The Ministry of Finance is developing a draft resolution of the National Assembly Standing Committee promulgating the principles, criteria and norms for the State budget allocation of recurrent expenditure estimates in 2022. The principles, criteria and regulations of the State budget allocation of recurrent expenditure estimates will be applied for the budget year of 2022, the first year of the budget stability period of 2022 - 2025 as stipulated in the State Budget Law.

State budget allocation of recurrent expenditure estimates must
practice thrift and combat waste. Source: Internet

This draft resolution stipulated the principles, criteria and norms for the state budget allocation of recurrent expenditure estimates to ministries, central and local agencies.

The draft resolution stipulates six principles for the State budget allocation of recurrent expenditure estimates. The first principle is that the development of a system of norms for allocating recurrent expenditures of the State budget must ensure to contribute to the implementation of socio-economic development objectives and tasks, ensuring security and safety of national defense and security in 2021 - 2025 of the whole country, as well as each ministry, central agency and each locality; prioritise funding for important fields (education, training and vocational training; science and technology; environmental protection; health) and ethnic minority areas, mountains and islands.

Secondly, it should be appropriate with the ability to balance the State budget in 2022, the 3-year financial-state budget plan for 2022 - 2024, the five-year financial plan from 2021 - 2025 and the 10-year socio-economic development strategy (2021-2030) of the country.

To improve the efficiency of the use of State budget, strive to gradually reduce the proportion of recurrent expenditures, contribute to the restructuring of State budget revenues and expenditures, and arrange the administrative management apparatus and public administrative units, arrange administrative units at the district and commune levels, streamline staffing, implement reform on salary and social insurance of the Party and the State.

Thirdly, State budget allocation of recurrent expenditure estimates must practice thrift and combat waste; administrative reform to improve quality of public services, effectively use the State budget; contribute to renovating financial management for the public administrative sector to reduce the level of direct support for public administrative units.

Fourthly, budget allocation criteria must be clear, simple, easy to understand, easy to implement and check; ensure fairness, openness and transparency and be step by step in line with international practices.

Fifthly, putting the maximum amount of recurrent expenditures into the norms of expenditures on State management, the Party and unions of the ministries and central agencies; prioritising the allocation of funds to the Judiciary, State Audit, and Government Inspectorate agencies.

Sixth, the norm of allocating recurrent expenditure estimates for provinces and cities adheres to several additional principles, including: population criterion is the main criterion divided into four regions; combine additional criteria which is appropriate with the reality of each locality.

In particular, dividing specific population zone includes areas with special difficulties; poor area; urban areas; the rest of the region includes the population of commune administrative units in the remaining area.

Allocation norms of the local budget are established for 13 spending areas in accordance with the provisions of Law on State Budget, ensuring the payment of salaries, allowances, contributions based on the regime and a basis salary of VND 1,490,000/month, operations of State administrative authorities, public administrative units and funding for implementation of social security policies promulgated by the Central Government until May 31, 2021.

Estimates of capital construction investment expenditures of domestic capital (excluding expenditures on development investment from land use levy and lottery) and estimates of recurrent expenditures of local budgets should be calculated base on the principles, the criteria and norms in 2022 to ensure they are not lower than the estimate of capital construction investment expenditures of domestic capital and recurrent expenditure in 2021.

With this support for balancing local budget expenditures, provincial People's Councils can proactively arrange the structure of local budget expenditures in 2022 on the principle of thoroughly saving recurrent expenditures to focus resources on increasing expenditure on development investment.