THE NATIONAL ASSEMBLY
THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
On the 2018 state budget estimates
THE NATIONAL ASSEMBLY
Pursuant to the Constitution of the Socialist Republic of Vietnam;
Pursuant to the National Assembly’s Law No. 83/2015/QH13 on the State Budget and Resolution No. 25/2016/QH14 of November 9, 2016, on the national 2016-2020 five-year financial plan;
On the basis of considering the Government’s Report No. 464/BC-CP of October 18, 2017; the Committee on Financial and Budgetary Affairs’ Verification Report No. 739/BC-UBTCNS14 of October 20, 2017; the National Assembly Standing Committee’s Explanatory Report No. 211/BC-UBTVQH14 of November 10, 2017; and opinions of National Assembly deputies,
Article 1. To approve the 2018 state budget estimates
1. The total state budget revenue is VND 1,319,200 billion (one million, three hundred and nineteen thousand, and two hundred billion Vietnam dong).
2. The total state budget expenditure is VND 1,523,200 billion (one million, five hundred and twenty-three thousand, and two hundred billion Vietnam dong).
3. The state budget deficit is VND 204 trillion (two hundred and four trillion Vietnam dong), equivalent to 3.7% of gross domestic product (GDP), of which:
The central budget deficit is VND 195 trillion (one hundred and ninety-five trillion Vietnam dong), equivalent to 3.54% of GDP;
The local budget deficit is VND 9 trillion (nine trillion Vietnam dong), equivalent to 0.16% of GDP.
4. The total state budget borrowings, including borrowings to offset budget deficits and borrowings for payment of principal debts of the state budget, are VND 363,284 billion (three hundred and sixty-three thousand, two hundred and eighty-four billion Vietnam dong).
(See Appendices 1, 2, 3 and 4)
Article 2. To adjust the 2017 state budget estimates
1. To reduce government bond estimates by VND 14,033.795 billion and, at the same time, increase the foreign capital estimates by VND 14,033.795 billion to allocate the fund estimates to projects for which the funds have been disbursed but the estimates were not made in 2016 or earlier. To add such projects to the list of projects in the medium-term public investment plan during 2016-2020 which may use funds from medium-term foreign capital’s provisions (See Appendix 5).
2. To add VND 245.814 billion in development investment expenditure estimates from the 2017 non-refundable aid to the Electricity of Vietnam and 8 localities under the Government’s Report No. 349/TTr-CP of August 23, 2017 (See Appendix 6).
3. To add VND 77.66 billion in non-business expenditure estimates for environmental protection from the Asian Development Bank’s loans to Thua Thien Hue province under the Government’s Report No. 403/TTr-CP of October 4, 2017.
Article 3. To assign the Government to take measures to administer the 2018 financial-budgetary tasks
1. To implement a prudent fiscal policy in close combination with the monetary policy to support the development of production and business, further stabilize the macro economy, curb inflation, and boost economic growth. To intensify the financial-budgetary discipline and implement state budget estimates in accordance with law. To increasingly inspect and examine and maintain publicity and transparency in the use of state budget allocations.
2. To direct the proper implementation of laws on taxes, charges and fees; to study amending and supplementing a number of tax policies and laws through restructuring revenue sources, ensuring tax neutrality, strengthening the primary role of the central budget and tax collection management. To boost the reform of tax-related administrative procedures; to facilitate production and business activities and support the development of enterprises. To make substantial changes in prevention of revenue loss, smuggling, trade fraud, production and trading of counterfeit goods, transfer pricing, and tax evasion. To strive to reduce the rate of outstanding tax debts to below 5% of the total state budget revenue.
3. During 2018-2020, to continue transferring 100% of revenues from value-added tax and excise tax on petrol and oil products of Nghi Son Refinery and Petrochemical Limited Liability Company to the central budget; to maintain the percentage (%) of distributing the revenues from environmental protection tax for domestic and imported petrol and oil products like in 2017.
4. To remit into the state budget 72% of the profits from oil and gas shared to the host country, profits shared from the Vietnam-Russia joint venture (Vietsovpetro), and earnings from document proofreading in 2018; and reinvest the remainder (28%) in Vietnam Oil and Gas Group in accordance with law.
5. To further use the revenues from construction lottery activities for development investment, giving priority to investment in the fields of education, training and vocational training, public healthcare and new-style countryside building program; after allocating capital to ensure completion of investment projects in the above fields, to allocate the remainder for climate change response projects and other important projects to be covered by local budgets.
6. To administer state budget expenditures according to assigned estimates. To thoroughly practice thrift in current expenditures of each ministry, central agency and locality; to minimize expenses for organization of conferences, seminars, festivals, and overseas study or survey trips; to allocate funds for equipment procurement in accordance with law; to increase payment of fixed expenses for use of public cars. To further the administrative reform and increase the application of information technology in tandem with strengthening supervision in the management of state budget revenues and expenditures. To promulgate policies that increase state budget expenditures only when it is really necessary and there are funding sources to cover the expenditures. To strictly implement the Law on Thrift Practice and Waste Combat, Anti-Corruption Law and Law on Management and Use of Public Property.
7. From July 1, 2018, to adjust basic salary from VND 1.3 million/month to VND 1.39 million/month, and adjust pension, social insurance allowances and monthly allowances (for persons enjoying salaries from the state budget) in accordance with law and preferential allowances for people with meritorious services in an amount equal to the increase in the basic salary.
To assign ministries, central agencies and localities, based on their assigned state budget estimates, to further implement policies on seeking financial sources for salary reform by minimizing expenditures in combination with reorganizing organizational apparatuses and downsizing payroll, to ensure the self-balancing of expenditures increased as a result of basic salary adjustment.
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