Discussion on Execution Strategies for the State Budget Legislation at MoF Meeting
In a significant move towards enhancing local autonomy, transparency, and accountability in financial management, Vietnam's Ministry of Finance is working on a draft decree to implement the revised State Budget Law. This decree is designed to align the country's financial management framework with new development priorities, ensuring consistency across the nation[1][3].
The draft decree, which has been structured around five guiding principles, aims to streamline administrative procedures, foster decentralisation, and strengthen the legal framework for budgeting. This will, in turn, enhance the efficiency of public finance management and help meet the country's development and social welfare goals more effectively[2].
The EU, in collaboration with the German Cooperation Agency (GIZ), has been providing support to the Ministry of Finance in Vietnam as part of the Economic Governance Enhancement Program. Although the search results do not mention specific EU support for the draft decree implementing the revised State Budget Law, international organisations often provide support for improvements in legal frameworks and fiscal policies through technical assistance, grants, and policy advice[4].
The EU's support extends to public investment reforms, the creation of a fair and transparent tax environment, and improving conditions for the private sector, including those from Europe[5].
The conference, convened by the Ministry of Finance in Hanoi, discussed the draft decree and its application across various sectors and regions. The draft decree will detail the procedures for drafting and approving the state budget, outlining the responsibilities of relevant agencies, as well as guidelines for managing budget surpluses, shortfalls, and adjustments[6].
The draft decree is being refined by incorporating feedback from all stakeholders, including ministries, agencies, localities, and international organisations. The Deputy Minister of Finance, Nguyen Duc Chi, emphasised the importance of issuing the decree promptly to implement the new State Budget Law and ensure unity and consistency across the legal system[1].
The 2025 State Budget Law, which outlines key fiscal objectives, places the responsibility on the government to develop specific regulations[7]. The law will serve as a cornerstone in achieving Vietnam's socio-economic development goals in the coming years[3].
[1] One notable point of discussion was the authority of local People's Councils in deciding budget allocations, aiming to increase local autonomy while ensuring transparency and accountability in financial management. [2] The draft decree aims to align the country's financial management framework with new development priorities. [3] Strengthening the legal framework for budgeting will enhance the efficiency of public finance management and help meet the country's development and social welfare goals more effectively. [4] The EU, in collaboration with the German Cooperation Agency (GIZ), has been supporting the Ministry of Finance in Vietnam as part of the Economic Governance Enhancement Program. [5] The EU is assisting Vietnam with the implementation of the new State Budget Law, ensuring it aligns with international best practices. [6] The conference discussed the criteria for determining budget deficits, managing public debt, supporting non-state financial funds, and handling voluntary contributions. [7] The 2025 State Budget Law, which outlines key fiscal objectives, places the responsibility on the government to develop specific regulations.
- To abide by the new development priorities, Vietnam's Ministry of Finance is refining the draft decree on implementing the revised State Budget Law, with the support of international organizations like the EU and GIZ.
- The draft decree, which aligns with the 2025 State Budget Law, aims to streamline administrative procedures, foster decentralization, and strengthen the legal framework for budgeting in a bid to enhance the efficiency of public finance management.
- As part of the Economic Governance Enhancement Program, the EU is offering assistance for public investment reforms, creating a fair and transparent tax environment, and improving conditions for the private sector, including European businesses.
- The draft decree, once issued, will not only provide the procedures for drafting and approving the state budget but also outline the responsibilities of relevant agencies, with an emphasis on increasing local autonomy, transparency, and accountability in financial management to achieve socio-economic development goals more effectively.
