VCN – The Ministry of Finance has issued Circular No. 326/2016/TT-BTC regulating the implementation of the State budget estimate in 2017, clarifying the 4 sources to reform salary in 2017.
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Decentralization of revenues between the central and local
About the decentralization of revenues and the task of State budget expenditure, the Ministry of Finance stipulated: The decentralization of revenues between the State budget and local budget was implemented in accordance with the provisions of the Law on State Budget and guidelines.
Based on the decentralized revenues and decentralized expenditure tasks for the local budget, the provincial People's Committees submit to the People's Council at the same level to decide the decentralization of revenues and expenditure tasks between the budgets of all local authority levels in line with the actual situation in the localities for the period of the new budget stability, while ensuring the revenues allocated between the State budget and local budget when allocating to the budgets of all local authority levels, the percentage of the division of revenues does not exceed the rate decided by the National Assembly and assigned by the Prime Minister to each of province and central runs city.
Implementing the allocation of revenues of environmental protection tax for petrol and oil between the State budget and local budget under the provisions of the Law on State budget on the basis of volume of petrol and oil produced and sold in a planned period compared to the planned volume of petrol and oil sold by leading enterprises.
The ratio between the volume of petrol and oil produced and sold in the country in 2017 compared to the total volume of petrol and oil sold in the market in 2017 is 37.2%, the implementation of allocation of revenues between the Central budget with local budget under the regulatory ratio decided by the National Assembly; the ratio of imported petrol and oil in 2017 compared to the total volume of petrol and oil consumed in the market in 2017 is 62.8%, 100% of revenues will be regulated to the State Budget.
From 2017, the revenues of road tolls will be collected through the number of automobiles and marine guarantee fees (after deducting fee for the collection organization) will be paid to the State budget to maintain the roads and ensure marine safety.
Additionally, implementing the State budget regulation of 100% of the special consumption tax for petrol of Nghi Son Oil Refinery Factory.
Use the whole revenues from lotteries for local development investment
From 2017, the revenue from lotteries is the revenue from balance of the local budget and is used for local development investment, in which provinces in the Northern region, Central region and Highland region allocates a minimum of 60%, the provinces in the Southeast region and the Mekong Delta region allocates 50% of the revenue estimates from lotteries decided by the provincial People’s councils to invest for education – training, vocational training and health care. The provinces allocate 10% of the revenue estimates to supplement capital for tasks belonging to the national target program on new rural development.
The remaining revenues (if any) will be allocated to construction works coping with climate change and other important construction works subject to investment of local budgets. During the implementation, in case where there is an increase in revenues from the lottery compared to the estimate assigned by the provincial People's Councils, the People's Committees of the provinces shall make an allocation plan for investment in local important projects, giving priority to education – training, vocational training, health care and agricultural and rural development, and construction works dealing with climate change; and report to the Standing People's Councils the decision and report to the People's Councils the results of the implementation at the nearest session.
In regulations on the mechanism to create sources to implement the salary and allowance regimes in 2017, the Circular clarified: the Ministries and Central agencies in the scope of assigned State budget estimates arrange the expenditure tasks and strive to increase the business revenues to balance the source adjusting the basic salary in 2017, the Central budget does not supplement beyond the estimate for the ministries and central agencies to carry out this task.
The People’s Committee of provinces and Central runs cities must determine to spend the savings of 10% for recurrent expenditures of 2017 as prescribed to create sources for salary reform, ensuring not less than the level assigned by the Ministry of Finance when allocating and assigning the budget estimate to lower-level budgets.
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The Central budget only supports a part of increased salary for provinces which have difficulties in budgets after balancing the sources mentioned above; which do not still meet the requirements for salary reform as prescribed.
This Circular took effect from 1 January 2017.
In localities, there are 4 sources to implement salary reform including:
50% of increased local revenues in 2016 compared to the estimates; 10% of savings from estimated recurrent expenditures in 2017 assigned by the competent levels; an unused part of revenues remained according to the regime of 2017 must be extracted to create the source for salary reform and the source for implementation of salary reform from 2016 to the past, which was not used to transfer
By H. Van/ Huyen Trang