Central government budget expenditure in 2017 to be more than 900 trillion VND

The Government will assign the duties to collect and spend the budget

According to the Resolution of the National Assembly, the total central government budget revenue is 729,730 billion VND, the total principal level budget revenues are 482,450 billion VND.

Regarding the budget expenditure, the total central government budget expenditure is 902,030 billion VND, of which the estimated value of 254,630 billion VND will be spent to balance the budget and supply for local budgets.

The National Assembly has also given the allocation ratio of the central government budget by sectors and by ministries and central agencies; the allocation ratio of the revenues between the central budget and the budget of each of the provinces and municipalities; the allocation ratio of revenues between the central budget, and the budget of each of the provinces and municipalities in 2017 will be kept stable during the budget stabilization period of 2017-2020.

To accomplish the above objectives, the National Assembly has assigned the Government to execute 5 key duties:

The first is assigning the duty to collect and spend the State budget and allocating the central budget for each of the ministries and other central agencies, and each of the provinces and municipalities.

The second is directing the Steering Committees of provinces and municipalities to submit to the People's Council of the same level to decide the plan of collecting the State budget revenues in the area, the plan of spending the local budget, the local budget deficit, the total loan of local budgets (including loans to cover the deficit and to repay the original loan), and decide to allocate the budget under the authority and regulations of the law.

The third is directing ministries, other central agencies and People's Committees at all levels to assign the estimates of revenue and expenditure of the State budget in 2017 in accordance with the Resolution of the National Assembly to each agency or office having the duty to collect and spend the State budget before 31-12-2016; and publicize and report the results of allocating and assigning the budget in accordance with the Law on State Budget.

The fourth is directing and guiding the ministries, other central and local agencies to allocate funds for development investment, focus on pushing progress, completing the programs and projects which are of national importance or urgent and unfinished projects; provide houses for families who have contributed to the revolution; give priority of reciprocal capital to ODA projects, public-private partnership projects (PPP), basic construction debts; and strengthening checks and inspections, for all stages of the investment process. In the process of operations, giving supplementary capital and other financial resources to support key localities with decreased adjustment ratio in 2017-2020, the favorable conditions for those localities should be created to promote the motivational role in the national economy.

The fifth is directing the localities to allocate expenditures in order to ensure the funds to execute important duties and new missions added in 2017; as well as striving to increase revenues and savings to increase the contribution to local budgets in the implementation of the policies of social security that are issued by the State.

Besides, for the spending policies and duties with specific characteristics decided by the provincial People's Council as stipulated in Article 30 of the Law on State Budget, solutions to ensure financial resources within the estimates of the local budget allocated annually and other financial resources which are needed to be implemented.

The National Assembly explained the allocation ratio to key localities

One of the contents relating to budget issues in 2017, which attracted the attention of many deputies and voters, is the ratio of local budgets to be kept in some localities, such as: Ho Chi Minh city (down by 5%); Da Nang (down by 17%), etc.

Regarding this issue, the National Assembly Standing Committee (NASC) has approved the recommendation of the Government, as well as proposed the Government to give priority to supplement investment funds and other financial sources in the operation of the State budget during 2017 and subsequent years, in order to support key localities with decreased adjustment ratio in 2017-2020 and create favorable conditions for those localities to promotie the motivational role in the national economy.

According to the analysis of the NASC, in the context of the difficulties of the State budget, especially in recent years, when the role of the central budget has become less important and failed to hold a dominant role in the spirit of the Constitution of 2013; simultaneously, under the provisions of the Law on State Budget 2015, "After a period of stable budgets, local authorities have to increase the ability to balance, and increase the ratio of paying to the higher level budget." Thus, the increase rate of the collection of some key provinces to the central government budget is appropriate.

On the other hand, the determination of the ratio of the local budget to be kept was based on the total expenditure of the State budget balance which is calculated according to new principle criteria during the period of budget stabilization 2017-2020 on development expenses and recurrent expenses from the State budget to ensure common ground between localities.

The allocation ratio has the coefficients and priorities for each locality (the allocation of additional expenditure by population is from 30% to 70%), particularly in Hanoi and HCMC, the ratio is even higher to handle environmental issues, governmental issues, ensure security and order for the local population and current population.

Besides, every year, the central budget also supports those localities through ODA projects, Government bonds and other supplement. The supporting values are based on each project in the province. Ho Chi Minh city in particular, if we include the supplemental value from the central budget for Ho Chi Minh city budget in 2017 it will be 7,316 billion VND to implement important projects, the allocation ratio of Ho Chi Minh city is about 22%.

Also, if including 10,000 billion VND in the public investment plan in the medium-term for preventing flooding projects and 8,800 billion VND for the last 2 hospitals in Ho Chi Minh city, the total support from the central budget will be more than 18,800 billion VND.