RESOLUTION

ON THE 2012 STATE BUDGET ESTIMATE

THE NATIONAL ASSEMBLY OF THE SOCIALIST REPUBLIC OF VIETNAM

Pursuant to the 1992 Constitution of the Socialist Republic of Vietnam, which was amended and supplemented under Resolution No. 51/2001/QH10;

Pursuant to the Law on the State Budget;

After considering the Government's Report No. 13/BC-CP of October 11, 2011, on the 2012 state budget estimate; the Finance and Budget Committee's Verification Report No. 135/BC-UBTCNS13 of October 17, 2011; and the National Assembly Standing Committee's Assimilation and Explanation Report No. 60/ BC-UBTVQH13 of November 9, 2011, on the 2012 state budget estimate, and opinions of National Assembly deputies;

RESOLVES:

Article 1. To adopt the 2012 state budget estimate

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The total state budget expenditure will be VND 903,100 billion (nine hundred and three thousand one hundred billion dong);

The state budget deficit will be VND 140,200 billion (one hundred forty thousand two hundred billion dong), equal to 4.8% of the gross domestic product (GDP). More revenues will be sought to reduce the budget deficit to below 4.8% of GDP.

(See attached Appendices No. 1, 2, 3, 4 and 5, not printed herein)

Article 2. The Government is assigned to:

1. Further implement the tightened fiscal policy; restructure the state budget expenditures toward prioritizing people and guaranteeing social security; readjust the mechanism of development investment expenditures to accelerate the transformation of the economic growth model and encourage and attract investment from domestic and foreign economic sectors; synchronously combine the fiscal policy with the monetary policy in order to curb inflation and stabilize the macro-economy; strictly regulate state budget revenues and expenditures; assure state budget expenditure ratios for education and training, science and technology, culture and information, environmental protection and health under the National Assembly's resolutions; and assure the national financial security.

2. Further implement strictly and effectively tax laws; enhance the examination, inspection and management of state budget revenue sources, especially those from state-owned businesses, non-state enterprises, foreign-invested enterprises; collect charges and fees under law, ensuring correct, full and timely collection and combating trade frauds.

3. From May 1, 2012, implement the monthly minimum wage of VND 1,050,000 and the regime of public-duty allowance of 25% for cadres and civil servants; increase pensions and preferential allowances for persons with meritorious services to the country in proportion to the minimum wage increase. Practice thrift and waste combat, associated with a mechanism of assignment of regular expenditure packages for non-business agencies; further renew the financial mechanism for stepping up the socialization of provision of public services. Step by step convert a number of charges into service payments, assuring correct and full collection of expenses and raising the quality of public services in the education and health sectors.

4. Re-invest not more than 30% of revenues collected in excess of the annual revenue estimate, which must be higher than revenue amounts collected in the last year from export and import duties on goods receiving custom clearance at road international border gates in localities having road international border gates. Work out a plan on allocation and rational use of such investment and report it to the National Assembly Standing Committee for consideration and decision, with each locality receiving not more than VND 200 billion/year for building infrastructure in border-gate economic zones during 2012-15 under the investment scheme approved by the Government.

5. Issue in 2012 government bonds worth VND 45,000 billion for investment in transport, irrigation, health and education as permitted by the National Assembly; and revise the list and draw up detailed plans on allocation of government bond capital for each project or work, and submit them to the National Assembly Standing Committee for consideration and decision before January 31, 2012.

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In 2012, permit only the transfer of funding sources for implementing the new salary regime, the transfer of funding sources of administrative agencies and non-business units for implemen­ting the mechanism of financial autonomy, and financing scientific research subjects; and reduce expenditures from funding source transfer for investment in capital construction.

Article 3. Supervision of the implementation of the 2012 state budget estimate.

The Standing Committee, the Finance and Budget Committee, the Ethnic Council and other Committees of the National Assembly, National Assembly deputies' delegations and National Assembly deputies shall supervise the implementation of the 2012 state budget estimate in the sectors and geographical areas under their respective responsibilities in accordance with law.

This Resolution was adopted on November 10, 2011, by the XIII^th National Assembly of the Socialist Republic of Vietnam at its 2nd session.-

CHAIRMAN OF THE NATIONAL ASSEMBLY




Nguyen Sinh Hung