4 groups of criteria of the State budget allocation for sustainable poverty reduction

	State budget revenue from production & business activities continues to rise
	Some units in the financial sector still have the mentality of "depending" on State budget
	The norms of the State budget allocation for recurrent expenditure in 2017

Illustrative photo. Source: Internet.

The decision specifies the principles of the State budget for the national program on sustainable poverty reduction for 2016-2020.

In particular, the allocation of development capital and the State budget for the national program on sustainable poverty reduction for 2016-2020 must comply with the provisions of the Public Investment Law, the Law on the State budget and relevant legal documents; ensuring the effectiveness of centralized management, mechanisms and policies; creating the decentralization of investment management in accordance with the Laws, creating self-determination for Ministries, State agencies and local authorities.

The allocation of development capital and the State budget for the national program on sustainable poverty reduction for 2016-2020 needs to focus on the mountainous areas, border areas, islands and areas with many ethnic minority groups and low socio-economic conditions to narrow the gap of development, income and living standards among citizens in various regions in the country. In addition, the authorities should ensure transparency in the allocation of capital for the national program on sustainable poverty reduction for 2016-2020, contributing to promote administrative reform and strengthening of the prevention and fight against corruption and waste.

The criteria for the allocation of investment and development capital, and State funding for localities include the 4 following groups: Criteria on population and ethnic minorities; Criteria on the poverty rate and the poverty scale; Criteria on the natural area; and Criteria on administrative units and border communes.

Regarding the ratio of counterpart funding in local budgets, the Decision stipulates: For central provinces and cities which can actively balance the budget (except Quang Ngai province), 100% of capital for the implementation of the national program on sustainable poverty reduction for 2016-2020 comes from the local budget and the funds mobilized from other local units.

The fund for supporting provinces is equivalent to the amount of money on average for provinces which cannot balance the budget under Resolution No. 30a/ 2008/ NQ-CP. Poor districts which are recognized by the competent authorities shall be entitled to the mechanisms and policies for sustainable poverty reduction under Resolution No. 30a / 2008 / NQ-CP; and coastal and island areas which are approved by the Decision of the competent authorities shall be invested in infrastructure and maintenance.

For the central provinces and cities which directly receive support from the State budget, in addition to direct funding from the State budget, on the basis of the actual situation and ability to balance the budget in accordance with the target of the national program on sustainable poverty reduction for 2016-2020 which have been approved by the competent authorities, the capital shall be focused on mountainous regions, border areas, islands, areas with many ethnic minority groups, poor districts and poor communes.

The localities which receive the capital from the State budget from 70% or more will actively allocate funds and other resources to accomplish the goals and tasks of the Program on sustainable poverty reduction for 2016-2020, depending on the ability to balance local budget. The localities which receive the capital from the State budget from 50% - 70% annually shall use at least 10% of local budget to support the Program. The localities which receive the capital from the State budget less than 50% annually shall use at least 15% of local budget to support the Program.

The Ministry of Finance will be responsible for proposing plans to balance the total budget on the basis of the State budget in medium-term and in the period 2016 - 2020 for the national program on sustainable poverty reduction; and coordinating with the Ministry of Planning and Investment to balance the capital for development on the basis of the State budget in medium-term and in the period 2016 - 2020 for the national program on sustainable poverty reduction in accordance with the principles, criteria and norms prescribed in this Decision.

The evaluation and synthesis of plan on allocation of the State budget for the national program on sustainable poverty reduction for 2016-2020 of Ministries, central agencies and localities will be implemented by the Ministry of Finance in accordance with the principles, criteria and norms prescribed in this Decision.

State budget 2017 estimation: Collecting 1,199.6 billionvnd, 3.5% of GDP deficit VCN - The government has reported to the National Assembly Standing Committee on the implementation and estimation ...

This Decision took effect from December 15, 2016 and applied for the allocation of the State budget for 2017-2020.