RESOLUTION

ON THE 2011 STATE BUDGET ESTIMATE

THE NATIONAL ASSEMBLY OF THE SOCIALIST REPUBLIC OF VIETNAM

Pursuant to the 1992 Constitution of the Socialist Republic of Vietnam, which was amended and supplemented under Resolution No. 51/2001/QH10;
Pursuant to the State Budget Law;
After considering the Government's Report No. 16/BC-CP of October 15, 2010, on the 2011 slate budget estimate, submitted to the National Assembly; the Finance and Budget Committees Verification Report No. 1634/BC-UBTCNS12 of October 18, 2010; the National Assembly Standing Committee's Report No. 387/BC-UBTVQ1112 of November 9, 2010, on assimilation of opinions and explanations on the 2011 slate budget estimate, and opinions of National Assembly deputies,

RESOLVES:

Article 1. To pass the 2011 state budget estimate

The total state budget revenue will be VND 595,000 billion (five hundred ninety five thousand billion dong), equivalent to 26.2% of the gross domestic product; if including VND 10,000 billion transferred from 2010 to 2011, the total state budget revenue will be VND 605,000 billion (six hundred five thousand billion dong);

The total state budget expenditure will be VND 725,600 billion (seven hundred twenty five thousand six hundred billion dong);

...

...

...

(see attached appendices No. 1, 2, 3, 4 and 5)

Article 2. To agree with solutions for implementing the 2011 state budget estimate submitted by the Government and proposed by the Finance and Budget Committee in the verification report, while stressing the following central solutions:

1. To implement the fiscal policy prudently, and strictly control slate budget revenues and expenditures. In the course of administering the state budget, to adopt measures to reduce its deficit in 2011 to below VND 120,600 billion, equivalent to 5.3% of the gross domestic product, and to lower levels in subsequent years. To formulate a strategy on public debt management through 2020, with a vision towards 2030, aiming to assure national financial security. To closely and synchronously combine fiscal, monetary and other policies in order to contribute to effectively achieving the 2011 socio-economic objectives.

2. To drastically direct and enhance the management of state budget collection, ensuring correct and full collection under law; and reduce tax debts and frauds.

Should state budget revenues increase higher than estimated, at least 30% of the increased central budget revenue amount shall be used to reduce the 2011 state budget deficit. The Government shall report to the National Assembly Standing Committee for consideration and comment in accordance with law a plan on specific allocation of the increased central budget revenue amount.

3. To strictly manage state budget expenditures, practice thrift, and raise the effectiveness of the use of budget as well as other public financial sources; to end the transfer of large amounts from one source to another and making of expenditures outside or in excess of estimates ultra vires and in violation of the Law on the State Budget and the National Assembly's resolutions. To scrutinize and set an order of priority for investments; to make coordinated investment; to concentrate capital on key and urgent projects and programs to be completed in 2011-2012, especially in poor localities and ethnic minority areas still receiving large central budget grants; to incrementally reduce the ratio of development investment from the state budget in parallel with strongly socializing investment in sectors in which other economic sectors can participate, particularly in cities and towns, while increasing budget investment in agriculture, rural areas and other disadvantaged regions.

From May 1, 2011, to increase the monthly minimum wage from VND 730,000 to VND 830,000; and increase pensions and preferential treatment allowances for persons with meritorious services to the country in proportion to the minimum wage increase ;' and implement the regime of public-duty allowance of 10%; and seniority allowance in the education sector.

4. To further renew the financial mechanism applicable to the public non-business sector towards increasing autonomy and accountability of agencies and units, associated with the mechanism of placement of orders or assignment of specific tasks. To set service charges in the direction of incrementally offsetting costs, while the State shall introduce policies to support policy beneficiaries and the poor: to further improve mechanisms and policies to stimulate socialization of non-business activities; to increase state management of already socialized public services.

5. In 2011 to issue government bonds worth VND 45,000 billion for investment in projects and works on the list decided by the National Assembly Standing Committee. Localities shall actively make use of local budgets and capital of other sources under law for speeding up the implementation of projects and works funded with government bond capital. Not to allocate capital to ineligible projects and works and those which lack investment procedures or are not truly urgent and effective; to concentrate capital on projects likely to be completed in 2011 -2012. To transfer capital among projects and works in the same sector to suit their progress and completion capability; not to transfer unused government bond capital to subsequent years. To draw up detailed plans on raising and allocation of government bond capital in 2011 to each project or work, report them to the National Assembly Standing Committee for consideration and decisions before January 31, 2011, and report on the plan on issuance and use of government bond capital during 2011-2015 to the National Assembly at the coming session.

...

...

...

7. In 2011, to implement 15 national target programs proposed by the Government. The Government shall elaborate criteria, norms and plans for allocation of funds for these programs, report them to the National Assembly for con­sideration and comment before implementation; to assign and allocate them to ministries, branches and localities before January 31, 2011. In 2011, the Government shall conduct a comprehensive review of the national target programs", clearly identifying their objectives, scope and target groups in order to integrate their activities and reduce the number of managing and implementing agencies for the 2011-2015 period, and submit proposals to the National Assembly for consideration and decision.

8. To review and assess the Law on the State Budget and propose amendments to the National Assembly for consideration and decision in order to redress limitations and inadequacies and increase effectiveness of the use of state budget, capital and assets.

Article 3. Oversight of the implementation of the 2011 state budget estimate

The Standing Committee, the Finance and Budget Committee, the Ethnic Council and other Committees of the National Assembly, National Assembly deputies* delegations and National Assembly deputies shall oversee the implemen­tation of the 2011 state budget estimate practically and effectively in the sectors and geographical areas under their respective responsibilities prescribed by law.

This Resolution was adopted on November 10, 2010, by the XII^th National Assembly of the Socialist Republic of Vietnam at its eighth session.-

CHAIRMAN OF THE NATIONAL ASSEMBLY




Nguyen Phu Trong

...

...

...

2011 STATE BUDGET BALANCE

Unit: VND billion

No.

Content

2011 estimate

A. TOTAL STATE BUDGET REVENUE

595,000

1

...

...

...

382,000

2

Crude oil revenue

69,300

3

Import and export revenue

138,700

4

Non-refundable aid revenue

...

...

...

B. REVENUE TRANSFERRED TO 2011 FROM THE 2010 CENTRAL BUDGET

10,000

C. TOTAL STATE BUDGET EXPENDITURE

725,600

1

Development investment

152,000

...

...

...

Debt payment and aid

86,000

3

Regular expenditures

442,100

4

Wage reform expenditures

27,000

5

...

...

...

100

6

Contingencies

18,400

D. STATE BUDGET DEFICIT

120,600

Deficit-GDP ratio

...

...

...

APPENDIX NO. 2

REVENUE AND EXPENDITURE BALANCES OF 2011 CENTRAL BUDGET AND LOCAL BUDGET ESTIMATES

Unit: VND billion

No.

Content

2011 estimate

A

CENTRAL BUDGET

...

...

...

I

Central budget revenues

398.679

1

Central budget revenues as decentralized

388.679

- Taxes, fees and other revenues

383,679

...

...

...

- Non-refundable aid

5,000

2

Central budget revenues transferred from 2010 to 2011

10,000

II

Central budget expenditures

519,279

1

...

...

...

393,071

2

Additional allocations to local budgets

126,203

- Balancing additional allocations

93,779

- Targeted additional allocations

...

...

...

III

Borrowings to offset state budget deficit

120,600

B

LOCAL BUDGET

I

Local budget revenues

332,529

...

...

...

Local budget revenues as decentralized

206,321

2

Additional allocations from the central budget

126.208

- Balancing additional allocations

93,779

...

...

...

32,429

II

Local budget expenditures

332,529

1

Balancing local budget expenditures

300,100

2

Expenditures from targeted additional allocations

...

...

...

APPENDIX NO. 3

2011 STATE BUDGET REVENUE ESTIMATES BY SECTOR

Unit: VND billion

No.

Revenues

2011 estimate

Total state budget revenues

...

...

...

I

Domestic revenues

382.000

1

Revenues from state-run economy

129,560

2

Revenues from foreign-invested enterprises (excluding oil)

72,865

...

...

...

Taxes on non-stale industrial and trading businesses

80,380

4

Agricultural land use tax

32

5

Personal income tax

28,902

6

...

...

...

12,397

7

Petrol and oil charges

11,731

8

Charges and fees

8,012

9

Housing and land revenues

...

...

...

a

Housing lax

1,373

b

Land rents

2,744

c

Land use levy

30,000

...

...

...

Proceeds from sale of state-owned houses

598

10

Other budget revenues

2,670

11

Yields from public land funds and public assets in communes

736

n

...

...

...

69,300

in

Revenues from import and export activities

138.700

l

Total revenue from export and export activities

180,700

a

Import duty, export duty and excise tax on imports

...

...

...

b

Value-added tax on imports (total revenue)

100,300

2

Refund of value-added tax on imports

- 42,000

IV

Aid revenue

5,000

...

...

...

APPENDIX NO. 4

ESTIMATES OF STATE BUDGET EXPENDITURES, CENTRAL BUDGET EXPENDITURES AND LOCAL BUDGET EXPENDITURES ACCORDING TO THE 2011 EXPENDITURE STRUCTURE

Unit: VND billion

No.

Content

Total

Divided Into

Central budget

Local budgets

...

...

...

B

1 = 2 + 3

2

3

A .

Total state budget expenditures

725,600

(1) 425,500

(2) 300,100

...

...

...

Development investment

152,000

78,800

73,200

In which:

...

...

...

Education, training and vocational training expenditures

24,911

9,581

15,330

2

Science and technology expenditures

5,069

2.354

2,715

...

...

...

Debt payment and aid

86,000

86,000

III

Regular expenditure

442,100

224,300

217,800

...

...

...

In which:

1

Education, training and vocational training expenditures

110,130

22,600

87,530

...

...

...

Science and technology expenditures

6,430

4.870

1.560

IV

Wage reform expenditures

27,000

27,000

...

...

...

Supplementation of financial reserve funds

100

100

VI

Contingencies

18,400

9,400

9,000

...

...

...

Expenditures from revenues managed via state budget

57,424

46,024

11,400

c

Expenditures from onlent foreign loans

28,640

28,640

...

...

...

Total (A+B+C)

811,664

500,164

311,500

Notes: (1) This figure includes also the projected target additional allocation to local budgets, exclusive of VND 93,799 billion additionally allocated from the central budget to local budgets.

(2) This figure includes also VND 93,799 billion additionally allocated from central budget to local budgets, exclusive of the projected target additional allocation from the central budget to local budgets.

APPENDIX 5

REVENUES MANAGED VIA 2011 BUDGET

...

...

...

No.

Content

2011 estimate

A

TOTAL

57,424

I

Revenues and expenditures managed via state budget

12,424

...

...

...

Road toll

394

2

Maritime safety assurance charge

630

3

Other charges and fees and infrastructure construction contributions; revenues and expenditures in communes

3,400

4

...

...

...

8,000

II

Investment expenditures from government bond sources

45.000