NA chairman signs resolution on allocation of regular State expenditure estimates for 2022

The resolution will take effect from the 2022 budget year.

According to the resolution, the development of a system of norms for allocation of regular State budget expenditures must contribute to the realisation of the objectives and tasks of the socio-economic development plan, ensuring national defense and security,  prioritise funding for important sectors, ethnic minorities and mountainous areas with special difficulties, border and islands.

The allocation principle must be consistent with the ability to balance the State budget in 2022, the three-year financial - State budget plan for 2022 – 2024 period, the five-year national financial plan for 2021 – 2025 period and prioritising resources to carry out wage reform.

It is necessary to gradually improve the efficiency of the use of the State budget and reduce the proportion of regular expenditures, contributing to the restructuring of the State budget.

The allocation of State budget expenditure should be based on the principle of practising thrift and preventing wastefulness. It is essential to adopt administrative reform to improve the quality of public services and effectively use the State budget. 

Budget allocation criteria must be clear, simple, and easy to understand, implement and supervise. It must ensure fairness, publicity and transparency and gradually in line with international practices, the resolution said.  The expenses for organising conferences, seminars and sending delegations on business trips abroad should be reduced while giving priority for the allocation of funds to the judicial bodies, the State Audit, and the Government Inspectorate.

The norm of allocation of regular estimate expenditure for provinces and centrally-run cities must comply with some principles and criteria, in which population is a major one.  Other criteria are needed to be relevant to the specific characteristics of each region.

The resolution stipulates that there will be additional allocation of expenditure for provinces and centrally-run cities which enjoy a special mechanism. Accordingly, Hanoi and Ho Chi Minh City will be allocated an additional 80 percent; the cities of Hai Phong, Da Nang, and Can Tho 70 percent; Thanh Hoa, Nghe An and Thua Thien Hue provinces 45 percent. The remaining provinces will get a supplement of 60 percent, 50 and 40 percent, respectively, depending on the central budget regulation rate.