Piloting use of recurrent spending funds to renovate existing works

	Saving recurrent expenditures, cuts down on unnecessary expenditures
	Budget deficit expected to be about 3.8% of GDP in the 2022-2024 period
	Allocation norms of recurrent expenditure estimate of State budget 2022

According to Resolution 71/NQ-CP, the Ministry of Finance receives the opinions of the Government members to complete the draft resolution dossier as prescribed; take full responsibility before the Government, the Prime Minister and relevant agencies for the contents and reports and proposals.

The Government assigned the Minister of Finance, authorized by the Prime Minister, on behalf of the Government to report to the Standing Committee of the National Assembly and the National Assembly; and to take responsibility for reporting and explaining to the National Assembly, the National Assembly Standing Committee and the National Assembly agencies.

The Resolution is built to create a legal basis for small-scale projects to renovate, upgrade, expand and build new items in existing facilities and works while State agencies are reviewing, amending and supplementing the Law on State Budget and Law on Public Investment;

To ensure the efficiency and thrift in the management and use of budget sources and public properties; meet the proactive requirements of agencies and units in the implementation of small-scale projects.

The process of making, allocating estimates, managing, paying and finalizing projects is different from public investment projects, but still ensures strictness, feasibility and consistency; ensures consistency with relevant laws, including the Law on State Budget, Law on Public Investment, and Law on Construction.

The draft Resolution stipulates two policies, specifically:

Policy 1: Allowing piloting of the use of recurrent expenditure funds to implement projects with a total value of less than VND15 billion to renovate, upgrade, expand and build new items in existing facilities and works. Particularly, the construction, renovation, upgrading and expansion of works in the field of national defense and security, and overseas representative agencies of the Socialist Republic of Vietnam shall continue to comply with current regulations on management and use of budget for defense, security and foreign affairs.

Policy 2: Assigning the Government to issue regulations on making, allocating estimates, and managing construction investment projects funded by the recurrent spending source; assigning the Ministry of Finance to issue regulations on payment and settlement of construction investment projects funded by the recurrent spending source.

The Resolution will be effective for five years - expected from 1/6/2023 to 1/6/2028.

According to the Ministry of Finance, the contents specified in the Resolution are new and have not yet been specified in the Law on State Budget, are different from those in the Law on Public Investment. Therefore, during the implementation of the Resolution, if the National Assembly decides to amend the Law on State Budget and the Law on Public Investment, including contents relayed to regulations described in the Resolution, the regulations of the revised laws shall be applied.

The Government, within the scope of its tasks and powers, is responsible for organizing the implementation of this Resolution; assessing three years of implementation of the Resolution, reporting to the National Assembly at the last session of 2026; summarizing five years of implementation of the Resolution and reporting to the National Assembly at the last session of 2028.

According to the Ministry of Finance, through opinions from voters, National Assembly deputies and local authorities, many public works urgently need to be repaired, renovated, upgraded and expanded to promote the efficiency of use and overcome the degradation but have not yet received capital allocation in the medium-term public investment plan, while these projects have the small scale of capital and need to be innovated immediately, so it is considered to use the recurrent expenditure estimates for funding these projects.

Accelerate the allocation and disbursement of public investment capital

After consulting with ministries, central and local agencies, the Ministry of Finance has proposed to the Government to add regulations on the use of recurrent expenditure funds to implement the innovation, upgrading, expansion and construction of new items in existing facilities and works.