Overcoming shortcomings and limitations in the final settlement of the state budget in 2020

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It need to concentrate on overcoming the shortcomings and limitations pointed out in the final settlement of state budget. Source: Internet
It need to concentrate on overcoming the shortcomings and limitations pointed out in the final settlement of state budget. Source: Internet

Many shortcomings

The Ministry of Finance said that the National Assembly issued Resolution No. 53/2022/QH15 dated June 15, 2022 approving the final settlement of the state budget in 2020.

Accordingly, the National Assembly highly appreciated the efforts of the Government in administering the state budget in 2020 and has achieved many positive results in the context of the outbreak of the Covid-19 pandemic.

However, many shortcomings and limitations in the preparation and implementation of the state budget estimates and final settlement in 2020 were also pointed out by the National Assembly, such as the proportion of central budget revenue in total state budget revenue tends to decrease gradually, limiting the leading role of the central budget; estimates on the collection of land use levy are still low; the planning of investment capital from the state budget is not close, the allocation and assignment of investment capital plans are slow, not allocating in detail from the beginning of the year, not properly allocated in accordance with the regulations, and not in the correct order of priority.

In addition, there are cases of inaccurate declaration of land use levies, revenues from the exploitation of natural resources and minerals, revenues from enterprises having associated transactions; the situation of using funds for the wrong purpose, spending not in accordance with norms and regimes still occurred; some localities still have to generate new outstanding debts for capital construction; large source transfer expenses; preparation, appraisal and submission of final settlement of state budget are still behind the prescribed time limit.

The National Assembly has assigned the Government to promptly overcome the shortcomings and implement the recommendations stated in the report on receiving an explanation of the Standing Committee of the National Assembly, the verification report of the Finance and Budgetary Committee of the National Assembly; implement the conclusions and recommendations stated in the State Audit’s report and the opinions of the National Assembly deputies at the third session of the XV National Assembly on the final settlement of state budget in 2020; reporting to the National Assembly on the implementation results when finalizing the state budget in 2021.

On that basis, the Ministry of Finance proposed ministries, ministerial-level agencies, agencies attached to the Government, other central agencies, People’s Committees of provinces and centrally-run cities, units that are allowed to conduct audits to concentrate on overcoming the shortcomings and limitations pointed out in the final settlement of state budget, implementing the conclusions and recommendations of the State Audit for the state budget settlement in 2020 and previous years, if any.

Accordingly, agencies, localities and units need to strictly implement solutions to strengthen discipline in the preparation, implementation and final settlement of the state budget in accordance with the law to ensure efficiency, thriftiness, and against loss. At the same time, reviewing and proposing solutions to thoroughly overcome the errors in the process of making and complying with the final settlement of state budget as stated.

Moreover, agencies, localities and units urgently implement the conclusions and recommendations of the State Audit; including reviewing and defining the roadmap for amending, supplementing, or replacing relevant legal documents that have been recommended by inspection and audit agencies. Focusing on directing and completely handling violations and shortcomings in the field of finance – budget and fully paying into the state budget for revenues and expenditures that do not comply with the regime, standards and norms of the Law on State Budget.

Clarify the responsibilities of organizations and individuals

For the conclusions and recommendations from the fiscal year of 2019 that have not yet been implemented, the Ministry of Finance proposed ministries, central agencies, localities and audited units to clearly identify the causes and responsibilities of related agencies, units and individuals; at the same time, develop solutions.

Furthermore, continuing to clarify the responsibilities of violating organizations and individuals in the management and use of the state budget in 2020 and the failure to seriously implement the conclusions and recommendations of the State Audit for the fiscal year of 2019 following the Resolution of the National Assembly.

At the same time, strengthening the decentralization along with inspection and examination clearly specifies the responsibility of the head in the management and use of the state budget. The Chairman of the People’s Committees of the provinces and cities promptly issued the Decision on debt cancellation of fines for late payment in accordance with their competence, ensuring the deadline specified in Resolution No. 94/2019/QH14 dated November 26, 2019 of the National Assembly.

Regarding the report on implementation results, the Ministry of Finance proposed that ministries, central agencies and localities should seriously study Resolution No. 53/2022/QH15 of National Assembly and the recommendations of the audit authority and the agencies of the National Assembly as well as the recommendations of the Ministry of Finance as mentioned above in order to implement and report the results to the Ministry of Finance.

Accordingly, the report on the results of the implementation of the State Audit’s conclusions and recommendations related to finance and budget for the year 2020 and previous years shall be sent to the Ministry of Finance together with the final settlement of State budget report in 2021; at the same time, continuing to update and report until April 30, 2023 for the Ministry of Finance to summarize and report to the Standing Committee of the National Assembly in accordance with the regulations.

During the implementation of the State Audit’s recommendations for the final settlement of state budget in 2020, the audited units continued to review the conclusions, recommendations, and contents that did not agree with the recommendations of the State Audit, the Ministry of Finance proposed to send a detailed report to the Ministry of Finance and the State Audit together with the final settlement of the state budget 2021 report.

As for the implementation results of conclusions and recommendations on budget finance from 2019 and earlier, it should report the implementation results to the Ministry of Finance. With the conclusions and recommendations which have not yet been implemented, the Ministry of Finance requested the ministries, sectors and localities to clearly report the causes and responsibilities of the relevant agencies, units and individuals.

At the same time, proposing solutions for implementation and send it to the Ministry of Finance to summarize and submit to the Standing Committee of the National Assembly and the National Assembly in accordance with the requirements of Resolution No. 53/2022/QH15 of the National Assembly.

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