RESOLUTION NO 272016QH14 DATED NOVEMBER 11, 2016, ON STATE BUDGET ESTIMATES OF 2016 27 2016 QH14 334547

NATIONAL ASSEMBLY
-------

SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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No. 27/2016/QH14

Ha Noi, November 11, 2016

RESOLUTION
ON STATE BUDGET ESTIMATES OF 2016
THE NATIONAL ASSEMBLY OF THE SOCIALIST REPUBLIC OF VIETNAM
Pursuant to the Constitution of the Socialist Republic of Vietnam;
Pursuant to the Law on State budget No. 83/2015/QH13 and the Resolution No. 25/2016/QH14
dated November 09, 2016 by the National Assembly on National 5-year financial plans for the
2016-2020 period;
Upon the consideration of the Report No. 467/BC-CP dated October 19, 2016 and No. 522/CPKTTH dated November 09, 2016 by the Government; the Inspection report No. 183/BC-UBTCNS14
dated October 19, 2016 by the Finance and Budget Committee; the Report No. 54/BC-UBTVQH14
dated November 11, 2016 by the Standing committee of the National Assembly of the Socialist
Republic of Vietnam and the National Assembly’s enquiry reports,
RESOLVES:
Article 1. Approval for state budget estimates of 2017
1. Estimated gross state budget balance revenue is VND 1,212,180 billion (one million two hundred
twelve thousand one hundred and eighty billion).
2. Estimated gross state budget balance revenue is VND 1,390,480 billion (one million three
hundred ninety thousand four hundred and eighty billion).
3. State budget deficit is VND 178,300 billion (one hundred seventy eight thousand and three
hundred billion), equivalent to 3.5% of gross domestic products (GDP), including:
Central government’s budget deficit is VND 172,300 billion (one hundred seventy two thousand

and three hundred billion), equivalent to 3.38% of GDP;
Local government’s budget deficit is VND 6,000 billion (six thousand billion), equivalent to 0.12%
of GDP.
4. Estimated loan of the state budget, including loans taken to make up for the deficit and loans
taken to pay loan principals of the state budget is VND 340,157 billion (three hundred forty
thousand one hundred and fifty seven billion).
(Enclosed with the Annexes No. 1, 2, 3 and 4)
Article 2. Government's responsibilities


1. Execute closely the fiscal policies; cooperate consistently which monetary policies to support the
development of production and business, continue to stabilize macroeconomics, control the
inflation and boost the economic growth. Reinforce the disciplines on finance - budget; implement
state budget estimate according to law. Strengthen the inspection and the explicitness and
transparency in the use of the state budget, especially in areas most likely to raise corruption and/or
extravagance.
2. Direct the conduct and implementation of laws on tax and promptly provide guidance on the
conversion of a number of types of charge to service prices according to law. Strengthen the
investigation and inspection of taxation; prevent the loss of revenue, smuggling, trade frauds,
production and trade of counterfeits, price transfer and tax evasion; promptly discover and handle
the unconformable declaration, fraud or evasion of taxes. Minimize the promulgation of new
policies which lead to the decrease of the State budget revenue.
3. From 2017, the revenues of road pricing collected for each vehicle, marine security charges (after
deducting the collection costs) will be specified in the gross state budget balance revenue and will
be used for maintaining the road network and ensure the marine security.
4. Distribute the revenues of environment protection tax on petroleum products between the central
government’s budget and local government’s budget according to regulations of the Law on State
budget.
5. By 2017, transfer 100% of revenues of special excise duty on petroleum products of Nghi Son
Refinery to the central government’s budget. From 2018, when the refinery operates stably, the

transfer of revenues will be redistributed according to law.
6. Collect 72% of interests from the trade of oil and gas of the host country, interests distributed
from joint Russian-Vietnamese enterprise “Vietsovpetro” and the document reading’s incurred
amount of money in 2017. The remaining amount (28%) will be given to Vietnam National Oil and
Gas Group to make investment according to law.
7. Guide local governments to include the revenue from lottery operations in the balance revenue of
local government’s budget and use the whole of such revenue for development investment under the
decision of provincial People’s Councils, where the investment in education, training, vocational
training, healthcare, agricultural development and climate change response shall be prioritized.
Arrange the expenditure on food safety management and assurance in local area in proportion to the
revenue from penalties for administrative violations against regulations on food safety which is
transferred to local government’s budget.
8. Ensure the rate of publication of Government bonds having term of not less than 5 years at least
70% of total amount of Government bonds to answer to the requests for capital mobilization for the
State budget, schedule structure of debt portfolio, risk management and bond market development.
9. Direct the State budget expenditure according to the assigned estimates. Save thoroughly on
recurrent expenditure of each Ministry, central and local authorities; minimize the expenditure on
the organization of conferences, seminars, festivals; limit the expenditure on overseas
research/survey trips; limit the expenditure on purchase of vehicles and expensive equipment;
encourage the limitations on employment of public automobiles reasonably and efficiently. Enhance
the administrative reform in the State budget expenditure management. Promulgate policies on
increasing the State budget expenditure only when it is actually necessary and with available
sources. Manage closely and minimize the state budget estimate advances and brought forward
expenditure. Must not convert on-lent loans or government-guaranteed loans into state budget


allocation. Strictly comply with the Law on Thrift practice and waste prevention and the Anticorruption Law.
10. Adjust the base salary from VND 1.21 million per month to VND 1.3 million per month,
increase the retirement pension, social insurance allowance and benefit to people meritorious to the
Revolution an amount equal to the increase in the base salary. Time for such activities is from July

01, 2017.
Assign Ministries and central and local authorities to be self-controlled in extra pay, on the basis of
the assigned state budget estimates, to regulate the increase in base salary.
Central government’s budget shall guarantee the funding for adjustment of retirement pension,
social insurance allowance (covered by the state budget) and benefit to people meritorious to the
Revolution; support partially the extra pay for a number of poor localities whose budgets cannot be
balanced according to regulations of the Government.
11. In 2017, issue VND 50,000 billion of Government bonds to invest in essential and urgent
constructions and projects in medium-term public investment plans. Estimated government bond
capitals in 2016 which have not been used may be transferred for use in 2017.
The management of spending from the state budget to serve the investment in development must
comply with law provisions. Strengthen the mobilization of domestic and foreign resources for
development investment, complete the legal basis to enhance public-private partnership, enabling
economic sectors to participate in infrastructural construction, especially in agriculture and rural
areas and tourism sector.
Guide local governments to use supplements serving certain purpose to prioritize the support related
to housing for households of people meritorious to the revolution.
12. From 2017, direct responsible local governments to initially arrange the payment of loan
principals and interests according to the Law on State budget.
13. Closely monitor the State budget deficit; put forward positive measures to minimize the deficit.
Reinforce the inspection and supervision of applications for loans, use of loans and debt payment,
especially new loans and Government-guaranteed loans. Ensure balance of public debts,
government debts and national foreign debts within prescribed limits.
14. Direct Ministries and central and local authorities to boost the self-control of non-business unit
in association with the roadmap for accurate calculation of public service prices and, on that basis,
decrease the direct aid for non-business unit to increase the spending on support for poor people and
beneficiaries of incentive policies and create funding for salary reform and for supporting the
purchase and maintenance to increase public service quality. Adjust prices of articles under the state
management toward the market price, ensuring to make up reasonably for the production and
trading cost to attract the investment from other economic sectors.

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 their responsibility and power as prescribed.


This Resolution has been ratified in the 2nd Meeting Session of the 14th National Assembly dated
November 11, 2016.

CHAIRMAN OF
NATIONAL ASSEMBLY

Nguyen Thi Kim Ngan

APPENDIX No. 1
STATE BUDGET BALANCE IN 2017
(Enclosed with the Resolution No. 27/2016/QH14 dated November 11, 2016 by the National
Assembly)
Unit: Billion dong

No.

CONTENT

E
S
T
I
M

A
T
ESTIMATE OF E
2017
O
F
2
0
1
7

A- ESTIMATED GROSS REVENUE OF STATE
BUDGET

1

Domestic revenue

1
,
2
1
1,212,1802
,
1
8
0
990,2809
9
0

,
2
8
0
Crude oil revenue
2

Balance revenue from export-import operations
3

Aid revenue
4

B- ESTIMATED BALANCE EXPENDITURE OF
STATE BUDGET

Investments in development
1

Expenditure on national reserve
2
Payment of loan interests
3

4

Aid provision

3
8
,
38,300
3
0
0
1
8
0
180,000,
0
0
0
3
,
3,6006
0
0
1
,
3
9
1,390,4800
,
4
8
0
3
5

7
357,150,
1
5
0
8
8505
0
9
8
,
98,900
9
0
0
1,3001


,
3
0
0
Recurrent expenditure
5

Expenditure on pay reforms and staff downsizing
6

Contributions to financial reserve funds
7

Provisions

8
9
6
896,280,
2
8
0
6
,
6,6006
0
0
1
1000
0
2
9
,
29,300
3
0
0

8

C- STATE BUDGET DEFICIT

Deficit rate compared with GDP

Deficit of the central government’s budget
1

Deficit rate compared with GDP

1
7
8
178,300,
3
0
0
3
,
3,5%
5
%
1
7
2
172,300,
3
0
0
3
,
3,38% 3
8
%

2

Deficit of the local government’s budget

(1)

Deficit rate compared with GDP

D- PAYMENT OF LOAN PRINCIPALS

0
,
0,12% 1
2
%
(2)

163,846

Payment of loan principals by central government’s budget

1
4
4
144,000,
0
0
0

- From loans

1
4
4
144,000 ,
0
0
0

1

- From the surplus and increase of revenues, the
economical spending and the residual

Payment of loan principals by local government’s budget

1
9
,
19,846
8
4
6

- From loans

1
2

,
12,537
5
3
7

2

- From the surplus and increase of revenues, the
economical spending and the residual

DD- TOTAL LOAN BY THE STATE BUDGET

1

6,000

Loans taken to make up for deficit

7
,
7,309 3
0
9
3
4
0
340,157,
1
5

7
183,6201
8


3
,
6
2
0
Loans taken to pay principals

1
5
6
156,537,
5
3
7

2

Notes:
(1) The difference between the deficit and the surplus of local government.
(2) By offsetting payment of principals against the surplus, economical spending, residual and local
government’s budget surplus, the amount of loans taken to pay loan principals shall be around VND
156,537 billion.

APPENDIX No. 2
REVENUE AND EXPENDITURE BALANCE OF CENTRAL GOVERNMENT’S BUDGET

AND LOCAL GOVERNMENT’S BUDGET IN 2017
(Enclosed with the Resolution No. 27/2016/QH14 dated November 11, 2016 by the National
Assembly)
Unit: Billion dong
No.

CONTENT

A

CENTRAL GOVERNMENT’S BUDGET

ESTIMATE OF 2017

I Central government’s budget revenue

729,730

1 Collection of taxes, charges and others

726,130

2 Aid revenue
II Central government’s budget expenditure
1

Expenditure depending on the tasks of the central
government’s budget according to decentralization

2 Contributions to local government’s budget

- Supplement to cover budget deficit

3,600
902,030
647,400
254,630
194,250

- Supplement serving certain purposes

60,380

III Central government’s budget deficit

172,300

B

LOCAL GOVERNMENT’S BUDGET


I Local government’s budget revenue
Local government’s budget revenue received according to
decentralization

1

2 Supplement revenue from central government’s budget
- Supplement to cover budget deficit

737,080
482,450
254,630
194,250

- Supplement serving certain purposes

60,380

II Local government’s budget expenditure

743,080

1 Expenditure to balance local government's budget

682,700

Expenditure from source of supplement serving certain
purpose

2

III Local government’s budget deficit

60,380
6,000

APPENDIX No. 3
ESTIMATES OF REVENUE OF STATE BUDGET BY CATEGORY OF 2017
(Enclosed with the Resolution No. 27/2016/QH14 dated November 11, 2016 by the National

Assembly)
Unit: Billion dong
No.

REVENUE CONTENT
ESTIMATED GROSS REVENUE OF STATE BUDGET

ESTIMATE OF
2017
1,212,180

I Domestic revenue

990,280

1 Revenue from state-owned enterprises

286,441

2 Revenue from foreign-invested enterprises

201,057

3 Revenue from non-state economic sector

194,419

4 Personal income tax

80,977

5 Environmental protection tax

45,165

6 Charges and fees

54,339

Where: Registration fees
7 Revenue from house and land
a Agricultural land use tax
b Non-agricultural land use tax

26,069
76,555
27
1,180

c Revenue from land rental or water surface rental

11,398

d Revenue from land levies

63,700

dd Revenue from state-owned house sale or lease

249

8 Revenue from lottery operations

24,000

9 Revenue other than state budget revenues

25,853

10 Revenue from public land and other yields of public property

1,473

II Crude oil revenue

38,300

III Balance revenue from export-import operations

180,000

1 Gross revenue from export-import operations

285,000

Import & export duties, special consumption tax, exports
environment protection

a

101,700

b VAT on imported goods (gross revenue)

183,300

2 VAT refund

-105,000

IV Aid revenue

3,600

APPENDIX No. 4
EXPENDITURE ESTIMATES OF THE STATE BUDGET, CENTRAL GOVERNMENT’S
BUDGET AND LOCAL GOVERNMENT’S BUDGET ACCORDING TO EXPENDITURE
STRUCTURE OF 2017
(Enclosed with the Resolution No. 27/2016/QH14 dated November 11, 2016 by the National
Assembly)
Unit: Billion dong

No.

CONTENT

TOTAL

DIVIDED

D
I
V
I
D
E
D
D
I
V
I
D
E
D
D
I
V
I
D
E
D

Central
Central L
government’s government’s o


budgetLocal c
government’s a

budget l
g
o
v
e
r
n
m
e
n
t
’
s

budget

b
u
d
g
e
t
ESTIMATED GROSS EXPENDITURE
1,390,480
OF STATE BUDGET
Investments in development
I

357,150

II Expenditure on national reserve
III Payment of loan interests
IV Aid provision

707,780

(2)

682,700

1
7
7
179,700177,4
179,700
,
50
4
5
0

850

850

850

98,900

98,900

98,900

1,300

1,300

1,300

Recurrent expenditure
V

(1)

896,280

4
9
1
404,630491,6
404,630
,
50
6
5
0

Where:
1 Expenditure on education - training and
vocational training

215,167

22,194 22,194192,971
39
2
,
9


7
3
Expenditure on science and technology
career
2

VI

Expenditure on pay reforms and staff
downsizing

11,243

8,731

6,600

6,600

Contributions to financial reserve funds

VII

6,600

100

1
1000
0

29,300

1
3
,
15,800 15,80013,500
5
0
0

Provisions
VIII

2
,
8,7312,5125
1
2

Notes:

(1) Including the supplement serving certain purpose to local government’s budget; having
deducted the balance supplement to local government’s budget.
(2) Including the balance supplement of VND 194,250 billion from central government’s budget to
local government’s budget; not including the supplement serving certain purpose from central
government’s budget to local government’s budget
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