RESOLUTION

ON THE 2007 STATE BUDGET ESTIMATES

THE NATIONAL ASSEMBLY OF THE SOCIALIST REPUBLIC OF VIETNAM

Pursuant to Article 84 of the 1992 Constitution of the Socialist Republic of Vietnam, which was amended and supplemented under Resolution No. 51/2001/QH10 of December 25, 2001, of the Xth National Assembly, the 10th session;
Pursuant to the State Budget Law;
Having considered Report No. 21/BC-CP of October 6, 2006, submitted by the Government to the National Assembly, on the 2007 state budget estimates, Examination Report No. 2953/UBKTNS of October 12, 2006, of the National Assembly's Economic and Budgetary Committee, and opinions of National Assembly deputies;

RESOLVES:

I. TO ADOPT THE 2007 STATE BUDGET ESTIMATES, ACCORDING TO WHICH:

- The total balanced state budget revenue will be VND 281,900 billion (two hundred and eighty one thousand and nine hundred billion Vietnam dong), representing 24.9% of the gross domestic product (GDP); if counting also VND 19,000 billion carried forward from 2006 to 2007, the total state budget revenue will be VND 300,900 billion (three hundred thousand and nine hundred billion Vietnam dong);

- The total balanced state budget expenditure will be VND 354,900 billion (three hundred and fifty four thousand and nine hundred billion Vietnam dong); if counting also VND 2,500 billion of crude oil revenue, the total state budget expenditure will be VND 357,400 billion (three hundred and fifty seven thousand and four hundred billion Vietnam dong);

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(These figures are in Appendices 1, 2, 3, 4 and 5 to this Resolution) (

II. TO APPROVE THE GOVERNMENT'S SOLUTIONS FOR IMPLEMENTING THE 2007 STATE BUDGET ESTIMATES AND SOLUTIONS PUT FORWARD IN THE EXAMINATION REPORT SUBMITTED BY THE ECONOMIC AND BUDGETARY COMMITTEE TO THE NATIONAL ASSEMBLY, EMPHASIZING THE FOLLOWING PRINCIPAL ISSUES:

1. The Government shall expeditiously organize the performance of the 2007 state budget collection tasks in accordance with law. To promptly organize the enforcement of the Law on Tax Administration after it is passed by the National Assembly in order to enhance the effective administration of tax collection and combat state budget revenue loss. To reorganize tax refund work, enhance inspection, detection and strict handling of law-breaking acts in state budget collection work.

2. To continue scrutinizing, amending and supplementing financial and budgetary mechanisms and policies in conformity with commitments on accession to the World Trade Organization (WTO).

3. To step up renewal and reorganization of state enterprises under approved plans; to adjust tax policies applicable to equitized state enterprises in a reasonable manner, in accordance with law and prescribed competence without reducing overall state budget revenue.

4. To accelerate the abolition of price subsidies, applying the principle of price control under the market mechanism. To closely oversee developments in the prices of important commodities on the world market in order to devise solutions to stabilizing the domestic market and prices and take the initiative in administering the state budget estimates. In case of great fluctuations in the world petrol and oil prices, affecting state budget revenue, the Government shall promptly direct the adjustment of import tax rates and selling prices of petrol and oil on the domestic market; to gradually reduce subsidies for losses in kerosene trading and soon terminate the offsetting of losses; in case of necessity, the Government shall direct the use of the central budget reserves to offset those losses.

5. To organize the strict implementation of the State Budget Law; to allocate budget capital in a concentrated manner so as to combat waste and loss; to thriftily use budget capital for proper purposes; to consolidate, and improve the quality and efficiency of, examination, inspection and audit work; to clearly define responsibilities of each organization and its head in budget management and administration with a view to enhancing discipline in the finance and budget domain; to concentrate efforts on scrutinizing, amending, supplementing or promulgating state budget spending criteria, regimes and levels.

6. To soon perfect the legal framework in order to raise the capacity of mobilizing, and efficiently manage and use, foreign loans, especially official development assistance (ODA), in the direction of clearly defining responsibilities of organizations and their heads in management and use of loans and ODA capital allocated by the State; to enhance the inspection, examination and audit of projects invested with these capital sources.

7. To conduct regular reviews and timely rectifications to ensure proper implementation of regulations on management and use of land, offices, public houses and other state property in order to efficiently utilize these resources; to strictly handle violations.

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9. From 2007 on, revenues from construction lottery will not be included in the state budget balance; to manage these revenues and expenditures through the state budget. The Government shall direct the reorganization of construction lottery activities. Provincial/municipal People's Councils shall allocate and use these revenues for investment in important social welfare facilities in localities, particularly education and health facilities; these revenues may not be used for other purposes.

10. In 2007, to continue issuing government bonds for investment in projects and works listed in plans already decided by competent authorities; to continue issuing education bonds in order to soon complete the scheme on solidification of school buildings and classrooms. To rationally mobilize capital on the basis of the capital disbursement capability to ensure that there will be no idle capital.

11. The Government shall adopt financial and budgetary mechanism and policies to ensure socio-economic development, defense and security in the 2006-2010 period in the northern midland and mountainous areas, the Central Highlands, the Southwestern region, and the northern and coastal Central Vietnam. The Government shall report matters falling beyond its competence to the National Assembly or National Assembly Standing Committee for consideration and decision.

12. To accelerate the application of the mechanism of autonomy and accountability in the use of payrolls and funds in state agencies and public non-business units; to boost and encourage socialization in the education-training, healthcare, culture, physical training and sports and some other domains; to apply on a pilot basis the mechanism of leasing or equitization so as to switch some eligible public service establishments to operate like enterprises.

13. The Government shall drastically direct the effective implementation of the program of action to enforce the Law

14. In the course of implementation of the 2007 state budget estimates, the Government shall direct ministries, branches and localities to overfulfill their assigned collection tasks in order to have additional sources for the prevention and combat of natural disasters, epidemics and the handling of urgent and unexpected matters arising in a year at each level and reserve sources for the implementation of salary and social welfare policy reforms.

III. SUPERVISION OF THE IMPLEMENTATION OF THE 2007 STATE BUDGET ESTIMATES

The National Assembly Standing Committee, the Economic and Budgetary Committee, the Nationality Council and other Committees of the National Assembly, National Assembly delegations and National Assembly deputies shall practically supervise the state budget implementation in the domains and localities within the scope of their responsibilities as provided for by law.

To expand the scope and improve the quality of operation of the State Audit in order to detect in time wrongdoings in state budget management and use, promptly propose competent state agencies to perfect mechanisms, strictly handle violations and tighten financial discipline.

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