Chapter IV
ENACTMENT OF STATE BUDGET
Article 31. Allocating and giving state budget estimates of budget estimate units
1. After being given budget estimates by the Prime Minister or the People’s Committee, budget estimate units level I shall allocate and give budget estimates to affiliated budget-using units and units of inferior budgets in accordance with procedures, requirements and deadline prescribed in Article 49 and Article 50 of the Law on State budget.
2. Estimates given to budget-using units shall be specific in sorted fields, obligatory expenditures. If there are obligatory expenditures for managing the budget according to achievement of objectives, estimates must be specific in each of objectives, services, or products
3. The superior regulatory agency that authorizes an inferior regulatory agency to make obligatory expenditures on its behalf must give a budget estimate to such inferior agency. The agency that receives the funding must submit a statement of the use of such funding to the authorizing agency.
4. Finance authorities of the same level shall inspect the budget estimates given by budget estimate units level I to their budget-using units within 10 working days from the day on which budget allocation report made by the budget estimate unit is received. If the allocation is found incorrect in terms of total amount, fields, objectives, or policies, the budget estimate unit level I shall be requested to make correction.
5. The Ministry of Finance shall provide guidance on forms of giving estimates to agencies, organizations and units.
Article 32. Organizing collection of state budget revenues
1. Organizing management and collection of taxes, fees, charges, and other receivables paid to State Treasuries. The amounts collected via a third party must be transferred in full and on schedule to State Treasuries as prescribed by the Ministry of Finance.
2. Grant aid in cash must be collected promptly to State budget, if an international agreement or granting agreement specifies direct disbursement to a program/ project, such grant aid shall be included sufficiently in State budget as prescribed by the Ministry of Finance.
3. State Treasuries may open accounts at the State bank of Vietnam and commercial banks to concentrate state budget revenues as prescribed in Article 40 hereof; transfer them to the state budget, regulate and distribute the revenues among various levels of state budget as prescribed.
4. The Ministry of Finance shall provide guidelines for collecting and accounting of amounts receivable and grant aid to State Treasuries.
Article 33. Management, accounting of State budget’s loans
1. State budget’s loans shall be managed and accounted on accounts of each budget level. If an international agreement or granting agreement specifies that external borrowings shall be directly disbursed to a program/ project, such external borrowing shall be included sufficiently in State budget as prescribed by the Ministry of Finance.
2. The Ministry of Finance shall provide guidance on management and accounting of State budget’s loans.
Article 34. Organizing state budget expenditure
1. Finance authorities, State Treasuries shall inspect, control and make payment sufficiently, promptly on schedule of obligatory expenditures within the given budget estimate. Heads of finance agencies, State Treasuries may refuse expenditures unsatisfactory with requirements prescribed in Clause 2 Article 12 of the Law on State budget, and take responsibility for their own decisions as prescribed by law and promptly inform relevant agencies, organizations and units. If an agency, organization or unit receiving the refusal disagrees with the decision of the finance authority or State Treasury, it may send a report to the agency that gives estimate directly and superior finance agency or State Treasury for consideration.
2. Finance authorities are entitled to suspend budgets, other than expenditures on wage, allowances, social subsidies, scholarships, and other urgent expenditures as prescribed by the Ministry of Finance, of agencies, organizations and units at the same level that fail to adhere to regulations on accounting, statement, or other financial statement, and take responsibility for their decision. The finance authority shall notify managing agency of the agency, organization, or unit subject to the suspension of the decision on suspension of budget.
3. Capital and fund shall be advanced as prescribed in Clause 2 and Clause 3 Article 56 of the Law on State budget and the amount of advanced capital shall be recovered immediately when the conditions for expenditures are satisfied as prescribed.
4. Obligatory expenditures which are made recurrently must be divided equally during a year; obligatory expenditures on capital expenditure, procurement, major repair and other non-recurrent expenditures shall be covered by certain sources on schedule and within the given budget estimate.
5. State budget’s expenditures shall be made in the form of direct payments from State Treasuries to person receiving wages, allowances, subsidies and providers of goods and services. With regard to expenditures unsatisfactory with conditions for direct payments from State Treasuries, the budget-using unit shall make advances of funding to pay these expenditures according to the given budget estimate, and then make payments with State Treasuries as prescribed by the Ministry of Finance.
With regard to expenditures funded by external borrowings of the Government, grant aid specified in granting agreement which stipulates direct disbursement through corporate banking to programs and projects, those expenditures shall be controlled in accordance with instructions of the Ministry of Finance and included in State budget regularly as prescribed in Clause 2 Article 32 and Clause 1 Article 33 of this Decree.
6. Capital expenditures:
a) An investor shall, according to the estimate of facilities or work items decided by the competent authority and the given budget estimate, finished quantity value and conditions for budget expenditures, submit an application for payment or application for advance to the State Treasury if the conditions are satisfied as prescribed respectively in Clause 2 Article 12 or Clause 2 Article 56 of the Law on State budget;
b) The State Treasury shall inspect the estimate balance and legitimacy of documents submitted by the investor and conditions prescribed in Clause 2 Article 12 or applications for advances as prescribed in Clause 2 Article 56 of the Law on State budget, and then disburse and record budget expenditures as prescribed.
7. Expenditures on management according to achievement of objectives:
a) According to the given budget estimate, contract, schedule, quantity, and quality of the achievement of objectives, services, products, the head of budget-using unit shall make a decision on expenditure and take responsibility for his/her decision, and submit an application for payment or advance to the State Treasury where the payment or advance is made as prescribed;
b) The State Treasury shall inspect the estimate balance and the legitimacy of the application, disburse and record the expenditure or advance as prescribed.
8. Recurrent expenditures:
a) According to the conditions for budget expenditure and progress of work, the head of budget-using unit shall make decision on expenditure, and submit an application for payment or advance to the State Treasury where the payment or advance is made as prescribed;
b) The State Treasury shall inspect the estimate balance and legitimacy of application and conditions prescribed in Clause 2 Article 12, and then disburse and record budget expenditure or advance as prescribed.
9. Additional funding provided from superior budgets to inferior ones shall be made at State Treasuries.
10. Expenditures on authorization:
a) Expenditures on authorization shall be paid by the authorized entity as prescribed in Clauses 6, 7, and 8 of this Article;
b) The State Treasury and the authorizing entity shall do accounting and make a separate report on expenditures on authorization.
11. Expenditures on payment of interests, charges and other expenses associated with State budget’s loans shall be consistent with Article 35 of this Decree.
12. The Ministry of Finance shall provide guidelines for procedures, accounting, and control of recurrent expenditures, capital expenditures, expenditures on debt repayment, enterprise subsidies and obligatory expenditures with particular characteristics of State budget, provision of additional funding from superior budgets to inferior ones.
Article 35. Management, accounting, and repayment of State budget’s loans
1. Outstanding interests, charges, and other expenses associated with State budget’s loans shall be paid according to their occurrence and within the given budget estimate.
2. Principal of due loans shall be paid on due date as specified in the commitment, concluded contract and within the given budget estimate decided by the competent authority as prescribed in Clause 1 Article 5 of this Decree.
3. Accounting of expenditures on debt repayment:
a) Expenditures on payment of interests, charges, and expenses associated with loans shall be included in State budget’s expenditure;
b) Expenditures on principal repayment shall be recorded as a decrease in debt balance of State budget, not included in the State budget’s expenditure;
c) The Ministry of Finance shall provide guidelines for accounting of principal repayment; payment of interests, charges and other expenses associated with State budget’s loans.
Article 36. Organizing state budget management
1. Finance authorities have the responsibility to maintain sources for making expenditures according to budge estimates. Temporary deficit in government budgets:
a) In case of temporary deficit in central government budget: The Ministry of Finance shall provide an advance funding from the central financial reserve fund and other legitimate financial sources, including issuance of State Treasury bills and such advance funding must be returned within the budget year. If the financial reserve fund and other sources cannot cover the deficit, the Ministry of Finance shall provide advance funding from the State Bank of Vietnam under a decision of the Prime Minister as prescribed in Clause 1 Article 58 of the Law on State budget;
b) In case of temporary deficit in a provincial budget: The People’s Committee of province shall provide an advance funding from provincial financial reserve fund and other legitimate financial sources and such advance funding must be returned within the budget year. If the financial reserve fund and other sources cannot cover the deficit, the People’s Committee of province shall send a report to the Ministry of Finance to provide advance funding from central financial reserve fund or central government budget advance, and such funding must be returned within the budget year;
c) In case of temporary deficit in a district budget: The People’s Committee of province shall, according to a request of the People’s Committee of district, provide an advance funding from provincial financial reserve fund and other legitimate financial sources and such advance funding must be returned within the budget year;
d) In case of temporary deficit in a commune budget: The People’s Committee of district shall, according to a request of the People’s Committee of commune, provide an advance funding from district financial reserve fund and such advance funding must be returned within the budget year. If the district budget cannot cover the deficit, the People’s Committee of district shall request the People's Committee of province to provide advance funding from provincial financial reserve fund or central government budget advance, and such funding must be returned within the budget year.
2. During the enactment of state budget, if the revenue is expected to be lower than the estimated revenue decided by the National Assembly or People's Council, the Government shall request Standing Committee of the National Assembly to decide adjustments to some expenditures, and then submit a report to the National Assembly at the nearest meeting; the People’s Committee shall request Standing Committee of the People’s Council at the same level to decide adjustments to local government budget estimate and submit a report to the People’s Council at the nearest meeting as prescribed in Point a Clause 2 and Point a Clause 3 Article 52 of the Law on State budget.
3. The budget estimates given to budget-using units shall be adjusted as prescribed in Article 53 of the Law on State budget.
4. Regarding expenditures on programs/projects funded by ODA and concessional loans that do not have budget estimates or exceed the budget estimates, the Ministry of Planning and Investment shall take charge and request the Government to send a report to Standing Committee of the National Assembly before enactment and submit a report to the National Assembly at the nearest meeting.
5. Financial reserve funds are used to cover State budget’s expenditures in accordance with Point c Clause 2 Article 11 of the Law on State budget and Article 8 of this Decree.
6. At the end of the budget year, in case of revenue increase and expenditure decrease, the Ministry of Finance shall send a report to the Government, then the Government shall forward it to the Standing Committee of National Assembly, local finance authority shall send a report to the People’s Committee, the People’s Committee shall forward it to the Standing board of People’s Council at the same administrative level to decide the amount of additional estimate and revenue increase; allocate and use revenue increase and expenditure decrease as prescribed in Clause 2 Article 59 of the Law on State budget.
7. Bonus for excess revenues distributed between central government budget and local government budgets shall be given as prescribed in Point a Clause 4 Article 59 of the Law on State budget and the following rules must be satisfied:
a) Total revenue of central government budget is greater than the estimate decided by the National Assembly;
b) Bonus rate does not exceed 30% of revenue increase which central government budget may retain. Nevertheless, the bonus must not exceed the last year’s revenue increase. Bonus given to each locality shall be given according to total revenues distributed in the locality, not each revenue separately.
8. According to the level of bonus decided by Standing Committee of the National Assembly, the People’s Committee of the province shall request the People’s Council at the same level to use the bonus to make investment in infrastructure projects, performance of important tasks, and giving bonus to inferior budgets.
Article 37. Rules, criteria, conditions and power to decide advance funding from next year’s budget
1. Rules for advancing next year’s funding:
a) When allocating the next year’s budget estimate, the advance funding must be recovered in full. Otherwise, next year’s advance funding is not permitted;
b) The advance funding of next year’s budget estimate must not exceed 20% of the estimated capital expenditure of the plan for midterm investment of state budget that is approved.;
2. Criteria for advance funding from next year’s budget:
a) Projects of national importance;
b) Urgent projects and facilities of capital construction of central and local governments.
3. Conditions for advancing next year’s funding:
a) Ensure the balance of budget funding of each level;
b) Projects and facilities of capital construction must satisfy conditions as prescribed by law on public investment and construction of the plan for midterm investment of state budget that is approved and accelerate progress;
c) There is no balance of advance funding;
d) An investor of a project or facility of capital construction eligible for advance funding from next year’s budget must provide documents on necessity of advance funding.
4. Power to decide advance funding from next year’s budget:
a) According to assignment of the Government and requests of Ministries, ministerial-level agencies, Governmental agencies, other agencies of central government and the People’s Committees of provinces and central-affiliated cities, the Ministry of Finance and the Ministry of Planning and Investment shall request the Government to decide advance funding from next year’s budget; and submit biannual reports to the Standing Committee of National Assembly, and reports to the National Assembly at the nearest session.
b) The People’s Committees of provinces and district shall decide its advance funding from next year’s budget; submit biannual reports to Standing Committee of the People’s Council and to the People’s Council at the nearest meeting.
Article 38. Management and use of budget by budget-using units
1. Ministries, ministerial-level agencies, Governmental agencies, other agencies of central and local government shall provide guidelines, inspect, and monitor the enactment of budget within the fields under their management and the enactment of budget of affiliated entities; submit periodic reports on receipts and expenditures and other financial statement as prescribed by law.
2. Heads of budget-using units are responsible for management and use of their budgets according to given estimates, ensure efficiency, frugality, adherence to policies, standards, and limits on budget expenditures; send periodic reports on enactment of the given budget estimate to their superior authorities.
3. The person in charge of finance – accounting of the budget-using unit has the responsibility to adhere to regulations on budget – finance management, state accounting, internal inspection, prevent, discover violations and request the head of the unit or a finance authority at the same level to take punitive actions.
4. Heads of agencies, units, organizations and persons in charge of finance and/or accounting at budget-using units prescribed in Clauses 1, 2, and 3 of this Article shall adhere to their duties and entitlements to state budget – finance and take responsibility for misconducts within their competence.
Article 39. Opening accounts at State Treasuries
1. Budget-using units and organizations funded by state budget regularly must open accounts at State Treasuries and be subject to the inspection and control of finance authorities and State Treasuries during the payment and funding use progress. If a budget-using unit or an organization funded by state budget regularly is permitted to open an account at a bank for the purpose of concentrating revenues, they must be managed and used as prescribed by law.
2. Assign the Ministry of Finance to provide guidelines for opening accounts at State Treasuries.
Article 40. Opening accounts of State Treasuries at banks
1. State Treasury shall open accounts at the State Bank of Vietnam and commercial banks for the purpose of concentrating revenues and expenditures of state budget.
2. A bank at which the State Treasury opens its account shall ensure the payment, regulate cash and foreign currencies adequately and promptly according to obligatory revenues and expenditures of state budget.
3. The bank shall pay interests on deposits of the State Treasury at the bank similarly to business entities; payments of State Treasury made through the State Treasury shall incur charges as prescribed by law.
Article 41. Report on enactment of state budget
1. Agencies, organizations and units shall submit reports on enactment of state budget as prescribed in Article 60 of the Law on State budget.
2. Forms and deadlines for reports prescribed in Clauses 1, 2, 3, 4, 5, 6, and 7 Article 60 of the Law on State budget shall be prescribed by the Ministry of Finance.
3. Forms and deadlines for reports prescribed in Clause 8 Article 60 of the Law on State budget shall be prescribed in a resolution of the Standing Committee of National Assembly on promulgation of regulations on making, assessment, and submission of state budget estimates, plan for allocation of central government budget to National Assembly for decision and ratification of statement of state budget.
Tìm kiếm
Nghị định 163/2016/NĐ-CP (Bản Pdf)
Nghị định 163/2016/NĐ-CP (Bản Word)
