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Budget Law or the State Budget Law is a crucial legal document for inspecting and supervising the state budget. It aids in managing and overseeing related tasks in the field of the state budget. Join Mytour in discovering more information in the following article.
State Budget Law No. 83/2015/QH13 and its fundamental provisions
1. Structure of the Budget Law.
2. Fundamental contents of the State Budget Law.
2.1. Revenues and Expenditures of the State Budget.
2.2. Financial Reserve Fund, Budget Contingency.
2.3. Publicizing the State Budget.
* Abbreviation List:
- SBNB: State Budget of Vietnam.
- EN: Enterprise.
- People's Committee: Administrative body at the local level.
* Download the latest state budget law HERE
1. Structure of the Budget Law
- The latest effective State Budget Law is the 2015 State Budget Law; in effect from the 2017 budget year.
- The 2015 State Budget Law consists of 7 Chapters, comprising 77 Articles:
+ Chapter I: General provisions, including 18 Articles (from Article 1 to Article 18).
+ Chapter II: Tasks, powers of state agencies, and responsibilities, obligations of organizations, individuals regarding the State Budget, including 16 Articles (from Article 19 to Article 34).
+ Chapter III: Revenue sources, expenditure tasks of budgets at all levels, including 06 Articles (from Article 35 to Article 40).
+ Chapter IV: State Budget Planning, comprising 08 Articles (from Article 41 to Article 48).
+ Chapter V: Compliance with the State Budget, including 14 Articles (from Article 49 to Article 62).
+ Chapter VI: Accounting, auditing, and settlement of the State Budget, including 11 Articles (from Article 63 to Article 73).
+ Chapter VII: Implementation provisions, including 04 Articles (from Article 74 to Article 77).
- Scope of regulation: formulation, execution, auditing, settlement, and supervision of the State Budget; tasks, powers of relevant state agencies, organizations, units, and individuals in the field of the State Budget.
- Applicable entities include:
+ State agencies, political organizations, and socio-political organizations.
+ Socio-political professional organizations, social organizations, and socio-professional organizations supported by the state budget according to the assigned tasks of the State.
+ Public non-business units.
+ Other organizations, individuals related to the state budget.
2. Key Contents of the State Budget Law
2.1. Revenues and Expenditures of the State Budget
* According to Article 5 of the State Budget Law, state budget revenues include:
- All revenues from taxes, fees;
- All fees from service activities carried out by state agencies, in cases where activity costs are lump-sum deducted; fees from service activities carried out by public non-business units and state-owned enterprises are submitted to the state budget as regulated by law;
- Non-refundable aid from foreign governments, organizations, and individuals to the Vietnamese Government and local authorities;
- Other revenues as stipulated by law.
* Expenditures of the State Budget include:
- Investment in development;
- National reserves;
- Regular expenditures;
- Debt interest payments;
- Aid expenditures;
- Other expenditures as stipulated by law.
Additionally, the scope of the state budget includes the overspending of the State Budget and the total borrowing level of the State Budget.
State Budget Law 2015: Provisions on revenues and expenditures of the State Budget
2.2. Financial reserve fund, budget contingency fund
* Financial Reserve Fund: Is the fund of the State, formed from the State Budget and other financial sources as regulated by law.
- Responsibility for establishing the financial reserve fund: The Government, provincial People's Committees.
- Sources for establishing the fund: revenue increases, budget surplus, allocation in the annual budget expenditure estimate, and other financial sources.
- Requirement: The balance of the financial reserve fund at each level shall not exceed 25% of the annual budget expenditure estimate of that level.
- Cases of using the financial reserve fund:
+ Allocating for the provisional budget to meet expenditure needs according to the budget expenditure estimate when revenue has not yet been sufficiently collected and must be repaid immediately within the budget year;
+ In the case of insufficient state budget revenue or borrowing to offset overspending beyond the budget estimate => decided by the National Assembly, People's Council;
And carrying out tasks of prevention, control, and mitigation of the consequences of natural disasters, calamities, widespread epidemics, with seriousness, tasks related to national defense, security, and other urgent tasks arising outside the budget estimate that, after budget rearrangement, exhaust the budget contingency fund and still lack funds.
+ Requirement: The maximum utilization within the year shall not exceed 70% of the balance at the beginning of the year of the fund.
* Budget Contingency Fund: Is an item in the budget expenditure estimate that has not been allocated and is decided by the authorized agency at each level of the budget.
According to the regulations of the State Budget Law:
- Allocation level of the contingency fund: from 2% - 4% of the total budget expenditure at each level.
- Purpose of using the State Budget Contingency Fund:
+ Expenditure for prevention, control, and mitigation of the consequences of natural disasters, calamities, epidemics, famine relief; important tasks related to national defense, security, and other necessary tasks falling under the expenditure tasks of its own budget level but not budgeted for;
+ Expenditure to support lower-level budgets in implementing the mentioned tasks, after the lower-level budget has used its own contingency fund to implement them but has not met the needs;
+ Expenditure to support other localities.
- Authority to decide the use of the budget contingency fund:
+ The Government determines the authority to decide on the use of the central budget contingency fund.
+ People's Committees at all levels decide on the use of their own budget contingency fund.
Activities at People's Committees, People's Councils are carried out according to the regulations of the Law on Local Government Organization.
2.3. Publicizing the State Budget
- Public disclosure content:
+ Figures and explanatory reports on the state budget estimate;
+ Results of implementing the recommendations of the State Audit; excluding detailed figures, explanatory reports in the areas of national defense, security, and national reserves.
- Methods of disclosure: include one of the following methods:
+ Announcement during sessions, posted at the workplace of the agency, organization, unit;
+ Publication of publications;
+ Notification in writing to relevant agencies, organizations, units, individuals;
+ Posting on the electronic information page;
+ Announcement on various media outlets.
Above are some fundamental provisions of the budget law that we have compiled. There are still many important details that readers may explore if interested. These regulations ensure the management of the state budget.
In addition, readers can explore other laws in the Vietnamese legal document system such as: Housing Law, Bankruptcy Law, Fire Prevention and Fighting Law,...
