NATIONAL ASSEMBLY

Resolution No. 99/2015/QH13

Hanoi, November  11, 2015

RESOLUTION

STATE BUDGET ESTIMATES IN 2016

THE NATIONAL ASSEMBLY THE SOCIALIST REPUBLIC OF VIETNAM

Pursuant to the Constitution of the Socialist Republic of Vietnam

Pursuant to the Law on State Budget No. 01/2002/QH11;

In considering the Government’s Report No. 519/BC-CP dated October 17, 2015 and the Finance and Budget Committee’s Assessment Report No. 3041/BC-UBTCNS13 dated October 19, 2015 on state budget estimates in 2016;

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The Government’s Statement No. 475/TTr-CP dated October 07, 2015 and the Assessment Report No. 3040/BC-UBTCNS13 dated October 19, 2015 on deployment of Resolution No. 78/2014/QH13; the Standing committee of the National Assembly’s Report No. 990/BC-UBTVQH13 dated November 10, 2015 on the implementation of the state budget in 2015, state budget estimates in 2016 and opinions of the National Assembly’s deputies;

RESOLUTION

Article 1. State budget estimates in 2016

Total state budget revenue is VND 1,014,500 billion; if VND 4,700 billion as an amount brought forward to 2016 from the local budget in 2015 is included, total state budget revenue is VND 1,019,200 billion;

Total state budget spending is VND 1,273,200 billion.

The State budget deficit is VND 254,000 billion which is equal to 4.95% of GDP.

(Accompanied by annexes 1, 2, 3, 4 and 5)

Article 2. Transfer to the Government

1. In 2016

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b. Direct effective implementation of the law on tax and state budget collection; Strengthen investigation and inspection of taxation, prevent loss of revenue, smuggling, trade frauds, production and trading in counterfeits, tax evasion, transfer pricing; detect and handle offenses in a timely manner; Minimize promulgation of new policies reducing state budget collection;

c. Manage state budget spending according to assigned estimates ; Make maximum savings on recurrent expenses by each ministry, sector and locality; minimize expenses for organization of conferences, workshops, festivities; minimize expenses for going overseas to conduct research and survey, procurement of automobiles and expensive facilities; gradually enforce imposition of limitations on employment of public automobiles for a number of titles; Organize elections of the National Assembly and People’s Councils at all levels with maximum saving; strengthen administrative reforms in management of state budget spending; Promulgate policies on increasing state budget spending when it is actually necessary and guaranteed with available sources. Closely manage state budget estimate advances and brought forward expenses; strictly enforce the law on thrift practice;

d. Make adjustments to pensions, compensations for loss of capacity for work that are below VND 2,000,000/month and allowances for kindergarten teachers who have worked before 1995 to be equal to basic pays. This takes effect since January 01, 2016.

Such adjustments shall also be made for the subjects as stipulated in the National Assembly’s Resolution No. 78/2014/QH13 dated November 11, 2014 from January 01, 2016 to April 30, 2016; Since May 01, 2016, adjustments shall be made from current VND 1,150,000 to VND 1,210,000 (an increase of 5%) in basic pays for cadres, officials and civil servants, armed forces who have wage coefficient from 2.34 and below to ensure their incomes are not less than current levels; keep unchanged for pensions, benefits to persons meritorious to the Revolution; assign ministries, sectors and localities to be self-sufficient in extra pay (an amount in addition to an usual pay) on the basis of assigned state budget estimates;  Central budget shall support part of the extra pay for a number of poor localities according to regulations of the Government.

dd. Continue to pay to the state budget 75% of the profits made by the joint Vietnamese – Russian enterprise for oil and gas exploration and proceeds from the reading of petroleum documents; the remaining 255 shall return to PetroVietnam for investment according to laws;

e. Management of development investment expenditures from state budget should accord with laws; strengthen mobilization of resources at home and abroad for development investment; complete legal frame to step up public-private partnership and create conditions for economic sectors to take part in the investment and construction of infrastructure, especially in the areas of agriculture and rural development.

g. Issue VND 60,000 billion worth of Government bonds for investment in the projects using Government bonds as decided by the National Assembly; Keep close control of state budget deficit; put forward positive measures to minimize overspending and increase spending on debt payments; Reinforce inspection and supervision of applications for loans, use of loans and debt payments, especially new loans, Government-guaranteed loans; Continue to restructure loans to the state budget oriented toward increasing middle and long-term loans with reasonable interest rates; ensure balance of public debts, government debts, national foreign debts within prescribed limits;

h. Continue to direct Ministries, sectors and localities to implement self-sufficiency of public service providers in association with the roadmap for application of public service prices ; Step up transfer of direct state subsidy method for public service providers into order placement mechanism;  Make adjustments to prices of state commodities still eligible for valuation toward market price, ensuring compensation for production and business costs; attract other economic sectors to take part in supply of public services;

2. Implementation of a number of state budget tasks in 2015 and 2016:

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b. Use VND 40,000 billion from sales of state-owned shares at a number of enterprises for development investment; If the central budget in 2015 is in deficit, permit use of no more than VND 10,000 billion from sales of state-owned shares for balancing and meeting development investment expenditures; Include VND 30,000 billion in state budget estimates in 2016 to increase development investment expenditures;

c. Diversify terms of Government bonds issued in 2015 and 2016 of which the government bonds of 3 - 5 year terms should account for no more than 30% of the total government bonds and the government bonds from five years and over should account for 70% as prescribed in the National Assembly's Resolution No. 78/2014/QH13 dated November 10, 2014;

d. Implement issuance of Government bonds to international markets to re-structure government debts on the basis of comparison, analysis and assurance of national interests within 2015 and 2016 with a total maximum amount being US$ 3,000 million;

dd. Check scale, design, efficiency; allocate VND 14,259 billion worth of Government bonds remaining from the projects on renovation and upgrading of National Road 1A and Ho Chi Minh Road passing the Central Highlands ratified by the National Assembly in the Resolution No. 65/2013/QH13 dated November 28, 2013 to invest in the projects as prescribed in Annex 6 enclosed herewith; overcome causes to traffic congestion and gradually complete the routes bypassing and linking to these two routes;

Article 3. Supervision of implementation

The Standing committee of the National Assembly, the Finance and Budget Committee, the Council of Ethnic Affairs, committees of the National Assembly, delegations of the National Assembly, and deputies of the National Assembly shall be responsible for supervising the implementation of this Resolution within responsibility and authority as prescribed.

This Resolution has been ratified in the 10th Meeting Session of the 13th National Assembly dated November 11, 2015.

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ANNEX 01

STATE BUDGET BALANCE IN 2016 (Enclosed with Resolution No. 99/2015/QH13 dated November 11, 2015)

Unit: VND billion

No.

DESCRIPTIONS

2016 ESTIMATES

A – TOTAL STATE BUDGET REVENUES

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1

Domestic revenues

785,000

2

Revenues from crude oil

54,500

3

Revenues from importation, exportation

172,000

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Revenues from aids

3,000

B- REVENUES FROM BALANCE BROUGHT FORWARD FROM LOCAL BUDGETS IN 2015

4,700

C – TOTAL STATE BUDGET SPENDING

1,273,200

1

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254,950

2

Expenditures for payment of debts and aids

155,100

3

Expenditures for socio-economic development, National defense and security, administrative management;

823,995

4

Expenditures for pay reforms, shakedown in staff

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5

Expenditures for additions to financial reserve funds

100

6

Provisions

26,000

D - STATE BUDGET DEFICIT

254,000

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Ratio of overspending to GDP

4.95%

Notes:

(1) Including VND 30,000 billion worth of state-owned shares sold by a number of enterprises;

ANNEX 02

CENTRAL AND LOCAL BUDGET ESTIMATES IN 2016 (Enclosed with Resolution No. 99/2015/QH13 dated November 11, 2015)

Unit: VND billion

No.

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2016 ESTIMATES

A

CENTRAL BUDGET

I

Central budget revenues

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1

Revenues from taxes, fees, charges and others

593,882

2

Revenues from aids

3,000

II.

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850,882

1

Decentralized expenditures

639,661

2

Transfers to local budgets

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- Balancing transfers

(1)

127,822

- Target transfers

(2)

83,399

III.

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254,000

B

LOCAL BUDGETS

I

Local budget revenues

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1

Decentralized revenues;

417,618

2

Transfers from central budget

211,221

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(1)

127,822

- Target transfers

(2)

83,399

3

Brought forward revenues

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II.

Local budget spending

633,539

1

Local budget balancing expenditures

550,140

2

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83,399

Notes:

(1) Including transfers from central budget to local budget in 2016 and transfers from central budget to local budget for applying basic pay as VND 1,150,000/month and making adjustments to wages to low-earners according to the National Assembly’s Resolution No. 78/2014/QH13 dated November 10, 2014;

(2) Excluding target transfers estimates from central budget to local budget in 2016 to implement two National target programs (2016 – 2020 period) and non-business transfers estimates for National target programs (2016 – 2020 period);

ANNEX 03

STATE BUDGET REVENUE ESTIMATES BY SECTOR IN 2016 (Enclosed with Resolution No. 99/2015/QH13 dated November 11, 2015)

Unit: VND billion

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DESCRIPTIONS

2016 ESTIMATES

TOTAL STATE BUDGET REVENUES

1.014.500

I

Domestic revenues

785.000

1

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256.308

2

Revenues from foreign-invested enterprise sector

159.010

3

Revenues from non-state industry and trade sector

143.488

4

Taxes for use of agricultural land

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5

Personal income taxes

63.594

6

Registration fees

22.805

7

Environment protection taxes

38.472

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Fees and charges

15.798

9

House, land-related receipts

62.664

a

Taxes for use of non-agricultural land

1.398

b

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10.859

c

Land levies

50.000

d

Sales of state-owned houses

407

10

Off-budget receipts

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11

Revenues from public land funds, public property-related yields

1.308

II.

Revenues from crude oil

54.500

III.

Revenues from importation, exportation

172.000

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Total revenues from importation, exportation

270.000

a

Taxes on exports, imports, special consumption, environmental protection taxes on imported good;

91.000

b

Value-added taxes on imported goods

179.000

2

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-98.000

IV

Revenues from aids

3.000

Notes:

(1) Including VND 30,000 billion worth of state-owned shares sold by a number of enterprises;

ANNEX 04

STATE BUDGET, CENTRAL BUDGET AND LOCAL BUDGET SPENDING ESTIMATES BY STRUCTURE IN 2016 (Enclosed with the National Assembly’s Resolution No. 99/2015/QH13 dated November 11, 2015)

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No.

DESCRIPTIONS

TOTAL

CENTRAL BUDGET

LOCAL BUDGET

A

TOTAL STATE BUDGET SPENDING

1,273,200

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723,060

⁽²⁾

550,140

I

Development investment expenditures

254,950

⁽³⁾

123,750

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II.

Payment of debts and aids

155,100

155,100

III.

Expenditures for socio-economic development, National defense and security, administrative management; 

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⁽⁴⁾

429,210

394,785

1

Education – training and vocational training

195,604

34,604

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161,000

2

Science and technology

10,471

8,121

2,350

IV

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13,055

⁽⁵⁾

2,500

⁽⁶⁾

10,555

V

Expenditures for additions to financial reserve funds

100

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100

VI

Provisions

26,000

12,500

13,500

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UNBALANCE EXPENDITURES

91,245

61,050

30,195

C

ON-LENDING EXPENDITURES

43,010

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43,010

TOTAL (A + B + C)

1,407,455

827,120

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Notes:

(1) Including target transfers to local budget; excluding balancing transfers to local budget;

(2) Including VND 127,822 billion as balancing transfers to local budget from central budget; excluding target transfers from central budget to local budget;

(3)) Including VND 30,000 billion worth of state-owned shares sold by a number of enterprises;

(4) Including expenditures for adjustments made to basic pay (an increase of 5%) since May 01, 2016 by ministries, central agencies;

(5) Implement shakedown in staff; make adjustments to pensions, compensations for loss of capacity for work; provide additional support to localities that are underdeveloped and face difficulties in budget;

(6) An increase of 50% from local budget revenues in 2016 shall be set aside to implement pay reforms (the remainder after all expenditures for application of basic pay as VND 1,150,000/month and for adjustments to low-earners’ pays as prescribed in the Government’s Decree No. 17/2015/NĐ-CP dated February 14, 2015 have been committed; after an amount of VND 12,000 billion has been granted to a number of localities for increasing development investment expenditures)

ANNEX 05

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Unit: VND billion

No.

DESCRIPTIONS

2016 ESTIMATES

TOTAL

91.245

I

Unbalance revenues and expenditures

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1

Fees to guarantee marine safety

1.050

2

Other fees, contributions to infrastructure construction at communes

4.195

3

Lottery revenues

26.000

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Investment expenditure from government bonds issuance

60.000

ANNEX 06

(Enclosed with the Resolution on state budget estimates in 2016)

LIST OF PROJECTS USING GOVERNMENT BOND LOANS REMAINING FROM PROJECT ON RENOVATION AND UPGRADING OF NATIONAL ROAD 1A AND HO CHI MINH ROAD PASSING CENTRAL HIGHLANDS

No.

List of projects

Construction sites

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Carry out a number of urgent items in advance to be synchronous with general progress of projects on renovation and upgrading of National Road 1A and Ho Chi Minh Road passing the Central Highlands

1

Add 13 weak bridges to corresponding National Road 1 expansion projects;

20 provinces, cities

2

Add four sections, 6.8 km in length (including 4 bridges) to National Road 1 expansion project (sections Km1589+300 - Km1642+00, Km1692+000 - Km1720+800, Binh Thuan Province)

Binh Thuan

3

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20 provinces, cities

II.

Projects on expansion or construction of bypass routes, overpass bridges on National Road 1 and Ho Chi Minh Road passing Central Highlands, projects linking to National Road 1 and Ho Chi Minh Road passing Central Highlands;

1

Projects on investment and construction of National Road 1 (Sections Km504+400 - Km509+700 and Km514+800 - Km517+950 in north and south of Ha Tinh City respectively)

Ha Tinh

2

Project on construction of the bypass route on National Road 1, the section passing the district-level town of Quang Tri Province;

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3

Support part of the component project 1 ‘expansion of National Road 1, section Km947 - Km987, Quang Nam Province in the form of BOT contract within the project on expansion of National Road 1, the section passing Quang Nam Province;

Quang Nam

4

Project on expansion of National Road 1, section Km1027 - Km1045+780, Quang Ngai Province

Quang Ngai

5

Project on investment, upgrading and expansion of National Road 1D, section from Long Van three-way crossroad to inter-provincial bus station, Binh Dinh Province;

Binh Dinh

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Support part of the project on expansion of National Road 1, section Km1125 - Km1153, Binh Dinh Province, in the form of BOT;

Binh Dinh

7

Project on construction of the overpass bridge at the intersection of Bim Son Cement Factory’s specialized railway with National Road 1, Thanh Hoa Province

Thanh Hoa

8

Project on construction of the railway overpass at the intersections of Bim Son– Pho Cat – Thach Quang Route with National Road 1 and North- South Railway, Thanh Hoa Province

Thanh Hoa

9

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Nghe An

10

Project on construction of the overpass bridge at the intersections of Provincial Road 534 with North-South Railway, National Road 1 and linking to new National Road 1 at Km 439+900, Nghe An Province

Nghe An

11

Project on construction of another unit on the right of Gian Khau Bridge at Km255+434,8, National Road 1, Ninh Binh Province

Ninh Binh

12

Project on construction of Ho Chi Minh Road, bypass section to the west of district-level town of Buon Ho, Dak Lak Province;

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13

Project on investment and construction of Ho Chi Minh Road, section bypassing urban area of Pleiku, Gia Lai Province

Gia Lai

14

Spreading asphalt concrete carpet, section Km 116+979 - Km 121+027 to complete the project on upgrading and expansion of National Road 14, Dong Xoai Commune section (Km113+779,42 - Km122+230,26), Binh Phuoc Province belonging to Ho Chi Minh Road project;

Binh Phuoc

15

Investment in Cho Moi – Cho Chu section belonging to the project on construction of Ho Chi Minh Road

Thai Nguyen, Tuyen Quang, Bac Kan

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Project on investment and construction of Ho Chi Minh Road, Binh Ca Bridge (including the route from three-way crossroad of Phu Thinh to three-way crossroad of Binh Ca)

Tuyen Quang

17

Project on investment and construction of Ho Chi Minh Road, the route bypassing commune-level towns of Ngan Son and Na Phac

Bac Kan

18

Project on investment and construction of Ho Chi Minh Road, Chon Thanh – Duc Hoa section going through Binh Phuoc, Binh Duong, Tay Ninh and Long An provinces;

Binh Phuoc, Binh Duong, Tay Ninh and Long An

19

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Dak Lak

20

Project on investment of Ho Chi Minh Road, Nam Can – Dat Mui section, Ca Mau Province

Ca Mau

21

Project on investment in the route connecting Cau Gie – Ninh Binh Expressway to National Road 1 (stage 2) belonging to the project on upgrading and expansion of National Road 1A, Doan Vi - Northern Gate section and Southern Gate - Doc Xay section, Ninh Binh Province

Ninh Binh

22

Project on upgrading of National Road 12B, Tam Diep – Nho Quan section, Ninh Binh Province

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