Content and Criteria for Evaluating State Budget Expenditure Management at District Level

Fifth, the principle of balancing budget revenue and expenditure

In district-level budget expenditure management, balancing revenue and expenditure is one of the important principles that need to be thoroughly understood throughout the budget process, especially in the budget implementation stage. Expenditures are built on the basis of identified revenue sources, and no spending tasks are arranged when there are no financial resources. According to the provisions of the State Budget Law, district-level budgets have revenue from loans (not allowed to borrow to cover deficits) but only have revenue at the district level and additional revenue from the provincial budget. Therefore, it is required that district-level authorities regularly monitor and grasp the implementation of the state budget revenue estimates as well as forecast the revenue potential to propose solutions to mobilize revenue into the budget as well as plans to reduce budget expenditure accordingly, to avoid budget imbalance.

Sixth, the principle of ensuring responsibility and assigning and decentralizing management

As the person "entrusted" by the people to use resources, the District People's Committee must ensure responsibility to the people for the entire process of budget expenditure management. The implementation of this principle requires that in the process of budget expenditure management at the district level, the responsibilities of agencies, units and individuals in the implementation process must be clearly defined. Responsibilities that need to be clearly defined include: Responsibility for explaining budget activities, responsibility (consequences) for one's budget decisions and responsibility towards superiors, subordinates and society. This principle is also demonstrated in the implementation of regulations on clear and specific decentralization of spending tasks, the spending tasks of agencies and units under which level of government are guaranteed by the budget of that level. In case a superior agency authorizes a subordinate agency to perform its spending tasks, it must transfer funds to the subordinate to perform.

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1.1.4. The role of district-level state budget expenditure management

Firstly, State budget expenditure management contributes to timely financial provision for district authorities to perform their functions well within the legal framework. In the context of limited district-level financial resources, timely and appropriate financial provision to the right subjects is a basic condition for the use of those financial resources to achieve the set goals. State budget expenditure management contributes to the process of state budget expenditure at district level to meet those requirements.

Second , the management of district-level state budget expenditures contributes to ensuring that the district budget is used economically and effectively. Through the preparation of estimates, the management of district-level state budget expenditures makes the process of state budget expenditures in the district more planned and proactive. With the management in the process of implementing the estimates and finalizing the state budget according to the estimates, the management of district-level state budget expenditures has created a legal corridor allowing state budget spending agencies to be autonomous in their operations within permitted limits. At the same time, from the estimates, district-level authorities are also more proactive in choosing priority state budget spending activities and more proactive in balancing the budget.

Third , effective management of district-level state budget expenditures contributes to supporting production and business development through effective management of investment expenditures for economic infrastructure development in the area, such as transportation, irrigation, electricity, water, etc. Good management of local budget expenditures, especially development investment expenditures, also allows district authorities to support the formation of key sectors and projects in spearhead economic sectors in the area, thereby accelerating economic growth, supporting and encouraging businesses to develop, creating a favorable environment and conditions for production and business development, ensuring social and political stability, etc.

Fourth , District-level budget expenditure management contributes to regulating income among residential areas in the area, ensuring social equity. In the context of increasing polarization between rich and poor, well-implemented state budget expenditure policies and state budget expenditure management, especially district-level development investment expenditure management, will create conditions to shorten the gap between rural and urban areas, between plains and mountainous areas, between developed areas and remote areas, thereby reducing the gap between rich and poor, regulating income among regions, areas, and population classes.

Fifth, effective management of district-level state budget expenditures will contribute to the fight against embezzlement and corruption, and reduce the risk of moral degradation among civil servants and state management officials at the district level. Through good management of budget preparation, close supervision of the allocation and use process, and settlement work in accordance with regulations, district-level state budget expenditure management will limit opportunities for embezzlement and corruption among civil servants and public employees. Furthermore, by implementing the principle of

Publicity and transparency in the management of state budget expenditures will make the process of spending state budget at the district level more transparent, easier to inspect and monitor, creating conditions for people to monitor state budget expenditure activities of district-level government agencies, thereby creating pressure for civil servants to be impartial in implementing the management and use of the state budget. Thereby, contributing to increasing the prestige of state agencies, maintaining and strengthening people's trust in the government.

1.2. Content and criteria for evaluating state budget expenditure management at district level

1.2.1. Contents of district-level state budget expenditure management

District budget is a budget level of the local budget in the Vietnamese state budget system. The management of district budget expenditure includes the same contents as the management of state budget expenditure in general. Including the following contents:

1.2.1.1 Work on preparing district-level state budget expenditure estimates

Objectives of preparing district-level state budget expenditure estimates

Making the State budget expenditure estimate is the initial work that has a decisive meaning for the stages of the budget management cycle. The State budget expenditure estimate at the district level is made annually to allocate financial resources for the implementation of local government policies. The result of this stage is the estimate approved by the People's Council, and the District People's Committee decides to assign the estimate.

The process of preparing the State budget estimates aims to achieve the following objectives:

First: Based on limited local resources, budget allocation ensures implementation of socio-economic policies in the area.

Second: Allocate resources in accordance with the State's priority policies in each period.

Third: The budget must create favorable conditions for the management of state budget expenditures in the implementation and settlement of the budget.

Basis for making district-level state budget expenditure estimates

The State budget expenditure estimate is prepared based on the following bases:

- 5-year and annual socio-economic development plans and ensuring national defense and security in general and specific tasks of the district

- Budget expenditure policies, regimes, budget allocation norms, regimes, standards, and expenditure norms according to legal regulations. Including:

+ For development investment expenditure estimates: Development investment expenditure estimates are prepared on the basis of planning and projects approved by competent authorities, medium-term public investment plans from the State budget, the ability to balance resources during the year, and legal regulations on public investment, construction and related fields.

+ For regular expenditure estimates: Based on regimes, standards, expenditure norms, and budget allocation norms for each field according to current regulations.

- The budget preparation is also based on the decentralization of revenue sources and expenditure tasks from the provincial level to the district level for implementation.

- Directive of the City People's Committee, guidance of the Departments of Finance - Planning and Investment on developing socio-economic development plans and annual budget revenue and expenditure estimates.

- Budget expenditure implementation status of years prior to the budget year.

District-level budget expenditure estimate preparation process

The process of preparing district-level budget expenditure estimates includes the following steps:

Step 1: Instructions on budget preparation for subordinate budget units and People's Committees of communes and towns

Pursuant to the Directive on the development of socio-economic development plans and budget estimates of the City People's Committee, the Guidance on the development of annual budget estimates of specialized Departments, the District People's Committee issues the Directive on the development of socio-economic development plans, the District-level financial agency guides the development of budget estimates and sends them to the budget units and the Commune-level People's Committees for research and implementation.

Step 2 : Prepare and discuss the state budget expenditure estimate

Budget units under the district budget and the People's Committees at the commune level shall, based on the guidance of the district-level financial agency, prepare budget revenue and expenditure estimates within the scope of assigned tasks and report to the district-level financial agency with a detailed explanation of the basis for calculating each revenue and expenditure item.

District-level financial agencies organize budget estimate discussions with agencies, units, and commune-level People's Committees. For the following years during the stabilization period,

In budgeting, the district-level financial authority only organizes budget discussions with the commune-level People's Committee when requested by that level.

After discussing the budget, the district-level financial agency, based on the state budget revenue and expenditure estimates assigned by the City People's Committee and the estimates prepared by the units: synthesizes the district-level budget expenditure estimates, the plan for allocating district-level budget expenditures to the budget units, determines the additional amount for the commune-level budget and submits it to the district People's Committee for agreement, relevant agencies review and submit it to the district People's Council for approval.

Step 3 : Decide on allocation and assignment of state budget estimates

Within 10 days from the date the People's Council at a higher level decides on the budget estimate, the People's Council at a lower level must decide on the budget estimate and allocate the budget at its level. No later than 5 days from the date the People's Council decides on the budget estimate, the People's Committee at the same level must assign self-accounting to affiliated and subordinate units.

People's Committees at all levels must complete the assignment of the next year's budget estimates to their affiliated units and lower-level People's Committees before December 31 of the previous year.

1.2.1.2. Implementation of district-level budget expenditure estimates

Executing the State budget expenditure estimate is the organization of budget expenditure implementation according to the estimate decided by the District People's Council and assigned by the District People's Committee; it is the process of using a combination of economic, financial and administrative measures to turn budget expenditure targets into reality.

Objectives and significance of implementing district-level budget expenditure estimates

Turn the expenditure targets in the annual budget estimate from planned into reality, thereby contributing to the implementation of the targets of the local socio-economic development plan.

Check and evaluate the compliance with practice of the State's economic and financial policies, regimes, standards and norms.

Budget execution is a crucial step that has a decisive meaning in a budget cycle. If the budget preparation step is done well, it will basically just stay on paper, whether it can be implemented or not depends on the budget execution step. Moreover, good budget execution will have a positive effect on the implementation of the next step, which is the State budget settlement.

Content of organization of implementation of district-level budget expenditure estimates

* Allocate and assign budget expenditure estimates

After being assigned the budget expenditure estimate by the District People's Committee, the budget units shall allocate and assign the budget expenditure estimate to the subordinate budget-using units or allocate the assigned budget to the expenditure tasks if there is no subordinate budget unit. At the same time, send it to the Finance Agency at the same level and the State Treasury where the transaction is made for implementation. The deadline for allocating and assigning the budget estimate is before December 31 of the previous year.

Within 10 working days from the date of receiving the explanatory documents and allocation report of the level I budget unit, the financial agency at the same level must conduct an inspection of the budget estimates of the level I budget unit assigned to the budget-using units for accuracy and consistency in both total amount and details according to the expenditure task area with the estimate assigned by the District People's Committee to the level I budget unit.

The regular expenditure estimates assigned to the budget units are divided into 4 groups of items: Personal payment expenses; professional expenses; purchasing and repair expenses; and other expenses.

The budget for basic construction investment is allocated in detail according to each type of the State Budget Table of Contents and according to the implementation progress of each quarter.

* Budget control

District-level budget estimate units and organizations supported by district-level budgets must open accounts at the district State Treasury according to the guidance of the Ministry of Finance; and be subject to inspection by district-level financial agencies and the state treasury during the payment and use of funds.

State budget expenditures are made according to the principle of direct payment from the State Treasury to beneficiaries. In case some expenditures are not yet able to be paid directly at the State Treasury, the budget-using unit is allowed to make an advance payment to proactively spend according to the assigned budget estimate, then the unit makes payment to the treasury in accordance with the regulations of the Ministry of Finance.

State budget expenditures can only be made when the following conditions are met:

+ Included in the assigned budget expenditure estimate

+ Has been decided on by the head of the budget using unit, investor or authorized person

+ For regular expenditures, it is necessary to ensure compliance with the regime, standards, and norms prescribed by competent authorities; in cases where agencies and units have been authorized by competent authorities to implement the mechanism of autonomy and self-responsibility for the use of payroll and funds, they must comply with internal spending regulations and be consistent with the assigned autonomous budget.

+ For basic construction investment expenditure, the conditions prescribed by law on public investment and construction must be met.

+ For bidding packages belonging to tasks, programs, and projects that require bidding to select contractors to provide consulting services, purchase goods, and construct and install, bidding must be organized in accordance with the provisions of the law on bidding.

+ Expenses for work performed under the state-ordered plan must comply with regulations on prices or fees and charges issued by competent authorities.

The disbursement process, records, procedures, accounting and disbursement control at the State Treasury shall comply with current regulations of the Ministry of Finance.

* Adjusting district-level budget expenditure estimates

During the budget implementation process, if there is a change in revenue compared to the assigned estimate (increased revenue compared to the estimate or decreased revenue compared to the estimate), the District People's Committee shall submit to the Standing Committee of the District People's Council a plan to allocate increased revenue, save expenditures, and a plan to adjust and reduce the assigned estimate (in case revenue does not meet the estimate) and report to the People's Council at the nearest session.

When there are expenses for prevention, control, and overcoming the consequences of natural disasters, catastrophes, epidemics, famine relief, important tasks related to national defense, security, and other necessary tasks belonging to the district budget expenditure tasks that have not been estimated; expenses to support the commune-level budget to carry out the above tasks after the commune-level budget has used up its reserve but still cannot meet the demand, the budget reserve can be used for payment.

1.2.1.3. District-level budget settlement work

District-level budget settlement is the final stage of a budget cycle. The purpose of budget settlement is to summarize and re-evaluate the entire budget expenditure process in the past budget year, providing full information on budget expenditure management and operation to the People's Council, People's Committee of the district and superior agencies.

Well-executed budget settlement is important in reviewing and evaluating the budget implementation process over the past year, drawing practical lessons, and supplementing the budget preparation and implementation work in the following years.

* Requirements for district-level budget settlement

- About the data

Budget expenditure settlement data must be accurate, honest, complete and represent actual paid expenditures, and must be verified with the State Treasury where the transaction takes place.

- About content

The content of the budget expenditure settlement report must comply with the expenditure contents recorded in the assigned state budget estimate and according to the budget table of contents; the budget expenditure settlement must not be greater than the budget revenue. The budget settlement report must be accompanied by an explanatory note assessing the results of the budget expenditure linked to the results of the implementation of the tasks of the assigned unit, locality, field, program, and target.

- About responsibility

The head of the budget-using unit must be responsible before the law for the accuracy, honesty and completeness of the unit's settlement report and responsible for expenditures that are not accounted for according to the regime.

The district State Treasury is responsible for synthesizing settlement data and sending it to the financial agency at the same level so that the financial agency can prepare the settlement report. The State Treasury confirms the budget revenue and expenditure data on the budget settlement reports at all levels and budget-using units.

* Procedures for preparing, reviewing, appraising and approving district-level budget expenditure settlement

The preparation of the state budget expenditure settlement is often carried out using the method of preparation from the base and synthesis from the bottom up.

- The procedure for preparing, reviewing and appraising the annual financial statements of budget-using units is as follows:

At the end of the budget year, the lower-level budget units shall close the accounting books and prepare the annual settlement report according to the prescribed regime and send it to the budget unit.

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