CIRCULAR

PROVIDING GUIDANCE ON FORMULATION OF STATE BUDGET ESTIMATE FOR THE YEAR 2025 AND THREE-YEAR STATE BUDGET - FINANCIAL PLAN FOR THE 2025 - 2027 PERIOD

Pursuant to the Law on State Budget dated June 25, 2015;

Pursuant to the Law on Public Investment dated June 13, 2019;

Pursuant to the Government's Decree No. 163/2016/ND-CP dated December 21, 2016 on elaboration and provision of guidelines for implementation of the Law on State Budget;

Pursuant to the Government's Decree No. 31/2017/ND-CP dated March 23, 2017 on promulgation of Regulations on preparation, evaluation and approval of the local government’s five-year financial plan, the local government’s five-year midterm public investment plan, the three-year state budget - financial plan of the local government, and estimation and allocation of the local government budget, and approval of the annual financial statement of the local government;

Pursuant to the Government's Decree No. 45/2017/ND-CP dated April 21, 2017 elaborating on the five-year financial planning and the three-year state budget - financial plan;

Pursuant to the Government’s Decree No. 14/2023/ND-CP dated April 20, 2023 on functions, tasks, powers and organizational structure of the Ministry of Finance of Vietnam;

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

The Minister of Finance hereby issues Circular providing guidance on formulation of state budget estimate for the year 2025 and three-year state budget - financial plan for the 2025 - 2027 period

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Circular provides guidance on some contents in review of performance of state budget tasks in 2024 and during the 2021 – 2024 period; and formulation of state budget estimate for the year 2025 and three-year state budget - financial plan for the 2025 - 2027 period.

Article 2. Regulated entities

1. Regulatory bodies, political organizations and socio-political organizations.

2. Socio-political-professional organizations, social organizations and socio-professional organizations supported by the state budget for fulfillment of tasks assigned by the State.

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4. Other organizations and individuals related to state budget.

Chapter II

REVIEW OF PERFORMANCE OF STATE BUDGET TASKS IN 2024 AND DURING THE 2021 – 2024 PERIOD

Article 3. Bases for review

1. Resolutions of the National Assembly, the Government and all-level People’s Councils, and regulatory documents prepared by competent authorities on state budget estimate for the year 2024:

a) Resolutions of the National Assembly on five-year plan for the 2021-2025 period, including Resolution No. 16/2021/QH15 dated July 27, 2021 on five-year socio-economic development plan for the period of 2021 – 2025; Resolution No. 23/2021/QH15 dated July 28, 2021 on national financial, borrowing and public debt repayment plan for 2021 – 2025 period; Resolution No. 29/2021/QH15 dated July 28, 2021 on medium-term public investment plan for 2021 – 2025 period; and Resolution No. 31/2021/QH15 dated November 12, 2021 on economic restructuring plan for 2021 – 2025 period.

b) Resolutions of the National Assembly, including Resolution No. 103/2023/QH15 dated November 09, 2023 on five-year socio-economic development plan for the year 2024; Resolution No. 104/2023/QH15 dated November 10, 2023 on state budget estimate for the year 2024; Resolution No. 105/2023/QH15 dated November 10, 2023 on 2024 central government budget allocation; and Resolution No. 142/2024/QH15 dated June 29, 2024 on 7^th session of the 15^th National Assembly.

c) Government's Resolution No. 01/NQ-CP dated January 05, 2024 on key tasks and solutions to implementation of socio-economic development plan and state budget estimate in 2024 (Resolution No. 01/NQ-CP) and other Resolutions issued in the Government’s monthly regular meetings.

d) Decisions issued by the Prime Minister and Chairpersons of People’s Committees at all levels on allocation of state budget estimates, plans for state budget-sourced investment capital and additional budget allocation during administration of state budget in 2024 (if any).

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e) Circular No. 76/2023/TT-BTC dated December 29, 2023 of the Minister of Finance on implementation of state budget estimate for the year 2024 (Circular No. 76/2023/TT-BTC).

2. Other documents:

a) Documents prepared by competent authorities on regulations on collection, policies on extension, exemption and reduction in taxes, fees and charges and solutions to removal of obstacles to enterprises and people; regulations on reduction and saving on recurrent expenditures affecting performance of state budget collection –expenditure tasks in 2024.

b) Conclusions and recommendations of authorities regarding inspection, audit, reform of administrative procedures, management of use of public finance and property, resolution of claims or complaints, thrift practice, anti-extravagance and corruption prevention and control with respect to the state budget revenues and expenditures.

Article 4. Review of state budget revenue collection in 2024

1. Review principles:

Complying with regulations of the Law on State Budget and its guiding documents, laws on budget revenue collection and documents prepared by competent authorities on administration of state budget; fully reviewing all taxes, fees and charges collected and other state budget revenues; excluding the collected fees that have been converted into services charges according to the Law on Fees and Charges, deductibles of state regulatory authorities or withheld revenues generated from services rendered by public service providers and organizations assigned by state regulatory authorities from state budget balance.

Ministries and central and local authorities shall review and assess factors affecting capability of collecting state budget revenues for the first six months, and estimate capability of collecting state budget revenues in the last six months with a focus on clarification of advantages and difficulties; and propose solutions in order to achieve the most of estimated state budget revenue target decided by the National Assembly and People’s Councils at all levels and assigned by the Prime Minister.

2. Contents to be reviewed:

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- Factors affecting production, business, provision of services, import and export by enterprises and economic organizations in each field; production and consumption volume, selling prices and profits of key goods and services available within their operating areas; impacts of variations in prices of crude oil, raw materials and supplies, and fluctuations in securities market and real estate market; review and analysis of impacts of adjustments to roadmaps for increase in prices of public services and goods whose prices managed by the State; projects whose tax incentive periods have elapsed and capacity for carrying out extension projects and new projects.

- Measurement of specific factors causing any increase or decrease in state budget revenues due to possible changes in the law affecting revenues in 2024; impacts of implementation of policies included in socio-economic recovery and development programs; implementation of roadmaps for tax reduction for fulfillment of commitments on international economic integration.

b) Urge to collect and settle tax debts in the first 6 months of 2024; expected results of collection and settlement of tax debts in the last 6 months of 2024 (in comparison with targets and plans assigned – if any) and total tax debts estimated by December 31, 2024. Results of implementation of recommendations of the State Audit, the Inspectorate, and decisions on retrospective collection of tax issued by tax authorities at all levels upon performance of the tasks of inspection of compliance with tax laws.

c) VAT refund (except for overpaid VAT refund) and the amount of VAT refund estimated in 2024 in conformity with policies and reality; reports submitted to competent authorities on the additional amount of VAT refund (if any) for expenditure on VAT refund to payers in a manner that is sufficient, prompt and consistent with regulations of law; supervision, inspection and audit carried out after completion of VAT refund, prompt recovery of VAT refunds in contravention of regulations; and recommendations (if any). 

d) Assessment of refund of tax, late payment interests, and fines overpaid by payers according to regulations of law under criteria, including quantity of processed/granted applications for refund and amounts refunded. At the same time, identification of problems and difficulties and proposal for solutions to policies and technologies for management and cooperation during implementation (if any).

dd) Collection of state budget revenue from land (including collection of land use levies and land rents) according to the law on land and the Resolution No. 132/2020/QH14 dated November 17, 2020 of the National Assembly and the Government’s Decree No. 26/2021/ND-CP dated March 25, 2021;

e) Collection of state budget revenues from disposition and handling of real property in accordance with the Government's Decree No. 167/2017/ND-CP dated December 31, 2017 and the Government’s Decree No. 67/2021/ND-CP dated July 15, 2021 and other regulations of relevant laws;

g) Collection of budget revenues from lease of rights to utilize or transfer of rights to utilize infrastructure assets for specific terms, state budget revenues from assignment of management and use of infrastructure assets invested and managed by the State and not recorded as state capital in enterprises, and operation of land and water surface resources (after related costs are taken away);

h) Review of collection of revenues generated by transfer of ownership of enterprises and public service providers, revenues generated by transfer of state capital and equity amount that exceeds charter capital of enterprises according to regulations of the Government's Decree No. 148/2021/ND-CP dated December 31, 2021; detailed reports on amounts transferred to budget and additional amounts that have not yet been transferred to budget (if any), and proposal for solutions to such amounts and revenues (if any).

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k) Collection of fees and charges according to regulations of the Law on Fees and Charges (review of fees and charges collected according to regulations; and those remitted into the state budget; collection of administrative fines, monetary penalties and other confiscations, license plate auction price and other amounts remitted into the state budget in 2024 according to regulations.

l) Collection of grants or aids in the first 6 months and estimated grants or aids during 2024.

m) Review of collection of, and problems and difficulties in estimation and assessment of collection of the difference between revenues and expenses of the State Bank, recommendations (if any).

Article 5. Review of state budget revenue collection during the 2021-2024 period

On basis of the financial statement in 2021, the financial statement in 2022, the state budget revenue collection in 2023 and the estimation for the entire year 2024, reviewing state budget revenue collection during the 2021-2024 period in comparison to five-year plans and objectives during the 2021-2025 period according to Resolutions of the National Assembly and People's Councils, specifying each source of state budget revenue generated from collection of land use levies, lottery proceeds, dividends and after-tax profits, and other domestic revenues (exclusive of land use levies, lottery proceeds, dividends and after-tax profits), income from import and export activities, grants or aids (if any); clarifying results archived, limitations and objective and subjective causes (including specific assessment of impacts of COVID-19, Russia-Ukraine Conflict and adjustments to policies on collection of state budget revenues, etc.); assessing experience and circumstances and recommending regulatory solutions to administration of state budget revenues in the coming time

Article 6. Review of performance of investment and development expenditure tasks in 2024

1. Review of development and implementation of investment and development expenditure estimate in 2024 (excluding credit-related tasks and national target programs)

a) Regarding annual investment and development expenditure estimates under the Law on Public Investment

- Investment and development expenditures on programs and projects

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+ Implementation of investment and development expenditure estimates for programs and projects financed by the state budget in 2024 (including the amounts carried forward from the previous years to 2024 according to regulations; assessment, analysis and clarification of causes of late disbursement – if any) with specific categorization, to be specific:

Regarding public investment projects and programs (each project of national importance, key project, highway project, and project connecting regions and/or affecting multiple regions, and promoting rapid and sustainable socio-economic development), progress and capital disbursement by end of June 2024, feasibility report by the end of January 31, 2025; specific sources of funding (specific groups of project of each industry and sector for investment and development expenditures of local government budgets; foreign-funded central government budget funding, domestic capital); appendices containing specific data about each project, including: total investment approved, accrued capital disbursement at the end of 2023, capital plan of the previous years carried forward to 2024, capital plan of 2024 (including additional capital), adjustments and estimates of 2024 (including descriptions and explanations).Regarding investment and development expenditures covered by revenues from sale of land-attached property, transfer of land use rights and land repurposing, review of collection and transfer of revenues to the budget and implementation of estimates of investment and development expenditures covered by such revenues in 2024.

Review of performance of the 2024 assigned tasks of investment expenditures covered by increased revenues and decreased expenditures during the 2021-2023 period and budget reserves at all levels in 2024 (if any).

Review of all projects already completed and transferred for use and yet to obtain the adequate amount of allocated capital according to regulations, especially projects having their final statements approved and projects whose final statement documents have been submitted. Review of advanced capital recovery (advanced capital to be recovered in 2024; the remaining advanced capital to be recovered in the medium-term public investment plan for 2021-2025).

Review of investment and development expenditure in the public-private partnership form, including advantages, difficulties and problems and recommendations.

- Impacts of conversion of investment projects from the public-private partnership form into the public investment form on the state budget and other impacts on the state budget (if any), additional estimates of investment and development expenditures covered by the state budget in 2024 (if any).

- Finalization of public investments in completed projects (specifying the number of projects whose finalization of public investments in completed projects has been approved and the amount of capital not allocated in comparison to finalization value of completed projects approved by competent authorities; public investment capital paid and exceeding finalization value approved by a competent authority but not recovered and transferred to the state budget; the number of projects which use public investment capital, and have already completed without completion of full finalization according to regulations by the end of June 2014 and projects expected to be executed by end of 2024; causes.

b) Review of development and implementation of each investment and development expenditure estimate under the Resolution No. 43/2022/QH15 and the Resolution No. 11/NQ-CP (excluding credit tasks) according to each program/project/sector.

Allocation, assignment and addition of estimates (if any), progress and disbursement of capital provided for socio-economic development and recovery programs (including sources of payment for tasks and projects included in socio-economic development and recovery programs from projects under the medium-term public investment plan for the 2021-2025 period according to Resolution No. 93/2023/QH15 dated June 22, 2023 of the National Assembly).

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Implementation of preferential investment credit plans prepared by the State and credit policies in the first 6 months and the implementation projection for the entire year 2024 (capital raise, issuance of government-guaranteed bonds; credit growth, disbursement, collection of principal debts, loan outstanding balance; state budget allocations for subsidies for offsetting costs incurred from the application of interest rates and management fees, etc.); administrative reform of loan approval procedures.

3. Allocation, assignment and implementation of estimates in the first 6 months and expected performance of tasks of investment and development expenditures covered by the state budget in 2024 for the entire year 2024 not regulated by the Law on Public Investment (investment expenditures under the Law on management and utilization of state capital invested in production and business at enterprises, and tasks according to decisions made by competent authorities); existing problems, difficulties, causes and proposals (if any).

4. Review of implementation of policies in the first 6 months of 2024 and projection in 2024 regarding total resource mobilized and structure of private sector resources for investment by sectors and domains; number of establishments developed by using private sector resources; results achieved; existing problems, causes and solutions (if any)

Article 7. Review of performance of investment and development expenditure tasks during the 2021-2024 period

On the basis of the review of implementation of expenditure tasks during the whole year 2024, the review of accumulation of the results of the implementation of tasks in 3 years from 2021 to 2024 compared with the objectives and the five-year plan for the 2021 - 2025 period shall be made; to be specific:

1. With regard to annual investment and development expenditure tasks under the Law on Public Investment (excluding tasks according to the Resolution No. 43/2022/QH15 and the Resolution No. 11/NQ-CP):

a) Cumulative allocation of public investment estimates and allocation, implementation and disbursement for the 2021-2024 period (including the amounts for which disbursement deadline is extended to the next year) in comparison with the medium-term public investment plan assigned by the competent authority for the 2021-2025 period, details of foreign capital (including loans and aids); details of expenditures from the local government budgets, foreign-funded central government budget funding of each industry and sector (including loans and grant aids), domestic capital(if any); capital provided for projects of national importance, key projects, highway projects, and projects connecting regions and/or affecting multiple regions, and promoting rapid and sustainable socio-economic development; capital raised by increased revenues and decreased expenditures and budget reserves at all levels for the 2021-2024 period (if any). Clarification of public investment capital covered by local government budgets for the 2021-2024 period in comparison with the 20212-2025 plan assigned by the competent authority, proposed additions to mid-term plans (if any)Investment capital allocated and disbursed, capital whose allocation and disbursement periods may be extended, and capital to be allocated for completion of the mid-term public investment capital plan.

b) The number of debt-incurring capital construction projects which has been consolidated and given budget allocations in the medium-term public investment plan for the 2021 – 2025 period, budget allocations for the years from 2021 to 2024 for settlement of capital construction debts, the proposed number of budget allocations in 2025.

c) The accumulated amount of advances to be recovered in the medium-term public investment plan for the 2021 – 2025 period, budget allocations for the 2021 – 2024 period for recovery of advanced capital, the estimation of the remaining amount of budget allocations expected to be recovered in 2025; the amount of advances arising till now which have not been recovered in the medium-term public investment plan for the 2021-2025 period (central government budget, local government budgets).

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2. With regard to investment expenditures on programs and projects under socio-economic development and recovery programs

Report on cumulative budget estimates assigned and allocation, implementation and disbursement until the end of 2024 for programs and projects under socio-economic development and recovery programs (including amounts reimbursed from programs and projects under the mid-term public investment plan for the 2021-2025 period) in comparison with objectives of the plans according to the Resolution No. 43/2022/QH15 and the Resolution No. 11/NQ-CP; achieved results during socio-economic development and recovery.

Assessment of adjustments to capital sources provided for tasks and projects using capital from the mid-term public investment plan and tasks and projects using capital from the socio-economic development and recovery program during development of the state budget investment plan for the 2022-2024 period.

3. With regard to annual credit tasks (excluding tasks according to the Resolution No. 43/2022/QH15 and the Resolution No. 11/NQ-CP)

Implementation of preferential investment credit plans prepared by the State and credit policies for the 2021-2024 period (capital raise, issuance of government-guaranteed bonds; credit growth, disbursement, collection of principal debts, loan outstanding balance; state budget allocations for subsidies for offsetting costs incurred from the application of interest rates and management fees. 

4. Performance of tasks in investment and development expenditures covered by the state budget, not regulated by the Law on Public Investment (investment expenditures under the Law on management and utilization of state capital invested in production and business at enterprises, and tasks according to decisions made by competent authorities):

Review of performance of tasks during the 2021-2024 period, including clarification of funding approved by competent authorities; granted funding; used funding; and funding to be granted in 2025.

5. Implementation of mechanisms and policies for calling for private sector involvements for the 2021-2024 period compared to the assigned mid-term plan for the 2021-2025 period (total resource and structure of private sector resources by sectors and domains; number of establishments developed by using private sector resources by sectors and domains).

6. Specific reports on achieved results, problems, causes and recommendations (if any) for each clause 1, 2, 3, 4, 5 of this Article. Inadequacies in institutions and organization of public investment shall be specified:

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- Assessment and clarification of difficulties, problems, shortcomings and limitations affecting the allocation and disbursement with a focus on major groups of issues, including policies and mechanisms, implementation organization and specific problems (if any).

- Recommendations for laws and performance of investment and development expenditure tasks.

Article 8. Review of performance of recurrent expenditure tasks in 2024 and during the 2021-2024 period

1. Ministries, central and local authorities shall focus on review of performance of recurrent expenditure tasks in 2024, including the following contents:

a) Allocation, assignment and implementation of recurrent expenditure estimates in the first 6 months and for the whole year 2024, corresponding to specific assigned sectors. Regarding mandatory investment-like expenditures (procurement, renovation, upgradation and modernization), recurrent expenditures shall be used according to regulations in the Decree No. 165/2016/ND-CP and the Decree No. 01/2021/ND-CP, assessment of expenditure, report on characteristics of these expenditures, total funding approved, expenditures planned until the end of 2024, expenditures to be planned, advantages, difficulties and recommendations (if any).

5% reduction of recurrent expenditure according to point 2.b of the Directive No. 01/CT-TTg dated January 04 of the Prime Minister (regarding the Ministry of Public Security and the Ministry of National Defense, reduction shall be approved by competent authorities); reduction in estimated expenditures not allocated after June 30, 2024 according to the Government's Resolution No. 82/NQ-CP dated June 05, 2024. Difficulties that arise during the reduction and proposals (if any).

b) Written assessments of progress and capacity for fulfillment of conditions, completion of procedures and implementation in 2024 made by agencies and units and submitted to the Ministry of Finance (in case of additional estimates) with regard to tasks expected to be assigned in 2024 (including proposed additional estimates for outsourcing for information technology services according to the Government's Resolution No. 82/2024/ND-CP dated July 10, 2024) but not allocated estimates according to clause 10 Article 3 of the Resolution No. 105/2023/QH15 dated November 10, 2023 of the National Assembly.

c) Results of fulfillment of objectives and tasks and implementation of major programs, schemes and projects using recurrent expenditures covered by the state budget in the first 6 months, and for the whole year 2024; difficulties, problems and proposed solutions to mechanisms and policies on fulfillment and implementation, to be specific:

- Review and identification of tasks and policies that are complete or expired; proposed amendments, annulment or replacement of regimes and policies that are inconsistent with regulations of law and reality.

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- Innovation in public service providers: results of development and innovation in systems, management, improvement of quality and efficiency in operations of public service providers in the first 6 months, and for the whole year 2024 according to the objectives and tasks in Resolution No. 19-NQ/TW dated October 25, 2017 of the 6^th Central Conference of the Central Committee of the XII^th National Assembly (Resolution No. 19-NQ/TW), Decree No. 60/2021/ND-CP dated June 21, 2021 of the Government (Decree No. 60/2021/ND-CP) and Circular No. 56/2022/TT -BTC dated September 16, 2022 of the Minister of Finance (Circular No. 56/2022/TT-BTC).

2. Ministries, central and local authorities shall review performance of recurrent expenditure tasks during the 2021-2024 period as follows:

a) On basis of the financial statement in 2021, the financial statement in 2022, task performance results in 2023 and the projection for the entire year 2024, cumulative review of performance of tasks in recurrent expenditures covered by the state budget for the 2021-2024 period compared to five-year plans and objectives for the 2021-2025 period according to Resolutions of the National Assembly and People's Councils (if any); focus on specific objectives and tasks approved for fulfillment in the 2021 - 2025 period or for many years - if any; main tasks of industries, sectors and local authorities; results achieved; existing problems, causes and recommendations, remedial measures (if any).

b) Cumulative review of downsizing, improvement and restructuring of apparatus organization; results of development and innovation in systems, management, improvement of quality and efficiency in operations of public service providers for the 2021 - 2024 period compared to the objectives set out in the Resolution and Conclusion of the Central Committee and relevant legal documents; difficulties, problems, causes and recommendations.

c) Review of fulfillment of objectives of autonomy and reduction in expenditures covered by the state budget after delegation of autonomy to public services providers from the time of implementation of the Government's Decree No. 60/2021/ND-CP dated June 21, 2021 until now; difficulties, problems, causes and recommendations.

d) Review of establishment of economic and technical norms that serve as a basis for ordering and tendering related to public services provided by ministries, central and local authorities and difficulties, problems, causes and recommendations.

Article 9. Central state administrative authorities and units to which special financial and income mechanisms are applied according to Resolution No. 104/2023/QH15 and Resolution No. 142/2024/QH15

1. Pursuant to Resolution No. 104/2023/QH15, Resolution No. 142/2024/QH15, and Decisions on allocation of financial estimates in 2024 of the Prime Minister, authorities and units shall prepare reports on progress in review of their special financial and income mechanisms and submit such reports to competent authorities.

2. Authorities and units shall make detailed reports on collection, management and use of their lawful revenues in 2024; management and use of their funds and balance of funds until December 31, 2023, June 30, 2024 and December 31, 2024.

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3. Regarding payroll expenditures, authorities and units shall report payroll under their regimes according to general salary regulations applicable to officials and public employees (expenditures on payment of salaries and salary equivalents, salary-based contributions) and personal income-based expenditures according to special mechanisms from June 30, 2024 and earlier and those applied from July 01, 2024 and approved by competent authorities.

4. Regarding expenditures other than salaries and income:

a) Recurrent expenditures:

- Review expenditures in the first 6 months according to special financial and income mechanisms from June 30, 2024 and earlier.

- Estimate expenditures in the last 6 months of 2024 according to mechanisms specified by regulatory bodies in the Resolution No. 01/2021/UBTVQH15, the Decision No. 30/2021/QD-TTg, state management expenditures within set limits and general expenditures and sector-specific expenditures, to be specific:

(i) Regarding expenditures within set limits, review and estimate expenditures in the last 6 months (compared to those in the first 6 months of 2024)

(ii) Regarding special expenditures other than those within set limits, review and classify such expenditures into 02 groups: (i) general expenditures and (ii) sector-specific expenditures according to expenditures specified in the Resolution No. 01/2021/UBTVQH15, the Decision No. 30/2021/QD-TTg, specify each expenditure, approval decision, total expenditure approved, period of expenditure, and report expenditures in the first 6 months, estimated expenditures in the last 6 months and expenditures to be allocated according to total expenditure approved.

(iii) Regarding special expenditures not regulated by the Resolution No. 01/2021/UBTVQH15, the Decision No. 30/2021/QD-TTg, each authority/unit shall make a detailed report on each expenditure, specifying necessity, approval procedures and decision, total expenditure approved, period of expenditure, expenditures allocated in the first 6 months of 2024 and cumulative expenditures allocated until the end of June 30, 2024; send a plan and schedule of such expenditures to a competent authority according to clause 1a Article 4 of the Resolution No. 01/2021/UBTVQH15 if any (special non-recurrent expenditures arising and decided by the competent authority) and estimate expenditures in the last 6 months; indicate difficulties, problems and proposals (if any).

b) Regarding investment expenditures:

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Estimate expenditures in the last 6 months of 2024 according to mechanisms specified by regulatory bodies (cooperate with the Ministry of Planning and Investment in review), and make a detailed report each expenditure, specifying expenditure procedures, approval decision, total expenditure, and expenditure sources approved, period of expenditure, expenditures allocated in the first 6 months of 2024 and cumulative expenditures allocated until the end of June 30, 2024, expenditures to be allocated; indicate proposals and solutions for such expenditures.

5. If competent authorities approve guidelines and mechanisms for application from July 01, 2024 and/or transition periods, authorities and units shall fully report adjustments to mechanisms and policies and/or transition periods; impacts on funds; expected implementation in the last 6 months.

Article 10. Review of implementation of national reserve plans and national reserve expenditure estimates in 2024 and during the 2021-2024 period

Ministries and sectoral administrations in charge of national reserve commodities shall review implementation of national reserve plans and national reserve expenditure estimates approved by competent authorities in the first 06 months and for the whole year 2024; advantages, difficulties and issues arising during implementation of plans in 2024. On the basis of the projection of implementation for the whole year of 2024, they shall review implementation of national reserve plans for the 2021-2024 period compared to objectives of the five-year plan for the 2021-2025 period.

Article 11. Review of implementation of 03 national target programs, and other programs, projects and schemes in 2024 and during the 2021-2024 period

1. Regarding 03 national target programs

According to the Law on State Budget, the Law on Public Investment, the Resolution of the National Assembly, the Resolution No. 111/2024/QH15 dated January 18, 2024 of the National Assembly, the Decree No. 27/2022/ND-CP dated April 19, 2022 of the Government, the Decree No. 38/2023/ND-CP dated June 24 2023 of the Government; the Prime Minister’s Decisions on approval for national target programs; guiding documents issued authorities, ministries, central authorities, People's Committees of provinces and central-affiliated cities and state budget-estimating agencies and units, state budget-using units shall review allocation and use of state budget estimates in 2024 (specifying estimates transferred from the previous years to 2024 according to regulations for implementation and estimates assigned in 2024 - if any), capacity for using and disbursing estimates that have not yet been assigned in 2024 of national target programs according to Resolution No. 105/2023/QH15 of the National Assembly; indicate advantages, disadvantages and recommendations (if any).To be specific:

a) Host authorities of programs shall preside over and cooperate the Ministry of Planning and Investment, the Ministry of Finance, host authorities of projects, sub-projects and component contents shall report promulgation/submission of amendments to relevant mechanisms and policies (if any) for promulgation; review allocation and use of the state budget in a detailed manner for projects, subprojects, component contents, investment and expenditures, recurrent expenditures, domestic capital, foreign capital (if any) and compliance with regulations on balance and allocation of local counterpart funds.

b) Host authorities (ministries, central authorities, People's Committees of provinces and central-affiliated cities) shall review amendments to relevant mechanisms and policies and submit them according to within their jurisdiction (if any); allocation and use of the state budget (to be specific, local authorities shall report central government budget-funded funding estimates, local counterpart funds according to regulations), for projects, subprojects, component contents, investment and development expenditures, recurrent expenditures, domestic capital, foreign capital (if any).

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2. Regarding programs, projects and tasks approved by competent authorities for the 2021-2025 period or by 2030, authorities and units shall review completion of and amendments to institutions (if any), allocation and implementation in 2024. In case of programs, projects and tasks using foreign capital, they shall make reports on allocation and disbursement of capital for each specific objective and task and recommendations (if any). On the basis of the projection of implementation of 2024, authorities and units shall review cumulative budget estimates assigned, allocation and use of the state budget until the end of 2024 in comparison to total budget approved for the 2021-2025 period or by 2030; results achieved; existing problems, causes, proposals and solutions (if any).

Article 12. Foreign-funded objectives

1. Ministries, central and local authorities shall review allocation and assignment of estimates of 2024, amendments to such estimates (if any) in terms of projects, sponsors and capital sources, including loans (ODA loans and foreign concessional loans), aids (ODA grants and grant aids not in the form of official development assistance); financial mechanism; difficulties, problems and proposals (if any). Regarding grant aids, they shall assess receipt of new aids not mentioned in estimates, progress in procedures for supplementing estimates; review difficulties and problems upon assignment of annual and midterm public investment capital estimates if loans and aids are not separately recorded and propose solutions.

2. Reviewing disbursement and results of disbursement of foreign capital in comparison with estimates assigned; problems about procedures for disbursing ODA capital (if any); clarifying causes of late disbursement, responsibilities of ministries, central and local authorities that act as supervisory authorities in charge of investment, project management boards, and relevant agencies and units; and proposing solutions to remove difficulties during implementation of programs and projects.

3. According to the projection for provision of expenditures for 2024, it shall be necessary to make an assessment of provision of expenditures for the 2021 – 2024 period compared with the assigned midterm objectives and plan for the 2021 – 2025 period/the plan for provision for the 2021 - 2025 period in accordance with signed agreements or arrangements (if any), difficulties, unresolved issues and recommendations.

Article 13. Review of creation of budget for pay reform in 2024

Ministries, central and local authorities shall review implementation of mechanisms for creating budget for pay reform in 2024 in association with reorganization of operational apparatus, downsizing and increase in financial autonomy of public service providers according to regulations.

Article 14. Review of performance of state budget tasks of provinces and central-affiliated cities in 2024 and for the 2021 – 2024 period

In addition to requirements specified in Articles 4 thru 13 of this Circular, local governments over provinces and central-affiliated cities shall focus on:

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2. Review of implementation of policies on exemption and reduction of contribution. In case of budget deficit, local governments shall comply with regulations in point b clause 9 Article 3 of the Decision No. 1600/QD-TTg dated December 10, 2023 of the Prime Minister, the Decision No. 1602/QD-TTg dated December 10, 2023 of the Prime Minister and clause 6 Article 9 of the Circular No. 76/2023/TT-BTC of the Minister of Finance.

3. Capacity for implementing of investment and development expenditure estimates of 2024 by each sector (including amendments to such estimates in 2024 according to regulations), to be specific: local government budgets (fundamental construction investment expenditures, investment expenditures covered by revenues from land use levies and lottery sales, investment expenditures covered by local government budget deficit); targeted additional funding from central government budget to local government budget from domestic and foreign sources (including loans and grant aids); to be specific:

a) With regard to annual investment and development expenditure tasks under the Law on Public Investment (excluding socio-economic development and recovery programs according to the Resolution No. 43/2022/QH15):

- Allocation, assignment of and addition to estimates (if any); settlement of outstanding capital construction debts and recovery of advanced capital in 2024; remaining amounts estimated by the end of 2024 (if any); and proposals.

- Performance of expenditure tasks and disbursement of public investment capital covered by local government budgets in the first 6 months and review thereof for the whole year 2024.

- Allocation, organization and disbursement of investment and development capital covered by targeted additional funding from central government budget to local government budget in the first 6 months and review thereof for the whole year 2024.

- Local government budget deficit in 2024 and investment from local government budget deficit (if any).

- Increased revenues and reduced expenditures covered by local government budgets (if any).

- Approval and allocation of funding, organization and disbursement of investment capital raised by retained revenues according to regimes, including revenues from collection of fees, revenues from provision of public services and other lawful revenues with detailed categorization.

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- Collection, expenditure, management and use of revenues from lottery sales for investment and development in provinces and cities in 2024.

b) With regard to performance of investment and development expenditure tasks according to the Resolution No. 43/2022/QH15 dated January 11, 2022 of the National Assembly

Performance of expenditure tasks allocated additional estimates, distribution, organization, assessment of capacity for disbursement by January 31, 2025 with regard to programs, projects and tasks under the socio-economic development and recovery program and supplementation of estimates, disbursement regarding programs, projects and tasks that are not included in the socio-economic development and recovery program and have to be sped up; advantages, difficulties, unsolved issues and recommendations (if any).

c) Allocation and assignment of estimates, disbursement of estimates for investment and development expenditures in 2024 not regulated by the Law on Public Investment (if any).

d) Compliance with regulations on public investment, Directives and Official Telegrams of the Prime Ministers on investment and development expenditures;

dd) Results expected to be achieved, unresolved problems, causes and recommendations (if any).

4. Report on implementation of social welfare policies issued by central authorities in provinces and cities in 2024. Local authorities shall fully report beneficiaries of policies (review and determine estimated number of beneficiaries for the whole year 2024 on the basis of the report on beneficiaries in the first 6 months), subsidies, period of each benefit, social welfare expenditure policies according to regulations in order to clearly identify the demand for the state budget expenditures on implementation of social welfare policies issued by central authorities.

According to the Decision No. 127/QD-TTg dated January 24, 2022 of the Prime Minister and funding allocated and included in the local government budget expenditure estimate of 2024, determination of additional funding granted by the central government budget to local government budgets.

(The detailed report shall be made according to Form No. 01 enclosed with this Circular).

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a) Payroll, allowances and benefits estimated in 2024.

b) Increased budget demand for pay reform.

c) Use of local resources for implementation of the pay reform, including10% of the saving on recurrent expenditure (excluding salaries, allowances, salary-based contributions, salary equivalents and other human-related costs) according to the 2024 estimate assigned by the competent authority; 70% of the increase in local government budget revenues in 2023 compared with the 2023 estimate assigned by the Prime Minister and 50% of the increase in local government budget revenues of the 2024 estimate in comparison with the 2023 estimate assigned by the Prime Minister (excluding revenues from land use levies, lottery sales, equitization and divestment from state-own enterprises managed by local authorities and excluded amounts according to clause 2 Article 3 of the Resolution No. 34/2021/QH15 dated November 13, 2021 of the National Assembly; the amount of revenues retained according to regulatory regimes in 2024; a surplus amount of funding for the pay reform transferred from 2023 (if any), and a surplus amount of funding estimated for the pay reform until the end of 2024.

(The detailed report shall be made according to Form No. 02a enclosed with this Circular).

6. Report on use of local government budget provisions according to clause 2 Article 10 of the Law on State Budget, including the budget estimate allocated in the beginning of the year, used budget covered by local government budget provisions, financial reserves (if any) until June 30, 2024, and budget expected to be used in the last 6 months of 2024.

7. Borrowing and loan repayment of the local government budget, to be specific:

a) Debt balance in the beginning of the year, debt balance until June 30, 2024, debt balance estimated until the end of December 31, 2024, classified by each debt balance source (issuance of local government bonds, the Government’s on-lending of foreign borrowed funds classified by specific sponsors, programs and projects; borrowing of state-owned capital credit funds; and borrowing of other funds).

b) Raised capital until June 30, 2024 and estimate capital for the whole year 2024, classified by objectives (loans used for repaying principal and compensating for deficit spending) and specific capital sources (ODA loans taken for on-lending, issuance of local government bonds, other lawful financial sources).

c) repayment of debts (including interest and fees) until June 30, 2024 and the projection of repayment for the whole year 2024, specific repayment of interest and fees with regard to domestic loans, the Government’s on-lending of foreign borrowed funds according to each program and project.

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(The detailed report shall be made according to Form No. 03 enclosed with this Circular).

8. Regarding provinces and central-affiliated cities to which specific budget – financial mechanisms and policies are issued by competent authorities, review of implementation of such mechanisms and policies within such provinces and cities (including mechanisms and policies issued by local authorities); assessment of impacts of mechanisms and policies on state budget revenues and expenditures in these provinces and cities.

9. Implementation of conclusions and recommendations made by the State Audit Office and the Inspectorate.

Article 15. Review of implementation of financial plans of state off-budget financial funds in 2024 and during the 2021 – 2024 period

Ministries, central and local authorities and units assigned to manage state off-budget financial funds shall review efficiency in operations; report review, restructuring, merger, termination of operations of or dissolution of funds that operate ineffectively, for improper purposes, with overlapped objectives, tasks or regulated entities, or are incapable of financial independence, and have revenues and expenditures which overlap with those of the state budget; finally review and assess the implementation of revenue - expenditure plans and tasks assigned for 6 months and expected for the whole year 2024 associated with efficiency in operations; assess accumulation of implementation until the end of 2024 compared to objectives set for the 2021 - 2025 period (if any); indicate difficulties and unsolved problems arising and propose solutions.

Article 16. Lawful revenues retained and not included in state budget balance of regulatory bodies and public service providers (regarding expenditures according to specific mechanisms, Article 9 of this Circular shall be applied)

1. Authorities and units shall report revenues earned by public service providers (not included in the state budget), and on this basis, determine the autonomy level of each provider; and assess retained revenues in 2024 and during the 2021-2024 period according to regulations of law applicable to regulatory bodies and public service providers.

2. Reporting results of allocation of lawful revenues earned by regulatory bodies and public service providers, retained and not included in the state budget balance in 2024, specifying investment and development expenditure tasks according to regulations (fees and public service revenues retained, fund for development of provision of public services, loans and other legal sources), recurrent expenditures with detailed categorization and accrued amount of 2021 – 2024.

3. Estimating the remaining lawful revenues in the end of 2024; and the remaining expenditures (from 2025) on investment and recurrent tasks approved until now – if any.

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FORMULATION OF STATE BUDGET ESTIMATE FOR THE YEAR 2025

Article 17. Requirements

1. A state budget estimate for the year 2025 shall be formulated according to the Law on State Budget, its guiding documents and other relevant legal documents in conformity with the 10-year socio-economic development strategy for the 2021 - 2030 period, 5-year plans for the 2021 - 2025 period, objectives under Resolutions issued by the Central Committee; specific mechanisms and policies on the development of some provinces and cities according to regulations and Directive No. 17/CT-TTg dated May 22, 2024 of the Prime Minister, legal documents and directions of relevant competent authorities. The state budget estimate shall have full legal bases and grounds for calculation; conform to implementation reviews of2024 and the 2021 – 2024 period, be appropriate to capacity for implementation in 2025 and fulfill objectives of the 5-year plans for the 2021 – 2025 period to the maximum.

2. When formulating estimates, Ministries and central authorities in charge of sectors and industries shall consider reviewing mechanisms and policies (especially social welfare policies) that overlap each other, repeat, or are ineffective for integration and annulment; only propose new policies, projects and tasks for promulgation if implementation resources are balanced; estimate and provide the adequate state budget within their jurisdiction for implementation of new policies, projects and tasks decided by competent authorities. They shall allocate estimates in order to recover state budget advances to be recovered in the year according to regulations in Article 50 of the Law on State Budget and the Law on Public Investment and not allocate estimates for expenditures on mechanisms and policies that have not yet been promulgated.

3. Focus on direction of prompt resolution of existing problems and handling of violations against regulations on management of finances and budget detected and recommended by the State Audit Office and the Inspectorate according to regulations of laws from the process of formulation of state budget estimates.

Article 18. Formulation of state budget revenue estimate for the year 2025

1. General principles of formulation of a state budget revenue estimate

a) Complying with regulations of the Law on State Budget, the Law on Tax Administration, Laws on Taxes, Fees and Charges and other relevant legal documents and the Directive No. 17/CT-TTg dated May 22, 2024 of the Prime Minister, collecting state budget revenues in full and accurate manner, being appropriate for previous years' implementation and fulfilling objectives of state budget revenues for the 2021-2025 period to the maximum.

b) Closely following socio-economic and financial situations in Vietnam and foreign countries, and measuring specific factors causing any increase or decrease in and changes in sources of state budget revenues due to possible changes in policies and laws on collection of revenues, management of collection, especially policies on exemption and reduction of taxes, fees and charges and extension of payment deadline of taxes and land rents that have expired and implementation of roadmaps for reduction in taxes and tax incentives for implementation of the Government’s commitments during international economic integration with foreign investors and compliance with global anti-base erosion rules.

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d) It shall be projected that the national average domestic revenue (excluding revenues from land use levies, lottery sales, sale of state capital invested in enterprises, dividends, after-tax profits and difference between revenues and expenditures of the State Bank) in 2025 will rise by the minimum rate of 5-7% compared to that estimated in 2024 (exclusive of factors causing any increase or decrease in revenues due to possible changes in policies); the rate of growth in state budget revenues at each province/city shall be appropriate to the economic growth and revenues rising in such province/city on the basis of consideration of factors of management of revenues, prevention of revenue loss and collection of tax debts. It shall be projected that the average revenue from import and export in 2025 will rise by the rate of 4 - 6% compared to that estimated in 2024.

2. Formulation of domestic revenue estimates:

a) In addition to fulfillment of objectives and requirements specified in clause 1 of this Article, local authorities formulating their domestic revenue estimates in 2025 shall adequately estimate state budget revenues rising in their provinces/cities and exclude revenues not included in the state budget balance from the state budget balance according to prescribed regimes on the basis of practical review of previous years' implementation and the number of revenues determined after the audit of the state budget revenue estimate in 2025 and informed by competent authorities.

b) The state budget revenue estimate for 20125 shall be formulated on the basis of the national land and taxpayer data system; ensure accurate and sufficient determination of specific revenues, taxes and collection sectors for each province/city, specify revenues from projects newly put into operation that generate a large number of revenues in accordance with applicable regulations on taxes, fees, charges and other state budget revenues; clearly indicate revenues from fees and charges according to regulations; and comply with regulations on policy adjustments according to the specified schedule that may continue to affect state budget revenues in 2024, and regulations expected to be amended, supplemented or applied in 2025.

Estimates for land and housing revenues shall be formulated in a manner that conforms to laws on housing and land and strictly follow plannings and plans for transfer of use land rights, auction of land use rights, rights to lease land at provinces and cities, plans for reorganization and disposal of real property approved by competent authorities; People's Committees of provinces and cities shall direct local authorities to closely cooperate with tax authorities to formulate estimates for revenues from land use levies within the capacity of local sources of revenue, and avoid making impractical estimates for land-related revenues rising in recent years in accordance with the direction in Resolution No. 91/2023/QH15 dated June 19, 2023.

c) Revenues from reorganization and disposal of real property and public assets specified in the Decree No. 167/2017/ND-CP and the Decree No. 67/2021/ND-CP; revenues from lease of rights to utilize or transfer of rights to utilize infrastructure assets for specific terms, state budget revenues from assignment of management and use of infrastructure assets invested and managed by the State and not recorded as state capital in enterprises, and operation of land and water surface resources (after related costs are taken away) shall be adequately estimated and transferred to the state budget according to regulations of law. Estimates for revenues from transfer of ownership of enterprises and public service providers, transfer of state capital and equity amount that exceeds charter capital of enterprises shall be formulated according to regulations of the Government's Decree No. 148/2021/ND-CP dated December 31, 2021;

With regard to revenues from national defense and security land use levies for production and economic development purposes, the Ministry of National Defense and the Ministry of Public Security shall formulate estimates for such revenues according to the land law and Article 201 and Article 260 of the 2024 Law on Land.

d) Estimates for revenues from fees and charges (included in the list specified in the Law on Fees and Charges), total revenue, revenues transferred to the budget, retained and deducted revenues according to regulations of law, each type of fees/charges and estimates made by agencies and units for retained budget expenditures by sectors shall comply with regulations in clause 4 Article 11 of the Circular No. 342/2016/TT-BTC of the Minister of Finance and Form No. 07 enclosed with this Circular.

Estimates for expenditures covered by retained revenues from fees appropriate to expenditures serving collection shall be formulated according to regulations of the Government's Decree No. 120/2016/ND-CP dated August 23, 2016 amended by the Government's Decree No. 82/2023/ND-CP dated November 28, 2023. Do not exceed the rate of revenues retained according to regulations in Circulars of the Minister of Finance.

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dd) Estimates for revenues from administrative fines, monetary penalties and other confiscations, license plate auction price and other amounts remitted into the state budget in 2025 shall be formulated according to regulations. 

e) With regard to revenues not included in the state budget balance according to regulations (revenues from fee collection, provision of public services, tuition fees, medical service costs and other lawful revenues retained for use by authorities and units according to regulations), authorities and units shall formulate specific estimates for such revenues, explain calculation bases, make use plans to be submitted to superior authorities, and send reports to financial authorities of the same level according to regulations of law.

3. Formulation of estimate for state budget revenues from export and import:

a) The estimate for state budget revenues from export and import shall be formulated on the basis of the forecast about the growth in dutiable commodity and service export and import turnovers in the context of economic integration, enhancement of trade promotion, and the shift in the commodity structure, especially traditional commodities from which a large part of state budget revenues is obtained and other ones from which state budget revenues have been obtained recently.

b) The estimate shall be formulated by taking into consideration influencing factors, including the forecast about any fluctuation in domestic and international market prices of commodities generating a large amount of state budget revenues; fluctuation in crude oil price in the world; the exchange rate between Vietnamese dong and currencies of strategic trade partners; the reduction in revenues caused by implementation of the roadmap for tariff cuts under free trade agreements which have already been concluded and commitments entered into in 2025; the degree of trade facilitation and effects of technical barriers to trade; the scale and progress of implementation of key investment projects in which input materials and equipment, etc. are imported; production plans prepared by domestic oil refineries.

4. Formulation of estimate for the amount of VAT refunds arising under regulations of the VAT Law:

The estimate shall be formulated on the basis of socio-economic situation and objectives for socio-economic development in each province/city; production and business plans prepared by exporters, total quantity of projects and investment capital newly licensed, investment progress in investment projects that are being implemented and new investment projects, investment projects that have been fully invested in and put into operation in the province/city in order to ensure accurate, full and timely determination of VAT refunds to be generated in 2025 according to applicable policies and regulations, and those coming into effect recently. The estimate for VAT refunds shall stick to requirements concerning strengthening of management of tax refunds, supervision and inspection after payment of VAT refunds so as to ensure accurate refunds practically rising and conform to policies and regimes.

5. State budget revenue estimates (including domestic revenues and revenues from import and export) shall include refunded amounts of tax, late payment interests, and overpaid fines that cause reduction in state budget revenues according to regulation of law.

6. Formulation of estimate of state budget revenues from grant aids:

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Regarding aids received from 2024 and earlier and not included in the assigned estimates, ministries, central and local authorities shall make and include such aids into their estimates in 2025 to submit them to competent authorities for consideration and decision, serving as a basis for accounting and finalization according to regulations.

Article 19. Formulation of state budget expenditure estimate for the year 2025

1. Principles

a) Comply with regulations of the Law on State Budget, the Law on Public Investment and other relevant laws; follow the Resolution of the National Assembly Standing Committee and the Decision of the Prime Minister on principles, standards and norms of allocation of the investment and development capital and the state budget’s recurrent expenditures; meet requirements for budget restructuring, adhere to guidelines for reorganization of operational apparatus and downsizing in the political system, and conform to regulations on improvement of quality and efficiency in operations of public services providers under Resolutions of the Central Committee and the Politburo. Maintain resources for pay reform and implementation of social insurance policies in association with promotion of organization of operational apparatus and roadmap for downsizing according to regulations.

b) Thoroughly follow principles of openness and transparency and requirements for thorough thrift and wastefulness prevention according to the Resolution No. 74/2022/QH15 dated November 15, 2022 of the National Assembly right from the stage of identification of tasks, thereby making sure that tasks are uniformly performed from the stage of formulation of estimates to stages of allocation, management, use and finalization of the state budget.

c) Maintain capacity for implementation and resources and cancellation of estimates or transfer of funding sources to the following year. On the basis of the implementation assessment in 2024, ministries, central and local authorities shall review tasks that overlap and are completely performed in 2024; tasks that continue to be performed in 2025; arrange the order of priority given to new tasks approved by competent authorities according to urgency and importance and immediately perform these tasks when assigned funding and state budget estimates within capacity for mobilizing and balancing resources (including other lawful sources according to regulations).

2. Formulation of investment and development expenditure estimates:

a) Estimates for investment and development expenditures covered by the state budget, including loans (ODA loans and foreign concessional loans), aids (ODA grants and grant aids not in the form of official development assistance), lottery income, revenues obtained from sale of state capital invested in certain enterprises and land use levies shall be formulated according to regulations of law and within the capacity for balancing the state budget in the year; in a manner that is conformable with the five-year public investment plan for the 2021-2025 period, the National Assembly’s Resolutions on adjustments, investment and development expenditure tasks according to regulations of the Law on State Budget, and other relevant legal documents not regulated by the Law on Public Investment.

The public investment estimate for the year 2025 shall be formulated in a manner that conforms to Article 51 of the Law on Public Investment and follows principles, standards and norms of allocation of the capital and the order of priority specified in the Law on Public Investment, the Resolution No. 29/2021/QH15 dated July 28, 2021 of the National Assembly, the Resolution No. 973/2020/UBTVQH14 dated July 08, 2020 of the National Assembly Standing Committee and the Decision No. 26/2020/QD-TTg dated September 14, 2020 of the Prime Minister. Funds shall be provided for each task/project according to the mid-term public investment plan for the 2021-2025 period and within capacity for implementation and disbursement of each project until the end of January 31, 2026. The period of implementation and disbursement shall not be extended to the following stage according to regulations in Article 68 of the Law on Public Investment. The funds shall be allocated and assigned in a detailed manner to each project before December 31, 2024 according to regulations in clause 5 Article 61 of the Law on Public Investment and Article 44 of the Law on State Budget. Reimbursement funds shall be provided for tasks and projects under the socio-economic development and recovery program from projects included in the mid-term public investment plan funded by the socio-economic development and recovery program according to Resolution No. 93/2023/QH15 dated June 22, 2023 of the National Assembly; projects allocated funds covered by annually increased revenues shall continue to be allocated funds; all advanced funds to be recovered in the mid-term public investment plan for the 2021-2025 period shall be recovered; it is required to prioritize allocation of funds for projects of national importance, programs and projects connecting regions and/or affecting multiple regions and projects using ODA and concessional loans granted by foreign donors (including counterpart funds); state capital invested in projects in the PPP form; funds for PPP projects, investment preparation tasks and provision of subsidies for offsetting costs incurred from the application of interest rates and management fees according to the Resolution No. 43/2022/QH15 and regulations of law, charter capital for policy banks and state off-budget financial funds. The funds shall not be allocated in a separate, fragmentary and ineffective manner.

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Complying with regulations of the Law on State Budget in order to ensure that total amount of the central budget’s annual subsidies granted as investment and develop expenditures to the local government budget for implementation of certain major and extremely important programs and projects that may have great effects on socio-economic development of a local area will not exceed 30% of total amount of the central budget’s basic construction investment expenditures according to regulations.

b) The allocation of foreign capital to each project shall be separately recorded by type (loans and grants) and by sector; and consistent with the mid-term public investment plan funded by the central government budget for the 2021-2025 period, contents of the Agreement and commitment with the sponsor, financial mechanism of the project and implementation progress of the program/project. Giving priority to allocation of adequate funds to projects upon termination of agreements, arrangements for loans, foreign aids in 2025 if such agreements and arrangements are ineligible for extension.

The capital provided for new agreements, arrangements and commitments (if any) shall not exceed 300 thousand billion VND of foreign capital for investment and development according to the approved plan for 2021 – 2025.

c) According to investment and development expenditures and revenues from management, use and reorganization and disposal of state-owned real property that have not been finalized; unused amounts transferred to the state budget in previous years and estimates for state budget revenues from management, use and reorganization and disposal of state-owned real property in 2025, ministries, central and local authorities shall formulate estimates for investment and development expenditures covered by these revenues according to regulations, specifying completed projects for which payments have not been settled due to unavailability of budget allocations; approved projects using revenues gained by sale of land-attached property and transfer of land use rights that have been transferred to the budget but have not been yet used and revenues rising in 2025; include them into their investment and development expenditure estimates and send such estimates to planning and investment, and finance agencies of the same level that will consolidate state budget estimates and submit them to competent authorities for decision.

(Detailed reports shall be made according to Form No. 04 and Form No. 05 enclosed with this Circular).

In addition, ministries and central authorities shall prepare reports to fully explain implementation of plans for management, use and reorganization and disposal of real property, collection and transfer of revenues to the budget and expenditures covered by these revenues by 2024; set up projects on implementation of plans for management, use and reorganization and disposal of real property in 2025, and estimate revenues collected and transferred to the budget in 2025 and expenditures covered by these revenues according to the above-mentioned contents.

The Ministry of Public Security and the Ministry of National Defense shall make detailed reports on revenues and expenditures according to regulations in clause 4 Article 260 of the 2024 Law on Land, including revenues transferred to the budget until the end of 2024 without allocation of estimates for such revenues; revenues expected to be generated during the 2025-2027 period from plans and schemes eligible for transition and estimated expenditures, enclosed with written explanation according to the Resolution No. 132/2020/QH14, guiding documents and laws on state budget and public investment, and submit them to the Ministry of Finance, the Ministry of Planning and Investment for consolidation and report to competent authorities according to regulations.

d) Regarding estimates for expenditures on provision of subsidies for offsetting costs incurred from the application of preferential lending interest rates and management fees

Pursuant to regulations of law on provision of offsetting costs incurred from the application of interest rates and management fees and implementation of state credit policies in 2024 and the prediction about changes in spending subjects, policies and tasks, credit growth, outstanding loans, raised capital, deposit interest rates and lending rates, etc. the state budget expenditure estimate shall be formulated for the year 2025 according to regulations of the Law on State Budget, the Law on Public Investment and guiding documents.

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e) Investment and development expenditure estimates not regulated by the Law on Public Investment (enclosed with specific explanations) that serve implementation of contents and tasks shall be conformable with regulations in the Law on management and utilization of state capital invested in the enterprise’s manufacturing and business activities and the Government's Decree No. 148/2021/ND-CP. State budget expenditure estimates shall be consistent with commitments between the Government and foreign investors that have been approved by competent authorities.

g) Estimates for expenditures covered by lawful revenues earned by regulatory bodies and public service providers for non-state-budget investment (except for tasks performed under specific mechanisms annulled by the Resolution No. 104/2023/QH15 and the Resolution No. 142/2024/QH15) shall be conformable to applicable regulations (specifying revenues from fee collection, provision of public services, fund for development of provision of public services, loans and other legal sources); and submitted to superior authorities that will consolidate and report such estimates to investment and finance agencies of the same level.

3. Formulation of national reserve plans and estimates for expenditures on national reserve goods for the year 2025:

Pursuant to regulations of the Law on National Defense, the Law on State Budget and guiding documents, ministries and central authorities assigned to manage national reserve goods shall set up plans and estimates for expenditures on national reserve goods for the year 2025 in conformity with objectives of developing national reserves and plannings for national reserve warehouses and within capacity for balancing the state budget. Clearly explain and analyze causes by each item and its corresponding value; and prepare reports according to regulations in Article 4 of the Circular No. 145/2013/TT-BTC dated October 21, 2013 of the Minister of Finance and Article 30 of this Circular.

4. Formulation of recurrent expenditure estimates

a) On the basis of the Law on State Budget, the Law on Management and Use of Public Property and relevant guiding and legal documents; Resolutions of the Central Committee, the Politburo and the National Assembly; principles, criteria and norms of allocation of estimates for recurrent expenditures covered by the state budget according to Resolution No. 01/2021/UBTVQH15 of the National Assembly Standing Committee and the Decision No. 30/2021/QD-TTg of the Prime Minister and policies, regimes, and norms of state budget expenditures; projects and tasks approved by competent authorities; the Directive No. 17/CT-TTg dated May 22, 2024 of the Prime Minister; Check number of budget revenue and expenditure estimates for 2025 and inspection of estimated budget revenues and expenditures in 2025, ministries, central and local authorities shall formulate recurrent expenditure estimates by each expenditure sector, fulfilling important political tasks and strictly complying with policies and regulations issued by the State, especially policies on human-related costs and social welfare expenditures.

Estimates for funding for provision of benefits for revolutionary contributors shall be formulated according to regulations in the Government’s Decree No. 77/2024/ND-CP dated July 1, 2024, the Government's Decree No. 75/2021/ND-CP dated July 24, 2021, the Government’s Decree No. 55/2023/ND-CP dated July 21, 2023, and the Government's Decree No. 131/2021/ND-CP dated December 31, 2021 of the Government and documents on adjustments in 2024 (if any).

Estimates for funding granted to pensioners and covered by the state budget shall be formulated according to the Decree No. 75/2024/ND-CP dated June 30, 2024 (detailed expenditures on social guarantees and healthcare

Estimates for funding for regular repair, improvement and maintenance of facilities shall be formulated according to the Circular No. 65/2021/TT-BTC dated July 29, 2021 of the Minister of Finance; estimates for funding for lease of information technology services shall be consistent with the Government’s Decree No. 82/2024/ND-CP dated July 10, 2024.

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c) Estimates for state budget expenditures on activities of public service providers shall be formulated on the basis of objectives of improving public service providers according to the Conclusion No. 62-KL/TW of the Politburo, the Resolution No. 01/2021/UBTVQH15, the Decree No. 60/2021/ND-CP, the Decision No. 30/2021/QD-TTg and the Circular No. 56/2022/TT-BTC. To be specific:

- Do not formulate estimates for state budget recurrent expenditures on support for public services for which the pricing roadmap has been completed or is expected to be completed in 2025.

- Public service providers self-covering a part of recurrent expenditures of ministers and central authorities shall formulate state budget expenditure estimates in 2025 in order to reduce at least 3% of direct state budget subsidies in comparison with estimates in 2024 (excluding payroll and 5% cost reduction according to the Directive No. 01/CT-TTg dated January 04, 2024 of the Prime Minister), and dismiss employees earned from the state budget according to the Resolution No. 19-NQ/TW;

- Public service providers whose recurrent expenditures covered by the state budget affiliated to ministers and central authorities shall continue to reduce at least 2% of direct state budget subsidies in comparison with estimates in 2024 (excluding payroll and 5% cost reduction according to the Directive No. 01/CT-TTg dated January 04, 2024 of the Prime Minister), except for basic and essential public services covered by the state budget.

- State budget subsidies on recurrent expenditures with regard to group-3 and group-4 public service providers in 2025 include state budget subsidies provided for implementation of policies and regimes on salaries and social insurance and social welfare policies approved by competent authorities from July 01, 2024 after funding for pay reform has been used according to regulations.

d) Regarding estimates for recurrent expenditures covered by funding which the autonomy to use is not delegated and other special non-recurrent expenditures arising in state budget expenditure sectors, Ministries, central and local authorities shall instruct their affiliates to formulate and consolidate such estimates according to regulations of the law on state budget and other relevant laws.

dd) Regarding expenditures on purchase of assets and equipment, repair, upgradation, expansion and construction of work items under investment projects, and application of information technology, estimates for such expenditures shall be formulated according to the Decree No. 82/2024/ND-CP dated July 10, 2024, Decrees on guidance on use of recurrent expenditures covered by the state budget for purchases of assets and equipment, repair, upgradation, expansion and construction of work items under investment projects (if promulgated) and other relevant laws and enclosed with dossiers on detailed explanation about legal bases and expenditure tasks assigned that have been approved by competent authorities, regimes, policies and norms regulated by competent authorities and other dossiers and procedures according to regulations. They shall be submitted to finance agencies of the same level for consolidation and report to competent authorities.

Regarding expenditures on national defense and security, ministries, central and local authorities shall formulate estimates for recurrent expenditures on purchase of assets and equipment, repair, upgradation, expansion and construction of work items, and application of information technology covered by the state budget according to the Decree No. 165/2016/ND-CP and the Decree No. 01/2021/ND-CP, enclosed with detailed explanations as prescribed (specifying specific nature; legal and practical bases; total funding required and approved; approved sources of funding; period; funding provided by 2024; funding proposed in 2025).

e) Expenditures on economic affairs

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g) Expenditures on operations of regulatory bodies, the Communist Party and mass organizations:

- Clarifying the number of staff members in 2025 according to a Decision on allocation of payrolls issued by a competent authority, the actual number of staff members available until July 01, 2024 and the number of employees which have yet to be recruited in comparison with the approved recruitment target set out in 2025. If the 2025’s recruitment target is not available, the 2025's estimate shall be developed according to the 2026's recruitment target assigned by the Politburo in the Decision No. 71-QD/TW dated July 18, 2022, the Decision No. 72-QD/TW dated July 18, 2022, the Decision No. 73-QD/TW dated July 18, 2022, the Decision No. 75-QD/TW dated July 18, 2022 of the Politburo, the Decision No. 76-QD/TW dated July 18, 2022 and a Decision of a relevant competent authority.

- Determining salary budget, salary-based allowances and contributions according to enforceable regulations on the basis of the 2025’s recruitment target assigned and statutory pay rate according to the Government’s Decree No. 73/2024/ND-CP dated June 30, 2024 (calculated for all 12 months), which shall be covered by the State budget, including the amount of salaries paid to the actual number of staff members on the payroll until July 01, 2024, which are calculated at the rate of pay specific to ranks, grades and positions; salary-based allowances and contributions according to enforceable regulations and the amount of salaries paid to staff members on the payroll that have not yet been recruited (within total payroll assigned), which are calculated according to the 2024’s statutory pay rate and level- 1 salary coefficient of officials of type A1, salary-based allowances and contributions according to regulations. In case authorities and units have recruitment plans according to the Government’s Decree No. 140/2017/ND-CP dated December 05, 2017 or recruit qualified officials, public employees and experts according to schemes or plans approved, they shall show increase in the salary budget for these people according to regulations.

- Explaining bases for formulation of estimates for specific expenditures in 2025 (legal bases, assigned tasks, tasks approved by competent authorities, expenditures, policies, regimes and norms according to regulations) under the Resolution No. 01/2021/UBTVQH15 and other relevant regulations in a spirit of thrift and effectiveness.

- Ministries, central and local authorities shall direct authorities and units under their management to estimate funding for development and completion of laws, organization of enforcement of laws and supervision of such enforcement according to regulations (specifying that such funding is basic investment funding for legal infrastructure according to the Decision No. 04/QD-TTg dated January 07, 2021 of the Prime Minister) and prioritize allocation of funding within the scope of the assigned estimate for the above-mentioned tasks.

- Ministries, central and local authorities, within their functions and tasks, shall propose estimates of funding for organization of Communist Party Congresses at all levels, enclosed with detailed explanations.

h) Authorities and units shall formulate state budget estimates (enclosed with detailed explanations) and include recurrent expenditures on settlement of public assets, reorganization and disposal of real property, transfer of ownership of enterprises and public service providers into such estimates according to regulations (if any). Funding for recurrent expenditures on performance of tasks specified in the Decree No.  148/2021/ND-CP and the Circular No. 57/2022/ TT-BTC dated September 16, 2022 of the Minister of Finance shall be included into the estimate for expenditures on economic affairs covered by the state budget.

i) Regarding recurrent expenditures on programs and projects using loans (ODA loans and foreign concessional loans), aids (ODA grants and grant aids not in the form of official development assistance): 

Pursuant to Agreements and arrangements concluded and to be concluded with sponsors (in case of Agreements to be concluded, only aids), progress in fulfillment of commitments to projects or aids, financial mechanisms (if any) approved by competent authorities, each ministry, central/local authority shall formulate an estimate for every program/project/Agreement/counterpart funds (if any), specifying each source of loan/foreign aid with specific categorization and disbursement mechanisms (recording revenues and expenditures or implementing disbursement according to domestic financial mechanisms); with regard to each province/city, specially allocate funding covered by local government budget and targeted additional funding from central government budget to local government budget.

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Regarding programs and projects in which several ministries, central and local authorities participate together, ministries, central and local authorities shall formulate estimates of expenditures financed by foreign funding sources enclosed with explanatory notes on bases for state budget allocations and submit them to the Ministry of Finance, and the Ministry of Planning and Investment that will consolidate such estimates and explanatory notes and send them to competent authorities for decision, and at the same time these estimates and explanatory notes shall be also submitted to host authorities of programs and projects for consolidation and monitoring.

5. Formulation of estimates of expenditures on aids provided for foreign countries

Pursuant to aid commitments between the Government of Vietnam and Governments of foreign countries during the 2021-2025 period (if any), annual aid commitments signed with countries receiving aids, commitments to projects approved by competent authorities, implementation of estimates and capacity for disbursing aids granted to programs and projects in 2024, authorities assigned by the Government to preside over making plans for aids shall formulate estimates for expenditures on aids granted to separate programs and projects using aids, investment and recurrent expenditures; and specify total estimated aid for each partner receiving aids.

6. Regarding socio-political-professional organizations, social organizations and socio-professional organizations:

The provision of funding for organizations shall comply with regulations in the Government’s Decree No. 45/2010/ND-CP and the Government’s Decree No. 33/2012/ND-CP and Documents amending/replacing the Decree.

7. Ministries in charge of sectors and industries shall, in addition to formulation of the state budget estimate for the year 2025 (directly carried out by ministries), proactively request ministries, central and local authorities to report implementation and demands for implementation of mechanisms and policies promulgated by competent authorities and effective in 2025, on this basis, make review, determine total funding required and provide detailed explanations about bases for calculation.

Regarding expenditures on science and technology and environmental protection, the Ministry of Science and Technology and the Ministry of Natural Resources and Environment shall, pursuant to legal documents, preside over and cooperate with ministries and central authorities in reviewing and proposing plans for allocation of estimates for recurrent expenditures under their management in order to ensure that tasks, projects and schemes have adequate legal bases and documents, and follow procedures, regimes, standards and norms of expenditures decided by regulatory bodies and used for intended purposes of capital for investment/recurrent expenditures according to regulations of law, not exceeding the total inspected expenditure on science and technology and environmental protection covered by central government budget announced (if any); pursuant to Article 42 of the Law on State Budget, not proposing objectives without completion of all procedures and funding for such objectives; taking full responsibilities for proposed plans; and sending them to the Ministry of Finance for inclusion in the plan to allocate central government budget and submission of reports to competent authorities according to regulations.

8. Formulation of estimates for expenditures on implementation of national target programs in 2024 and other programs, projects and schemes:

a) Pursuant to the Law on State Budget, the Law on Public Investment, Resolutions of the National Assembly, and on the basis of the Prime Minister’s Decisions approved, guiding documents issued by functional agencies, implementation of programs in the 2021-2024 period, mid-term public investment plans, the amount inspected and announced, ministries and central authorities that are host authorities of programs shall preside over and cooperate with authorities and units managing programs, host authorities of projects, sub-projects and component contents in formulating state budget expenditure estimates for the year 2025 relevant to ministries, central and local authorities, specifying objectives, expenditures and tasks approved by competent authorities, each project/sub-project/component content, investment and development, and recurrent expenditure structure with detailed categorization, central government budget, local government budgets, funds included in other programs and projects and other lawful funds raised (if any), make sure that there are adequate legal bases, documents, procedures and decisions approved, regimes, standards and norms of expenditures regulated by regulatory bodies, and send them enclosed with reports on state budget estimates for the year 2025 to the Ministry of Finance and the Ministry of Planning and Investment.

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On the basis of the funds announced by the Ministry of Finance, ministries and central authorities (host authorities of programs) shall propose pimples, standards, norms and plans for allocation of funds relevant to ministries, central and local authorities in 2025, specific to expenditure objective, task and sector according to regulations on management of state budget, and enclosed with detailed explanations, ensure that there are adequate legal bases, documents and procedures on the basis of tasks assigned and approved by competent authorities, regimes, standards and norms regulated by regulatory bodies, and send them to the Ministry of Finance according to the official dispatch on funds issued by the Ministry of Finance.

c) Ministries and central authorities that are host authorities of national target programs, projects and schemes shall be entirely responsible for legal and practical bases, proposed principles, standards, norms and plans for allocation relevant to ministries, central and local authorities according to regulations and ensure that there are adequate documents and procedures, approved decisions, regimes, standards and norms regulated by regulatory bodies and funds for such target programs, projects and schemes are used for intended purposes of funds for recurrent expenditures.

9. Estimates of funding required for covering costs of pay reform, adjustment to retirement pensions, social insurance allowances and monthly benefits (covered by the state budget), and provision of benefits for revolutionary contributors in 2025in which funding sources for covering these demands must be also indicated:

a) With regard to funding provided for pay reform

Ministries, central and local authorities shall formulate estimates of expenditures on funding for pay reform according to regulations in the Resolution No. 27-NQ/TW, Resolutions of the National Assembly, the Resolution No. 01/2021/UBTVQH15, the Resolution No. 60/2021/ND-CP, the Circular No. 56/2022/TT-BTC and relevant legal documents.

b) With regard to funding required

Estimates of funding required in 2025 shall be formulated on the basis of policies and regulations on salaries and funding for adjustment to retirement pensions, social insurance allowances and monthly benefits (covered by the state budget), and provision of benefits for revolutionary contributors and social support according to the Government’s Decree No. 73/2024/ND-CP, the Government’s Decree No. 75/2024/ND-CP, the Government’s Decree No. 76/2024/ND-CP, the Government’s Decree No. 77/2024/ND-CP in 2024 after the use of funding provided by authorities and units according to regulations.

10. Formulation of estimates for funding for implementation of downsizing policies:

Estimates for funding for implementation of downsizing policies in 2025 shall be formulated according to regulations in the Conclusion No. 28-KL/TW, the Conclusion No. 40-KL/TW of the Politburo, regulations issued by the Government and guiding documents.

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12. Based on the audited amount of state budget revenues and expenditures, ministries, central and local authorities shall formulate coherent and detailed estimates of expenditures according to regulations in the Law on State Budget, its guiding documents and other relevant legal documents; after working with the Ministry of Finance, the Ministry of Planning and Investment, ministries, central authorities, and authorities in provinces and central-affiliated cities shall promptly establish plans for allocation of the estimated budget in 2025 of their own for implementation after obtaining the decision from the National Assembly and receiving the estimate assigned by the Prime Minister, and request competent authorities to make their decisions on budget allocations relevant to specific sectors, and assign the estimated budget to budgetary units ahead of December 31, 2018 in accordance with the Law on State Budget.

Article 20. Regarding authorities and units which have annulled or are proposing annulment of special financial and income mechanisms according to the Resolution No. 104/2023/QH15 and the Resolution No. 142/2024/QH15

1. Reporting the number of staff members approved in 2024 and the actual number of staff members available on July 01, 2024; the number of employees working under labor contracts (if any); the number of staff members approved or under the Project in 2025.

2. Estimating payroll according the Government’s Decree No. 73/2024/ND-CP in 2024 (specifying salary budget, allowances, other incomes and contributions based on salaries)

3. Proposing a recurrent expenditure estimate in 2025

Each authority/unit shall formulate a recurrent expenditure estimate for the year 2025 that is similar to the estimate made by a regulatory body. To be specific:

a) Calculate expenditures according to norms on the basis of the number of staff members of 2025 and expenditure norms in the Resolution No. 01/2021/UBTVQH15 and the Decision No. 30/2021/QD-TTg.

b) Measure the number of staff members according to the 2025’s administrative employment target approved by the competent authority. In case, the authority/unit has not yet been assigned the official employment target in 2025, this number shall be temporally measured according to the actual number of staff members available on July 01, 2024 and not exceed the number of staff members reported by the authority/unit to the Ministry of Home Affairs for submission to the competent authority.

c) Review specific expenditures on the basis of general expenditures and sector-specific expenditures specified in the Resolution No. 01/2021/UBTVQH15, the Decision No. 30/2021/QD-TTg and clearly explain the approval decision issued by the competent authority, total funding approved according to applicable policies, regimes and norms; funding allocated by 2024; unallocated funding and funding to be allocated in 2025.

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If specific expenditures are being proposed, the authority/unit shall fully report grounds for meeting such expenditures so far; urgency; procedures for approving and meeting each expenditure so far; demands in 2025 and the following years (if any); procedures for proposing expenditures to the competent authority at the time on which the estimate is sent to the Ministry of Finance (enclosed with the document).

4. Regarding investment and development expenditure estimate:

In case of new expenditures, it is required to formulate an estimate for such expenditures similar to the estimate made by the regulatory body.

With regard to projects requiring more state budget funding for implementation and completion, Ministries, central and local authorities are required to cooperate with the Ministry of Planning and Investment to provide guidance on procedures for allocating public investment capital according to regulations of law on public investment.

5. Fully reporting advantages, difficulties and existing problems during implementation and proposal (if any).

Article 21. Development of financial plans of state off-budget financial funds

On the basis of results of review and assessment of state off-budget financial funds, ministries, central and local authorities and units assigned to manage state off-budget financial funds shall restructure, merge, terminate operations of or dissolve funds that operate in a manner that is ineffective and contrary to regulations of law in 2025; develop financial plans for revenues and expenditures in 2025 regarding funds that still operate under their management according to regulations of the Law on State Budget and regulations of relevant laws, and send such plans enclosed with reports on their state budget estimates in 2025 to finance agencies of the same level (including detailed explanations about opening balance; revenues derived from the state budget; revenues raised, revenues from sponsors, etc. in the year; expenditures; fluctuations in charter capital and sources of funding for operations of such funds).

Article 22. Formulation of local government budget estimate

In addition to regulations on general guidelines for formulation of the state budget estimate according to legislative documents applicable and this Circular, the formulation of the local government budget estimate shall take into consideration the followings:

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Each local authority shall formulate an estimate on the basis of aggregation of all revenues from taxes, charges, fees and other revenues within the province/city according to regulations in Article 7 of the Law on State Budget and relevant laws.

The provincial People’s Committee shall direct its subsidiary finance, taxation and customs agencies to cooperate with relevant local agencies in strictly complying with regulatory requirements concerning formulation of the state budget revenue estimate and shall be held accountable to the Government and the Prime Minister for such formulation.

The state budget revenue estimate shall be active and practical and include all new revenues arising in order to accurately and exactly calculate budget revenues and not to expect local government budget to make up for shortages in revenues; clearly analyze and assess impacts on the 2025’s state budget revenue estimate by each province/city/sector, specific revenues and taxes with a focus on assessment of impacts of epidemics and natural disasters on revenue sources, and effects on the budget due to implementation of policies on extension, exemption and reduction in taxes.

2. Regarding formulation of an expenditure estimate for balance of local government budget, the People’s Committee at each level shall proactively:

In 2025, continue to maintain a stable ratio of revenues, expenditures and additional funding from central government budget to local government budget. Formulate a local government budget expenditure estimate on the basis of the local government budget revenue estimate that it is granted within its jurisdiction, additional funding from central government budget to local government budget determined by the allocated funding in 2024, and additional funding from central government budget to local government budget for pay reform in 2025 (if any). Based on objectives defined in the socio-economic development plan for the period of 2021-2025 with a focus on objectives and tasks of local socio-economic development in 2025, estimate revenues and expenditures covered by local government budget in 2024 so as to formulate the local government budget expenditure estimate with detailed categorization according to regulations of the Law on State Budget and prioritize allocation of adequate funding estimated for implementation of projects and tasks as committed and under policies that have been issued.

And at the same time:

a) Allocate an estimate for expenditures on pay reform according to the Resolution No. 27-NQ/TW and its guiding documents according to regulations (if any).

b) Formulate an estimate for investment and development expenditures covered by funding sources allocated from the local government budget

- Pursuant to regulations of the Law on State Budget; the Resolution No. 973/2020/UBTVQH14 of the National Assembly Standing Committee, formulate the investment and development expenditure estimate, clearly specifying funding sources allocated from the local government budget (including expenditures on investment in concentrated domestic capital development, investment expenditures covered by revenues from land use levies, lottery sale and local government budget deficit (if any); and estimated expenditures on projects using foreign capital (loans/aids).

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- Provide funds from local government budget for Vietnam Bank for Social Policies under trust agreements to support some activities under national target programs according to clause 6 Article 4 of the Resolution No. 111/2024/QH15 dated January 18, 2024 of the National Assembly.

- Allocate an estimate for investment and development expenditures covered by land use levies, with priority given to investment in socio-economic infrastructure projects and national target programs for building new rural areas.

- Regarding expenditures covered by revenues from lottery sale: the local authority shall estimate these revenues (including revenues distributed from computer-generated lottery) and continue to use such revenues for investment and development, with priority given to investment in education-training, vocational education (including purchase of learning and teaching equipment serving the program for reforming general education textbooks) and healthcare; the remaining revenues shall be used for performance of important and urgent investment and development tasks funded by the local government budget and the national target program for building new rural areas.

- Regarding use of revenues from entrance tickets at casino, the local authority permitted by the competent authority to gamble at casino on a trial basis shall use revenues from entrance tickets at casino for investment and development expenditures for the purposes of social welfare, provision of services for the community and maintaince of social order and security, and allocate at least 60% of the revenues to education, training, vocational education and healthcare according to clause 3 Article 5 of the Circular No. 102/2017/TT-BTC dated October 05, 2017 of the Minister of Finance.

c) Formulate an estimate for expenditures on payment of outstanding interests, fees and other costs, arranging these expenditures as a separate portion of expenditures in the local government budget balance, thereby ensuring full and timely payment of outstanding debts due; and provide explanation about payment amounts corresponding to specific borrowed funds (if any), including foreign borrowed funds that the Government on-lends to local authorities, capital credit loans and local government bond issues.

d) Determine expenditures on additional contribution to the local financial reserve fund according to the allocated amount in the 2024’s estimate.

dd) Allocate an estimate for expenditures on local government budget provisions according to regulations of the Law on State Budget (2-4% of total expenditure on balancing local government budget - excluding local government budget deficit).

e) Formulate an estimate for recurrent expenditures covered by local government budget

After allocation of estimates for expenditures on pay reform (if any); investment and development expenditures covered by funding sources allocated from the local government budget; expenditures on payment of outstanding interests, fees and other costs; expenditures on additional contribution to the local financial reserve fund; and expenditures on local government budget provisions, the remainder of local government budget balance shall be used to cover recurrent expenditures. The local authority shall the expenditure budget for each regulatory body/public service provider on the basis of the tasks of downsizing, apparatus reorganization and reform of public service providers in 2025 which are determined based on implementation results accumulated by 2024, the objectives of the Resolution No. 18-NQ/TW, the Resolution No. 19-NQ/TW and the Decree No. 60/2021/ND-CP. Particularly, the rate of public staff members subject to downsizing is determined under the Decision on allocation of payrolls issued by the competent authority (if any).

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Each local authority shall formulate an estimate for targeted additional funding from central government budget to local government budget for implementation of social welfare policies issued by central authorities for the year 2025 as instructed in clause 4 Article 14 of this Circular. Regarding each policy, it is required to provide detailed explanations about grounds for determining beneficiaries and funding required (budget users in 2025 shall be identified on the basis of the number of beneficiaries estimated in 2024).

4. Regarding formulation of an estimate for budget for pay reform

In 2025, the mechanism for creating funds shall continue to be implemented in order to carry out pay reform in accordance with regulations. To be specific: Each local authority shall continue to implement the mechanism for cutting 10% of the amount of recurrent expenditures (excluding salaries, allowances, salary equivalents and other human-related costs); the increased amount of local government budget revenues (except revenues from land use levies, lottery sales, equitization and divestment from state-owned enterprises under its management; excluded amounts according to clause 2 Article 3 of the Resolution No. 34/2021/QH15 dated November 13, 2021 of the National Assembly, including 70% of the increase in local government budget revenues in 2024 compared with the 2024 estimate and 50% of the increase in local government budget revenues of the 2025 estimate in comparison with the 2023 estimate assigned by the Prime Minister; 50% of funds remained from reduction of expenditures on supporting recurrent operations in administrative sector and operations of public service providers according the local plan proposed in the Directive No. 17/CT-TTg dated May 22, 2024 of the Prime Minister; unused funds for pay reform in 2024; revenues retained according to regulations in 2025.

(The detailed report shall be made according to Form No. 02b enclosed with this Circular).

5. Estimates for local government budget deficit/budget surplus, and plans for borrowing and repayment of principal, interests and fees of the local government budget shall be formulated according to regulations of the Law on State Budget and its guiding documents.

Chapter IV

FORMULATION OF THREE-YEAR STATE BUDGET - FINANCIAL PLAN FOR THE 2025 - 2027 PERIOD

Article 23. Bases and requirements for formulation of three-year state budget - financial plan for the 2025 - 2027 period

Pursuant to regulations in the Law on State Budget, the Government’s Decree No. 45/2017/ND-CP, the Circular No. 69/2017/TT-BTC dated July 07, 2017 of the Minister of Finance, Laws on tax and tax administration, the Law on Fees and Charges, the Law on Public Investment, the Law on Public Debt Management, The Law on Management of Public Property, and relevant legal documents; the 10-year socio-economic development strategy for the 2021-2030 period, 5-year plans during the 2021-2025 period; Resolutions of the Central Committee of the XII^th National Assembly on apparatus simplification, downsizing and reform of public service providers; the Government’s Resolutions and Decrees No. 73/2024/ND-CP, No. 75/2024/ND-CP, No. 75/2024/ND-CP, No. 76/2024/ND-CP and No. 77/2024/ND-CP; principles, standards and norms of investment and development expenditures for the 2021-2025 period and principles, standards and norms of recurrent expenditures for the year 2022; the three-year state budget - financial plan for the 2024 - 2026 period reviewed and updated on March 31, 2024; agreements and arrangements for loans and foreign aids concluded and to be concluded and implemented during the 2025-2027 period; regulations on budgetary stabilization period; spending caps for the period of 2025 - 2027 which are updated and informed by regulatory financial, planning and investment bodies and the budget estimate in 2025 formulated according to Chapter III of this Circular, policies, regimes, programs, projects and tasks under the management for the 2021-2025 period that will be completed from 2026, ministries, central and provincial authorities shall formulate three-year state budget - financial plans for the 2025 - 2027 period according to regulations. To be specific:

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2. If there is a big increase or decrease in expenditures of ministries, central and provincial authorities during the 2025-2027 period compared to the 2025's estimate and expenditures estimated in 2024 (including additional estimates in the year); ministries, central and provincial authorities shall explain such increase/decrease and take measures for mobilizing more off-budget financial resources in order to ensure spending demands have to be met by equivalent funding sources.

3. Expenditure estimates for the 2025-2027 period shall be formulated according to regulations on policies on salaries, social insurance and social welfare policies mentioned at the Government’s Decree No. 73/2024/ND-CP, the Government’s Decree No. 75/2024/ND-CP, the Government’s Decree No. 76/2024/ND-CP and the Government’s Decree No. 77/2024/ND-CP and the approved roadmap for the 2025-2027 period (if any).

Article 24. Formulation of three-year plan for collection of state budget revenues for the 2025 - 2027 period

1. A three-year plan for collection of state budget revenues for the 2025 - 2027 period shall be formulated according to regulations in Article 23 of this Circular, and on the basis of:

a) Capability of developing the country's economy, specific industries, economic sectors and local areas during the 2025-2027 period in conformity with the 10-year socio-economic development strategy for the 2021-2030 period, and 5-year plans for the 2021-2025 period; the 2025’s revenue estimate; factors causing changes in investment capability, labor productivity, competitiveness, improvement of business environment, support, development of production and business by enterprises and commercial, export and import activities in each year; influencing factors of the international integration and change in policies of countries in the world, including global minimum tax regulations .

b) Factors that may increase, decrease or change state budget revenues due to adjustments to policies on collection of state budget revenues, supplementation and expansion of taxation bases, strengthening of management of state budget revenues in accordance with the Resolution No. 07-NQ/TW and the Resolution No. 23/2021/QH15; compliance with guiding documents on enforcement of the Law on Tax Administration No. 38/2019/QH14; implementation of the roadmap for tariff cuts under integration commitments; global minimum tax regulations; some corporate income tax policies for support and development of enterprises;  encouragement from informal economic sectors.

c) Effects of collection of state budget revenues from adjustments to public service prices and fees made according to the plan for proportioning of a full amount of costs in public service prices and fees according to regulations of law.

During the 2026-2027 period, the growth rate of domestic revenues (excluding revenues from land use levies, lottery sales, sale of state capital invested in enterprises, dividends, after-tax profits and difference between revenues and expenditures of the State Bank) and revenues from export and import is not lower than the growth rate of such revenues in 2025 according to point d, clause 1 Article 18 of this Circular. Depending on conditions and characteristics, local jurisdictions may have different rates of growth in state budget revenues that are appropriate to the economic growth rate of each.

2. Estimates for revenues from fees and charges during the 2025-2027 period shall be active and detailed, and specify each revenue from fees/charges (fees/charges collected and transferred the state budget) and only fees/charges transferred the state budget shall be included into the state budget revenue estimate.

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Article 25. Formulation of three-year plans for state budget expenditures for the period of 2025 - 2027 by ministries, central and provincial authorities

1. Three-year plans for state budget expenditures for the period of 2025 - 2027 by ministries, central and provincial authorities shall be formulated according to Article 23 and the 2025’s estimate formulated under guidelines in Chapter III of this Circular; such plans shall provide detailed explanations about objectives, tasks, programs, projects, policies and regimes that have expired/are newly approved by competent authorities with particular attention paid to implementation of the Resolution No. 18-NQ/TW, the Conclusion No. 62-KL/TW of the Politburo dated October 02, 2023, the Resolution No. 19-NQ/TW, the Conclusion No. 28-KL/TW, and the Conclusion No. 4--KL/TW and creation of funds for pay reform according to the Resolution No. 27-NQ/TW, the Decree No. 60/2021/ND-CP and the Circular No. 56/2022/TT-BTC, policies on salaries, pensions and benefits for revolutionary contributors, and social warfare policies promulgated in 2024.

2. During the formulation of state budget expenditure estimates for the year 2025, ministries, central and provincial authorities shall concurrently detail grassroots-level and new expenditures of their own in the budgetary year of according to Article 5 and Article 6 of the Circular No. 69/2017/TT-BTC of the Minister of Finance to serve as a basis for determination of these expenditures, and integrate demands for expenditures on investment and development, maintenance and operation into the expenditure plan for the 2025-2027 period.

3. Ministries and central authorities in charge of sectors and industries shall, in addition to formulation of the plan for state budget revenues and expenditures in each year of the period of 2025 – 2027 (with respect to the assignment directly carried out by ministries and central authorities), accurately calculate and determine total budget required for implementation of mechanisms, policies, programs, projects and tasks that have been promulgated by competent authorities or have expired in each year of the period of 2025 – 2027 nationwide (completion of national target programs, programs, projects and tasks for the 2021-2025 period), and provide detailed explanations for calculation bases (the Ministry of Planning and Investment shall propose investment funds covered by the state budget for performance of tasks of the Fund for Investment Support).

Article 26. Formulation of three-year state budget - financial plans for the 2025 - 2027 period by local authorities in provinces and central-affiliated cities

In addition to compliance with requirements for formulation of state budget revenue and expenditure plans for the three-year period of 2025 – 2027 under regulations of Article 24 and Article 25 hereof, the formulation of three-year state budget - financial plans for the 2025 - 2027 period by local authorities in  provinces and central-affiliated cities shall take into consideration the followings:

1. Provincial People's Committees shall direct Departments of Planning and Investment to prepare forecasts about socio-economic development within their provinces and cities during the 2025-2027 period and submit these forecasts to Departments of Finance to serve as a basis for formulation of three-year state budget - financial plans for the 2025 - 2027 period.

2. Based on the required amount of revenues, scope of collection of state budget revenues under the Law on State Budget and guiding documents thereof, estimates for state budget revenues in these provinces and cities in 2025, provincial People's Committees shall direct Departments of Finance to preside over and cooperate with Taxation Departments and Customs Departments and other relevant local agencies in formulating plans for collection of state budget revenues for the 2025-2027 period. To be specific:

a) Make a detailed analysis and assessment of effects causing increases, decreases or changes in state budget revenues due to adjustments to policies on collection of state budget revenues in line with socio-economic development and recovery objectives; assess impacts of epidemics and natural disasters on revenues; implement 5-year plans for the 2021-2025 period, guiding documents on the Law on Tax Administration No. 38/2019/QH14; carry out the roadmap for tariff cuts under integration commitments; and propose implementation of new policies for collection of state budget revenues prescribed in the Resolution No. 07-NQ/TW; meet requirements for fight against losses, recovery of tax arrears, prevention of transfer pricing and tax fraud.

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3. On the basis of the projection for sources of revenues within each province/city and local government budget revenues which have been decentralized, estimated additional funds from the central budget to the local government budget which are informed by competent authorities during the period of 2025– 2027; provincial People's Committees shall direct Departments of Finance to preside over and cooperate with Departments of Planning and Investment, district-level People’s Committees and other relevant local agencies in formulating local budget expenditure plans for the period of 2025 – 2027, ensuring priority given to allocation of sufficient funding for implementation of regimes, policies and tasks which have already been issued and expenditure commitments (even including particular policies decided by provincial People’s Councils); determining the demands for targeted additional funding from the central budget for implementation of centrally-adopted regimes and policies for each year of the period of 2025 - 2027; with respect to new expenditures in each year of the period of 2025 – 2027, allocating expenditures in order of priority to perform key local socio-economic objectives and tasks within capacity for available resources of each year of the period from 2025 to 2027.

4. Each local authority shall budget for expenditures on pay reform according to clause 9 Article 19 of this Circular.

5. Plans for budget deficit/budget surplus, borrowing of funds and repayment of debts of the local government budget in the period of 2024 - 2026 shall be formulated according to the Law on State Budget, the Government's Decree No. 45/2017/ND-CP and the Circular No. 69/2017/TT-BTC of the Minister of Finance, shall ensure that total outstanding debt of each local jurisdiction at the end of each year does not exceed the prescribed limit (specifying ODA loans taken for on-lending, issuance of local government bonds, other lawful financial sources).

Chapter V

IMPLEMENTATION

Article 27. Responsibilities of relevant ministries, central and local authorities

Responsibilities of ministries, central authorities and People’s Committees of central-affiliated cities and provinces shall comply with regulations of the Law on State Budget and its guiding documents, the Government’s Decree No. 45/2017/ND-CP dated April 21, 2017 and the Directive No. 17/CT-TTg dated May 22, 2024.

Article 28. Forms used for formulation and report on the state budget estimate in 2025 and the three-year state budget - financial plan for the 2025 - 2027 period

1. With respect to the budget estimate in 2025, forms stipulated in the Circular No. 342/2016/TT-BTC dated December 30, 2016 of the Minister of Finance (forms from 12.1 to 12.5 applicable to public service sectors) and forms No. 01, 02a, 02b and 03 issued together with this Circular shall be applied.

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3. The three-year state budget - financial plan for the period of 2025 – 2027 shall be formulated by using the forms from 01 to 06 and forms from 13 to 19, issued together with the Circular No. 69/2017/TT-BTC of the Ministry of Finance.

Article 29. Implementation clauses

1. This Circular shall enter into force from August 30, 2024 and be applied to formulation of the state budget estimate for the year 2025 and the three-year state budget - financial plan for the period of 2025 – 2027. Contents, procedures and period of formulation of the state budget estimate in 2025 and the three-year state budget - financial plan for the period of 2025 – 2027 shall comply with regulations of the 2015 Law on State Budget and relevant guiding documents.

2. During formulation of the state budget estimate in 2025 and the three-year state budget - financial plan for the period of 2025 – 2027, if there is any difficulty that may arise upon implementation, ministries, central authorities, economic corporations and state general companies shall be advised to send their feedbacks to the Ministry of Finance to seek immediate actions./.

PP. MINISTER
DEPUTY MINISTER




Vo Thanh Hung

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Thông tư 49/2024/TT-BTC hướng dẫn xây dựng dự toán ngân sách nhà nước năm 2025 và kế hoạch tài chính - ngân sách nhà nước 03 năm 2025-2027 do Bộ trưởng Bộ Tài chính ban hành