Law on State Budget of Vietnam 2025

 

LAW

STATE BUDGET

Pursuant to the Constitution of the Socialist Republic of Vietnam amended by the Resolution No. 203/2025/QH15;

The National Assembly promulgates the Law on State Budget.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Law provides for formulation, implementation, audit, finalization, disclosure and supervision of state budget; duties and powers of relevant authorities, organizations, units, and individuals in the field of state budget.

Article 2. Regulated entities

1. State authorities, political organizations and Vietnam Fatherland Front.

2. Public service providers.

3. Other organizations and individuals related to state budget.

Article 3. Application of law

1. The formulation, implementation, audit, finalization, disclosure  and supervision of state budget shall comply with this Law and other relevant laws.

2. In case a treaty to which the Socialist Republic of Vietnam is a signatory contains regulations different from those of this Law, regulations of such treaty prevails.

Article 4. Interpretation of terms

For the purposes of this Law, the terms below shall be construed as follows:

1. State budget deficit includes deficit of the central government budget and deficit of provincial budgets. Central government budget deficit is the positive difference between total central government budget expenditure, exclusive of principal repayment and total central government budget revenue, exclusive of loan. Provincial budget deficit is the aggregation of budget of each city or province, which is the positive difference between total budget expenditure, exclusive of principal repayment and total budget revenue of each city or province, exclusive of loan.

2. National reserve expenditure means part of the state budget spending duties to purchase goods for national reserve; expenditure on storage, release, purchase, sale, preservation, protection of and insurance for goods for national reserve in accordance with regulations of law on national reserve.

3. Development investment expenditure means part of the state budget spending duties, including expenditure on public investment according to the Law on Public Investment and other development investment expenditure duties as prescribed by law.

4. Expenditure on aid provision means part of the state budget spending duties for fulfillment of diplomatic duties, cooperation in development between the State, the Government of Vietnam and the State, the Government of foreign countries and between local governments of Vietnam and local governments of foreign countries; provision of humanitarian aid and emergency support for foreign countries as per law.

5. Recurrent expenditure means part of the state budget spending duties to maintain the operation of the State apparatus, political organizations, Vietnam Fatherland Front, support the operation of other organizations and perform regular tasks of the State in terms of socio-economic development and assurance of national defense and security, and other recurrent expenditure duties as per law.

6. Interest repayment expenditure means part of central government budget and provincial budget spending duties to repay interest, fees and other costs incurred from their loans (excluding interest, fees and costs incurred from on-lending to public service providers or enterprises).

7. Principal repayment means part of central government budget and provincial budget duties to repay principal of their loans (excluding repayment of principal of loans taken and then on-lent to public service providers or enterprises).  Payment of principals shall not be recorded as expenditure in the state budget balance sheet.

8. State budget reserve means an entry of the unallocated budget expenditure estimate which is decided by a competent authority at each level of the budget.

9. Finance authority means an authority which performs state management of and has expertise in finance. Finance authorities include the Ministry of Finance, finance authorities affiliated to provincial People’s Committees (provincial finance authorities) and finance-advising divisions affiliated to commune-level People’s Committees (commune-level finance authorities).

10. Budget revenue-collecting authorities mean tax authorities, customs authorities and other authorities assigned or authorized by competent state authorities to organize the collection of state budget revenues.

11. Budget estimate unit means an authority, organization or unit to which the budget estimate is allocated by a competent authority.

12. Level-1 budget estimate unit means a budget estimate unit to which the budget estimate is allocated by the Prime Minister or the People’s Committee.

13. Budget-using unit means a budget estimate unit that is assigned to directly manage and use the budget.

14. Remaining expenditure estimate means the expenditure estimate of a level of state budget that has been decided by a competent authority but has not been fully allocated and used by the end of the budget year, including reserves (if any).

15. Central government budget or provincial budget remainder means the positive difference between the total budget revenue (exclusive of loan) and total budget expenditure (exclusive of principal repayment) at the end of a budget year.

16. Commune-level budget remainder means the positive difference between the total budget revenue and total budget expenditure at the end of a budget year.

17. State budget means all expenditures and revenues of the State that are estimated and realized over a certain period of time as decided by competent state authorities in order to perform the functions and duties of the State.

18. Central government budget means state budget revenues which the central government authorities are given to receive and state budget expenditures being part of the central government authorities’ spending duties.

19. Local government budget means state budget revenues which local government authorities are given to receive, transfers from central government budget, and state budget expenditures being part of the local government authorities’ spending duties.

20. Decentralization of power to manage budget means determination of scope, responsibility, and powers of authorities at all levels and budget estimate units in state budget management in a manner that aligns with the decentralization of socio-economic management power.

21. Financial reserve fund means a fund of the State derived from state budget and other financial sources as prescribed by law.

22. State budget fund means the entire amounts of the State, including loans on the accounts of state budget at all levels at a certain time.

23. State off-budget financial fund means a fund which is established by a competent authority and operates independently from the state budget; its revenues and spending duties are meant to fulfill certain duties prescribed by law.

24. Budget balancing transfer means an amount additionally allocated from a higher level budget to a lower level budget in order for it to balance its budget and fulfill its duties.

25. Targeted transfer means an amount additionally allocated from a higher level budget to a lower level budget to support the implementation of a specific program, project or duty.

Article 5. Scope of state budget

1. State budget revenues:

a) All revenues from taxes and charges and fees for services provided by state authorities;

b) Fees for services provided by public service providers and organizations assigned by competent authorities to provide public services that are transferred to state budget as prescribed by law;

c) Grant aid provided by governments of other countries, overseas organizations and individuals for Vietnam’s State, Government and local governments;  financial assistance and voluntary contributions from domestic and foreign organizations and individuals.

d) Other revenues prescribed by law.

2. State budget expenditures:

a) Development investment expenditure;

b) National reserve expenditure;

c) Recurrent expenditure;

d) Interest repayment expenditure;

dd) Expenditure on aid provision;

e) Other expenditures prescribed by law.

3.  State budget deficit.

4. Total state budget loans, including loans for offsetting deficit and repayment of principal of the state budget.

5. Sources for repayment of loan principal, including loans taken to repay principals; state budget revenues included in estimates; increased revenues as compared to those included in estimates, remaining expenditure estimates of budget levels; state budget remainder.

Article 6. State budget system

1. State budget consists of central government budget and local government budgets.

2. A local government budget consists of provincial budget and commune-level budget.

Article 7. Principles of balancing the state budget

1. Revenues from taxes, fees, charges, and other budget  revenues prescribed by law shall be fully included in the state budget balance without association with any specific spending duty. For any revenue which needs to be attached to a specific spending duty as prescribed by law, such spending duty shall be covered by the corresponding revenue in the budget expenditure estimate. The promulgation of budget collection policies shall adhere to the principle of balancing the budget in medium and long-term balance of budget and ensure the adherence to international integration commitments.

2. The state budget shall be balanced on the principle that the total revenue from taxes, fees, charges and other budget revenues is higher than total recurrent expenditure with increasing savings for development investment; if the deficit still exists, the deficit shall be smaller than the development investment expenditure in order to aim for a balanced budget; special cases shall be submitted by the Government to the National Assembly for its consideration and decision.

3. Loans for offsetting the state budget deficit may only be used for development investment, not for recurrent expenditures.

4. The central government budget deficit shall be offset with the following sources:

a) Domestic loans through issuance of government bonds, national construction bonds and other domestic loans in accordance with law;

b) Foreign loans granted by foreign governments and international organizations and proceeds from the issuance of government bonds on the international market, excluding on-lending loans.

5. Local government budget deficit:

a) Only provincial budgets may have deficit; the local government budget deficit may only be used for investment in projects under midterm public investment plans already decided by provincial-level People’s Councils;

b) Local government budget deficit shall be offset with domestic loans from issuance of local government bonds, on-lending loans granted by the Government, and other domestic loans as prescribed by law;

c) Local government budget deficit shall be aggregated with the state budget deficit and decided by the National Assembly.

6. Loan balance of local government budgets:

a) Regarding a local government that does not receive budget-balancing transfers from central government budget, it shall not exceed 120% of the estimated local government budget revenue it may retain as decentralized;

b) Regarding a local government that receives budget-balancing transfers from central government budget, it shall not exceed 80% of the estimated local government budget revenue it may retain as decentralized;

c) In case it is necessary to raise capital beyond the limits specified in point a and point b for implementation of the local project, the provincial People’s Committee shall request the provincial People’s Council or the standing People’s Council during the period when the People’s Council is in recess to consider giving opinions to send a report to the Government that will consider submitting the report to the National Assembly for decision.

Article 8. Principles of state budget management

1. The state budget shall be managed in a uniform, democratic, effective, thrifty, transparent and fair manner; such management shall be assigned and decentralized; powers of state management authorities at all levels shall be associated with their responsibilities.

2. All budget expenditures and revenues shall be estimated and fully aggregated with the state budget.

3. Budget revenues shall comply with regulations of laws on taxes, fees, charges and other budget revenues as per law.

4. Budget expenditures may be made only after the estimate is allocated by a competent authority, except for cases of temporary allocation specified in Article 53 of this Law and must comply with spending regimes, standards and norms prescribed by competent state authorities.

5. Priority shall be given to allocating budget for development investment expenditure for implementation of guidelines and policies of the Communist Party and the State on economic development; development of education, training, science, technology, innovation and digital transformation; sustainable poverty reduction; agricultural, rural and medical development; ethnic policies; achievement of gender equality objectives and other important policies from time to time.

6. Budget shall be allocated to undertake socio-economic development tasks; ensure national defense and security, implement foreign policies and cover operating costs of the state apparatus; fulfill the State’s obligations specified in international commitments, commitments to investors.

7. The state budget shall cover operating costs of political organizations, affiliates of Vietnam Fatherland Front at all levels and socio-political organizations affiliated to Vietnam Fatherland Front; and social organizations may receive financial support from the state budget for performance of tasks assigned by the State.

8. Repayment of due interest being part of spending duties of the state budget must be made.

9. Decisions on investment and expenditures on investment in state budget-funded programs, tasks and projects must be conformable with provisions of the Law on Public Investment and relevant laws.

10. The state budget does not subsidize operating costs of state off-budget financial funds. In case the state budget subsidizes charter capital of a fund as prescribed by law, the provision of subsidies must be within the capacity of state budget and be carried out only when the following conditions are satisfied: the fund is established and operates in accordance with law; is financially independent; has its revenue sources and spending duties different from those of the state budget.

The state budget shall allocate money to the funds for development of science, technology, innovation and digital transformation, formulation of policies and laws according to specialized sector and field laws and within the capacity of state budget.

Article 9. Principles of decentralizing power to manage revenue sources, spending duties and relationships between various levels of budgets

1. The power of central government budget, provincial budget and commune-level budget over specific revenue sources and spending duties shall be decentralized.

2. The central government budget plays a pivotal role, ensuring the performance of national spending duties, supporting local governments that are unable to balance their budgets, and providing support to local governments according to Article 43 of this Law.

3. Power of the local government budget over revenue sources is decentralized to take the initiative in their decentralized spending duties. Provincial People’s Councils shall decide the decentralization of powers over revenue sources and spending duties among provincial budgets and commune-level budgets in a manner that suits the decentralization of powers over socio-economic management, national defense and security and managerial capacity of each level in their provinces.

4. If the promulgation and implementation of a new policy or regime result in an increase in the budget expenditure, solutions shall be in place to guarantee financial sources suitable for the balancing capacity of the budget at each level; the decision to invest in programs and projects funded by the state budget must not lie outside the scope of the decentralized budgets.

5. State budget at each level shall cover their own spending duties, except for the following cases:

a) The lower-level budget has to provide support to their superior units located in the locality when needed to urgently mobilize higher-level forces in the event of a natural disaster, catastrophe, disease or other emergencies so as to stabilize the socio-economic situation, security and social order and safety in the locality;

b) Superior units located in the locality perform their functions together with some tasks at the request of their inferior units;

c) Budget reserve of a local government is used to support other local governments in recovery from serious disaster, catastrophe, disease and some other important and urgent tasks;

d) Use of a local-government budget’s funding for development investment expenditures for financing investment projects on construction of infrastructure facilities in that locality which are to be funded by its higher level budget, assisting other local governments in executing key projects and works or those improving regional, national or international connectivity and having positive effects on the socio-economic development, and other important tasks must be within the budget balancing capacity, and not adversely influence the performance of tasks to be covered by that local government budget.

6. In case a state management authority of a higher level budget authorizes a state authority of a lower level budget to perform its spending duty, the former shall allocate and assign a budget estimate to the latter to perform the spending duty. The authority that receives the authorized funding must submit a statement of such funding to the authorizing authority.

7. Revenues to be shared among budgets at various levels and transfers from higher level budgets to lower level budgets must be shared by a percentage (%) in a way that ensures fairness and balanced development among regions and localities.

8. In case implementation of a treaty results in a decrease in the central government budget revenue, the Government shall request the National Assembly to adjust the revenue sharing between the central government budget and local government budgets in order to define the leading role of the central government budget.

Article 10. State budget reserve

1. The reserve is 2% – 5% of total budget expenditure at each level. To be specific: higher level budget expenditures exclude budget-balancing transfers to lower level budgets and inferior budget expenditures exclude targeted additional expenditures from higher level budgets (if any)

2. State budget reserve may be spent on:

a) Prevention, control and remediation of consequences of natural disasters, catastrophes and diseases, and famine relief; important national defense and security tasks; national reserve; urgent foreign affairs of the State; distribution of reductions in revenues from public-private partnership (PPP) projects and other necessary tasks being part of spending duties of the budget but not yet included in the budget estimate;

b) Provision of support for lower level budgets for performance of the tasks mentioned in point a of this clause;

c) Provision of support to other local governments as prescribed in point c clause 5 Article 9 of this Law.

3. The state budget reserve specified in clause 2 of this Article shall be spent on programs, tasks and projects not included in the medium-term public investment plan according to the Government’s regulations.

4. Jurisdiction to decide the use of state budget reserve:

a) The Prime Minister shall decide the use of central government budget reserve and submit periodic reports to the Government to send such reports to the Standing Committee of the National Assembly and to the National Assembly at its nearest meeting;

b) People’s Committees at all levels shall decide the use of their budget reserves and submit periodic reports to the standing People’s Councils and People’s Councils of the same level at their nearest meetings.

Article 11. Financial reserve funds

1. The Government, People’s Committees of provinces shall establish financial reserve funds from sources of increased revenues as compared to those included in estimates, remaining expenditure estimates of budget levels, budget remainders, allocations to in annual budget expenditure estimate within state budget-balancing capacity and other financial sources in accordance with regulations of law. The balance of the financial reserve fund at each level shall not exceed 25% the annual budget expenditure estimate of the same level, excluding targeted additional expenditures from higher level budgets (if any).

2. Financial reserve funds are used in the following cases:

a) Make advance payment to the budget to meet spending needs according to the budget expenditure estimate before aggregating enough revenue. The advance must be reimbursed within 12 months from the date of advance payment;

b) Be used to meet budget spending needs in case state budget revenues collected or loans taken to offset budget deficit fail to reach the estimate level decided by the National Assembly or the People’s Council, and budget reserve has been used up but is still not sufficient for the prevention, control and remediation of consequences of natural disasters, catastrophes or diseases or performance of national defense and security tasks or other urgent tasks outside the estimates; however, the amount used in the year must not exceed 70% of the opening balance of the fund;

c) Make advance payment for local important infrastructure projects, programs and tasks to accelerate implementation progress. The advance must be reimbursed within 36 months from the date of advance payment. Total advance payment must not exceed 50% of the opening balance of the fund.

3. The Government elaborates this Article.

Article 12. Conditions for collection of state budget revenues and payment of state budget expenditures

1. Budget revenues shall comply with regulations of this Law, laws on taxes, fees, charges and other relevant laws.

2. State budget expenditures may be paid only after they are included in a given budget estimate, except for temporary allocation specified in Article 53 of this Law; and are decided by the heads of budget-using units, project owners or authorized persons, and satisfy all conditions in each of the following cases:

a) Meeting the conditions prescribed by the Law on Public Investment and other relevant laws, for development investment expenditures;

b) Complying with budget spending regimes, standards and norms prescribed by competent state authorities, for recurrent expenditures; complying with internal spending regulations and conforming to the assigned budget estimates, for authorities and units permitted by competent authorities to exercise autonomy and self-responsibility for their payrolls and funding;

c) Meeting the conditions prescribed by the law on national reserves, for national reserve expenditures;

d) For contract packages under the tasks, programs or projects for which bidding needs to be organized to select contractors to provide consultancy services, supply goods or conduct construction and installation activities, it is required to organize bidding as per the bidding law;

dd) Complying with regulations on prices promulgated by competent authorities, for expenditures for works performed under orders placed by the State, and complying with regulations of laws on science, technology and innovation, for science, technology and innovation tasks.

Article 13. Accounting and finalization of state budget revenues and expenditures

1. State budget revenues and expenditures shall be accounted for in Vietnamese dong. State budget revenues and expenditures in foreign currencies must be converted into Vietnamese dong at the exchange rate prescribed by a competent authority to account for state budget revenues and expenditures prescribed at the time such revenues or expenditures arise.

2. State budget revenues and expenditures must be sufficiently, promptly, and properly accounted for and finalized.

3. The accounting and finalization of the state budget shall be conducted uniformly according to the law on accounting, state budget entries and this Law.

4. Documents about state budget revenues and expenditures must be issued, used, and managed in accordance with law.

Article 14. Budget year

A budget year begins on January 01 and ends on December 31 of the calendar year.

Article 15. Disclosure of the state budget

1. State budget estimates that have been submitted to the National Assembly or People’s Councils; state budget estimates that have been approved by competent authorities; reports on state budget implementation; state budget final accounts ratified by the National Assembly or People’s Councils; information about the estimation, implementation and final accounts of budgets of budget estimate units, organizations funded by state budget, financial plans, implementation of such financial plans and financial statements of state off-budget financial fund must be disclosed in accordance with regulations below:

a) The following contents shall be disclosed. To be specific:

State budget at all levels shall disclose data and explanatory reports on budget documents (except for specific data and explanatory reports on national defense and security, national reserve and documents and data on assignment of estimates according to regulations of the law on protection of state secrets), including state budget estimates and allocation of budgets, the year’s estimated financial plans of state off-budget financial funds submitted to the National Assembly or People’s Councils; state budget estimates and allocation of budgets approved by competent authorities in accordance with regulations of this Law; information on state budget implementation (3 months, 6 months, 9 months, year); and final accounts approved by the National Assembly or People’s Councils.

Budget estimate units and organizations funded by state budget shall disclose estimates of state budget revenues and expenditures assigned by competent authorities and other funding sources (if any); information on state budget estimate implementation (3 months, 6 months, 9 months, year); and final accounts of state budget approved by competent authorities.

State off-budget financial funds shall disclose financial plans assigned by competent authorities and implementation of such financial plans (6 months, year) and final accounts approved by competent authorities.

Public investment projects and programs shall be disclosed according to regulations of the law on public investment;

b) State budget shall be disclosed by one or more methods as follows: announcement at meetings; posting at working offices of authorities, organizations and units; issuance of publications; issuance of written notifications to relevant authorities, organizations, units and individuals; publishing on web portals; announcement through the mass media. Regarding authorities and units that have their web portals, State budget shall be disclosed on their web portals.

2. Disclosure of state budget-related procedures:

a) Budget-collecting authorities, finance authorities and State Treasuries shall disclose state budget-related procedures;

b) Contents to be disclosed include: regulations on processes and procedures for declaration, collection, payment, exemption, reduction, extension, chargeoff and refund of revenues; advances, amounts allocated and paid to the state budget;

c) The disclosure may be carried out by posting at transaction places and on websites of the aforementioned authorities.

3. Disclosed contents must be adequate according to criteria and forms prescribed by the Ministry of Finance.

4. Responsible authorities must disclose information as specified in clause 1, clause 2 and clause 3 of this Article, if they fail to disclose information in an adequate and timely manner, they shall be sanctioned in accordance with law.

5. The Government shall elaborate the state budget disclosure.

Article 16. Supervision of state budget by the public

1. The state budget shall be supervised by the public. Vietnamese Fatherland Front Committees at all levels shall preside over organizing the supervision of state budget by the public. The supervision of state budget by the public shall cover:

a) Adherence to regulations of law on state budget;

b) Implementation of annual state budget estimates;

c) Disclosure of the state budget according to Article 15 of this Law.

2. The Government shall elaborate supervision of state budget by the public.

Article 17. 05-year financial plans

1. A 05-year financial plan means a financial plan formulated for a 05-year period together with a 05-year socio-economic development plan. The 05-year financial plan must specify overall and specific finance-state budget objectives of state budget and state finance; major orientations for state budget and state finance; levels and structures of domestic revenues, revenue from crude oil, revenue from export and import; levels and structures of development investment expenditure, interest repayment expenditure, expenditure on aid provision and recurrent expenditure; orientations for budget deficit; limits of national foreign debts, public debts, government debts; major solutions for implementation of the plan.

2. A 05-year financial plan shall be used for:

a) Achieving socio-economic development objectives of the country, sectors, fields, and localities; balancing and effectively using public financial resources and the state budget in the medium term; promoting the disclosure and transparency of the state budget;

b)  Forming a basis for competent authorities to consider and decide state budget-funded medium-term investment plans;

c) Orientating the making of annual state budget estimates.

3. 05-year financial plans include national 05-year financial plan and 05-year financial plans of provinces and cities.

4. The Ministry of Finance shall preside over formulating the national 05-year financial plan and submitting it to the Prime Minister for reporting to the National Assembly; provincial finance authorities shall formulate 05-year financial plans of their provinces and submit them to provincial People’s Committees for reporting to People’s Councils for consideration and decision at the same time the budget estimate of the first year of the plan period is submitted.

5. The Government shall elaborate the formulation of 05-year financial plans.

Article 18. Prohibited acts in the field of state budget

1. Abusing positions or powers to appropriate state budget revenue sources or being irresponsible to cause losses to state budget revenue sources.

2. Collecting state budget revenues in breach of laws on taxes, fees and charges and other state budget revenues; distributing revenue sources between various levels of government budgets in breach of regulations; retaining state budget revenues in contravention of regimes; imposing unlawful charges.

3. Spending without estimates, except the case of temporary allocation of state budget prescribed in Article 53 of this Law; spending against the assigned budget estimates; spending against spending regimes, standards and norms or for improper purposes; setting unlawful expenditures.

4. Deciding investment in or adjustment to programs and projects funded by state budget against regulations of the law on public investment.

5. Unlawfully taking loans; taking loans beyond the balancing capacity of budgets.

6. Using state budget funds to unlawfully grant loans, advance or contribute capital.

7. Delaying the payment of budget expenditures while all conditions prescribed by law have been satisfied.

8. Doing accounting against accounting regulations and state budget entries.

9. Making and submitting state budget estimates or state budget final accounts behind schedule.

10. Unlawfully ratifying or approving state budget final accounts.

11. Disbursing the state budget fund at a state treasury to pay for expenditures not yet included in the budget estimate decided by a competent authority, except cases of temporary allocation and advance payment from budget estimate of the subsequent year as prescribed in Articles 53 and 59 of this Law.

12. Other prohibited acts in the field of state budget as per relevant laws.

Chapter II

STATE BUDGET-RELATED DUTIES AND POWERS OF STATE AUTHORITIES AND RESPONSIBILITIES AND OBLIGATIONS OF ORGANIZATIONS AND INDIVIDUALS

Article 19. Duties and powers of the National Assembly

1. Make and amend laws and resolutions on finance – state budget.

2. Decide basic policies on finance – state budget; impose, change, or abolish taxes; decide safety limits on national debts, public debts and government debts.

3.  Decide the national 05-year financial plan.

4. Decide state budget estimates:

a) Total state budget revenue, including domestic revenue, revenue from crude oil, revenue from export and import, and receipt of grant aid;

b) Total state budget expenditure, including central government budget expenditure and local government budget expenditure, categorized as development investment expenditure, national reserve expenditure, recurrent expenditure, interest repayment expenditure, expenditure on aid provision transfers to the financial reserve fund, budget reserve;

c) State budget deficit, including the central government budget deficit and local government budget deficit specific to each locality; sources for offsetting the state budget deficit;

d) Total loan of state budget, including loans for offsetting state budget deficit and loans for repayment of principal of state budget;

dd) Central government budget’s loan principal repayment sources.

5. Decide the allocation of the central government budget:

a) Total expenditure covered by the central government budget, including allocated and unallocated amounts; development investment expenditures; recurrent expenditures; national reserve expenditures; expenditure on interest repayment and aid provision; transfers to financial reserve fund; budget reserves;

b)  Estimates of development investment expenditure, recurrent expenditure, national reserve expenditure and expenditure on aid provision of each ministry, ministerial agency, governmental agency and other central authorities;

c) Transfers from the central government budget to each local government budget, including budget-balancing transfers and targeted transfers.

6. Decide the percentage (%) of sharing between the central government budget and each local government budget with regard to the revenues specified in clause 2 Article 36 of this Law.

7. Decide guidelines on investment in national target programs and projects of national importance funded by state budget.

8. Decide to adjust state budget estimates according to regulations in clause 1 Article 54 of this Law.

9. Ratify state budget final accounts.

10. Supervise the implementation of the state budget, national basic policies on finance – state budget, resolutions of the National Assembly on the state budget.

11. Annul documents issued by the State President, the Standing Committee of the National Assembly, the Government, the Prime Minister, the People’s Supreme Court, the People’s Supreme Procuracy on finance – state budget that contravene the Constitution, laws, and resolutions of the National Assembly.

Article 20. Duties and powers of the Standing Committee of the National Assembly

1. Promulgate ordinances and resolutions on finance – budget in accordance with law.

2. Offer opinions on bills, resolutions, reports, and other projects on finance – state budget submitted to the National Assembly by the Government.

3. Promulgate a Regulation on formulation and verification of and decision on state budget estimates and central government budget allocation plans, and ratification of state budget final accounts.

4. Offer opinions on regulations on important budget spending regimes which are within a wide sphere of influence in relation to the performance of national socio-economic duties, which are submitted by the Government.

5. Decide principles, criteria, and norms for allocation of state budget, which are adjusted every 05 years or as decided by the Standing Committee of the National Assembly.

6. Supervise the implementation of laws and resolutions of the National Assembly; ordinances and resolutions of the Standing Committee of the National Assembly on finance and state budget.

7. Suspend the implementation of legislative documents promulgated by the Government, the Prime Minister on finance – budget that contravene the Constitution, laws, and resolutions of the National Assembly; propose the annulment of such documents at the nearest meeting of the National Assembly.

8. Annul legislative documents promulgated by the Government and the Prime Minister on finance – budget that contravene ordinances and resolutions of the Standing Committee of the National Assembly.

9. Annul resolutions of provincial People’s Councils on finance – budget which contravene the Constitution, laws and resolutions of the National Assembly, ordinances and resolutions of the Standing Committee of the National Assembly.

Article 21. Duties and powers of the Economic and Financial Committee of the National Assembly

1. Verify bills, ordinance and resolution projects, reports and other projects on finance – budget as assigned by the National Assembly or the Standing Committee of the National Assembly.

2. Preside over verifying state budget estimates, central government budget allocation plans, state budget estimate adjustment plans, state budget implementation reports, state budget final accounts, state budget allocation principles, criteria and norms, which are submitted by the Government to the National Assembly or the Standing Committee of the National Assembly.

3. Verify important budget spending regimes which are within a wide sphere of influence in relation to the performance of national socio-economic duties, which are submitted by the Government to the Standing Committee of the National Assembly.

4. Supervise the implementation of laws and resolutions of the National Assembly, ordinances and resolutions of the Standing Committee of the National Assembly on finance – budget; supervise the implementation of the state budget and finance and budget policies.

5. Supervise legislative documents of the Government, Prime Minister, Ministers, and heads of ministerial agencies, and joint legislative documents of competent central authorities on finance – budget.

6. Put forward issues pertaining to finance – budget.

Article 22. Duties and powers of the Ethnic Minorities Council and other Committees of the National Assembly

1. Within the bounds of their duties and powers, cooperate with the National Assembly’s Economic and Financial Committee and related authorities of the Government in verifying bills, ordinance and resolution projects, state budget estimates, central government budget allocation plans, state budget implementation reports, state budget final accounts, and other projects and reports on finance – budget, which are submitted by the Government to the National Assembly or the Standing Committee of the National Assembly.

2. Supervise the implementation of laws, resolutions of the National Assembly, ordinances and resolutions of Standing Committee of the National Assembly on budget – finance; supervise the implementation of state budget and state budget – finance policies in the fields under their charge.

3. Put forward issues pertaining to finance – budget in the fields under their charge.

Article 23. Duties and powers of the State Audit Office of Vietnam

1. Audit the state budget and report audit results to the National Assembly and the Standing Committee of the National Assembly; send audit reports to the State President, Government, Prime Minister, Ethnic Minorities Council, Committees of the National Assembly, and other related authorities in accordance with the Law on State Audit.

2. Submit reports on the audit of state budget final accounts to the National Assembly for consideration and ratification of state budget final accounts.

3. Join the Economic and Financial Committee and other authorities of the National Assembly and the Government in considering and verifying state budget estimate reports, central government budget allocation plans, and plans for adjusting state budget estimates within the National Assembly’s jurisdiction.

4. Submit the State Audit Office’s opinions to the National Assembly that will consider deciding state budget estimates, central government budget allocation plans, and plans for adjusting state budget estimates within the National Assembly’s jurisdiction.

Article 24. Duties and powers of the State President

1. Announce laws and ordinances on finance – budget.

2. Exercise duties and powers prescribed by the Constitution and laws in the negotiation, conclusion and decision on ratification of treaties on finance – budget, or submission thereof to the National Assembly for ratification.

3.  Request the Government to hold meetings on state budgetary and financial where necessary.

Article 25. Duties and powers of the Government

1. Submit bills, ordinance and resolution projects and other reports and projects on finance – budget to the National Assembly and the Standing Committee of the National Assembly; promulgate legislative documents on finance – budget within its jurisdiction.

2. Formulate and submit 05-year financial plans to the National Assembly.

3. Formulate and submit annual state budget estimates, central government budget allocation plans and adjusted state budget estimates to the National Assembly according to regulations of clause 1 Article 54 of this Law.

4. Adjust budget revenue and expenditure estimates of some ministries, ministerial agencies, governmental agencies and other central agencies and provincial agencies according to regulations in clause 2 Article 54 of this Law.

5. Decide use of increased revenues as compared to those included in estimates, and remaining expenditure estimates of the central government budget and report results to the Standing Committee of the National Assembly or the National Assembly at the nearest meeting in accordance with clause 2 Article 61 of this Law.

6. Perform uniform management of the state budget, ensuring tight cooperation among sectoral and local management authorities in state budget implementation.

7. Decide solutions and organize the administration of implementation of the state budget as decided by the National Assembly; inspect the implementation of state budget; submit state budget implementation reports to the National Assembly and Standing Committee of the National Assembly, national target programs, projects of national importance whose investment guidelines are decided by the National Assembly.

8. Submit reports on finance – budget to the National Assembly and the Standing Committee of the National Assembly upon request.

9. Establish procedures for making estimates, allocating budget; making additional budget estimates in the year; collecting revenues, controlling and paying budget expenditures, and finalizing budget; advancing payment from the next year’s budget; using budget reserve; using financial reserve fund and other financial funds of the State as prescribed in this Law and other relevant regulations of law.

10. Decide important budget spending regimes which are within a wide sphere of influence in relation to the performance of national socio-economic duties after consulting the Standing Committee of the National Assembly.

11. Decide budget spending regimes, criteria and norms for nationwide application, excluding sector or field spending regimes, criteria and norms; for some budget spending regimes, standards and norms, prescribe the brackets thereof and assign them to the provincial People’s Council for its specific decision, unless otherwise provided for by specialized sector and field laws.

12. Establish budget allocation principles, criteria and norms and submit them to the Standing Committee of the National Assembly for decision to form a basis for formulation of estimates and allocation of budget to ministries, ministerial agencies, governmental agencies, other central and local agencies.

13. Give guidance on and inspect People’s Councils’ implementation of documents of superior state agencies; inspect the legitimacy of legislative documents on finance-budget as per law.

14. Formulate and submit state budget final accounts and final accounts of programs and projects of national importance whose investment guidelines are decided by the National Assembly to the National Assembly.

15. Promulgate regulations on cases in which the local government budget deficit is permitted in order to ensure the solvency of localities and suit the total deficit of the state budget.

16. Prescribe management of financial assistance and voluntary contributions; grant aid provided for the State, the Government and local governments

17. Issue regulations on financial support from state budget for social organizations’ performance of duties assigned by the State.

18. Issue regulations on use of a local-government budget’s funding for development investment expenditures for financing investment projects on construction of infrastructure facilities in that locality which are to be funded by its higher level budget, assisting other local governments in executing key projects and works or those improving regional, national or international connectivity and having positive effects on the socio-economic development, and other important tasks.

19. Provide for the performance-based budget management.

Article 26. Duties and powers of the Prime Minister

1. Promulgate regulations on formulation of socio-economic development plans and state budget estimates of the next year.

2. According to the National Assembly’s resolutions on state budget estimates and central government budget allocation plans, decide to assign:

a) Budget revenue collection and spending duties to each ministry, ministerial agency, Governmental agency and another central agency; specific development investment expenditures on the fields of education-training and vocational training, science and technology, innovation and digital transformation; specific recurrent expenditure by each field.

b) Budget revenue collection and spending duties, deficit, loans and transfers from the central government budget to each province or central-affiliated city according to points a, b, c and d clause 4, point c clause 5 and clause 6 Article 19 of this Law; specific development investment expenditures, recurrent expenditures on the fields of education-training and vocational training, science and technology, innovation and digital transformation.

3. Decide specific allocation of unallocated amounts specified in point a clause 5 Article 19 of this Law in a prompt and lawful manner, and send quarterly reports to the Government that will submit them to the Standing Committee of the National Assembly and the National Assembly at the nearest meeting.

4. Decide use of central government budget reserve according to clause 2 Article 10 of this Law.

Article 27. Duties and powers of the Ministry of Finance

1. Submit bills, resolutions of the National Assembly, ordinances, resolutions of the Standing Committee of the National Assembly on finance-budget, national 05-year financial plans, medium-term public investment plans and other reports and projects on finance-budget; promulgate legislative documents on finance-budget within its jurisdiction.

2. Establish principles, criteria, and norms for allocation of state budget expenditures; state budget spending regimes, standards, norms; finance – budget management mechanisms, laws on accounting, payment, final accounts, state budget entries, finance-state budget reporting and disclosure regimes, and submit them to the Government for promulgation or promulgate them as decentralized by the Government for nationwide implementation.

3. Decide to promulgate budget spending regimes, standards and norms applicable to sectors and fields after reaching agreement with ministries in charge of these sectors and fields; in case of failure to reach such agreement, submit them to the Prime Minister for his consideration and opinions before making a decision. Regarding the fields of science, technology, innovation and digital transformation, regulations of clause 1 Article 28 of this Law shall be applied.

4. Consolidate, formulate and submit state budget estimates, central government budget allocation plans, adjusted state budget estimates; state budget final accounts to the Government.

5. Consolidate and submit specific plans to allocate unallocated amounts specified in clause 3 Article 26 of this Law to the Prime Minister.

6. Decide assignment of specific state budget revenue collection and spending duties as decided by the Prime Minister and specific state budget revenue collection and spending duties for performance of sector management functions and duties to each ministry, ministerial agency, Governmental agency, another central agency and each province/city.

7. Organize the implementation of the state budget; uniformly manage and direct the collection of taxes, fees, charges, loans, other budget revenues, and international grants; organize provision of funding for covering state budget expenditures according to assigned estimates.

8. Preside over requesting the Prime Minister to consider deciding use of central government budget reverse in accordance with clause 4 Article 26 of this Law.

9. Take charge of formulating and submitting annul and 5-year public borrowing and repayment plans to competent authorities for approval.

10. Inspect finance – budget regulations of ministries, ministerial agencies, provincial People’s Councils, provincial People’s Committees and Chairpersons of provincial People’s Committees; in case regulations of such documents contravene the Constitution, laws and resolutions of the National Assembly, ordinances and resolutions of the Standing Committee of the National Assembly and documents of superior state agencies, proposals to take actions against such documents shall be made as per law.

11. Conduct financial-budgetary inspections, impose penalties for or request competent authorities to impose penalties in accordance with law for violations of financial-budgetary management regimes committed by ministries, ministerial agencies, Governmental agencies, other central and local agencies, economic organizations, administrative divisions, public service providers and other entities which are obliged to make payments to the state budget or use state budget.

12. Manage state budget funds, state reserve funds, state treasury fund and other funds of the State in accordance with law.

13. Prepare consolidated reports on and assess the efficiency in state budget expenditures on the basis of assessment reports made by ministries, ministerial agencies, Governmental agencies, other central and local agencies.

14. Disclose the state budget as prescribed in Article 15 of this Law.

Article 28. Duties and powers of the Ministry of Science and Technology

1. Decide to promulgate and request competent authorities to promulgate budget spending regimes, standards and norms applicable to the fields of science, technology, innovation and digital transformation.

2. Give guidance on, consolidate and propose state budget expenditure estimates in the fields of science, technology, innovation and digital transformation (including development investment expenditure and recurrent expenditure) made by ministries, ministerial agencies, Governmental agencies, other central and local agencies according to regulations of this Law, the Law on Public Investment and specialized sector and field laws, ensuring that total expenditure and expenditure structure are consistent with the Communist Party’s guidelines and the State’s laws, submit such estimates to the Ministry of Finance that will consolidate and send them to competent authorities for consideration and decision.

Article 29. Duties and powers of the State Bank of Vietnam

1. Cooperate with the Ministry of Finance in formulating and implementing plans for taking loans to offset state budget deficit.

2. Provide advance for the state budget to deal with the temporary shortage of the state budget fund as decided by the Prime Minister.

Article 30. Duties and powers of Ministries, ministerial agencies, Governmental agencies and other central agencies

1. Make their own annual budget estimates.

2. Cooperate with the Ministry of Finance, other Ministries and relevant agencies in consolidating annual state budget estimates, central government budget allocation plans, national 05-year financial plans, and annual budget final accounts of fields and sectors under their charge.

3. Inspect and supervise the budget implementation in the sectors and fields under their charge.

4. Report the budget implementation, results of and efficiency in the use of budget in the sectors and fields under their charge.

5. Promulgate techno-economic norms as the basis for performance-based budget management in the sectors and fields under their charge.

6. Cooperate with the Ministry of Finance in formulating budget spending regimes, standards and norms in the sectors and fields under their charge.

7. Manage, organize the implementation, finalize and disclose their assigned budgets; ensure that state budget revenues and expenditures are conformable to regulations of law and the state budget is efficiently used.

8. Ministers, heads of ministerial agencies, Governmental agencies and other central agencies shall exercise their assigned tasks and powers assigned to them in the field of finance – budget, provide explanations for functional authorities if requested and take responsibilities for violations under their management as per the law.

Article 31. Duties and powers of People’s Councils at all levels

1. Rely on the budget revenue collection and spending duties assigned by superior agencies and on local practical conditions to decide:

a) Estimates of state budget revenues collected in their localities, including domestic revenue, revenue from crude oil, revenue from export and import, and receipt of grant aid, which must not be lower than the state budget revenue estimates assigned by superior agencies;

b) Local government budget revenue estimates, including revenues fully retained and partially retained in the local government budget, transfers from higher-level budgets;

c) Local government budget expenditure estimates, including expenditures of their own budgets and those of lower level budgets, categorized as development investment expenditure, recurrent expenditure, interest repayment expenditure, expenditure on aid provision, transfers to financial reserve funds, budget reserve.

d) Total loans of local government budgets, including loans for offsetting local government budget deficit and loans for repayment of principal of local government budget.

2. Decide the allocation of their own budget estimates:

a) Total expenditure covered by their budget, including allocated and unallocated amounts; development investment expenditures and recurrent expenditures; transfers to local financial reserve fund; budget reserves;

b) Development investment expenditure and recurrent expenditure estimates of each affiliated agency and unit;

c) Transfers to the budgets of each immediate superior locality, including budget-balancing transfers and targeted transfers.

3. Ratify local government budget final accounts.

4.  Decide guidelines and measures for implementing local government budgets.

5. Decide to adjust local government budget estimates in accordance with Article 54 of this Law.

6. Supervise the implementation of budgets decided by People’s Councils.

7. Repeal legislative documents on finance – budget which contravene the Constitution, laws and resolutions of the National Assembly, ordinances and resolutions of the Standing Committee of the National Assembly, and documents of superior state agencies in accordance with regulations of law.

8. Decide the list of programs, duties, projects, other public investment objects under medium-term public investment plans using the state budget of the same level; decide local important investment programs and projects funded by the state budget.

9. In addition to the duties and powers specified in clauses 1 through 8 of this Article, provincial People’s Councils have the following duties and powers:

a) Decide local 05-year financial plans containing overall and specific objectives; capacity for collection of state budget revenues in their localities; local government budget revenues and expenditures, local government budget deficit and local government budget borrowing limits; major solutions for plan implementation;

b) Decide interest repayment expenditure, expenditure on aid provision, transfers to local financial reserve fund, local government budget deficit and sources for offsetting the state budget deficit on an annual basis;

c) Decide local government budget’s loan principal repayment sources;

d) Decide the decentralization of powers over revenue sources and spending duties between provincial budgets and commune-level budgets according to clause 3 Article 9 and Article 41 of this Law;

dd) Decide the percentage (%) of sharing between provincial budgets and commune-level budgets with regard to the revenues to be retained by local government budgets as prescribed in clause 2 Article 38 of this Law and revenues to be shared between provincial budgets and commune-level budgets;

e) Decide to collect fees, charges, and people’s contributions as prescribed by law; be entitled to impose some fees and charges not included in the List prescribed by the Law on Fees and Charges.

The imposition of fees and charges not included in the List specified in this point shall be within the local capacity and meet local development requirements; facilitate enterprises’ manufacturing and business; ensure the consistency in the market without obstruction of the movement of goods and services; reasonably regulate goods, services, and legal income of local organizations and individuals;

g) Decide principles, criteria and norms for allocation of local government budgets;

h) Decide or assign provincial People’s Committees to decide specific budget spending regimes, standards and norms according to framework regulations of the Government or the Ministry of Finance within the balancing capacity of local government budgets;

i) Decide to assign commune-level People’s Councils to issue budget spending regimes within management and balancing capacity of commune-level budgets;

k) Issue regulations on bonus for increase in revenues from provincial budgets to commune budgets;

l) Decide budget spending regimes to perform socio-economic development and welfare spending duties and ensure social order and safety in their localities in a manner that is appropriate to the actual situation and within the balancing capacity of local government budgets;

m) Make decision on aid granted.

10. The Government shall elaborate points h, l and m clause 9 of this Article.

Article 32. Duties and powers of People’s Committees at all levels

1. Make local government budget estimates and plans for allocation of their budgets according to clauses 1 and 2 Article 31 of this Law; make adjusted local government budget estimates in the cases specified in Article 54 of this Law and submit them to People’s Councils of the same level for decision.

According to resolutions of People’s Councils, commune-level People’s Committees shall report to provincial People’s Committees and finance authorities, and provincial People’s Committees shall report to the Ministry of Finance on local government budget estimates, adjusted local government budget estimates and plans for allocation of their budgets.

2. Make local government budget final accounts and submit them to People’s Councils of the same level for approval.

According to resolutions of People’s Councils, commune-level People’s Committees shall report to provincial People’s Committees and finance authorities, and provincial People’s Committees shall report to the Ministry of Finance on local government budget final accounts.

3. Decide plans for use of revenues in excess of those in estimates and remaining expenditure estimates of their budgets and report to standing People’s Councils of the same level on results of implementation or People’s Councils of the same level at the nearest meeting specified in clause 2 Article 61 of this Law.

4. Examine resolutions on finance – budget of inferior People’s Councils.

5. According to resolutions of People’s Councils of the same level, decide to assign:

a) Budget revenue collection and spending duties to each affiliated agency and unit; specific development investment expenditures on the fields of education-training and vocational training, science and technology, innovation and digital transformation; specific recurrent expenditure by each field;

b) Budget revenue collection and spending duties of, transfers to, lower-level budgets, and percentages (%) of revenue sharing between provincial budgets and commune-level budgets; development investment expenditures, recurrent expenditures on the fields of education-training and vocational training, science and technology, innovation and digital transformation.

6. Adjust local government budget estimates according to regulations in clause 3 Article 54 of this Law.

7. Arrange and allocate expenditure estimates in respect of unallocated amounts specified in point a clause 2 Article 31 of this Law and estimates of targeted transfers from higher level budgets in the year in a timely, efficient and effective manner that ensures compliance with regulations of law, and submit periodical reports thereon to standing People’s Councils, and also to People’s Councils of the same level at their nearest meeting.

8. Decide solutions and organize the implementation of local government budget estimates decided by People’s Councils; inspect and report the implementation of local government budgets.

9. Cooperate with superior state agencies in managing the state budget in their localities.

10. Report and disclose the state budget in accordance with law and other relevant laws.

11. Perform performance-based budget management as per the Government’s regulations.

12. Apart from the duties and powers specified in clauses 1 through 11 of this Article, provincial People’s Committees have the following duties and powers:

a) Decide specific budget spending regimes, standards and norms assigned by People’s Councils. Decide certain emergency budget expenditures on prevention, control and recovery from serious disaster, catastrophe, disease and report to People’s Councils at their nearest meeting;

b) Formulate and submit the documents prescribed in clause 9 Article 31 of this Law to People’s Councils of the same level;

c) Decide the use of financial reserve fund and other financial funds of the State in accordance with this Law and relevant regulations of law.

13. Direct local finance authorities to preside over and cooperate with relevant agencies in assisting People’s Committees in performing their duties as prescribed in clauses 1 through 12 of this Article.

14. Chairpersons of People’s Committees of various levels shall organize the performance of assigned duties and exercise of assigned powers in the field of finance – budget, provide explanations for functional authorities if requested and take responsibilities for violations under their management in accordance with law.

Article 33. Duties and powers of budget estimate units

1. Make annual budget revenue and expenditure estimates; allocate budget estimates assigned to them by competent authorities to their affiliated units and units assigned estimates according to regulations in clause 1 Article 51 of this Law and adjust the budget estimate allocation ratio within their jurisdiction.

2. Organize the implementation of their assigned budget revenue and expenditure estimates; fully and promptly transfer amounts payable to the state budget in accordance with law; ensure that every payment is properly made according to applicable regimes and policies, to serve the predetermined purposes and to correct beneficiaries in a thrifty and effective manner.

3. Provide guidance on and inspect the collection of budget revenues and payment of budget expenditures by their affiliated units and units assigned estimates according to clause 1 Article 51 of this Law.

4. Comply with regulations of law on accounting and statistics; report, finalize and disclose information on their budgets in accordance with law; approve final accounts of budgets of inferior budget estimate units.

5. In addition to the duties and powers prescribed in clauses 1 to 4 of this Article, public service providers are entitled to proactively use revenues from fee collection and other lawful sources to develop and improve quality and effectiveness of their operations in line with the Government’s regulations.

6. Public service providers and state agencies exercising autonomy and self-responsibility for their payrolls and funding shall promulgate internal spending regulations in conformity with their assigned budget estimates as per the law.

7. Heads of budget estimate units shall perform exercise their tasks and powers assigned to them in the field of finance – budget, provide explanations for functional authorities if requested and assume responsibilities for violations in the fields under their management in accordance with law.

Article 34. Duties and powers of investors

1. Exercise powers and assume responsibilities according to regulations of the Law on Public Investment.

2. Comply with regulations of law on contracts, accounting, statistics, reporting, finalization, disclosure and retention of project dossiers.

Article 35. Powers and obligations of agencies, organizations, units and individuals related to state budget

1. Sufficiently and punctually pay taxes, fees, charges, and other payables to state budget as prescribed by law.

2. In case aid, capital, or funding is provided by the State according to given budget estimates, such amounts must be managed and used properly in terms of purposes, regimes, thriftiness, efficiency, and financial statements must be submitted to finance authorities.

3. Adhere to regulations of law on accounting, statistics, and disclosure of budget.

4. Be provided with information, participate in public supervision of finance – budget as prescribed by law.

5. Take responsibilities for violations as per law.

Chapter III

REVENUE SOURCES AND SPENDING DUTIES OF VARIOUS LEVELS OF GOVERNMENT BUDGETS

Article 36. Sources of revenue of central government budget

1. The following revenues are wholly retained by central government budget:

a) Export and import duties, additional import duties;

b) Excise tax on imports;

c) Severance tax, corporate income tax, profits distributed to the home country and other revenues from petroleum exploration and extraction;

d) Grant aid provided by the Government of other countries, international organizations, other overseas organizations and individuals for Vietnam’s Government and State;

dd) All revenues from fees for services provided by a central state agency.  Fees for services provided by public service providers and organizations assigned by competent authorities to provide public services shall be transferred to the state budget as per law;

e) Fees collected by central state agencies, except for registration fees prescribed in point e clause 1 Article 38 of this Law;

g) Collected fines for administrative violations, other fines effected by central state agencies in accordance with law;

h) Revenues payable to state budget from operation and disposal of public property managed and disposed by central agencies, organizations and units in accordance with regulations of law on management and use of public property;

i) Proceeds from the recovery of central government budget capital invested in economic organizations; cash dividends and profits of joint-stock companies, multi-member limited liability companies that have state capital and ownership of which is represented by a Ministry, ministerial agency, Governmental agency, or an organization assigned by the Government; revenues from post-tax profit that remains after making contributions to various funds of enterprises 100% of charter capital of which is held by the State and ownership of which is represented by a Ministry, ministerial agency or Governmental agency; positive difference between revenue and expenditure of the State Bank of Vietnam after deducting risk provisions and making contributions as per law;

k) Revenues from central financial reserve fund;

l) Central government budget remainder revenues;

m) Revenues carried over from last year’s budget of central government budget;

n) Additional corporate income tax according to global anti-base erosion rules;

o) Revenues from overseas good and service providers;

p) Revenues from fees for processing of application for rights to use radio frequencies;

q) Other revenues prescribed by law.

2. Revenues shared by a percentage (%) between central government budget and local government budgets:

a) Corporate income tax, (except for corporate income tax on petroleum exploration and extraction and additional corporate income tax according to global anti-base erosion rules);

b) Personal income tax;

c) Excise tax, except for refund of special excise tax (if any) and Excise tax on imports;

d) Environment protection tax;

dd) Revenues from charges for granting mining right and fees for granting water resource extraction right by central competent agencies. Revenue shall be distributed as follows: 70% to central government budget, 30% to local government budget;

e) Value-added tax (excluding refunded value-added tax according to the Law on Value-Added Tax). Tax shall be distributed as follows: 70% to central government budget, 30% to local government budget. Collected VAT shall be distributed among administrative divisions according to applicable rules and criteria established by the Standing Committee of the National Assembly.

g) Levies on land, land rents, except for collected levies on land associated with property attached to land under the management of central agencies, organizations and units as prescribed in point h clause 1 of this Article. Regarding a local government that does not receive budget-balancing transfers, such amounts shall be distributed as follows: 20% to central government budget, 80% to local government budget. Regarding a local government that receives budget-balancing transfers, such amounts shall be distributed as follows: 15% to central government budget, 85% to local government budget;

3. The Government shall specify the percentage (%) of each revenue shared between central government budget and local government budget specified in points a, b, c and d clause 2 of this Article, ensuring the leading role of central government budget and long-term stability of local government budgets and submit them to the National Assembly for consideration and decision.

In case there are major fluctuations in state budget revenues and expenditures or large differences in state budget revenues and expenditures among administrative divisions and it is necessary to adjust the percentage (%) of revenues shared, the Government shall re-specify the percentage (%) of revenues shared as specified in points a,b,c,d,dd and g clause 2 of this Article and submit them to the National Assembly for consideration and decision.

Article 37. Spending duties of the central government budget

1. Development investment expenditure:

a) Investment in programs, projects and tasks, and other objects of public investment of Ministries, ministerial agencies, Governmental agencies, other central agencies, and state-owned enterprises as prescribed in law on public investment;

b) Investment in, and provision of financial support for, enterprises providing necessary and public products and services for society, enterprises in the fields that directly serve national defense and security, assigned or ordered by the State; economic organizations; financial institutions under management of central agencies; investment of state capital in enterprises under management of central agencies in accordance with law;

c) Other development investment expenditures prescribed by law.

2. National reserve expenditure.

3. Powers over recurrent expenditures of Ministries, ministerial agencies, Governmental agencies, and other central agencies are decentralized in the following fields:

a) National defense;

b) Security and social order and safety;

c) Education, training and vocational training;

d) Science, technology, innovation and digital transformation;

dd) Health, population, and family;

e) Culture and information;

g) Radio, television, press;

h) Physical training and sports;

i) Environmental protection;

k) Economic activities;

l) Activities of state management authorities, political organizations, Central Committee of Vietnam Fatherland Front and socio-political organizations affiliated to Central Committee of Vietnam Fatherland Front; provision of support for social organizations in accordance with law;

m) Expenditures on social security;

n) Other expenditures prescribed by law.

4. Expenditure on payment of interests on the loans taken by the Government.

5. Expenditure on aid provision as prescribed by the Government.

6. Expenditure on granting loans as prescribed by the Government.

7. Transfers to the central financial reserve fund.

8. Expenditures of central government budget carried over to the next year.

9. Budget-balancing transfers and targeted transfers to local government budgets.

Article 38. Sources of revenue of local government budgets

1. The following revenues are wholly retained by local government budgets:

a) Severance tax, except for that on petroleum exploration and extraction;

b) Levies on agricultural land;

c) Levies on non-agricultural land;

d) Rent for lease of water surface, fees for use of sea areas;

dd) Proceeds from the lease and sale of state-owned houses;

e) Registration fee;

g) Revenues from construction lottery;

h) Proceeds from the recovery of local government budget capital invested in economic organizations; cash dividends and profits of joint-stock companies, multi-member limited liability companies that have state capital and ownership of which is represented by a provincial People’s Committee; revenues from post-tax profit that remains after making contributions to various funds of enterprises 100% of charter capital of which is held by the State and ownership of which is represented by a provincial People’s Committee;

i) Revenues from local financial reserve funds;

k) Revenues payable to state budget from operation and disposal of public property managed and disposed by local agencies, organizations and units in accordance with regulations of law on management and use of public property;

l) Grant aid directly provided by international organizations, other organizations, overseas individuals for local governments;

m) All revenues from fees for services provided by local state agencies.  Fees for services provided by public service providers and organizations assigned by competent authorities to provide public services shall be transferred to the state budget as per law;

n) Fees collected by local state agencies;

o) Revenues from charges for granting mining right and fees for granting water resource extraction right by local competent agencies.

p) Collected fines for administrative violations, other fines effected by local state agencies in accordance with law;

q) Revenues from public land funds and other yields of public property;

r) Contributions of agencies, organizations and individuals as prescribed by law;

s) Local government budget remainder revenues;

t) Revenues carried over from last year’s budget of local government budgets;

u) Other revenues prescribed by law.

2. Percentage (%) of sharing between the central government budget and local government budgets as specified in clause 2 Article 36 of this Law.

3. Budget-balancing transfers and targeted transfers from the central government budget.

Article 39. Spending duties of local government budgets

1. Development investment expenditure:

a) Investment in programs, projects and tasks, and other objects of public investment falling under jurisdiction of local governments in accordance with regulations of law on public investment, and the spending duties specified in point d clause 5 Article 9 of this Law;

b) Investment in, and provision of financial support for, enterprises providing necessary and public products and services for society, ordered by the State; economic organizations; financial institutions under management of local agencies; investment of state capital in enterprises under management of local agencies in accordance with law;

c) Offsetting interest rate differences, management fees and grant of entrusted loans via policy banks for implementing socio-economic policies in localities;

d) Other development investment expenditures prescribed by law.

2. Powers over recurrent expenditures of local agencies and units are decentralized in the fields of:

a) Education, training and vocational training;

b) Science, technology, innovation and digital transformation;

c) National defense, security and social order and safety, the part assigned to localities for management; support for some central government budget spending duties;

d) Health, population, and family;

dd) Culture and information;

e) Radio, television;

g) Physical training and sports;

h) Environmental protection;

i) Economic activities;

k) Activities of state management authorities, political organizations, provincial-level and commune-level Vietnam Fatherland Front Committees and socio-political organizations affiliated to provincial-level and commune-level Vietnam Fatherland Front Committees; provision of support for social organizations in accordance with law;

l) Expenditures on social security;

m) Other expenditures prescribed by law.

3. Expenditure on payment of interests on the loans taken by local governments.

4. Transfers to local financial reserve funds.

5. Expenditure on aid provision as prescribed by the Government.

6. Expenditure on granting loans as prescribed by the Government.

7. Expenditures of local government budgets carried over to the next year.

8. Budget-balancing transfers and targeted transfers to commune-level budgets.

9. Expenditures on support for performance of some duties specified in points a, b and c and h clause 5 Article 9 of this Law.

Article 40. State budget expenditures covered by funding for public investment and funding for recurrent expenditures

1. Compensation, support, and relocation upon the State’s land appropriation or land requisition; preparation for  site clearance,  site clearance .

2. Costs for preparation, approval for public investment projects using ODA funds and/or foreign concessional loans.

3. Formulation, appraisal, approval of pre-feasibility study reports, investment policy proposal reports; formulation, appraisal, decision on investment in projects.

4. Procurement, repair, renovation, and upgradation of property and equipment; leasing of goods and services; repair, renovation, upgradation, expansion and new construction of work items of existing investment projects.

5. Planning.

6. Other necessary tasks.

7. The Government elaborates this Article.

Article 41. Principles of decentralizing powers over revenue sources and spending duties between provincial budgets and commune-level budgets

On the basis of revenue sources and spending duties of local government budgets prescribed in Articles 38 and 39 of this Law, provincial People’s Councils shall decide to decentralize powers over specific revenue sources, percentage (%) of revenue and spending duties sharing between provincial budgets and commune-level budgets in a manner that suits the decentralization of powers over socio-economic management, national defense and security in each field and economic, geographical and population characteristics, and managerial capacity of each region and locality.

Article 42. Determination of budget-balancing transfers

1. Local government budgets are entitled to use the revenues wholly retained and shared revenues with regard to shareable revenues, and budget-balancing transfers from higher level budgets to balance their revenues and expenditures to ensure the performance of the assigned socio-economic, national defense and security tasks.

2. Budget-balancing transfers shall be determined on the basis of:

a) Calculation of revenue sources and spending duties prescribed in Articles 36, 38 and 39 of this Law according to regulations of law on taxes, fees, charges and other budget revenues; budget allocation principles, criteria and norms, and budget spending regimes, standards and norms based on the criteria: population, natural conditions and socio-economic conditions of each region; paying attention to revolutionary base areas, areas inhabited by many ethnic minorities, disadvantaged areas and extremely disadvantaged areas; areas with large paddy acreage; protection forest and special-use forest areas; key economic areas;

b) Collected fees and charges not included in the List of fees and charges as prescribed in the Law on Fees and Charges in accordance with regulations in point e clause 9 Article 31 of this Law, collected land levies retained by local government budgets as specified in point g clause 2 Article 36 of this Law and revenues from construction lottery specified in point g clause 1 Article 38 of this Law are not used to determine balancing transfers from central government budget to local government budgets.

Article 43. Determination of targeted transfers

1. Targeted transfers from higher level budgets to lower level budgets shall be determined according to the budget allocation principles, criteria and norms, budget spending regimes, standards and norms; capacity of higher level budgets and budget-balancing capacity of each lower level locality.

2. Cases of targeted transfers from higher level budgets to lower level budgets:

a) Implementation of new policies or regimes promulgated by superior agencies which are yet to be included in annual budget estimates;

b) Implementation of national target programs and other programs and projects of superior agencies assigned to inferior agencies;

c) Provision of financial support for the remediation of consequences of widespread disasters, catastrophes and epidemics beyond the balancing capacity of the lower level budget;

d) Provision of support for execution of some programs and projects of national importance, key programs and projects which are necessary to boost local socio-economic development.

Chapter IV

MAKING OF STATE BUDGET ESTIMATES

Article 44. Bases for making annual state budget estimates

1. Tasks of socio-economic development, national defense and security assurance, foreign policy and gender equality.

2. Functions and duties of Ministries, ministerial agencies, Governmental agencies, and other central agencies and organizations, local agencies, organizations and units.

3.  Regulations of laws on taxes, fees and charges and other state budget revenues; state budget allocation norms and state budget spending regimes, standards and norms.

4.  Decentralization of powers over budget revenue sources and budget spending duties and percentage (%) of revenue sharing and budget-balancing transfers from higher level budgets to lower level budgets.

5. Legal documents of competent authorities and state agencies providing guidance on formulation of plans for socio-economic development and state budget estimates for the next year.

6.  05-year financial plans, state budget-funded medium-term public investment plans.

7. Implementation of the state budget of the previous year.

Article 45. Requirements for making of annual state budget estimates

1. State budget estimates shall be sorted by revenue, expenditure and the structure of development investment expenditure, recurrent expenditure, national reserve expenditure, interest repayment expenditures, expenditures on aid provision, transfers to financial reserve fund, budget reserve.

2. Budget estimates of budget estimate units and estimate of each budget level shall contain all revenues and expenditures according to the forms and time limits prescribe by competent state agencies. Where:

a) Budget revenue estimates are made on the basis of predicted macro-economic indicators and relevant indicators, regulations of law on taxes, fees, charges and other budget revenues;

b) Development investment expenditure estimates are made on the basis of planning, plans, programs, projects and spending duties approved by competent authorities as per law; 05-year financial plans; state budget-funded medium-term investment plans, capacity for balancing resources in the estimating year, regulations of law;

c) Recurrent expenditure estimates are made on the basis of sector and field development plans, programs, projects and schemes approved by competent authorities; spending regimes, policies, standards and norms (if any); other necessary spending duties that are already included in guidelines and plans of competent authorities and need fundings for execution.

The making of state budget estimates by state agencies exercising autonomy and self-responsibility for their payrolls and funding for administrative management; public service providers exercising autonomy and self-responsibility for performing their tasks and organizing their apparatus, payrolls and finance; funding for provision of services and collection of fees by state administrative agencies shall comply with the Government’s regulations;

d) Priority shall be given to allocating state budget expenditure estimates to the fields of education-training and vocational training, science and technology, innovation and digital transformation according the Communist Party’s guidelines and the State’s laws by each field;

dd) Expenditure estimates for execution of programs, schemes, projects and duties approved by competent authorities in multiple years are made on the basis of annual execution capacity and total funding approved (if any);

e) Debt repayment expenditure estimates are made on the basis of the payment of debts due in the estimating year;

g) Estimates of loans for offsetting state budget deficit are made on the basis of the state budget balance, capacity of each borrowing source and solvency and debt safety limit under the National Assembly’s resolution.

Article 46. Time for providing instructions on making, consolidating, deciding, and assigning state budget estimates

1. Before May 15, the Prime Minister shall promulgate regulations on formulating socio-economic development plans and state budget estimates of the next year.

2.  Before September 20, the Government shall submit the documents and reports mentioned in Article 49 of this Law to the Standing Committee of the National Assembly for its opinions, and then receive such opinions and complete these documents and reports to send them to the National Assembly.

3. The Government’s reports shall be sent to National Assembly deputies at least 20 days before the opening of the year-end meeting of the National Assembly.

4. Before November 10, the National Assembly shall make decision and issue a resolution on state budget estimates and central government budget allocation plan of the next year.

5. Before November 20, the Prime Minister shall assign the next year’s budget revenue and expenditure estimates to each of the Ministries, ministerial agencies, Governmental agencies, other central agencies, provinces and cities.

6. Before December 10, provincial People’s Councils shall decide local government budget estimates and allocation of provincial budget of the next year. Commune-level People’s Councils shall decide their next year’s local government budget estimates and allocation of their next year’s budget within 10 days from the date on which provincial-level People’s Councils decide budget estimates and budget allocation.

7. Within 05 working days from the day on which the People’s Council decides budget estimates, the People’s Committee of the same level shall assign the budget estimate of the next year to each of its affiliated agencies and units; and concurrently submit a report to the immediate superior People’s Committee and finance authority, the provincial People’s Committee shall report to the Ministry of Finance the budget estimates decided by the provincial People’s Council.

8. Before December 31, Ministries, ministerial agencies, Governmental agencies, other central agencies, and People’s Committees at all levels must finish assigning budget estimates to their affiliated agencies, units, and units assigned estimates according to clause 1 Article 51 of this Law and inferior People’s Committees.

Article 47. Responsibilities of agencies, organizations and units for making annual budget estimates

1. Each local government budget collecting agency shall make state budget revenue estimate within each locality and send it to superior budget collecting agency and finance authority in each locality. Central government budget collecting authorities shall make estimates of state budget revenues of their assigned fields and send them to the Ministry of Finance for consolidation and making of state budget estimates.

2. Budget use units and budget estimate units shall make budget revenue and expenditure estimates within the bounds of their assigned tasks, assume their responsibilities for documents and data reported to superior budget estimate units; level-I budget estimate units shall consolidate and take responsibilities for documents and data reported to finance authorities of the same level.

3. Local finance authorities at all levels shall consolidate and balance budget estimates of agencies, organizations and units at the same level and of inferior local governments; preside over and cooperate with relevant agencies in consolidating and making local government budget estimates and their budget allocation plans in accordance with clauses 1 and 2 Article 31 of this Law, then submit reports thereon to People’s Committees at the same level.

4. People’s Committees shall consolidate and make local government budget estimates and report them to standing People’s Councils at the same level for their consideration and opinions. Provincial People’s Committees shall send budget estimates to the Ministry of Finance and relevant agencies according to regulations for consolidation and making of state budget estimates for submission to the Government; also to National Assembly deputies’ delegations for supervision.

5. Central and local line management agencies shall cooperate with finance authorities at the same level in consolidating and making state budget estimates according to their assigned sectors and fields.

6. The Ministry of Finance shall consolidate and balance budget estimates of Ministries, ministerial agencies, Governmental agencies, other central and local agencies; preside over and cooperate with relevant Ministries and agencies in consolidating and making state budget estimates and central government budget allocation plans and submit them to the Government in accordance with Article 49 of this Law.

Article 48.  Discussing and deciding state budget estimates and annual budget allocation plans.

1. Ministries, ministerial agencies, Governmental agencies, other central agencies, local agencies, organizations and units shall hold discussions about estimates with their affiliated agencies and units.

2. Finance authorities at all levels shall preside over holding:

a) Discussions about budget estimates with agencies and units at the same level;

b) Provincial finance authorities shall discuss state budget revenue estimates, commune-level budget expenditure estimates and budget balancing transfers, targeted transfers from provincial budgets to commune-level budgets with commune-level People’s Committees;

c) The Ministry of Finance shall discuss state budget revenue estimates, local government budget expenditure estimates and budget balancing transfers, targeted transfers from central government budget to local government budgets with provincial-level People’s Committees.

3. During a discussion about a budget estimate or budget allocation plan, if there is any revenue or expenditure that is unlawful or unsuitable for the budget capacity and socio-economic development orientations, the finance authority shall request adjustment thereof. If there is any discrepancy in opinions between the finance authority and other agencies or units at the same level and inferior People’s Committee, the local finance authority shall report it to the People’s Committee at the same level for its decision; the Ministry of Finance shall report it to the Prime Minister for his decision.

4. Procedures for requesting the National Assembly to decide the state budget estimate and central government budget allocation plan shall be followed as follows:

a) The Government shall consider approving its draft reports submitted by the Ministry of Finance before submission to the Standing Committee of the National Assembly;

b) The Economic and Financial Committee of the National Assembly shall preside over verifying the Government’s reports submitted to the Standing Committee of the National Assembly, the National Assembly;

c) According to verification opinions of the Economic and Financial Committee of the National Assembly and opinions of the Standing Committee of the National Assembly, the Government shall complete the reports and submit them to the National Assembly;

d) The National Assembly shall discuss and decide the next year’s state budget estimate and central government budget allocation plan. In the course of discussing and deciding the state budget estimate and central government budget allocation plan, if budget revenues and expenditures are adjusted, the National Assembly shall decide solutions for maintaining the budget balance.

5. The Standing Committee of the National Assembly shall prescribe procedures for verification of state budget estimates and central government budget allocation plans by National Assembly agencies.

Article 49. Documents submitted by the Government to the National Assembly on state budget estimates and central government budget allocation plans

1. Assessment of implementation of current year’s state budget; bases for making of state budget estimates and allocation of the central government budget; basic contents and solutions for implementation of state budget estimates.

2. State budget revenue estimates enclosed with solutions for mobilization of revenue sources for the state budget.

3. State budget expenditure estimates, explicitly stating prioritized policies, important objectives and programs of the Communist Party and the State related to the state budget.

4. State budget deficit and offsetting sources; the ratio of the deficit to the gross domestic product.

5. National 05-year financial plan for the first year of the planning period.

6. Report on public debts in accordance with the Law on Public Debt Management, explicitly stating due debts, overdue debts, interests payable in the year, additional debts derived from loans for offsetting the state budget deficit, loans taken to repay principal of state budget loans, debt repayment capacity in the year and debts by the year end.

7. Report on implementation the financial plan, the next year’s financial plans of state off-budget financial funds under the management of central agencies;

8. Specific policies and measures for finance and state budget stabilization.

9. List, progress and the planning year’s investment estimates of state budget-funded key national programs and projects decided by the National Assembly;

10. Expenditure estimate of each of the Ministries, ministerial agencies, Governmental agencies, other central regulatory agencies sorted by field; revenue collection and spending duties, deficit level, and  transfers from the central government budget to the budget of each province or city.

11. Other documents clearly explaining estimates of state budget revenues and expenditures and central government budget allocation plan; fee, charge and tax exemption or reduction (if any) in the state budget estimate report submitted to the National Assembly.

Article 50. Re-making of state budget estimates

1. In case the state budget estimate and central government budget allocation plan are yet to be decided by the National Assembly, the Government shall re-make the state budget estimate and the central government budget allocation plan for submission to the National Assembly at the time decided by the latter.

2. In case the local government budget estimate and the plan for allocation of the budget of its level are yet to be decided by the People’s Council, the People’s Committee shall re-make such estimate and plan for submission to the People’s Council at the time decided by the latter which, however, must not be later than the time limit prescribed by the Government.

3. The Government shall prescribe the time limit for re-making the local government budget estimate specified in clause 2 of this Article.

Chapter V

IMPLEMENTATION OF THE STATE BUDGET

Article 51. Allocating and assigning state budget estimates

1. After receiving budget estimates allocated by the Prime Minister or People’s Committees, central and local level-I budget estimate units shall allocate and assign budget estimates to budget-using units under their management, units in charge of managing infrastructure property as prescribed in law on management and use of public property, units in charge of operating and maintaining infrastructure property, units assigned to perform tasks according to the Government’s regulations and units of lower level budgets if authorized to perform spending duties to be covered by their budgets, and submit reports thereon to finance authorities of the same level and to the State Treasury where transactions are conducted. Allocation and assignment of budget estimates must be made in a timely manner that meets the requirements laid down in Article 52 of this Law.

2. The finance authorities of the same level shall examine estimates assigned by level-I budget estimate units to budget-using units in terms of its total amount and details specific to each field; funding included in estimates for tasks and projects decided by the Prime Minister or People’s Committees. If it is detected that the allocation is against the assigned budget estimate in terms of its total amount and details specific to each field and task, they shall request level-I budget estimate units to make an adjustment within 10 working days from the date of receiving the latter’s allocation report. After the adjustment, level-I budget estimate units shall send them to finance authorities of the same level and State Treasury for implementation.

3. Apart from the agencies competent to assign budget estimates, no other organization or individual may change the assigned budget tasks.

Article 52. Requirements and time limits for allocation and assignment of state budget estimates

1. The allocation and assignment of budget estimates to budget-using units must ensure:

a) Conformity with the assigned budget estimates in terms of their total amount and details specific to each field and assigned revenue collection and spending duty;

b) Conformity with spending policies, regimes, standards and norms;

c) Allocation of sufficient capital and funding for recovery of amounts to cover expenditures included in the estimate when they become due in the year, and reciprocal capital for projects funded by official development assistance (ODA) of foreign donors under commitments;

d) For allocation of development investment capital, satisfaction of requirements prescribed by the Law on Public Investment, the Law on Construction and other relevant laws;

dd) For allocation of targeted transfers from higher level budgets to lower level budgets, achievement of correct targets, serving of correct beneficiaries and proper implementation of commitments or regulations on allocation of local government budgets for those targets.

2. Time limits for allocating and assigning state budget estimates:

a)  For budget estimates assigned under clauses 5 and 7 Article 46 of this Law, level-I budget estimate units must complete the budget allocation and assignment to their budget-using units before December 31 of the previous year in accordance with clause 8 Article 46 of this Law;

b) In case additional budget estimates are assigned, within 10 working days from the date of receiving the additional budget estimates, higher level budget estimate units and inferior People’s Committees must complete the allocation and assignment of these estimates as per regulations. Inferior People’s Committees shall send reports to People’s Councils of the same level at their nearest meetings on decision on assignment of additional budget estimates.

Article 53. Temporary allocation of state budget-derived funding

1. Cases of temporary allocation of state budget-derived funding:

a) At the beginning of the budget year, the National Assembly or the People’s Council has not yet decided budget estimates; or the Prime Minister, the People’s Committee has not yet assigned budget estimates;

b) In the budget year, competent authorities must be required to decide to adjust or re-determine budget estimates of Ministries, ministerial agencies, Governmental agencies, other central and local agencies.

2. Finance authorities and State Treasuries shall be responsible for temporarily allocating state budget-derived funding to perform spending duties which cannot be delayed. To be specific:

a) Payment of salaries and salary-like amounts;

b) Provision of public services and performance of official duties;

c) Provision of budget-balancing transfers to lower level budgets;

d) Other necessary funding for the operation of the state apparatus, except for equipment procurement and repair;

dd) Provision of funding for transitional projects of national target programs and for projects of national importance; and for other important and urgent transitional investment projects to remedy consequences of disasters, catastrophes and epidemics.

3. The maximum monthly temporarily allocated funding for the tasks prescribed in points a, b, c and d clause 2 of this Article must not exceed the monthly average expenditure of the previous year.

4. Government shall report expenditures on programs and projects funded by ODA and concessional loans from donors which have not been estimated or exceed the assigned estimates to the Standing Committee of the National Assembly for its opinions before enactment and to the National Assembly at its nearest meeting.

Article 54. Adjustment of state budget estimates

1. The Government shall make an overall adjustment to the state budget estimate in case of changes that lead to increase in loans or state budget deficit compared to the allocated estimate which requires overall adjustment and submit it to the National Assembly for its decision. According to the National Assembly’s resolution on adjustment of the state budget estimate and budget revenue collection and spending duties assigned by superior authorities, People’s Committees at all levels shall make adjustments to local government budget estimates and submit them to the People’s Councils at the same level for decision.

2. The Government shall decide to adjust revenue and expenditure estimates of some Ministries, ministerial agencies, Governmental agencies, other central agencies, provinces and cities without increase in total loan and state budget deficit, and periodically report to the Standing Committee of the National Assembly and to the National Assembly at its nearest meeting in the following cases:

a) The revenue is expected to be higher than or lower than estimated and thus spending duties in the state budget estimate decided by the National Assembly have to be adjusted accordingly;

b) Adjustments to structure of development investment expenditure, recurrent expenditure or expenditure have been decided by the National Assembly;

c) The adjustment is made in case of an imperative of national defense or security requirements or for objective reasons.

d) Total loans and budget deficits of all local government budgets after adjustment do not exceed the maximum permissible loan and budget deficits of local government budgets decided by the National Assembly.

3. People’s Committees at all levels shall decide to adjust local government budget estimates and periodically report to standing People’s Councils and People’s Councils at their nearest meetings in the following cases:

a) The revenue is expected to be higher than or lower than estimated and thus spending duties in the state budget estimate decided by the People’s Council have to be adjusted accordingly;

b) Adjustments to structure of development investment expenditure, recurrent expenditure or specific expenditure estimates assigned by People’s Committees or expenditure have been decided by People’s Councils;

c) The adjustment is made in case of an imperative of national defense or security requirements or for objective reasons.

d) The Government decides to adjust budget estimates according to regulations in clause 2 of this Article.

dd) There is a need to adjust the budget estimates of some budget estimate units or localities at lower level.

4. The Government shall request the provincial People’s Councils to adjust their budget estimates if the allocation of local government budgets fails to conform to the National Assembly’s resolution.

5. Provincial-level People’s Committees shall request commune-level People’s Councils to adjust their budget estimates if the allocation of local government budgets fails to conform to the resolutions of provincial-level People’s Councils.

Article 55.  Adjustment to budget estimates assigned to budget-using units

1. A level-I budget estimate unit shall adjust the budget estimate assigned to a budget-using unit in the following cases:

a) The budget estimate is adjusted as prescribed in Article 54 of this Law;.

b) The finance authority requests the level-I budget estimate unit to adjust the estimate as prescribed in clause 2 Article 51 of this Law;

c) It is required to adjust budget estimates assigned to budget-using units within the total amount and details specific to each assigned expenditure.

2. The estimate adjustment must satisfy requirements for estimate allocation and assignment specified in clause 1 Article 52 of this Law. After adjusting any estimate, level-I budget estimate units shall send the adjustment to the finance authority at the same level for examination and to the State Treasury where the transaction is made for implementation.

3. Estimates assigned to budget-using units must be completely adjusted before November 15 of the current year; adjustments to pubic investment plans shall comply with regulations of the Law on Public Investment.

Article 56. Organization of state budget management

1. Agencies, organizations, units, and individuals have the responsibility to, within the bounds of their duties and powers, work out necessary solutions for ensuring the fulfillment of the assigned budget revenue collection and spending duties, practice thrift and combat waste and corruption; strictly adhere to financial rules and maintain financial discipline.

2. All agencies, organizations, units and individuals must fulfill their budget payment obligation in accordance with law; use state budget-derived funding for their intended purposes, according to prescribed regimes and in an economical and efficient manner.

3. Finance authorities have the responsibility to provide sources of funding for timely payment of expenditures as estimated.

Article 57. Organization of collection of state budget revenues

1. Only budget revenue-collecting authorities may organize the collection of budget revenues.

2. Budget revenue-collecting authorities have the following duties and powers:

a) Cooperate with other relevant state agencies in organizing the collection of revenues in a proper, adequate and timely manner as prescribed by law; comply with the direction and inspection by the Ministry of Finance, superior managing agencies, People’s Committees and supervision by People’s Councils; cooperate with the Vietnamese Fatherland Front and its member organizations in encouraging organizations and individuals to fulfill their budget payment obligation in accordance with this Law and relevant regulations of law;

b) Organize management and collection of taxes, fees, charges, and other budget revenues directly payable to the State Treasury. Make payments to the State Treasury in full and on schedule according to regulations of the Ministry of Finance in the event of authorized collection;

c) Inspect the sufficient and punctual payment of amounts payable to state budget by agencies, organizations, units and individuals;

d) Examine and control sources of budget revenues; examine and inspect the adherence to regulations on budget declaration, budget revenue collection and budget payment and impose penalties for violations in accordance with law.

3. State Treasuries may open accounts at the State Bank of Vietnam and commercial banks to collect state budget revenues; include revenues sufficiently and promptly in the budget and regulate the revenues among various levels of budgets as prescribed.

Article 58. State budget payment organization

1. Capital or funds may be advanced for investment projects and other urgent spending duties with a view to performance of jobs under signed contracts. The advanced capital depends on the contract value, must not exceed the assigned budget estimate, and must comply with relevant regulations of law. Advanced capital and funding shall be recovered when the completed volume or duties are paid for.

2. Lower level budgets may receive advance from higher level budgets to perform spending duties according to the assigned budget estimates where necessary.

3. According to assigned budget estimates and requirements for duty performance:

a) Heads of budget-using units shall be responsible for management and use of budgets in accordance with regulations of law, within the assigned estimates, in an effective and economical manner, and according to expenditure conditions specified in clause 2 Article 12 of this Law, and withdrawal of money at the State Treasury where transactions are conducted;

b) Inferior finance authorities shall withdraw transfers from higher level budgets at State Treasuries.

4. As requested by budget-using units, State Treasuries where transactions are conducted shall provide funding for covering state budget expenditures when such expenditures are included in budget estimates assigned by competent authorities or in case of temporary allocation according to regulations in Article 53 of this Law.

5. The Government elaborates this Article.

Article 59. Advancing next year’s budget estimates

1. Budgets at all levels may receive advance funding from next year’s budget estimates to execute important and urgent programs, tasks and projects decided by competent authorities. The advanced funding must not exceed 30% of total estimated expenditure on these programs, tasks and projects. Upon allocation of the next year’s budget estimate, the advance funding must be recovered in full. Otherwise, next year’s budget estimate is not permitted to be advanced.

2. The Government shall elaborate on principles, criteria and conditions for advancing next year’s budget estimates.

Article 60. Handling of temporary shortage of the state budget fund

1. If the central government budget fund faces a temporary shortage, it may receive advance from the central financial reserve fund, state treasury fund and other lawful financial sources to have the shortage handled; if the financial reserve fund, state treasury fund and other sources cannot cover such advance, the State Bank of Vietnam shall provide advance to central government budget under a decision of the Prime Minister. Advance from the State Bank of Vietnam shall be reimbursed within the budget year, except for special cases decided by the Standing Committee of the National Assembly.

2. If a provincial budget fund faces a temporary shortage and has not yet met spending needs according to the estimate, it may receive advance from the local financial reserve fund, central financial reserve fund, central government budget and other lawful financial sources to have the shortage handled and such advance shall be reimbursed within 12 months from the date of advance payment.

3. If a commune-level budget fund faces a temporary shortage and has not yet met spending needs according to the estimate, it may receive advance from the provincial financial reserve fund, provincial budget and other lawful financial sources to have the shortage handled and such advance shall be reimbursed within 12 months from the date of advance payment.

Article 61. Handling of increases or decreases in revenues and expenditures compared to budget estimates during implementation of the state budget

1. The revenue is expected to be higher than or lower than the estimated revenue as decided by the National Assembly or a People’s Council, the Government or a People’s Committee shall decide to adjust spending duties in accordance with regulations in point a clause 2 and point a clause 3 Article 54 of this Law.

2. At the end of the budget year, the increase in revenue compared to budget estimate and remaining expenditure estimate of a state budget shall be used to:

a) Reduce deficit, increase debt repayment, including principal and interest;

b) Increase state budget reserves within the limit specified in clause 1 Article 10 of this Law and financial reserves within the limit specified in clause 1 Article 11 of this Law;

c) Supplement sources for implementation of wage policies;

d) Increase expenditures on investment in some important projects;

dd) Implement some social security policies;

e) Perform the tasks prescribed in clause 3 and clause 4 of this Article.

The Government shall decide use of the increase in revenue compared to budget estimate and remaining expenditure estimate of the central government budget and report the use result to the Standing Committee of the National Assembly and to the National Assembly at its nearest meeting. Each People’s Committee shall decide use of the increase in revenue compared to budget estimate and remaining expenditure estimate of its budget and report the use result to the standing People’s Council of the same level and to the People’s Council of the same level at its nearest meeting.

3. Bonus for revenues in excess of those in the estimate:

a) If the revenues are higher than those in the estimate due to the increases in revenues distributed as prescribed in points a, b, c and d clause 2 Article 36 of this Law and the central government budget does not face a deficit, the central government budget shall set aside an amount not more than 20% of the increase in revenues as bonus for localities that have revenue increases; however, the bonus must not exceed the last year’s increase in revenues;

b) If export and import duties on goods traded across land borders collected by a local government budget are higher than the target set by a central authority, the central government budget shall set aside an amount not more than 10% of the increase in revenues as bonus for localities that have revenue increases; however, the bonus must not exceed the last year’s increase in revenues;

c) According to the level of bonus decided by the Government, the provincial-level People’s Committee shall decide to use the bonus to make investment in construction of infrastructure programs and projects, performance of important tasks, and issuance of bonus to commune-level budgets;

d) Provincial People’s Committees shall submit the regulations on issuance of bonus for increase in revenues shared between provincial budgets and commune-level budgets to the People’s Councils at the same level.

4. In case of allocation of increase in revenue compared to budget estimate and remaining expenditure estimate of the budget to programs, tasks and projects not included in the medium-term public investment plan, the allocation shall comply with the Government’s regulations.

5. At the end of the budget year, if the local government budget faces a deficit compared to the estimate for an objective reason and cannot be balanced after reduction in spending duties as prescribed in clause 1 of this Article and use of other local lawful financial resources, the lower level budget may receive support from the higher level budget within the latter’s capacity.

Article 62. State budget implementation report

1. Tax agencies and customs agencies at various levels shall submit periodic reports to finance authorities and relevant agencies on collection of state budget revenues as prescribed by law.

2. State Treasuries shall submit periodic reports to finance authorities and relevant agencies on collection of state budget revenues and payment of state budget expenditures as prescribed by law.

3. Level-I budget estimate units shall submit periodic reports to finance authorities and relevant agencies on collection of state budget revenues and payment of state budget expenditures as prescribed by law.

4. Local finance authorities at all levels shall submit periodic reports to People’s Committees at the same level and relevant agencies on collection of state budget revenues and payment of state budget expenditures; submit reports on use of targeted transfers from the higher level budget to superior finance authorities as prescribed by law.

5. People’s Committees shall submit to standing People’s Councils and People’s Councils of the same level reports on the issues mentioned in clause 3 Article 54 and clause 2 Article 61 of this Law; to People’s Councils at the same level reports on implementation of local government budgets at their year-end meeting, and additional assessment reports at their nearest regular meeting in the following year.

6. Inferior People’s Committees shall submit periodic reports on collection of local government budget revenues and payment of local government expenditures to superior finance authorities. Provincial People’s Committees shall submit periodic reports on collection of state budget revenues within their provinces and on collection of local government budget revenues and payment of local government expenditures to the Ministry of Finance.

7. The Ministry of Finance shall submit periodic reports to the Government and related agencies on collection of state budget revenues and payment of state budget expenditures in accordance with law.

8. The Government shall submit reports on the issues mentioned in clause 2 Article 54 and clause 2 Article 61 of this Law to the Standing Committee of the National Assembly; the Government shall submit to the National Assembly reports on collection of state budget revenues and payment of state budget expenditures at its year-end meeting and additional assessment reports on collection of budget revenues and payment of budget expenditures at its nearest regular meeting in the following year.

Article 63.  Budget management and use by budget-using units

1. Heads of budget-using units shall take responsibilities for management and use of their budgets, assessment of the performance of the tasks according to the assigned estimates, and assurance of efficiency, frugality and adherence to budget expenditure policies, regimes, standards and norms.

2. Persons in charge of finance and accounting of budget-using units have the responsibilities to adhere to regimes for finance – budget management, laws on accounting and regulations on internal inspection, and to prevent, discover violations against regulations on finance – budget management within their units, and request heads of units to take actions against violations, if necessary, request superior management units or finance authorities at the same level to take actions as per law.

Article 64. Management of the State Treasury fund

1. The State Treasury fund refers to all amounts in Vietnamese Dong and foreign currencies of the State on the accounts of the State Treasury opened at the State Bank of Vietnam and commercial banks, and cash in State Treasury units. State funds are derived from budget funds of various levels and deposits of financial reserve funds, state off-budget financial funds and economic units and organizations at the State Treasury.

2. The State Treasury performs the centralized and uniform management of the State Treasury fund to adequately and promptly meet the payment needs of the state budget and units making transactions at the State Treasury; and ensure safety and efficiency of state funds. The State Treasury shall open payment accounts at the State Bank and commercial banks to manage and use State Treasury fund.

3. Management and use of State Treasury fund shall comply with the Government’s regulations.

Chapter VI

ACCOUNTING, AUDIT AND FINALIZATION OF STATE BUDGET

Article 65. Accounting and finalization of state budget

1. Agencies, organizations and units related to state budget revenues and expenditures shall account, report, and finalize the state budget in accordance with the law on accounting and this Law.

2. Finance authorities are entitled to suspend budget expenditures of budget estimate agencies, organizations and units at the same level that fail to observe the reporting regimes for accounting, finalization and other financial statements, and shall take responsibilities for their decisions.

3. State Treasuries shall account the state budget; aggregate state budget revenues and expenditures; submit reports to finance authorities at the same level and relevant agencies according to regulations.

Article 66. Year-end settlement of state budget revenues and expenditures

1. At the end of a budget year, agencies, organizations and units related to state budget revenues and expenditures shall close accounting books and make statements of state budget final accounts.

2. The deadline for adjusting state budget final accounts is January 31 of the next year.

3. Estimated expenditures, including transfers in the year which have not been made or made in full at the end of the budget year, including the time for adjustment of state budget final accounts prescribed in clause 2 of this Article, must be cancelled, except for certain expenditures carried over to the next year for implementation and recorded in the next year’s budget:

a) Estimates added by the Prime Minister, People’s Committees at all levels after September 30 of the year of estimate implementation, except for cases where spending duties are completely performed;

b) Expenditures on development investment carried over to the next year’s budget with regard to public investment capital plans with extended implementation and disbursement periods in accordance with the Law on Public Investment;

c) National target programs that are being implemented according to the National Assembly’s resolution until the end of December 31 of the following year;

d) Expenditures on procurement of goods, use of services, repair, renovation, improvement, expansion, and new construction of work items of projects that have been invested in, commissioned or assigned with adequate documentation, for which contracts have been concluded or bidding has been completed in accordance with regulations of the law on bidding by December 31 of the year of budget estimate implementation;

dd) Sources for implementation of policies on salary, allowances, subsidies and other salary-based amounts; sources for implementation of social security policies;

e)  Revenues of which public service providers and state agencies are given autonomy;

g) Expenditures on science, technology, innovation and digital transformation;

h) National reserve expenditures;

i) Expenditures on provision of aid for foreign Governments to which budget estimates have been allocated by competent authorities;

k) Expenditures derived from grant aid provided for Vietnam’s State; financial assistance and voluntary contributions whose specific spending duties have been determined;

l) Funding to be refunded to higher level budgets as concluded or recommended by audit or inspection authorities.

4. The increase in revenue compared to budget estimate and remaining expenditure estimate of the budget shall be used in accordance with regulations in clause 2 Article 61 of this Law, such amounts may be carried over to next year’s budget if permitted by a competent authority.

5. The Government elaborates this Article.

Article 67. Requirements for finalization of state budget

1.  Data on state budget final accounts must be accurate, truthful, and adequate.

2. Final accounts of state budget revenues are the revenues which have been actually paid and accounted for as state budget revenues as per regulations. Revenues of the previous years’ budgets which are paid to the next year’s budget shall be accounted for as revenues of the current year’s budget. Final accounts of state budget expenditures are the expenditures which have been actually paid and accounted for as state budget expenditures as per regulations.

3. Figures in final accounts of budgets of budget-using units and project owners and of lower level budgets shall be compared and confirmed by State Treasuries where transactions are made.

4. Contents of statements of state budget final accounts must be conformable with those of the assigned state budget estimates and state budget entries. Expenditures from grant aid shall be finalized according to actual disbursement

5.  In the statements of final accounts of commune-level budgets, budget expenditures must not be higher than budget revenues.

6. Statements of final accounts of budget-using units, superior budget estimate units and budgets of various levels shall be enclosed with explanations and assessments of results and efficiency of budget expenditures against results of task performance of the units and localities and assigned fields, programs and targets under their charge.

7. Statements of final accounts of state off-budget financial funds shall be enclosed with explanations and assessments of results and efficiency of task performance of these funds.

8. Unlawfully collected state budget revenues shall be refunded to the payers; pending state budget revenues shall be fully and promptly collected; state budget-derived payments unlawfully made shall be recovered in a full and prompt manner; amounts payable to higher level budgets shall be promptly paid;

Article 68.  Making of state budget final accounts by budget-using units and project owners

1. Each unit assigned the budget estimate specified in clause 1 Article 51 of this Law shall make final accounts of its state budget revenues and expenditures and send them to the immediate superior budget estimate agency or the estimate-assigning unit. If the budget-using unit is currently the level-I budget estimate unit, final accounts of its state budget revenues and expenditures shall be made and submitted to the finance authority of the same level.

2. The project owner of a development investment program or project or a national target program or project of national importance shall:

a)  At the end of the budget year, make a statement of final accounts of all used capital sources and state budget capital and report on the use of capital and the value of volume of completed works which have been paid in the year, and send them to the agency paying development investment capital, the superior agency of the project owner, and the finance authority at the same level;

b)  When the development investment program or project or national target program or project of national importance is completed, make statements of final accounts of all capital sources and state budget capital together with explanatory reports on the use of the capital, and send them to the agency paying development investment capital and the agency competent to approve finalization statements of development investment works and the program or project as per regulations;

c) For a national target program or project of national importance whose investment guidelines are decided by the National Assembly, in addition to the regulations prescribed in points a and b of this clause, make a finalization statement and submit it to the Government for consideration and submission to the National Assembly.

Article 69. Approval of state budget final accounts

1. Each immediate superior budget estimate agency of a budget-using unit or estimate-assigning unit shall approve or issue notification of approval for final accounts of the budget-using unit under its management or the estimate-assigning unit according to clause 1 Article 51 of this Law.

2. Final accounts shall be approved as follows:

a) Each revenue and expenditure arising in a unit shall be examined in order to meet conditions for collection of state budget revenues and payment of state budget expenditures specified in Article 12 of this Law and accounted for in accordance with the law on accounting, the state budget revenue entries and on schedule;

b) Figures in statements of final accounts must match figures in accounting books and figures verified by the State Treasury.

3. When approving final accounts, the approving agency is entitled to:

a) Request the State Audit Office of Vietnam or hire an independent audit organization in accordance with the audit law to audit statements of final accounts of large-scale target projects and programs to have more bases for the approval;

b) Request the unit to provide explanations or information and data necessary for the approval;

c) Request the unit to immediately pay amounts payable to the state budget according to regulations and remove payments which have been made against regulations or the approved estimates; take punitive actions or request a competent authority to take punitive actions against the violations committed by the head of the unit making payments against regulations, causing loss to the state budget;

d) Correct errors or request the inferior unit to re-make the statement of final accounts where necessary.

4. The head of a unit approving final accounts shall assume responsibility for results of final account approval and incur penalties as prescribed by law in case he/she has detected violations but failed to impose penalties therefor.

5. In case the level-I budget estimate unit is also a budget-using unit, the unit making statements of final accounts shall send statements of final accounts to a finance authority to inspect the adequacy and consistency between the figures in the statements and confirmation by the State Treasury. The head of the unit shall be responsible for his/her unit’s budget final accounts.

6. The Government elaborates this Article.

Article 70. Consolidation of state budget final accounts

1. Agencies consolidating final accounts:

a) Superior budget estimate units shall consolidate statements of state budget final accounts that have been approved in accordance with regulations in clause 2 Article 69 of this Law under their management and submit them to their immediate superior budget estimate units; level-I budget estimate units shall submit statements of state budget final accounts to finance authorities of the same level;

b) Finance authorities at all levels shall inspect final accounts of level-I budget estimate units of the same level in terms of the adequacy and consistency between the figures in the final accounts and confirmation by the State Treasury; consolidate annual final accounts of level-I budget estimate units funded by the budgets of their respective levels and annual final accounts of lower level budgets.

2. During consolidation of state budget final accounts, if any error is detected, finance authorities shall request level-I budget estimate units of the same level; the Ministry of Finance shall request provincial-level People’s Committees to recommend provincial-level People’s Councils to adjust local government budget final accounts; provincial finance authorities shall request commune-level People’s Committees to recommend provincial-level People’s Councils to adjust commune-level budget final accounts.

In case of detection of any violation, superior budget estimate units or finance authorities shall deal with such violation within their jurisdiction or request a competent authority to do so.

Article 71. Time limits and procedures for making final accounts of local government budgets

1. On the basis of results of approval and consolidation of budget final accounts of level-I budget estimate units of its level and statements of final accounts of lower level budgets approved by the People’s Council, the local finance authority shall consolidate and make final accounts of the local government budget and submit them to the People’s Committee at the same level.

2. The People’s Committee shall report final accounts of the local government budget to the standing People’s Council at the same level for its opinions, and then receive such opinions and complete final accounts before submitting them to the People’s Council.

3. The commune-level People’s Council shall consider and approve the statement of final accounts of the budget of its level by March 31 of the next year and submit it to the provincial-level People’s Committee within 05 working days from the date on which such statement is approved. The provincial-level People’s Committee shall consolidate and make a statement of final accounts of the local government budget and submit it to the Ministry of Finance, the State Audit Office before May 01 of the next year, and to the provincial-level People’s Council for approval before July 01 of the next year.

4. In case final accounts of local government budgets of all levels are yet to be approved by the People’s Council, the People’s Committee at the same level shall keep clarifying the contents requested by the People’s Council and submit them again at the time decided by the People’s Council, which, however, must be within 10 working days.

Article 72. Time limits and procedures for making state budget final accounts

1. Level-I budget estimate units of the central government budget shall make statements of final accounts of budget revenues and expenditures under their management and submit them to the Ministry of Finance and the State Audit Office of Vietnam before July 05 of the next year.

2. Provincial-level People’s Committees shall submit statements of final accounts of the local government budgets approved by provincial-level People’s Councils to the Ministry of Finance and the State Audit Office of Vietnam before July 05 of the next year.

3. The Ministry of Finance shall consolidate and make statements of state budget final accounts and submit them to the Government and the State Audit Office of Vietnam before August 15 of the next year.

4. The Government shall report to the Standing Committee of the National Assembly on state budget final accounts by September 20 of the next year for its opinions and then receive such opinions and complete such state budget final accounts before they are submitted to the National Assembly.

5. The National Assembly shall consider and approve state budget final accounts within 12 months after the end of the budget year.

6. Procedures for verification of state budget final accounts by the National Assembly’s agencies for approval shall be provided for by the Standing Committee of the National Assembly.

7. In case state budget final accounts are not approved by the National Assembly, the Government shall, within the bounds of its duties and powers, and the State Audit Office of Vietnam shall keep clarifying the contents requested by the National Assembly for submission to the National Assembly at the time decided by the National Assembly.

Article 73. Auditing statements of final accounts of the state budget and local government budgets

1. The State Audit Office of Vietnam shall audit statements of state budget final accounts before submitting it to the National Assembly for consideration and approval.

2. The State Audit Office of Vietnam shall audit statements of final accounts of local government budgets before sending them to provincial-level People’s Councils for consideration and approval.

Article 74. Handling of state budget remainders

1. Central and provincial budget remainders shall be used to pay principals and interests of loans of the state budget. If the remainder still remains, 50% of it shall be transferred to the financial reserve fund at the same level and the other 50% shall be carried forward to the next fiscal year for budget revenues of the subsequent year; if the financial reserve fund has reached 25% of the annual budget expenditure estimate, the rest of the remainder shall be included in next year’s budget revenue. Commune-level budget remainders shall be included in next year’s budget revenue.

2. The Government elaborates this Article.

Article 75. Handling of unlawful state budget revenues and expenditures after state budget final accounts are approved

In case any unlawful budget revenues or expenditures are found or inspections or audits are proposed after final accounts of the state budget have been approved by the National Assembly and final accounts of provincial and commune-level budgets have been approved by People’s Councils, clause 8 Article 67 of this Law shall apply and such revenues or expenditures shall be finalized in the budget of the year in which they are dealt with.

Chapter VII

IMPLEMENTATION CLAUSES

Article 76. Guidelines for implementation of some special regulations

1. Pursuant to regulations of this Law, the Government shall provide regulations on management and use of budget for some activities of the Communist Party of Vietnam, some activities in the fields of national defense, security and external affairs, and some specific finance – budget mechanisms and policies applicable to Ho Chi Minh City, some provinces and central cities, and special economic – administrative divisions, report them to the Standing Committee of National Assembly for its opinions before implementation, and to the National Assembly at its nearest meeting.

2. Post-tax profit that remains after contribution to funds and distributed profit in proportion to state capital in state-owned enterprises shall be transferred to state budget according to regulations of the law on management and use of state capital in enterprises

3. Some regulations of the Law on Fees and Charges No. 97/2015/QH13 amended by the Law No. 09/2017/QH14, the Law No. 23/2018/QH14, the Law No. 72/2020/QH14, the Law No. 16/2023/QH15, the Law No. 20/2023/QH15, the Law No. 24/2023/QH15, the Law No. 33/2024/QH15, the Law No. 35/2024/QH15, the Law No. 47/2024/QH15, the Law No. 60/2024/QH15 and the Law on Employment shall be amended as follows: At clause 1 Article 12, the phrase “trường hợp cơ quan nhà nước được khoán chi phí hoạt động từ nguồn thu phí thì được khấu trừ, phần còn lại nộp ngân sách nhà nước” (in case a state agency is permitted to use the collected fees to cover its operating expenses, they may be excluded from the amount transferred to state budget) shall be annulled.

Article 77. Implementation clauses

1. This Law comes into force from the budget year 2026, except for the case specified in clause 3 of this Article.

2. The Law on State Budget No. 83/2015/QH13 amended by the Law No. 59/2020/QH14 and the Law No. 56/2024/QH15 will cease to be effective from the effective date of this Law.

3. Some regulations in this Law will prevail from July 01, 2025:

a) Decentralization of powers over spending duties among provincial budgets and commune-level budgets in the fields of science, technology, innovation and digital transformation;

b) Consolidation and making of state budget estimates for the fields of science, technology, innovation and digital transformation. Provision of state budget expenditures for the fields of science, technology, innovation and digital transformation in accordance with regulations in clause 4 Article 58 of this Law. Budget-using units shall send requests for expenditures to the State Treasury where transactions take place (budget withdrawal request/payment order) to provide funding for covering state budget expenditures when such expenditures are included in budget estimates assigned by competent authorities;

c) Temporary allocation of state budget-derived funding specified in Article 53 of this Law.

4. Regulations on distribution of revenues from levies on land, land rents specified in this Law shall prevail from the state budget estimate of 2026

5. Hanoi City shall implement specific finance – budget mechanisms and policies in accordance with the Law on the Capital. Local governments that are applying specific finance – budget mechanisms and policies are entitled to continue to apply such mechanisms and policies in accordance with resolutions of the National Assembly and the Government’s regulations.

Article 78. Transitional clauses

The Law on State Budget No. 83/2015/QH13 amended by the Law No. 59/2020/QH14 and the Law No. 56/2024/QH15 still applies to state budget final accounts of 2024 and procedures and requirements for making of budget estimates of 2026.

Article 79. Elaborating regulations

The Government shall elaborate on some articles and clauses of this Law as assigned.

This Law was passed by the 15^th National Assembly of the Socialist Republic of Vietnam, 9^th session, on June 25, 2025.