Principles for capital allocation for national target program in ethnic minority and mountainous areas

Illustrative photo. Source: Internet.

Principle of capital allocation

The capital allocation must comply with the regulations in the Law on Public Investment, the Law on State Budget, Resolution 973/2020/UBTVQH14 dated July 8, 2020 of the Standing Committee of the National Assembly stipulating principles, criteria and norms for the allocation of public investment capital from the state budget for 2021-2025 and other relevant legal documents; closely follow the specific goals and targets of the Program for the 2021-2025 period. The allocation must not exceed the total investment capital, non-business funds and not change the capital structure of the program approved by the competent agency.

Priority for capital allocation is given to the implementation of key tasks and in line with the target of public investment capital allocation for 2021-2025, projects that were approved by competent authorities in the previous period but have not been implemented, and were integrated in the program; to the communes, villages and hamlets facing hardships; to poor households and ethnic minority groups who still face many difficulties. The program's capital allocation must ensure transparency.

The Decision also regulates the principle of capital allocation from the central budget in the medium term and year. Accordingly, the total mid-term and annual central budget capital for the implementation of the Program will be allocated to central and local agencies in accordance with the Law on State Budget, the Law on Public Investment, and guiding documents.

Ministries, central agencies and localities will base on the assigned central budget capital plan to perform, determine specific goals and tasks, and develop plans for the capital allocation and send it to the Committee for Ethnic Minority Affairs for summarization and submission to the Ministry of Planning and Investment and the Ministry of Finance.

The annual capital allocation under the program must be consistent with the medium-term plan approved by the competent authority and the annual balanced budget. Priority for capital allocation is given to the implementation of projects and programs transferred from the previous year’s plan; to localities with fast disbursement to complete the Program's goals and tasks.

The rate of counterpart funds

The decision stipulates that for localities that can balance their budgets (except for three localities with poor districts and communes and villages in extremely difficult conditions, including Quang Nam, Quang Ngai and Khanh Hoa), 100% of capital to implement the program is from the local budget and other lawfully mobilized capital sources, ensuring the implementation of the 5-year and annual program of the local government as prescribed in Decision 1719 /QD-TTg dated October 14, 2021 of the Prime Minister.

For localities that are supported with 70% or more from the central budget, the local budget will annually allocate at least 5% of the total central budget to implement the program.

For localities that are supported by the central budget from 50% to less than 70%, the local budget will annually allocate at least 10% of the total central budget to implement the program.

For localities that are supported from the central budget less than 50% and the provinces of Quang Nam, Quang Ngai and Khanh Hoa, the local budget will annually allocate at least 15% of the total central budget to implement the program.