RESOLUTION

ON STATE BUDGET ESTIMATES IN 2020

THE NATIONAL ASSEMBLY

Pursuant to the Constitution of the Socialist Republic of Vietnam;

Pursuant to the Law on State Budget No. 83/2015/QH13 and the Resolution No. 25/2016/QH14 of the National Assembly on the national 5-year financial plan in the 2016-2020 period;

In consideration of the Report No. 39/BC-CP dated October 16, 2019, Report No. 483/BC-CP dated October 13, 2019, the Statement No. 537/TTr-CP dated October 29, 2019 and the Statement No. 558/TTr-CP dated November 04, 2019 of the Government; the Inspection Report No. 1748/BC-UBTCNS14 dated October 19, 2019 and the Inspection Report No. 1784/BC-UBTCNS14 dated November 05, 2019 of the Budget – Finance Committee; the Explanation Report No. 475/BC-UBTVQH14 dated November 11, 2019 of the Standing Committee of the National Assembly and opinions of delegates of the National Assembly;

HEREBY RESOLVES:

Article 1. Approval of state budget estimates in 2020

...

...

...

2. Total state budget expenditure is VND 1.747.100.000 million (one billion, seven hundred forty seven million, one hundred thousand million dongs).

3. Total state budget deficit is VND 234.800.000 million (two hundred thirty four million, eight hundred thousand million dongs), equivalent to 3,44% of GDP, including:

The deficit of the central government budget which is VND 217.800.000 million (two hundred seventeen million, eight hundred thousand million dongs), equivalent to 3,2% of GDP;

The deficit of local government budgets which is VND 17.000.000 million (seventeen million million dongs), equivalent to 0,24% of GDP.

4. Total loan of the state budget is VND 488.921.352 million (four hundred eighty eight million, nine hundred twenty one thousand, three hundred fifty two million dongs).

(Appendixes 1, 2, 3 and 4 enclosed herewith)

Article 2. Amendments to medium-term public investment plan in 2016-2020 period and state budget estimates in 2019

1. Adjust funding structure of 02 national target programs included in the medium-term public investment plan in the 2016-2020 period, in which the foreign funding is increased by the corresponding decrease in the domestic funding of VND 3.580.200 million.

2. Include the funding of VND 241.021 million additionally allocated for projects included in the national target program for sustainable poverty reduction in the 2016-2020 period in the medium-term public investment plan in the 2016-2020 period and include the corresponding funding in the estimate of development investment expenditures covered by funding from the central government budget in 2020 for recovering the advanced funding.

...

...

...

4. Divide an amount of VND 77.490 million of the aid granted by the Government of the Republic of Ireland between the following provinces: Ha Giang: VND 18.000 million; Hoa Binh: VND 20.900 million; Quang Tri: VND 9.490 million; Kon Tum: VND 19.200 million and Tra Vinh: VND 9.900 million for making investment in the Project on support for extremely disadvantaged communes under the Program 135.

5. Allocate an amount of VND 36.611 of the aid granted by the Government of the Kingdom of Belgium to the “Integrated water resources management and Urban development in relation to Climate change in Ha Tinh province” project.

6. Divide an amount of VND 5.042 million (USD 225.000) of the aid granted by the Government of Kuwait between two provinces as follows: Ha Tinh: VND 2.801 million (USD 125.000) and Quang Binh: VND 2.241 million (USD 100.000) for disaster recovery.

Article 3. Assigning the Government to implement measures for performing budget – financial tasks in 2020

1. Manage the implementation of financial policies in a strict, efficient and transparent manner; consistently and flexibly combine these policies with monetary policies for the purposes of ensuring macroeconomic stability, controlling inflation, facilitating the business and production development, and promoting the economic growth; tighten relevant rules and regulations, and emphasize the responsibility of holders of leading positions for management and use of finances and budgets.

2. Instruct the management of state budget revenues; restructure state budget revenues; improve the inspection and supervision activities for preventing losses in tax revenues, transfer pricing and tax evasion; reduce tax debts; develop the use of electronic invoices; do not promulgate policies that cause decrease in state budget revenues, except for cases of amendments to policies on state budget collection under integration commitments; strike to achieve the best performance of the national 05-year financial plan in the 2016-2020 period. Strengthen the management of state budget revenues, expand tax authorities, reform and modernize tax operations; strictly comply with regulations on auction when selling, transferring or leasing public property and allocating or leasing land in accordance with regulations of the law on management and utilization of public property and the law on land.

3. Continue using revenues from lottery operations for development investment, including investment in education, training and vocational training, public healthcare, national target programs on development of new-style rural areas; the remaining amount thereof may be allocated to climate change response projects and other significant projects eligible to use funding from local government budgets.

4. Promulgate detailed regulations on collection, transfer and use of road user charges (collected per vehicle) which must be consistently applied nationwide, including roads under the management of central-government authorities and those managed by local governments, and distribute these revenues according to the Resolution No. 73/2018/QH14 dated November 14, 2018 of the National Assembly on distribution of funding from central government budget in 2019.

5. Manage state budget expenditures according to the given estimates. Reduce recurrent expenditures to the minimum; fight against wastefulness; considerably reduce expenditures on holding of meetings, seminars, reception, research and surveys abroad; allocate funding for purchasing equipment in accordance with regulations; do not give expenditure estimates for policies that are not yet promulgated; only promulgate policies that cause increase in state budget expenditures where they are deemed necessary and funding sources are available. Continue reforming administrative procedures and developing information technology applications for ensuring a modern and thoroughly connected national administrative system in association with strict management of state budget revenues and expenditures. After covering non-business expenditures as prescribed, the remainder of the funding for recurrent expenditures on environmental protection may be used for supporting the local governments that still receive additional funding for balancing budget from the central government budget in building crematoria for Khmer people, treating heavily polluted public utility facilities, and improving the environmental monitoring systems.

...

...

...

7. Consider increasing the statutory pay rate from VND 1,49 million/month to VND 1,6 million/month, and indexing mandatory retirement pension, social insurance benefits and monthly benefits (granted to persons receiving financial support from state budget) and financial initiatives granted to persons rendering meritorious revolutionary services to the increase in the statutory pay rate, from July 01, 2020.

Continue implementing current regulations on funding sources for reform of salary policies by thoroughly combining cost saving and restructuring, downsizing and improvement of the financial autonomy of public service providers. From 2019, retain 40% of the increase in realized revenues of the central-government budget and 70% of the increase in realized revenues compared to budget estimates of local-government budget as funds for reform of salary policies in 2020 and savings for the 2021-2025 period.

Exclude some revenues which are associated with particular obligatory expenditures from the increase in realized revenues of local-government budget in 2019 and the budget estimate in 2020 for determining funding sources for reform of salary policies, including: land rents paid in lump-sum by investors for paying compensation and land clearance costs, proceeds obtained from settlement of public property and used for making investment as decided by competent authorities, fees for protection and development of paddy land, entry fees to world heritage sites and relics, service charges paid for using infrastructure facilities, public utility facilities and services at border checkpoint areas, environmental protection fees for mining activities, revenues from public land, other yields and public property, and revenues from lease, lease purchase or sale of state-owned housing.

With regard to local-government budget, the funds remained from reduction of expenditures for supporting recurrent operations in administrative sector and operations of public service providers shall be used as follows: 50% of such funds shall be included in funding for reform of salary policies and paying increased salaries due to the increase in statutory pay rate in administrative sector and other sectors engaged in by administrative units, and the remainder thereof shall be used for paying costs of implementing social security policies adopted by the local government and increasing expenditures on material facilities in corresponding sectors. Specific expenditures shall be decided by the local government in accordance with regulations of the Law on State Budget.

The central-government budget shall ensure funding for indexing mandatory retirement pension, social insurance benefits and monthly benefits (granted to persons receiving financial support from state budget) and financial initiatives granted to persons rendering meritorious revolutionary services and provide financial support for ministries, central-government authorities and local governments that do not have enough funding for paying increased salaries in accordance with the Government's regulations.

Local governments shall proactively use the unused funds for reform of salary policies for implementing social security policies promulgated by the central government. Deficits of local government budgets shall be financed by the central government budget in the form of dedicated additional funds.

Local governments that make contributions to the central government budget, in case they determined that their budget is enough for reform of salary policies and implementation of social security policies for the entire roadmap towards 2025 without requesting financial support from the central government budget, may request the Prime Minister to consider and decide the use of unused funds for reform of salary policies for executing investment development projects as prescribed by law.

8. Instruct Ministries, central government authorities and local governments to strictly implement policies on downsizing and arrangement of administrative apparatus in streamlined and efficient manner; adopt new management mechanism, financial mechanism and restructure public service providers. And then, restructure state budget in each sector and reduce the financial support granted directly from state budget to public service providers.

9. Strictly control state budget deficit, deficits and loans of local government budgets; adopt measures for reducing budget deficits. Intensify the inspection and supervision of borrowing, use of loans and repayment, especially new loan agreements, foreign loan agreements and government-guaranteed loans for the purpose of ensuring the limit on public debts.

...

...

...

Article 4. Supervision and audit of implementation of state budget estimates

1. The Standing Committee of National Assembly, Finance – Budget Committee, Ethnic Minorities Council and other Committees of the National Assembly, Delegations and delegates of the National Assembly, and Vietnamese Fatherland Front shall, within the ambit of their assigned duties and powers, supervise the implementation of this Resolution.

2. The State Audit Office of Vietnam shall, within the ambit of its assigned duties and powers, carry out the audit of the implementation of this Resolution in accordance with law regulations.

This Resolution is ratified by the 14th National Assembly of the Socialist Republic of Vietnam during the 8^th meeting held on November 12, 2019.

PRESIDENT OF THE NATIONAL ASSEMBLY




Nguyen Thi Kim Ngan