Objectives of State Budget Management for Basic Construction Investment in the Army

The scale, nature, and characteristics of the project, state budget expenditure for basic construction investment in the military are managed in terms of the level of authority deciding on the investment policy, the level of investment decision; the level of investment management and the investor. This characteristic not only governs the process of managing state budget expenditure for basic construction investment according to the budget cycle but is also associated with expenditures according to programs, projects, strategic goals of military construction, national defense, and a wide scope with many fields and many types of projects. This characteristic shows that the management of state budget expenditure for basic construction investment in the military is very complicated, both by sector and by the management of the superior unit over the subordinate budget unit.

Fifth , the management of state budget expenditures for military construction investment is controlled and paid through the military financial agency system and the State Treasury system. Control and payment through the State Treasury is implemented in accordance with current regulations of the Ministry of Finance. Control and payment through the financial agency of the Ministry of National Defense and the financial agency of units under the Ministry of National Defense shall control and pay for state investment capital assigned to the Ministry of National Defense for payment.

Sixth , the subjects spending the state budget on basic construction investment in the military are very diverse, including all state administrative agencies and military units, but the main users are still military units.

2.3.2. Objectives of managing state budget expenditures for basic construction investment in the military

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The general objective of state budget expenditure management for basic construction in the army is to provide adequate and timely finance for construction, ensure material facilities, enhance military and defense potential for the army to perform its functions as a combat army, a working army and a production-increasing army, meeting the requirements of protecting the socialist Fatherland of Vietnam, the requirements of building a revolutionary, disciplined, elite, and gradually modern Vietnam People's Army. The general objective is specified by a system of

the following specific objectives:

Firstly , to make a scientific, focused and key medium-term basic construction investment plan in order of priority, in accordance with the organization, staffing, functions, tasks, standards and norms, and tasks of building the army and protecting the Fatherland in the new situation.

Second , allocate budget expenditure estimates in a timely and appropriate manner, with priority given to the strategy of building the army, defending the Fatherland, and developing the socio-economy in each period, ensuring savings, efficiency, and compliance with state budget management procedures.

Third , contributing to the successful implementation of the task of building the army and protecting the Fatherland in each period. This goal is reflected in the consistency between the priority content in the establishment and allocation of the state budget expenditure estimates for basic construction investment and the priority in the strategy for building and modernizing the army, the policy and strategy for building and protecting the Fatherland that the central government and the central military commission have determined. Fourth , ensuring the management and use of the state budget for basic construction investment in a democratic, public, transparent, lawful, economical and effective manner.

effective, thorough prevention of corruption and waste

2.3.3. Principles of managing state budget expenditures for basic construction investment in the military

First, the principle of unity and democratic centralism: The state budget for basic construction investment in the army is a part of the state budget fund, therefore the management of state budget expenditures for basic construction investment must comply with the general and unified management regime from the central level to the Ministry of National Defense, in which the tasks of military and national defense work are above all and first. Unity and centralism are also reflected in the regimes, policies, orientations and directions of the central level that the army must comply with, while ensuring that they are consistent with the specific nature and tasks of the army. The management of state budget expenditures for basic construction investment in the army must thoroughly follow the principle of unity and democratic centralism throughout the entire management cycle, from budget decentralization, budget preparation, organization of budget implementation, final settlement and inspection and control in order to

The purpose is to ensure unified centralization in central budget management, with reasonable economic and technical norms and limits, contributing to improving the efficiency of state budget expenditure management for basic construction investment in the military.

Second , the principle of management according to estimates and ensuring priority goals: With the condition that the resources of the state budget are limited, while the demand for investment, construction, ensuring logistics and technical facilities, construction and development of the army is large, exceeding the capacity of the state budget. Therefore, the important issue in managing state budget expenditures for basic construction investment in the army is to determine the order of priority in making and allocating state budget expenditure estimates for basic construction investment. The budget must be allocated to ensure both long-term goals and strategies and immediate goals.

Third , the principle of publicity, transparency, and legality: State budget expenditures for capital construction investment must be managed according to the provisions of law for all stages: from decentralization of management, budget preparation, organization of budget implementation, budget payment and settlement to inspection and control. Budget beneficiaries must provide public information so that competent authorities can participate in monitoring the correctness and legality of the stages in budget expenditure management and budget expenditure content.

Fourth , the principle of ensuring responsibility: As the person entrusted by the people to use resources, the State must ensure responsibility to the people for the entire process of budget management, for the results of budget revenue and expenditure. The army is a part of the state apparatus, so it must ensure responsibility to the Party, the Government and the people for the entire process of managing state budget expenditures for basic construction investment, especially for ensuring material facilities to perform the functions and tasks of the army. Responsibility here includes the responsibility of the state budget expenditure management agency to explain the effectiveness, rationality and correctness of expenditures and responsibility before the law for violations caused by financial managers of state budget expenditures for basic construction investment.

Besides, the allocation of state budget for investment in infrastructure construction

The project must ensure the following principles: allocation to the right subjects; strict implementation of construction investment procedures, having all approved design documents and estimates; correct purpose, correct plan; according to the actual completed volume and only within the approved estimated price range;

2.3.4. Contents of state budget expenditure management for basic construction investment in the military

2.3.4.1. Decentralization of management of state budget expenditures for basic construction investment in the military

Concept : Decentralization of state budget expenditure management for basic construction investment is the assignment by the superior state government of part of the tasks and authority of state management of state budget expenditure management for basic construction investment to subordinate units with the aim of ensuring unified concentration, promoting democracy and proactiveness of subordinate units in managing basic construction investment activities in general and managing budget expenditure for basic construction investment in particular.

Management hierarchy content:

First , Decentralization of investment decisions and approval of contents in the investment process: The Minister of National Defense decides on investment according to the authority prescribed in the Law on Public Investment, the Minister of National Defense authorizes the heads of agencies and units under the Ministry to carry out projects according to the regulations of the Ministry of National Defense. For investment projects decided by the Prime Minister, the Prime Minister approves the contents, except for important projects directly approved by the National Assembly; for other projects, the level with the authority to decide on investment is the level with the authority to approve the contents in the investment process.

Second , Investor classification: Based on the scale, nature of the project, and capacity of the entities participating in project management, the competent investment decision maker decides on the unit to be the project investor.

2.3.4.2. Prepare state budget estimates for basic construction investment in the military

One is to plan medium-term public investment from the state budget.

basic construction investment in the army :

The planning of medium-term public investment from the state budget for basic construction investment in the army must be based on the following contents: Results of the assessment of the implementation of the medium-term public investment plan from the state budget for basic construction investment in the previous period; Strategy, plan for building and developing the army, priority investment targets in the army building plan, the task of protecting the Fatherland and approved plans. The mobilization and balancing of the state budget for basic construction investment in the army must be consistent with the ability to mobilize and balance the investment budget from the state budget to ensure fiscal discipline, contributing to macroeconomic stability. The system of legal documents on the state budget, public investment and basic construction investment is the legal basis for developing a medium-term public investment plan from the state budget for basic construction investment.

Second, prepare annual estimates of state budget expenditures for basic construction investment in the military:

The annual capital construction investment expenditure estimate is built on the basis of planning, plans, programs, and projects approved by competent authorities; the 5-year financial plan, the medium-term capital construction investment plan from the state budget, the ability to balance resources in the budget year, legal provisions on capital construction investment, and other relevant legal provisions.

Based on the annual budget estimate inspection, the financial agency and the investment planning agency shall prepare the annual state budget expenditure estimate for basic construction investment.

The state budget expenditure estimate for basic construction investment in the military must arrange projects in order of priority, allocating budget to implement key, important, urgent projects, which are listed as priorities according to regulations; handling outstanding debts of basic construction and recovering advanced budget; only arranging for new projects to start construction if there are resources and complete investment procedures according to regulations.

Third, adjust the state budget expenditure estimates for basic construction investment in the military : Investors regularly check and review the implementation progress and investment targets of projects in the year and propose to superiors for decisions.

Adjust and transfer the state budget expenditure estimate from projects that are not feasible to projects that still have outstanding volumes, are ahead of schedule, and projects that can be completed ahead of schedule within the year, with the principle that they must be within the total medium-term state budget expenditure for each project.

2.3.4.3. Organizing the implementation of state budget expenditure estimates for basic construction investment in the military

First, allocate and assign state budget expenditure estimates for basic construction investment in the military.

After being assigned the budget expenditure estimate by the competent authority, the Finance agency and the Investment Planning agency shall develop a plan to allocate the state budget expenditure estimate for basic construction investment within the scope of their management and submit it to the account holder for decision.

At the Ministry of National Defense level, the Department of Planning and Investment presides over the centralized investment budget, the Department of Finance presides over the regular defense budget, and coordinates with relevant agencies to develop an allocation plan and report to the Minister of National Defense for approval.

At the level directly under the Ministry of National Defense, the Investment Planning Department presides over the centralized investment budget, the Finance Department presides over the regular defense budget, coordinates with relevant agencies to develop allocation plans, reports to the commander at their level for approval, and decides to assign the state budget expenditure estimates to each project within the scope of management that satisfies the prescribed conditions, ensuring that the total investment level is correct.

Based on the appraisal results of the superior financial agency, the highest commander of the unit shall assign the budget expenditure estimates to investors as a basis for implementation, send them to the State Treasury where the investor opens an account to conduct monitoring, control and payment work, and at the same time send them to management agencies according to the sector for supervision and coordination in management activities.

Second, contractor selection: Bidding is the process of organizing contractor selection to sign consulting, non-consulting, and goods procurement contracts; selecting investors to organize project implementation in the form of public-private partnership according to

The provisions of law aim to ensure transparency, competition and economic efficiency. Depending on each type of project group, the scale of the bid package and current regulations, the investor shall develop a contractor selection plan to ensure compliance with the law and ensure state secrets.

Third, control and payment of the state budget expenditure estimate for basic construction investment in the military: Manage the advance payment and payment of completed construction volume according to the project progress. After the construction contract takes effect and the contractor has received the advance payment guarantee, the contractor is given an advance payment to carry out the contract work. The advance budget level, the time of advance payment and the recovery of advance payment must be agreed upon by the parties in the contract but must not exceed the annual budget plan allocated for the project. In special cases where an advance payment is required at a higher level, it must be approved in writing by the investment decision maker. For advance payment for compensation and site clearance work, the advance payment level is according to the progress in the site clearance plan.

In addition to the maximum advance budget according to the above contracts, for some valuable construction components and semi-finished products that must be produced in advance to ensure construction progress and some types of materials that must be seasonally stocked, the advance budget level depends on the necessary needs and is agreed upon by the investor and the contractor.

Advance payment is recovered through payments for completed contract volume, starting from the first payment, the amount of each recovery is agreed upon by both parties and specifically recorded in the contract, and recovery ends when the value of payment for completed volume reaches 80% of the contract value.

2.3.4.4. Final settlement of state budget expenditures for basic construction investment in the military

First, annual settlement: The settlement of state budget expenditures for basic construction investment is important in assessing compliance with legal regulations in the management process, and is the basis for competent authorities to review and evaluate the capacity of investors of units. The agency above the investor is responsible for appraising and approving the settlement of state budget expenditures for basic construction investment in the army according to the annual period.

Second, final settlement of completed projects : Final settlement of completed projects is important in determining fully and accurately the total amount of state budget invested in construction works, state budget for basic construction investment converted into fixed assets, current assets or costs not converted into assets of the works, which is the basis for determining the responsibility of investors and investment managers in managing and using state budget expenditures for basic construction investment. Through final settlement of state budget expenditures for basic construction investment in the military, it is possible to clearly determine the quantity, quality, production capacity and value of newly increased fixed assets brought about by the investment in order to have a plan to mobilize, use promptly and promote the effectiveness of completed basic construction works.

All military construction investment projects, regardless of scale, construction form, budget source and management level, upon completion and put into production and use, the investor is responsible for finalizing the entire state budget of the completed project with the investment management agency and the agency allocating or lending the budget for construction investment.

2.3.4.5. Checking and controlling state budget expenditures for basic construction investment in the military

First, the control environment: The control environment has created a general tone for an organization, affecting the control consciousness of the staff. The control environment is the foundation for all other factors in internal control, creating a discipline, ethics and organizational structure. The internal control environment is of particular importance in the organization of state budget expenditure management for basic construction investment in the army and directly affects the control consciousness, responsibility for performing public duties of the staff and employees participating in project management and is the fundamental foundation of all other factors in internal control, creating discipline, ethics and organizational structure. Factors in the control environment include: Integrity and public ethics; Competence, professional qualifications; Management philosophy and leadership style expressed through the personality, character and attitude of the executive leader; Organizational structure.

Second, the objective of inspecting and controlling the management of state budget expenditures for basic construction investment in the military is to: Detect and conclude errors.

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