Law No. 83/2015/QH13 on State Budget

Identification and legal basis

Law No. 83/2015/QH13 on State Budget was adopted by the National Assembly of the Socialist Republic of Vietnam on 25 June 2015, on the basis of the Constitution of the Socialist Republic of Vietnam. It is the principal legal instrument governing the state budget in Vietnam.

Scope and subjects of application

The Law regulates the formulation, implementation, examination, approval, audit, management and supervision of the state budget, including the state budget system, revenue and expenditure decentralization, budget balancing principles, and the powers and responsibilities of agencies and organizations in the budget field. Subjects of application comprise state agencies, political organizations and socio-political organizations, people's armed forces, and other agencies, organizations and individuals involved in state budget activities.

System, principles and financial instruments

The Law defines the state budget and the state budget system, which consists of the central budget and local budget funds. It establishes principles for balancing, managing and decentralizing revenue sources and expenditure tasks between central and local levels, and consolidates planning tools such as the 5-year financial plan and the 3-year state financial-budgetary plan.

It provides for budget contingencies and the financial reserve fund, including levels, authority to decide on their use, and replenishment. It also prescribes conditions for budget revenue and expenditure, fiscal year, public disclosure of the state budget, community monitoring of the state budget, accounting and finalization of revenue and expenditure, and prohibited acts in the state budget field, such as collecting or spending contrary to regulations or outside cost estimates.

Competences and assignment of revenues and expenditures

The Law allocates tasks and powers among the National Assembly, Standing Committee of the National Assembly, the President, The Government, Ministry of Finance, Ministry of Planning and Investment, State Bank of Vietnam, People's Councils, People's Committees, budget estimating units and Project owners. It distinguishes central budget revenues and expenditure tasks (Articles 35-36) from local budget revenues and expenditure tasks (Articles 37-38), sets principles for decentralization, determines balancing supplementary transfers from the central budget to local budget funds, and governs supplements for targeted programs and for specific cases under Articles 40 and 59.

Budget cycle: formulation, execution, accounting and finalization

The Law stipulates bases and requirements for formulation of state budget estimates, guidance, formulation and consolidation timetables, responsibilities of agencies, and dossiers for submission of estimates. It regulates re-formulation of estimates, allocation and assignment of estimates, requirements and time limits for allocation, temporary funding where estimates have not yet been decided, and adjustment of estimates and assigned estimates.

For budget execution, it governs organization of budget operation, revenue collection, expenditure organization including payment by non-cash method and responsibility of heads of units, advance of next year's estimates, handling of temporary cash fund deficits, and handling of increases or decreases in revenue and expenditure against estimates. It further regulates budget reporting during execution, treasury management, cash fund management, end-of-year revenue and expenditure settlement, and the full finalization process: requirements for finalization, approval (duyet), tham dinh and audit of finalization, and time limits and procedures for central and local finalization.

Effect and transition

This Law took effect on 1 January 2017 and superseded the Law on State Budget No. 01/2002/QH11. It applies from fiscal year 2017 onward, with local budget stable periods and transitional handling in accordance with the Law.