New State Budget Index can be applied from 2018

Reform of the list of State Budget to facilitate State management. Photo: T.Hằng

The State Treasury was assigned the task by the Ministry of Finance to develop a Circular on the State Budget Index System that applies in planning estimates; decisions and allocating cost estimates; compliance, accounting, balancing receivables and expenses of the State Budget. The State Treasury has collaborated with related units to actively conduct research, planning and complete the State Budget Index system in order to comply with the management requirement of State Budget Law 2015, Law of Fees and Charges and related legal documents.

According to State Treasury, the State Budget Index system will ensure the completion, perfection, distinguishing in the content and not overlap, as well as serve for accounting and balancing the State Budget. Furthermore, the system also serves for analyzing financial policy of the State. At the same time, adjusting to be simple and united from the formulation stage, implementing and balancing the State Budget, facilitate comparison and evaluation under united criteria during the State Budget management cycle.

In particular, the New State Budget Index system will inherit the advantages of the old version, fixing the current shortcomings, and applying selectively the principles, standards and international rules for modification.

The improvement of the State budget Index will ensure the scientific, completion, comprehension, simplification, easy to follow, understand and meet the budget management requirements of all levels and sectors. It has full resources to provide information for reporting under the request of international organizations, and easy to use in using budget data. At the same time, it will apply open principles to satisfy changes in the future, including accounting requirements, and tracking accounting budget data in international financial budget relations.

According to State Treasury, the classification, sorting and rearranging of the New State Budget Index not only affects new formulation and State budget allocations, but also has direct impact on the control, tracking, book keeping operation and balancing of the State budget.

For data management software such as TABMIS, and coordination of collecting State budget revenue (TCS), management software of tax authorities, Customs, Ministries and units, sharing catalogues, to ensure the organizational operation when switching to the New State Budget Index as well as tracking stored data, and balancing the State budget, the new system needs to upgrade, modify along with appropriate options for infrastructure and equipment. Besides that, the report form, the formula to settle report criteria, and balance accounts should be reviewed and updated for synchronization.