Revising regulations on State budget management

VCN - the Ministry of Finance announced the consultation on the draft Decree amending and supplementing Decree 24/2016/ND-CP of the Government defining the regime of state budget management.
Hanoi State Treasury strictly controls State budget expenditure Hanoi State Treasury strictly controls State budget expenditure
Vietnam's budget transparency index increases nine places Vietnam's budget transparency index increases nine places
State Treasury: Step by step breaking the reform of state budget management State Treasury: Step by step breaking the reform of state budget management
Some regulations on state budget management will be added and amended. Photo: Thuy Linh
Some regulations on state budget management will be added and amended. Photo: Thuy Linh

Many problems in budget management

The Ministry of Finance said that Decree 24/2016/ND-CP, effective since 2016, has initially created a solid legal framework for implementing state treasury management operations in a modern manner, meeting the goals of a safe and effective state management, and complying with international practices. More than five years after implementing the Decree, the State budget management has achieved some important results, contributing to improving the efficiency of the use of State financial resources and closely linking the State budget management and debt management, and supporting the State Bank of Vietnam in operating monetary policy.

However, the implementation of the decree revealed problems and shortcomings. For example, on the principles of state management, Decree 24/2016/ND-CP has not specified the principle of using temporarily idle state funds, so it is necessary to add the principle of using temporarily idle state fund in VND.

As for the deadline for formulating and approving the plan on State budget management, Decree 24/2016/ND-CP stipulates that before the 20th of the last month of the quarter or before December 20 of the year, the State Treasury submits the plan on State budget management of the next quarter/year to the Ministry of Finance; the Ministry of Finance shall approve the plan before the first day of the following quarter or before January 1 of the following year. However, the Ministry of Finance said that, to develop the plan for the next quarter/year, it is necessary to re-evaluate the current quarterly/yearly state budget collection and spending. But, state budget revenues are usually paid at the end of the month. Therefore, the assessment of the performance of the current quarter's state budget must be conducted later than the described time.

In addition, there are currently some problems with implementing Decree 24/2016/ND-CP. These include the use of temporarily idle NQNN; redemption of term government bonds; measures to settle shortage of state budget in foreign currency; precautionary measures.

Therefore, the Ministry of Finance believes that it is necessary to issue a Decree amending and supplementing Decree 24/2016/ND-CP in order to perfect the legal basis in the state budget management, ensuring consistency in legal documents (in consistency with the Law on Public Debt Management, the Law on Fees and Charges and other relevant documents); and overcome problems during the implementation of Decree 24.

Ensuring safe and effective state management

In the immediate future, the Ministry of Finance will review and propose amendments and supplements to the Law on State Budget 2015, which includes more specific regulations on state budget management.

On the basis of the revised Law on State Budget, the Ministry of Finance proposes to the Government amendments to deposit of temporarily idle state fund at commercial banks (after being used for advances and loans to State budget) prescribed in Decree 24/2016/ND-CP.

In addition, the guiding documents of the new Decree of the Ministry of Finance will specify the principle of prioritizing the use of temporarily idle state funds for state budget advances and loans to ensure effective state budget management and save borrowing costs and ensuring liquidity for the State Treasury.

According to the Ministry of Finance, the promulgation of the Decree amending and supplementing Decree 24 aims to improve the legal basis in the state budget management, ensure consistency in the system of legal documents and overcome some problems during the implementation of Decree 24/2016/ND-CP.

Finance sector achieves VND941.3 trillion in revenue collection Finance sector achieves VND941.3 trillion in revenue collection

VCN – The Ministry of Finance held an online conference to preliminary review tasks of the finance-state ...

The Ministry of Finance will review and finalize the Decree to ensure it is consistent with the provisions of relevant Laws and Decrees and reform state budget management in the direction of the State Treasury Development Strategy to 2030. The Decree will also inherit the appropriate provisions of Decree 24 and amend and add some regulations, solving shortcomings and limitations in the implementation of Decree 24.
By Thuy Linh/ Huyen Trang

Related News

Khanh Hoa Customs reaches revenue target 1 quarter early

Khanh Hoa Customs reaches revenue target 1 quarter early

VCN - Many key import items increased sharply, along with efforts in trade facilitation, tax debt collection, so in just 9 months of 2024, Khanh Hoa Customs Department completed the state budget revenue target.
3 items have a big impact on the budget revenue of Ho Chi Minh City Customs

3 items have a big impact on the budget revenue of Ho Chi Minh City Customs

VCN - Automobiles, petroleum, and steel are three items that account for nearly 35% of the total state budget revenue of Ho Chi Minh City Customs Department. Therefore, fluctuations in these revenue sources will greatly impact the state budget revenue of the entire Department.
Budget revenue in 2024 is estimated to exceed the estimate by 10.1%

Budget revenue in 2024 is estimated to exceed the estimate by 10.1%

VCN -The Government estimates that state budget revenue in 2024 will exceed VND 172.3 trillion, up 10.1% over the estimate, of which tax and fee revenue will reach 13.1% of GDP.
State budget revenue estimate 2025 assessed as positive level despite potential challenges

State budget revenue estimate 2025 assessed as positive level despite potential challenges

VCN – Deputy Prime Minister and Minister of Finance Ho Duc Phoc said that the state budget revenue for 2025 is estimated at VND 1,966.8 trillion, an increase of 15.6% compared to the estimate for 2024.

Latest News

Continue to handle cross-ownership in banks

Continue to handle cross-ownership in banks

VCN - The situation of excess share ownership, cross-ownership between credit institutions (CIs), CIs and enterprises, although has decreased significantly compared to previous periods, is still complicated and requires continued inspection and control.
Striving for average CPI not to exceed 4%

Striving for average CPI not to exceed 4%

VCN - According to the report of the Ministry of Finance, there are still some factors that put pressure on price levels in the remaining months of 2024, so the Ministry has updated 2 scenarios of average inflation in 2024 increasing in the range of 3.7-3.92%.
Delegating the power to the government to waive, lower, or manage late tax penalties is suitable

Delegating the power to the government to waive, lower, or manage late tax penalties is suitable

VCN - Discussing in groups about the project "1 law amending 7 laws" in the financial sector according to the program of the 8th Session on October 29, 2024, National Assembly delegates proposed that the Government should be assigned to make specific regulations on decentralization, granting the right to exempt and reduce taxes, and handling penalties for late payment of taxes...
Removing difficulties in public investment disbursement

Removing difficulties in public investment disbursement

VCN - According to the report of the Investment Department (Ministry of Finance), the estimated disbursement from the beginning of the year to October 31, 2024 is VND 355,616.1 billion, reaching 47.43% of the 2024 plan, reaching 52.29% of the plan assigned by the Prime Minister.

More News

State-owned commercial banking sector performs optimistic growth, but more capital in need

State-owned commercial banking sector performs optimistic growth, but more capital in need

VCN - According to the report sent to the National Assembly before the 8th Session of the Government on investment, management and use of state capital in enterprises nationwide in 2023, the business performance of the state-owned commercial banking sector achieved positive growth.
Stipulate implementation of centralized bilateral payments of the State Treasury at banks

Stipulate implementation of centralized bilateral payments of the State Treasury at banks

VCN - The Ministry of Finance (MOF) gathers feedback on the draft Circular regulating the management and use of accounts of the State Treasury opened at the State Bank of Vietnam (SBV) and commercial banks.
Rush to finalize draft decree on public asset restructuring

Rush to finalize draft decree on public asset restructuring

VCN - According to the Ministry of Finance, the draft Decree regulating the rearrangement and handling of public assets is being urgently completed by the Ministry of Finance to submit to the Government for promulgation.
Inspection report on gold trading activities being complied: SBV

Inspection report on gold trading activities being complied: SBV

The State Bank of Vietnam (SBV) has announced that inspections on compliance with legal policies in gold trading activities of credit institutions and gold trading businesses have been completed and an inspection report is being compiled.
Ensure timely and effective management and use of public asset

Ensure timely and effective management and use of public asset

VCN – In order to promptly and effectively implement public asset management and use, ensuring compliance with legal regulations, the Ministry of Finance has just issued an official dispatch requesting ministries, branches and localities to comply with regulations in the Government’s Decree No. 114/2024/ND-CP dated September 15, 2024.
Accelerating decentralization in public asset management

Accelerating decentralization in public asset management

VCN - Amending the Law on Management and Use of Public Assets aims to improve regulations on accelerating decentralization and improving efficiency in management and use of public assets, and promoting financial resources, ensuring that the unified application the Law on Management and Use of Public Assets and other legal documents.
Difficulty in finding banks eligible to receive compulsory transfers

Difficulty in finding banks eligible to receive compulsory transfers

VCN - Reporting to the National Assembly, the State Bank of Vietnam (SBV) said that one of the difficulties in restructuring the credit institution system is the long process of finding and negotiating banks eligible to receive compulsory transfers.
Businesses can choose a suitable electronic invoice model generated from the cash register

Businesses can choose a suitable electronic invoice model generated from the cash register

VCN - The Ministry of Finance said that individual business households can choose a suitable model to apply electronic invoice solutions from cash registers, depending on the number of invoices used in the year, in the month and the current status of software solutions and technical infrastructure.
Banks show positive results during third quarter

Banks show positive results during third quarter

Several banks have recently announced startling business performance results in the third quarter of 2024 and the first nine months of 2024.
Read More

Your care

Latest Most read
Continue to handle cross-ownership in banks

Continue to handle cross-ownership in banks

VCN - The situation of excess share ownership, cross-ownership between credit institutions (CIs), CIs and enterprises, although has decreased significantly compared to previous periods, is still complicated and requires continued inspection and control.
Striving for average CPI not to exceed 4%

Striving for average CPI not to exceed 4%

VCN - According to the report of the Ministry of Finance, there are still some factors that put pressure on price levels in the remaining months of 2024, so the Ministry has updated 2 scenarios of average inflation in 2024 increasing in the range of 3.7-3
Delegating the power to the government to waive, lower, or manage late tax penalties is suitable

Delegating the power to the government to waive, lower, or manage late tax penalties is suitable

National Assembly delegates proposed that the Government should be assigned to make specific regulations on decentralization, granting the right to exempt and reduce taxes, and handling penalties for late payment of taxes...
Removing difficulties in public investment disbursement

Removing difficulties in public investment disbursement

VCN - According to the report of the Investment Department (Ministry of Finance), the estimated disbursement from the beginning of the year to October 31, 2024 is VND 355,616.1 billion, reaching 47.43% of the 2024 plan, reaching 52.29% of the plan assigne
State-owned commercial banking sector performs optimistic growth, but more capital in need

State-owned commercial banking sector performs optimistic growth, but more capital in need

According to the report of the Government on investment, management and use of state capital in enterprises nationwide in 2023, the business performance of the state-owned commercial banking sector achieved positive growth.
Mobile Version