Laws of Vietnam

the Ministry of Finance

Circular No.08-TC/NSNN of March 15, 1997 guiding the implementation of policies and measures for the management of 1997 draft State Budget.

On budget management responsibilities: Revenue and spending tasks of each local administration shall comply with the Law on State Budget and Decree No.87-CP of December 19, 1996 of the Government. Localities are encouraged to raise capital for investment in infrastructure construction and socio-economic development from the following sources:

- 100% of the revenue from the granting of land use right certificates and land rents, including land rents paid by foreign invested enterprises (except the land rents collected from oil and gas prospection and exploitation activities which are under central management) shall be used for investment in infrastructure construction.

- 100% of the revenue from the sale of Sate-owned houses shall be used for investment in the development of the housing fund and the construction of infrastructures in population areas.

- Revenues from lotteries: 100% of the revenue shall be left to local budgets for construction, upgrading and repair of educational, medical and welfare establishments on the following principle: if the revenue is 20 billion VND or less, it shall be used entirely for investment; if the revenue is more than 20 billion VND, 50% shall be used for investment.

- Mountainous provinces are entitled to use 100% and other provinces- 50% of the money gained from the collection of levies on the use of agricultural rice land for investment in agriculture and in the restructuring of the rural economy.

- Forest resources tax, including the sales of live trees (if any) shall be used for investment in forest protection, afforestation and infrastructure construction.

- Revenues from television advertisements shall be used wholly or partly for the investment, upgrading, repaire, improvement and purchase of equipment for television broadcasting stations in accordance with Circular No.81-TC/HCSN of December 23, 1996 of the Ministry of Finance.

- 100% of the fines on administrative violations in various fields, fines and smuggled goods confiscated shall be remitted to the local budgets; the localities are entitled to use 70% of this revenue for purchase of means and equipment to combat smuggling and ensure traffic order and safety; and to reward the forces performing such tasks in the localities according to the prescribed regime.

The Circular also provides guidance on the reward regime for revenues exceeding the estimates; on assigning the task of making revenue estimates to units attached to the ministries, branches and levels; as well as guidance for the implementation of provisions on budget spendings and economization in spending.- (Summary)