New State Budget Index can be applied from 2018

VCN – In order to meet the new requirements of management from the validation of Law and some legal documents that will take effect in 2017 such as: State Budget Law; Law of Fees and Charges; some legal documents in the Tax field, handling administrative violations, etc. State Treasury is proactively conducting research, planning and a complete State Budget Index system to be presented to the Ministry of Finance for publishing. 
muc luc ngan sach nha nuoc moi co the ap dung tu nam 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.

According to the State Treasury, due to the Decree about the guiding Law on the State Budget dated 2015 and the Circular of guiding Decrees (the legal basis for issuing the State Budget Index); simultaneously, the implementation of Circular of the New State Budget Index needs more time for training units, editing related applications, so the New State budget index with the changed content, is proposed to apply in 2018.

While the implementation of the New State budget is pending, the Budget in 2017continues to apply the Current State budget Index.

However, due to the State Budget Law applicable from 2017 and the Prime Minister’s Decision 40/2015/QD-TTg dated 14-9-2015 which issued guidelines, criteria and allocation norms for development capital of the State budget in the period 2016 -2020, so the change of the cost accounting code for each sector, and investment sector is under Decision 40/2015/QD-TTg and State budget expenditure under State budget Law No. 83/2015/QH13 will be passed for task list codes in budget of 2017 that shall be implemented under the Switching List attached in the Circular of the State budget Index.

Thus, the detailed provisions on the content and effective time corresponds to the Circular of the New State budget index in order to avoid confusion.

By Thùy Linh/Thanh Thuy

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