Summarize and evaluate the situation and results of handling outstanding investment BCIB debts; propose and recommend solutions to address outstanding debts.

c) Evaluate the settlement of completed investment projects, specifying: the number of projects completed but not settled according to regulations by the end of June 2012 and projected by the end of 2012; specify the time since completion until settlement, reasons, and solutions.

d) Evaluate the mobilization, recovery, and repayment of various sources of capital, including temporary advances from the State Treasury to implement infrastructure projects that generate revenue to repay temporary advances approved by competent authorities to attract domestic and foreign economic organization investments.

2. Evaluate the results of implementing support development expenditure tasks in 2012:

- The situation of implementing preferential state investment credit (total credit growth rate, details of sources of capital to implement the credit growth plan including recovered loan debt, capital raised from domestic and foreign organizations and individuals, state budget subsidies for interest rate differences,...), loans for projects under the Program for Strengthening Irrigation Channels and Rural Roads, Aquaculture Infrastructure, and Rural Craft Villages (including additional loans of VND 20,000 billion to supplement funding for strengthening irrigation channels, developing rural roads, electric pumping stations for agricultural production, aquaculture infrastructure, and rural craft villages according to Resolution No. 13/NQ-CP dated May 10, 2012 of the Government); the situation of implementing credit for poor households and social policy beneficiaries, student credit, preferential credit for particularly difficult ethnic minority households and poor households building houses... (results of operations, loan balances, deposit interest rates, amounts of interest rate subsidies, etc.).

- Evaluate the implementation of Decree No. 41/2010/NĐ-CP dated April 12, 2010 of the Government on credit policies to serve agricultural and rural development; analyze the impact of this policy on stimulating investment capital flow and promoting agricultural industrialization and modernization; accelerating the restructuring of crop and livestock structures, increasing agricultural product yields and quality; ensuring food security goals and creating key export agricultural products.

- Evaluate the results of implementing the pilot agricultural insurance policy according to Decision No. 315/QĐ-TTg dated March 1, 2011 of the Prime Minister, and the export credit insurance policy according to Decision No. 2011/QĐ-TTg dated November 5, 2010 of the Prime Minister (percentage of export turnover covered by export credit insurance, groups of goods encouraged for export credit insurance, etc.).

- The situation of implementing national reserves in 2012; quantities purchased, issued, and provided without payment (details on types, quantities, and values); national reserve forces as of December 31, 2012; capacity to respond to emergencies.

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 full year 2012 (the implementation of budget allocation and assignment, budget drawdowns; the execution of transfers and reductions in expenditures for unallocated programs, tasks, and projects;...) according to each task index assigned by the state to ministries, central agencies, localities, and units in 2012. Evaluate the results of implementing important tasks, major programs, and projects of each ministry, sector, field, and locality; difficulties and obstacles encountered and proposed measures to resolve them.

2. Evaluate the results and difficulties encountered in implementing tasks and mechanisms, policies, and expenditure systems in 2012, with a detailed evaluation of the following mechanisms and policies implemented:

- The implementation of social welfare policies, focusing on evaluating the implementation of social assistance policies pursuant to Decree No. 67/2007/NĐ-CP dated April 13, 2007 of the Government on assisting social welfare beneficiaries; Decree No. 13/2010/NĐ-CP dated February 27, 2010 of the Government amending and supplementing certain articles of Decree No. 67/2007/NĐ-CP; Decree No. 06/2011/NĐ-CP of the Government detailing and guiding the implementation of certain provisions of the Law on the Elderly; support policies for the poor, children under six years old, near-poor individuals, households engaged in agriculture, forestry, fisheries, and salt production participating in health insurance according to the roadmap of the Health Insurance Law; policies for those who participated in wars to protect the country and international missions in Cambodia and helping Laos after April 30, 1975 pursuant to Decree No. 23/2012/NĐ-CP dated April 3, 2012 of the Government; the situation of implementing Decree No. 28/2012/NĐ-CP dated April 10, 2012 of the Government guiding the implementation of certain provisions of the Law on Persons with Disabilities; the situation of implementing housing support policies for households with revolutionary merit residing in temporary or severely damaged houses; policies for poor and near-poor households, ethnic minority groups, and people living in particularly difficult areas such as programs to quickly and sustainably reduce poverty in 62 poor districts, providing housing support for poor households; supporting land for production, residence, housing, and drinking water for poor ethnic minority households, unemployment insurance policies; supporting disease prevention and disaster mitigation, recovery from typhoons and floods, and famine relief for the people,...

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

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

Article 5. Evaluation of the Implementation of National Target Programs

1. Ministries, central agencies, and localities shall evaluate the situation regarding the allocation, assignment, and implementation of budget expenditures for national target programs in 2012; advantages, difficulties, and obstacles (if any) in their implementation.

2. For national target programs implemented with both domestic and foreign sources of funding, a detailed evaluation of the disbursement of foreign funds and any recommendations (if any) shall be provided.

3. A list of the ability to balance local budgets and mobilize communities to implement national target programs within their respective areas.

Article 6. Evaluation of the Implementation of National Programs and Projects Approved by the Prime Minister to be Implemented until 2015

1. Ministries, central agencies, and localities shall evaluate the situation regarding the allocation, assignment, and implementation of budget expenditures for national programs and projects in 2012; the establishment of financial mechanisms for program and project implementation; the degree of integration in the organization of implementation; advantages, difficulties, and obstacles (if any).

2. For certain national programs and projects implemented with both domestic and foreign sources of funding, a detailed evaluation of the disbursement of foreign funds and any recommendations (if any) shall be provided.

3. An evaluation of the balancing of local budgets and mobilizing communities to implement national programs and projects.

Article 7. Evaluation of the Results of Implementing the Salary Reform System

1. Report on the results of reviewing staffing levels, salary funds, and determining the financial needs to implement salary reform at a minimum wage of 1,050,000 VND/person/month and a duty allowance of 25%, effective from May 1, 2012.

2. Evaluate the results of implementing financial measures to generate resources for salary reform from: saving 10% of regular expenses (excluding salaries, allowances with salary characteristics, and expenses for generating resources for salary reform); 35-40% of retained revenue according to prescribed regulations; from the source of 50% increased local government revenue (excluding land use fees) in 2012, identifying unused resources from previous years (after ensuring sufficient resources to implement the minimum wage of 1,050,000 VND/month and a duty allowance of 25% in 2012) to continue generating resources for salary reform in 2013 (if applicable). Determine the needs and sources for salary reform by sector; additional funding from the State Budget to adjust the minimum wage, duty allowance, seniority allowance for education, preferential allowance, and special allowance for the health sector... for 2012.

Article 8. Some Special Points in Evaluating the Implementation of the State Budget Task in 2012 by Provinces and Central Cities

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

1. Local solutions and measures for managing local budgets (tax deferral, reduced revenue in some fields in some localities due to the impact of macroeconomic policies,...) to ensure the local budget expenditure plan approved by the competent authority.

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

3. The results of implementing Resolution No. 30a/2008/NQ-CP dated December 27, 2008 of the Government on the Program to Reduce Poverty Quickly and Sustainably in 62 Poor Districts; the results of implementing the policy to support poor households with housing under Decision No. 167/2008/QD-TTg dated December 12, 2008 of the Prime Minister and Decision No. 67/2010/QD-TTg dated October 29, 2010 of the Prime Minister amending and supplementing some articles of Decision No. 167/2008/QD-TTg; the results of implementing Decree No. 49/2010/NĐ-CP dated May 14, 2010 on exemption, reduction of school fees, and support for educational expenses and the mechanism for collecting and using school fees for educational institutions under the national education system; the situation of implementing the Law on Elderly People, the Law on Persons with Disabilities; the policy to support boarding and half-day boarding students; the results of implementing the policy to support electricity costs for poor households; supporting lunch money for five-year-old children; transferring car and equipment purchases from 2011 to 2012;...

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

5. Evaluate the allocation of the budget (including the amount of central budget support for local budgets - if any) and the use of reserves to fulfill security and defense tasks; prevention, response, and mitigation of natural disasters, epidemics among humans and livestock, crops; the situation of using the reserve fund up to June 30, 2012.

6. Accurately calculate the financial needs arising from supporting rice producers and supporting localities in rice production as stipulated in Decree No. 42/2012/NĐ-CP dated May 11, 2012 of the Government on the management and use of rice-growing land.

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

8. Evaluate the implementation of expenditures from land use fee revenues for local infrastructure investment, land surveying, establishing land ownership records, and the allocation of land development funds from land use fees and land rental fees according to Decree No. 69/2009/NĐ-CP dated August 13, 2009 of the Government.

9. Evaluate the implementation of revenue collection from lottery sales.

10. The situation regarding the mobilization of capital for infrastructure investment (including the situation of capital mobilization and allocation to repay both principal and interest up to June 30, 2012) as stipulated in Clause 3, Article 8 of the State Budget Law, includes: the beginning-of-year debt balance, the amount mobilized during the year, the amount repaid on schedule, and the estimated debt balance mobilized by December 31, 2012 (for Hanoi City and Ho Chi Minh City, evaluate the capital mobilization for investment under the special financial-budget mechanism of the locality).

11. Evaluate the implementation of the program to reinforce irrigation canals, rural transportation, village craft infrastructure, and aquatic infrastructure (including results achieved, and results of repayment of principal and interest when due).

Chapter 2

BUILDING THE STATE BUDGET PROPOSAL FOR 2013

Article 9. Objectives and Requirements

In 2013, with the goal of improving the quality of growth linked to economic restructuring, while continuing to stabilize macroeconomic conditions, effectively supporting production and business operations, restoring growth, and controlling inflation. Accordingly, the objectives, requirements, and contents of the work on building the state budget proposal for 2013 are as follows:

1. Objectives:

- Implementing a tight fiscal policy to contribute to stabilizing macroeconomic conditions alongside monetary policy, and controlling inflation.

- Strengthening the ability to forecast revenues accurately and proactively; thriftily and efficiently spending public funds; strictly and transparently controlling revenue and expenditure of the state budget, public investment, especially investment from the state budget and government bonds.

- Continuing to structure state budget expenditures in a direction that prioritizes resources for implementing salary reform policies, social welfare policies; supporting the poor and social assistance beneficiaries.

- Repaying debts according to commitments and managing debt within safe limits.

2. Requirements: Ministries, central agencies, and localities shall base their construction of the state budget proposal for 2013 on the goals and tasks of economic and social development in 2013, closely aligning with the goals and tasks of economic and social development for the period 2011-2015 of their respective sectors, fields, and localities, along with the requirement of strict and effective public spending, to build the state budget proposal for 2013 in line with the capabilities, tasks, and key activities of their agencies and units; in accordance with current state regulations and policies; ensuring the timeframes prescribed by the State Budget Law; the state budget proposal must clearly and detailedly explain the revenue targets and expenditure responsibilities. Among which:

a) The state budget revenue proposal for 2013 must be built based on:

- Closely following forecasts of investment, production and business development, and import-export activities in 2013; correctly and fully calculating all tax revenues according to current policies and regulations and new policies and regulations that will take effect in 2013; revenues from state-owned enterprises, organizations, and individuals arising and payable in 2013, particularly focusing on revenues arising from investment projects that have completed their tax exemption periods; exemptions, reductions, and deferrals according to resolutions of the National Assembly and the Government; strengthening supervision, inspection, and auditing of tax declarations by organizations and individuals to promptly detect and handle cases of incorrect and incomplete tax declarations; resolutely combating tax evasion, collecting overdue taxes from previous years, revenues from investment projects that have completed their tax exemption periods, and revenues discovered through inspections, audits, etc.

- The state budget revenue proposal must be actively and solidly constructed with high feasibility, aiming for tax and fee mobilization reaching approximately 22-23% of GDP. The domestic revenue proposal (excluding oil revenue and land use fees) should increase by at least 14-16% compared to the estimated actual performance in 2012 (excluding factors influenced by tax exemptions, reductions, and deferrals according to decisions of competent authorities). The revenue proposal from import-export activities should increase by at least 5-7% compared to the estimated actual performance in 2012. Revenue from construction aid should be based on the commitment to disburse aid funds from donors (both ongoing and new aid).

- Proposing specific measures and timelines to address overdue tax debts; combat tax evasion, smuggling, and trade fraud; strengthen inspections, promptly detect and handle violations.

b) The state budget expenditure proposal for 2013 is based on:

The state budget expenditure proposal is built based on the system of criteria and allocation standards for the state budget in 2011 decided by the Prime Minister; current laws and regulations on budget expenditure policies and requirements for funding to implement important national strategic goals expected to be carried out in 2013. Ministries, central agencies, and localities should proactively determine key tasks to be implemented in 2013, develop specific implementation plans, and prepare the state budget expenditure proposal ensuring thorough thrift and waste prevention from the planning stage, including proactively arranging priorities according to urgency and implementation capability in 2013, ensuring the completion of political tasks, programs, projects, and proposals approved by competent authorities based on allocated state budget resources. On this basis:

- Ministries, sector management agencies at the central level, and People's Committees of provinces and centrally-administered cities shall prepare the state budget expenditure proposal for 2013 within the scope of the reviewed state budget expenditure proposal for 2013 announced (except for expenditures from foreign sources, which shall be prepared according to the progress of loan and aid disbursement projects), detailed by sector (including both expenditures from the state budget balance and retained revenue according to regulations), and major expenditure items (with priority arrangements).

- When preparing the state budget expenditure proposal for 2013, ministries, central agencies, and localities:

+ Proactively estimate the full need for funds to implement existing policies and newly emerging tasks. Provide detailed explanations of the basis and grounds for preparing the budget proposal according to implementing units and important expenditure items (grounds, policies, implementation results, budget allocation in 2012 and subsequent years).

c) Ensure the balance of the State budget and local budgets positively, healthily, and firmly; guarantee national financial security and the safety of each local budget.

Article 10. Building the 2013 State Budget Revenue Estimate

1. Domestic revenue estimate

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

a) Corporate income tax:

Implement according to the provisions of Decree No. 122/2011/ND-CP dated December 27, 2011 of the Government amending and supplementing certain articles of Decree No. 124/2008/ND-CP dated December 11, 2008 of the Government detailing and guiding the implementation of certain articles of the Law on Corporate Income Tax; Circular No. 154/2011/TT-BTC dated November 11, 2011 guiding Decree No. 101/2011/NĐ-CP dated November 4, 2011 of the Government detailing and guiding the implementation of Resolution No. 08/2011/QH13 of the National Assembly on issuing additional measures regarding taxes to address difficulties faced by enterprises and individuals; Circular No. 170/2011/TT-BTC dated November 25, 2011 of the Ministry of Finance guiding the implementation of Decision No. 54/2011/QĐ-TTg dated October 11, 2011 of the Prime Minister on extending the payment deadline for corporate income tax in 2011 for enterprises employing many workers in certain industries to address difficulties and promote production and business activities; Circular No. 42/2012/TT-BTC dated March 12, 2012 of the Ministry of Finance guiding the implementation of Decision No. 04/2012/QĐ-TTg dated January 19, 2012 of the Prime Minister on extending the payment deadline by three months for corporate income tax due in the first two quarters of 2011 for small and medium-sized enterprises and enterprises employing many workers; Circular No. 151/2010/TT-BTC dated September 27, 2010 of the Ministry of Finance guiding the application of various types of taxes and state budget payments for the Land Development Fund as stipulated in Article 34 of Decree No. 69/2009/NĐ-CP; Circular No. 186/2010/TT-BTC dated November 18, 2010 of the Ministry of Finance guiding the implementation of profit repatriation abroad by foreign organizations and individuals with profits from direct investment in Vietnam under the Investment Law; Circular No. 104/2011/TT-BTC dated July 12, 2011 amending and supplementing Circular No. 11/2010/TT-BTC dated January 19, 2010 of the Ministry of Finance guiding the fulfillment of tax obligations by Vietnamese investors investing abroad; Circular No. 18/2011/TT-BTC dated February 10, 2011 of the Ministry of Finance amending and supplementing Circular No. 130/2008/TT-BTC dated December 26, 2008 of the Ministry of Finance guiding the implementation of certain articles of the Corporate Income Tax Law No. 14/2008/QH12 and guiding the implementation of Decree No. 124/2008/NĐ-CP dated December 11, 2008 of the Government detailing and guiding the implementation of certain articles of the Corporate Income Tax Law; Circular No. 15/2011/TT-BTC dated February 9, 2011 of the Ministry of Finance guiding the establishment, organization, operation, management, and use of the Science and Technology Development Fund of enterprises; Decision No. 21/2011/QĐ-TTg and Circular No. 52/2011/TT-BTC dated April 22, 2011 of the Ministry of Finance guiding Decision No. 21/2011/QĐ-TTg;

b) Value-added tax:

Implement Circular No. 06/2012/TT-BTC dated January 11, 2012 of the Ministry of Finance guiding the implementation of certain articles of the Law on Value-Added Tax, guiding the implementation of Decree No. 123/2008/NĐ-CP dated December 8, 2008 and Decree No. 121/2011/NĐ-CP dated December 27, 2011 of the Government, Circular No. 35/2011/TT-BTC dated March 15, 2011 of the Ministry of Finance guiding certain contents regarding value-added tax on telecommunications services; Circular No. 47/2011/TT-BTC dated April 7, 2011 of the Ministry of Finance guiding certain contents regarding value-added tax on electricity production and business activities.

c) Resource tax:

Calculate and prepare the estimate according to the guidance provided in the Law on Resource Tax No. 45/2009/QH12 dated November 25, 2009; Decree No. 50/2010/NĐ-CP dated May 14, 2010 of the Government detailing and guiding the implementation of certain articles of the Law on Resource Tax; Circular No. 105/2010/TT-BTC dated July 23, 2010 of the Ministry of Finance guiding the implementation of certain articles of the Law on Resource Tax and guiding the implementation of Decree No. 50/2010/NĐ-CP dated May 14, 2010 of the Government; Decision No. 284/QĐ-BTC dated February 14, 2012 of the Ministry of Finance on announcing the average retail electricity price applicable for calculating the resource tax on natural water used for hydropower production; Resolution No. 928/2010/UBTVQH dated April 19, 2010 of the Standing Committee of the National Assembly on issuing the rate table for the resource tax.

d) Personal income tax:

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

e) Environmental protection tax:

d) Environmental protection tax:

Pursuant to the provisions of the Law on Environmental Protection Tax No. 57/2010/QH12 dated November 15, 2010; the Government's Decree No. 67/2011/NĐ-CP dated August 8, 2011 guiding the implementation of certain articles of the Law on Environmental Protection Tax; Circular No. 152/2011/TT-BTC dated November 11, 2011 of the Ministry of Finance guiding the implementation of Decree No. 67/2011/NĐ-CP.

e) Non-agricultural land use tax:

Pursuant to the provisions of the Law on Non-Agricultural Land Use Tax No. 48/2010/QH12 dated June 17, 2010; the Government's Decree No. 53/2011/NĐ-CP dated July 1, 2011 detailing and guiding the implementation of certain articles of the Law on Non-Agricultural Land Use Tax; Circular No. 153/2011/TT-BTC dated November 11, 2011 of the Ministry of Finance guiding non-agricultural land use tax; Circular No. 45/2011/TT-BTNMT dated December 26, 2011 of the Ministry of Natural Resources and Environment guiding the determination of areas used for purposes other than intended, areas of encroached land, and areas of unused land according to regulations for calculating non-agricultural land use tax.

g) Regarding agricultural land use tax:

Pursuant to the guidelines set forth in Resolution No. 55/2010/QH12 dated November 24, 2010 of the National Assembly regarding exemption and reduction of agricultural land use tax; the Government's Decree No. 20/2011/NĐ-CP dated March 23, 2011 detailing and guiding the implementation of Resolution No. 55/2010/QH12 dated November 24, 2010 of the National Assembly regarding exemption and reduction of agricultural land use tax; Circular No. 120/2010/TT-BTC dated August 16, 2010 of the Ministry of Finance.

h) Regarding special consumption tax:

Pursuant to the guidelines set forth in Circular No. 05/2012/TT-BTC dated January 5, 2012 guiding the implementation of Decree No. 26/2009/NĐ-CP dated March 16, 2009 and Decree No. 113/2011/NĐ-CP dated December 8, 2011 of the Government amending and supplementing certain articles of Decree No. 26/2009/NĐ-CP dated March 16, 2009 detailing the implementation of certain articles of the Law on Special Consumption Tax.

i) Regarding stamp duty:

Pursuant to the guidelines set forth in the Government's Decree No. 45/2011/NĐ-CP dated June 17, 2011 on stamp duty and the Decision on the collection rate of stamp duty of the People's Committees of provinces and cities; Circular No. 124/TT-BTC dated August 31, 2011 of the Ministry of Finance guiding stamp duty.

k) Regarding tax policy for foreign contractors:

Pursuant to the guidelines set forth in Circular No. 60/2012/TT-BTC dated April 12, 2012 of the Ministry of Finance guiding tax policy for foreign contractors.

l) Exemption and reduction of taxes under Resolution No. 13/NQ-CP:

Pursuant to Circular No. 83/2012/TT-BTC dated May 23, 2012 guiding the implementation of exemption, reduction, and extension of certain state budget revenues according to Resolution No. 13/NQ-CP dated May 10, 2012 of the Government on some measures to overcome difficulties in production and business, support the market.

m) Regarding fees and charges:

Pursuant to the guidelines set forth in the following documents: Circular No. 23/2012/TT-BTC dated February 16 on license fee for planning permits; Joint Circular No. 08/2012/TTLT-BTC-BTP guiding the level of collection, management, and use of notarization fees; Circular No. 33/2012/TT-BTC dated March 1, 2012 guiding the system of collection, management, and use of fees in the construction sector; Circular No. 02/2012/TT-BTC dated January 5, 2012 stipulating the system of collection, management, and use of fees for practicing lawyers in Vietnam; Circular No. 04/2012/TT-BTC dated January 5, 2012 amending Circular No. 136/2010 on fees and charges in veterinary work; Circular No. 03/2012/TT-BTC dated January 5, 2012 replacing Circular No. 96/2006 on auction fees; Circular No. 14/2012/TT-BTC dated February 7 stipulating the level of collection, management, and use of fees for using expressway routes from Ho Chi Minh City to Trung Luong.

n) Regarding oil and gas: Pursuant to the provisions of the Agreement between the Government of the Socialist Republic of Vietnam and the Government of the Russian Federation on continuing cooperation in the field of geological exploration and exploitation of oil and gas on the continental shelf of the Socialist Republic of Vietnam within the framework of the Vietnam-Russia Joint Venture "Vietsovpetro" in 2011; Circular No. 155/2011/TT-BTC dated November 11, 2011 guiding tax on activities related to exploration, development, and exploitation of oil and gas by the Vietnam-Russia Joint Venture "Vietsovpetro" in Block 09-1 as stipulated in the 2010 Agreement.

o) Revenue from lottery tickets: Continue to build the budget estimate based on current laws, consistent with the ability of lottery companies to implement, government policies and market management, and manage revenue through the State Budget (without including it in the State Budget balance).

p) Revenue from the right to exploit mineral resources pursuant to the Government's Decree No. 15/2012/NĐ-CP dated March 9, 2012 detailing certain provisions of the 2010 Mineral Law.

2. Budget revenue from import and export activities:

a) Is built on the basis of analyzing and evaluating the trends of exports, imports, and the trade balance of goods in Vietnam affecting the state budget through analyzing and forecasting the turnover of taxable goods, the sustainability and development trend of traditional markets, the potential to expand markets for key industries; the degree of facilitation of trade, investment facilitation, and harmonization of standards. Focus on analyzing the trends of major export groups including rice, coffee, rubber, cashew nuts, aquatic products, crude oil, coal, various types of telephones and components, textile and garment products; major import groups including computers, electronic products and components, machinery, equipment, tools, and spare parts, various types of petroleum products, fertilizers, complete vehicles, raw materials and auxiliary materials for textiles and footwear, steel products, chemicals; the impact of exchange rate fluctuations and the implementation of tariff reduction schedules to fulfill international economic integration commitments; the impact of technical barriers in trade (TBT/SPS) and the decline in demand for Vietnamese export products from key markets such as the EU, the United States, Japan, and China due to the economic crisis.

b) The revenue budget must be established based on the correct implementation of customs procedures; customs inspection and supervision, export tax, import tax, 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 Tax Tariff and the Preferential Import Tax Tariff according to the list of taxable items specified in Circular No. 157/2011/TT-BTC dated November 14, 2011 issued by the Ministry of Finance and related documents. Efforts should be made to simplify administrative procedures in the customs sector to shorten clearance time and reduce costs for exported and imported goods. Measures to prevent revenue loss should be strengthened, such as debt collection, anti-smuggling, tax evasion, and trade fraud prevention.

3. Revenue retained for expenditure under the system (tuition fees, medical service fees, other contributions collected): Ministries, central agencies, and localities shall base their revenue budget on the actual revenue collected in 2011, estimated revenue for 2012, and proposed adjustments to revenue levels (including tuition fees implemented according to Decree No. 49/2010/NĐ-CP dated May 14, 2010 issued by the Government, and medical service fees implemented according to Joint Circular No. 04/2012/TTLT-BYT-BTC dated February 29, 2012 issued by the Ministry of Health and the Ministry of Finance), and factors expected to impact revenue in 2013 to build an appropriate and positive revenue budget. Revenue from public services that have the nature of business service charges of agencies and units, which do not belong to state budget revenue, should be separately budgeted and not included in the state budget revenue fee and charge budget.

Article 11. Building the State Budget Expenditure Plan for 2013

1. Building the State Budget Expenditure Plan for Development Investment in 2013:

a) The development investment expenditure budget must be closely linked with the goals, tasks of the economic and social development plan for 2013, the investment plan for 2013-2015, and the context of restructuring public investment. Ministries, central agencies, and localities when building the development investment expenditure budget must implement:

- Concentrating state budget capital for infrastructure projects that cannot recover capital. Prioritizing capital allocation for major national projects with nationwide, regional impacts, national target programs, key projects, transportation, water conservancy, urban development, health, education, environmental resource protection, sustainable development projects.

- Reviewing and arranging capital for projects and works in a concentrated manner, in line with objectives, ensuring project completion timeframes as prescribed. Among them:

+ Concentrating capital for projects and works completed and handed over for use in 2012 but not fully funded.

+ Prioritizing capital allocation for important urgent projects expected to be completed in 2013 (according to the investment decision progress, financial balance capacity, and implementation capability in 2013) and counterpart funds for ODA projects according to project implementation progress.

+ Recovering all overdue advances.

+ Allocating remaining capital for ongoing projects according to approved schedules; only allocating capital for truly necessary new projects that have completed investment procedures; capital allocation must ensure that Group C projects are completed within three years and Group B projects within five years.

- Implementing oversight of programs and projects from planning, appraisal, approval, preparation, and execution stages; closely monitoring each stage and phase of ongoing and newly launched programs and projects to avoid increasing scale and cost; projects and works that have completed domestic procedures but lack full financial commitments will not be launched into plans.

- Concentrating on reorganizing and disposing of state-owned real estate assets according to Decision No. 97/2007/QĐ-TTg dated January 19, 2007 issued by the Prime Minister, establishing the budget for construction investment in office buildings and operational bases of state agencies and public institutions from this source.

b) Ministries, central agencies, and localities responsible for implementing projects using government bond funds should assess the implementation of government bonds in 2012; prepare the 2013 investment budget from government bond funds for projects and works listed in the project portfolio decided by the Prime Minister and additional new projects, projects with increased investment scales as stipulated in Resolution No. 473/NQ-UBTVQH13 dated March 12, 2012 of the Standing Committee of the National Assembly, consistent with the allocated government bond capital for the 2012-2015 period according to Decision No. 368/QĐ-TTg dated April 3, 2012 issued by the Prime Minister. On this basis, they should submit these budgets to ministries and central agencies responsible for managing investment programs funded by government bonds for consolidation and submission to the Ministry of Planning and Investment and the Ministry of Finance for reporting to the Government and the National Assembly.

c) Project sponsors investing from government loan funds must arrange sufficient counterpart funds for these projects in accordance with signed agreements and domestic financial management regulations to ensure project implementation timelines are not affected.

d) For the budget for interest subsidy on development credit and policy credit provided by the State, it should be built based on the actual situation in 2022, anticipated policy changes, and tasks for 2013, following the prescribed regulations.

đ) For the supplementary budget for the National Reserve: Based on the assigned goals and tasks of the National Reserve, requirements for preventing and mitigating natural disasters, epidemics, ensuring national defense, social security, relevant ministries and sectors managing reserve goods are responsible for evaluating and determining the level of national reserves managed by ministries, sectors, and units as of December 31, 2012; proposing the level of supplementary reserves for each type of essential goods, materials, and equipment, preparing the state budget for increasing national reserves, storage costs, and the rotation and renewal plan for national reserve goods in 2013.

2. Building the Regular Expenditure Budget for 2013:

a) Throughout the country, the budget for State budget expenditure in 2013 (including development investment expenditure, regular expenditure, and salary reform expenditure) for the education, training, and vocational training sector shall reach 20% of total State budget expenditure (including expenditure from lottery revenue); the culture and information sector shall achieve at least 1.8%; the science and technology sector shall achieve at least 2%; environmental protection activities shall exceed 1%; increased expenditure for the health sector shall be higher than the average increase rate of State budget expenditure; priority shall be given to salary reform expenditure to ensure social welfare; increased expenditure for national defense and security shall be made to meet tasks in new circumstances; administrative management expenditure shall be strictly and economically arranged based on current policies, systems, and standards and urgent tasks expected to arise in 2013.

b) Ministries, central agencies, and localities shall establish the budget for development expenditure in the fields of education and training, culture, health, environmental protection, science and technology, social assurance; national defense and security; administrative management expenditure, party, and mass organizations based on political tasks, economic and social development plans for 2013 of each Ministry, central agency, and locality, according to the standard for regular State budget expenditure allocation decided by the Prime Minister, and specific systems and policies issued by competent authorities. Among these, salary expenditure and allowances calculated based on the minimum wage level of 1,050,000 VND/month, with a service allowance rate of 25%; deductions from salary (health insurance, social insurance, unemployment insurance) shall be implemented according to the Health Insurance Law, the adjustment schedule of the Social Insurance Law, and guiding documents.

c) The 2013 budget shall be established based on the assessment of the implementation of the budget in 2012, the forecast of tasks for 2013 (clarifying expenditures that only occurred in 2012 and not in 2013, increases in expenditures in 2013 according to approved systems and fields), the announced budget inspection results for 2013, and the current expenditure standards and norms. The budget should prioritize funding arrangements for tasks within each industry and field.

d) The budget for economic public services shall be based on the volume of tasks assigned by competent authorities and the prescribed State budget expenditure regulations; focusing on allocating funds for important tasks; maintaining and repairing key economic infrastructure systems (transportation, water resources,...) to extend their usage time and investment efficiency; funding for planning work; implementing agricultural, forestry, fishery, and industrial promotion tasks; land surveying, land registration, and land use right certificate issuance tasks,... contributing to promoting growth and economic structure transformation. Strengthen the application of tendering rules, ordering, and assigning tasks for providing public services using the State budget according to Decision No. 39/2008/QĐ-TTg dated March 14, 2008, and Decree No. 31/2005/NĐ-CP dated March 11, 2005, of the Government regarding the production and supply of public goods and services.

đ) During the process of establishing the 2013 State budget, ministries, sectors, and localities must adjust State budget expenditure tasks to align with balanced resources based on implementing self-management and self-responsibility rights for staffing and administrative management expenditure for state agencies; enhancing self-management and self-responsibility rights of public institutions in organizational implementation, human resources, and finance to diversify and improve the quality of public services and public service development resources, implementing salary reform according to the general schedule. Agencies and units, especially sector and field management ministries and localities, must proactively and positively develop price adjustment schedules to promote socialization, improve the quality of public services, and match citizens' contribution capacity. Implement ordering mechanisms or assigning specific tasks based on technical and economic standards to increase autonomy for public institutions.

e) Administrative state agencies and public institutions with income as stipulated by law must fully prepare budgets for revenues and expenditures for tasks funded from fees, charges, and other retained revenues according to prescribed regulations.

f) For research and scientific study expenditure tasks, expenditure tasks in other fields, implementation expenditure tasks for state orders, and other important expenditure tasks, units must prepare the State budget expenditure according to current regulations and guidance in this Circular, while fully explaining the calculation bases.

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

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

+ The number of staff positions approved up to the time of budget preparation, including the actual number of staff present at the time of budget preparation, the number of unfilled staff positions according to the approved quota (if any); the number of people working under indefinite-term contracts in administrative state agencies, party agencies, and social-political organizations according to Decree No. 68/2000/NĐ-CP dated November 17, 2000, of the Government.

+ Determining the Salary Fund and Allowances based on the minimum wage of 1,050,000 VND/month (for a full year) guaranteed by the State budget, including:

* The Salary Fund and Allowances of the approved staff positions actually present at the time of budget preparation, determined based on the salary scale, grade, and 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 approved but unfilled staff positions, estimated based on the minimum wage of 1,050,000 VND/month, a salary coefficient of 2.34/staff position, 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 Decree No. 68/2000/NĐ-CP, determined similarly to the approved staff positions actually present at the time of budget preparation.

+ 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.

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

- Education and training expenses: Provide a clear explanation of the basis for establishing the budget estimate for implementing the policy of seniority allowances in the education sector, expenses for implementing mechanisms to reduce or exempt tuition fees, and support for learning expenses for specified groups as stipulated in Decree No. 49/2010/NĐ-CP.

- Scientific research expenses: The funds for implementing projects, programs, and scientific and technological tasks must be based on the decision approving the list, budget estimates, and detailed content from the competent authority. Regular activity funds must clearly state the contents with increases or decreases compared to the 2012 budget estimate along with the reasons and calculation basis.

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

Fully prepare the budget according to the prescribed procedures, forms, and State Budget decisions under the State Budget Law, Public Debt Management Law, and guiding documents, Government Decrees on investment management and basic construction, borrowing and repaying foreign debts, paying particular attention to the disbursement process in program/project documents and signed funding agreements. Detail the ODA and counterpart funds for each program and project according to the nature of the investment and public service expenditure sources, ensuring alignment with implementation progress; submit to the Ministry of Planning and Investment and the Ministry of Finance for consolidation in the 2013 State Budget draft to be submitted to the Government and the National Assembly for approval. For programs and projects implemented through program/sector support and general budget support provided by ministries and central agencies, actively coordinate with funders to determine the 2013 disbursement commitment as the basis for consolidating and balancing the 2013 budget expenditure draft at the beginning of the year.

4. Budget for implementing salary reform in 2013:

In 2013, ministries, central agencies, and localities continue to proactively implement the mechanism for generating salary reform funds as prescribed: savings from 10% of regular expenses excluding salaries and salary-like allowances; a portion of retained revenue according to the financial system of administrative agencies and public institutions; 50% of increased local government revenue (excluding increased land use fees); unused salary reform funds from previous years (if any). Ministries, sectors, and localities should accelerate reforms in the operation and finance mechanisms of the public service sector to gradually shift towards a new mechanism for generating salary reform funds for the public service sector.

5. Budget for implementing national target programs:

a) Based on the objectives and tasks for 2013 and the current financial regulations, ministries, central agencies, and localities establish the budget requirements for implementing national target programs in 2013, and submit them to the central agencies managing the programs/projects for consolidation and submission to the Ministry of Finance and the Ministry of Planning and Investment.

b) Ministries and agencies managing national target programs develop the budget for implementing national target programs in 2013 consistent with the objectives, tasks, timeframes, and resources for implementing projects within each national target program approved by the Prime Minister for the period 2011-2015, and submit them to the Ministry of Finance and the Ministry of Planning and Investment for consolidation. The explanatory materials need to assess the implementation situation in 2011, the deployment capability in 2012, and the needs for 2013. Emphasis should be placed on clarifying the relationship between the financial requirements for implementing the program (central budget including domestic and ODA funds, local budget, community mobilized resources) and the expected targets and indicators for 2013.

c) Based on the anticipated allocation of funds for each program and project announced by the Ministry of Finance and the Ministry of Planning and Investment, ministries and central agencies responsible for managing programs and projects propose plans for allocating the budget for implementing national target programs and projects in 2013 to other ministries, central agencies, and localities (for programs implemented with both domestic and foreign funds, the allocation plan includes both domestic and foreign funds), and submit them to the Ministry of Finance and the Ministry of Planning and Investment for consolidation and submission to the competent authority for approval. The allocation plan should innovate management methods, implementation processes, enhance decentralization to localities, and increase their responsibility in integrating, allocating, and utilizing assigned funds to achieve the common goals of the programs, ensuring efficient and economical use of funds, avoiding dispersion and prolongation of implementation periods. Ministries and agencies managing national target programs should establish objectives, criteria, policies, and guidelines for organizing, inspecting, and supervising the implementation of the programs.

6. Central budget for programs and projects jointly implemented by ministries, central agencies, and localities:

a) Based on the Prime Minister's decision approving the programs and projects, the leading ministries and agencies of the programs and projects establish the budget for implementing the programs and projects in 2013 and consolidate it in the 2013 State Budget expenditure draft of the ministries and central agencies (detailed by the nature of the funds) and submit it to the Ministry of Finance and the Ministry of Planning and Investment.

b) Based on the anticipated allocation of funds for the programs and projects announced by the Ministry of Finance and the Ministry of Planning and Investment, ministries and central agencies responsible for managing programs and projects propose plans for allocating the budget for implementing the programs and projects in 2013 to other ministries, central agencies, and localities (detailed by the nature of the funds) and submit them to the Ministry of Planning and Investment and the Ministry of Finance for review and consolidation.

7. State budget reserve estimate:

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

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

The Ministries, central agencies, and localities shall prepare detailed budget estimates for expenditures from this revenue source, itemized by each expenditure task and sector, and consolidate them into the budget estimates of the Ministries, central agencies, and localities to submit to the competent authority for decision.

9. Based on the audit results of the state budget revenue and expenditure in 2013, the Ministries, central agencies, and localities must construct detailed budget estimates for each task and each subordinate budget-using unit; after working and reaching consensus with the Ministry of Finance and the Ministry of Planning and Investment, the Ministries, central agencies, and centrally-administered cities and provinces shall immediately implement the work of formulating plans to allocate the 2013 state budget estimates of their respective Ministries, agencies, and localities, ensuring that when they receive the state budget estimates assigned by the Prime Minister, they proactively submit to the competent authority for decision on the allocation and assignment of the state budget estimates to budget-using units before December 31 in accordance with the provisions of the State Budget Law.

The Ministries, central agencies, and localities must focus on directing a thorough review of all stages in the work of allocating, managing, and using the state budget, especially capital for construction and investment and borrowed and aid funds, with the aim of ensuring that the state budget is allocated according to objectives, regulations, and target groups; management and use of the state budget must be strict, effective, and have reporting, auditing, and inspection systems in place to prevent losses and waste.

Article 12. Construction of the 2013 Local State Budget Estimate

1. Construction of the State Revenue Estimate:

Based on the socio-economic development goals for the 2011-2015 period approved by the Party Congresses at all levels, the ability to achieve economic and social targets and state budget revenues in 2012, and forecasts of economic growth rates and revenues for 2013 for each industry and sector, the economic bases of each locality, and new sources of revenue arising within the territory, the internal revenue estimate (excluding oil revenue and land use fee revenue) should increase by a minimum of 14% to 16% compared to the estimated actual performance in 2012 (excluding factors affecting tax exemptions and reductions decided by the competent authority); the revenue estimate from import-export activities should increase by a minimum of 5% to 7% compared to the estimated actual performance in 2012.

2. Regarding the construction of the local state budget expenditure estimate: In 2013, which is the third year of the period of stabilizing the local state budget (2011-2015) as stipulated by the State Budget Law and the Resolution of the National Assembly, the People's Councils at all levels shall actively construct the local state budget estimate based on the stable revenue and expenditure tasks assigned; the local state budget estimates for 2013 shall be constructed based on: revenue determined according to the percentage (%) distribution of shared revenue among budget levels, local state budget revenue receiving 100% according to the State Budget Law, and additional balancing funds from higher-level budgets to lower-level budgets (if any) stabilized at the level of the 2012 budget estimate decided by the National Assembly, the Standing Committee of the National Assembly, the Higher-level People's Council, the Prime Minister, and the Higher-level People's Council. Based on the socio-economic development tasks of the locality in 2013, the mid-term goals and tasks for the 2013-2015 period, current financial policies and expenditure standards; construct the specific 2013 state budget expenditure estimate by sector, ensuring the priority order of tasks and the guidelines set out in Clause 10 of this Circular, 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 being completed in 2013. Review and closely monitor the budget allocation for infrastructure construction projects such as economic zones, industrial parks, where infrastructure projects with significant socio-economic development implications not only for the locality but also for the region, before implementation, actively seek advice and supervision from central agencies, critical feedback 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 implementing poverty reduction, job creation, and social evil handling tasks; allocate sufficient counterpart funds for ODA projects according to the requirement that localities must allocate from the local budget; reserve funds in the construction investment budget to address outstanding construction investment debts, advance payments, and due repayments.

b) Allocate the local state budget construction investment estimate from land use fees to invest in economic and social infrastructure projects, resettlement projects, and land preparation for construction; proactively allocate and establish a land development fund in accordance with Decree No. 69/2009/NĐ-CP; prioritize sufficient funding to accelerate land surveying, establishing land registry databases, and issuing land use right certificates in accordance with the Land Law and the Resolution of the National Assembly.

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

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

đ) Develop the budget for investment expenditures from government bonds for transportation works, irrigation projects, medical facilities (as per Resolution No. 18/2008/QH12 dated June 3, 2008 of the National Assembly), solidifying school buildings and constructing teachers' housing according to approved plans; among which, proactively allocate local budget sources (lottery revenue, investment expenditure within the local budget balance) to implement the programs for solidifying school buildings and constructing teachers' housing at the ratio prescribed by the Ministry of Finance.

e) For infrastructure investment tasks pursuant to Prime Minister's Decisions, Politburo Resolutions,... based on the objectives, tasks, and capital requirements as stipulated; based on the results of investment up to the end of 2011, the ability to implement in 2012, localities proactively build and calculate the tasks for 2013, including proactively arranging and allocating local budgets and other financial resources according to regulations to carry out these tasks, gradually reducing dependence on subsidies from the central budget.

f) For tasks and programs under Resolution No. 30a/2008/NQ-CP dated December 27, 2008 of the Government regarding the program to quickly and sustainably reduce poverty in 62 poor districts and Decision No. 615/QĐ-TTg dated April 25, 2011 of the Prime Minister concerning mechanisms and policies for 7 poor districts, and support policies for poor households in housing as per Decision No. 167/2008/QĐ-TTg dated December 12, 2008 of the Prime Minister and Decision No. 67/2010/QĐ-TTg: Based on the objectives, tasks, and capital requirements, the policies and regulations already established, and the ability to implement in 2012, localities build and calculate the tasks for 2013, proposing the level of central budget support with explanations of the calculation bases.

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

h) Prepare the budget for implementing social security tasks (funds for implementing policies stipulated in the Law on the Elderly, the Law on Persons with Disabilities, Decree No. 67/2007/ND-CP, Decree No. 13/2010/ND-CP, lunch support for five-year-old children, exemption and reduction of tuition fees as per Decree No. 49/2010/ND-CP, award and commemorative medal expenses, social welfare expenses, student scholarships, exemption of water resource fees,...), national defense and security (Law on Militia and Self-Defense Forces, Ordinance on Village Police), including proactively utilizing local budget sources and the need for support from the central budget.

i) Develop the 2013 budget expenditure plan, localities should proactively calculate and allocate sources to implement salary reform expenditures as guided in Clause 4, Article 10 of this Circular.

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

3. On balancing the local budget:

a) Provinces and centrally governed cities shall develop the local budget expenditure plan based on the local budget revenue sources they enjoy and the supplementary balance (if any) from the central budget to the local budget at the stable level as the Prime Minister had assigned to the locality in the 2012 budget estimate. At the same time, for localities receiving supplementary balance from the central budget, propose specific levels of emergency support for the locality according to Point 20, Section II of the 2011 State Budget Regular Expenditure Allocation Standards issued together with Decision No. 59/2010/QĐ-TTg dated September 30, 2010 of the Prime Minister.

b) For provinces and centrally governed cities that have the need to raise additional capital to increase development investment, they must develop the budget estimate in accordance with Clause 3, Article 8 of the State Budget Law, ensuring the level of debt raised (including the amount expected to be raised in 2013) does not exceed 30% (for Hanoi and Ho Chi Minh City, it is 100%) of the budget estimate for construction investment expenditures of the provincial budget; at the same time, they must arrange sources to repay maturing debts (both principal and interest).

4. For local authorities piloting the non-establishment of People's Councils, the content of the 2013 budget preparation shall be carried out in accordance with this Circular; regarding procedures and deadlines, follow the provisions of Circular No. 63/2009/TT-BTC dated March 27, 2009 of the Ministry of Finance on the work of preparing budgets, organizing implementation of budgets, and finalizing accounts for counties, districts, and towns where People's Councils are not organized.

Chapter 3

IMPLEMENTATION

Article 13. Responsibilities of Ministries and agencies managing national target programs, programs, and projects implemented from the central budget and carried out by multiple central ministries and agencies

1. Coordinate with central ministries and agencies and relevant localities to forecast tasks and funding levels for implementing national target programs, programs, and projects in 2013, and submit them to the Ministry of Finance and the Ministry of Planning and Investment before July 20, 2012.

2. Develop plans for allocating the 2013 budget estimates for each central ministry and agency and each province and centrally-administered city, and submit these plans to the Ministry of Finance and the Ministry of Planning and Investment for consolidation within the time limit specified in the notification on the funding level for 2013 for national target programs, programs, and projects issued by the Ministry of Finance and the Ministry of Planning and Investment.

3. Take the lead or coordinate in drafting, issuing, and perfecting guiding documents to ensure that national target programs can be promptly implemented from the beginning of 2013.

Article 14. Responsibilities of Ministries, central agencies, and localities

1. Based on the inspection numbers announced, central ministries and agencies and People's Committees of provinces and centrally-administered cities shall guide and announce inspection numbers regarding budget revenue and expenditure forecasts for subordinate budget units and lower-level budgets according to regulations.

2. The Ministry of Planning and Investment shall take the lead and coordinate with the Ministry of Finance to prepare the 2013 budget estimate for development spending, allocation plans for development spending in certain areas of the central budget assigned, and allocation plans for development capital for national target programs, and submit these plans to the Ministry of Finance before September 10, 2012.

3. Implement reforms in the program of work for budget preparation to ensure quality and efficient use of resources in organizing the budget preparation for 2013. Professional departments of the Ministry of Finance shall not discuss with provincial finance departments. The organization, consolidation, and reporting of the 2013 budget estimate must comply with the provisions of the State Budget Law, guiding documents, and the contents directed by this Circular; report fully according to the content and forms 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 State Audit Office before July 20, 2012 for central ministries and agencies, and before July 25, 2012 for provinces and centrally-administered cities, and register for discussion of the budget estimate between the provincial People's Committee leadership and the Ministry of Finance for years during the budget stabilization period (if applicable).

Article 15. Regarding forms for preparing and reporting the 2013 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 stipulated in Circular No. 59/2003/TT-BTC, additional forms (Form Nos. 2, 5, and 11) prescribed in this Circular, and forms prescribed in Joint Circular No. 03/2006/TTLT-BTC-BNV dated January 17, 2006 of the Ministry of Finance and the Ministry of Home Affairs guiding the implementation of Decree No. 130/2005/NĐ-CP dated October 17, 2005 of the Government, and Circular No. 71/2006/TT-BTC dated August 9, 2006 of the Ministry of Finance guiding the implementation of Decree No. 43/2006/NĐ-CP; pay attention to preparing detailed budget estimates down to each budget-using unit (according to Form No. 02 - Appendix No. 2 - Circular No. 59/2003/TT-BTC) and important tasks of the ministry or agency to explain and report to the National Assembly about the budget estimate of each central ministry or agency.

2. For localities: Aggregate and prepare the local budget estimate, and report it 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 stipulated in Circular No. 59/2003/TT-BTC and additional forms (Form Nos. 01, 03, 04, 06, 07, 08, 09, 10, 12, and 13) prescribed in this Circular.

Article 15. Implementation Provisions

1. This Circular takes effect from August 4, 2012. The content, procedures, and deadlines for preparing the 2013 state budget estimate shall be carried out in accordance with the provisions of the State Budget Law, guiding documents for the Law, and guidance provided in this Circular.

2. During the process of preparing the 2013 state budget estimate, 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 2013 state budget estimate, please reflect these issues to the Ministry of Finance for timely resolution./.