The guidelines for developing a 5-year financial plan for the 2026 – 2030 period are mentioned in Directive 18/CT-TTg (2024) issued by the Prime Minister.
Guidelines for Developing a 5-Year Financial Plan for the 2026 – 2030 Period (Image from the Internet)
Guidelines for Developing the National 5-Year Financial Plan for the 2026 – 2030 Period
According to Directive 18/CT-TTg (2024), the content for developing the National 5-Year Financial Plan for the 2026 – 2030 period is as follows:
(1) Forecasting the global and domestic political, economic, and financial landscape and its impact on the ability to mobilize and utilize financial and state budget resources over the five-year period from 2026 to 2030.
(2) Analyzing difficulties, challenges, and influencing factors in setting and implementing general and specific objectives during the 2026 – 2030 period.
(3) Establishing general and specific financial-budgetary objectives, including state budget revenue and revenue structure, state budget expenditure and expenditure structure, state budget deficit, government debt, public debt, and national external debt, as well as strategies for mobilizing and distributing resources and structuring the state budget over the five-year period.
(4) Determining the 5-year state budget balance framework (2026 – 2030), including:
- Total state budget revenue, detailing the revenue structure by sector;
- Total state budget expenditure, detailing expenditure structure for development investment, national reserves, recurrent expenditures, interest payments, aid, and other expenditures, as well as factors affecting state budget expenditures, including the implementation of comprehensive wage reform policies, pension policies, social insurance, and allowances for people with special contributions, as well as social allowances;
- State budget balance: state budget deficit, central budget deficit, and total government borrowing, including deficit financing and principal debt repayment.
(5) Debt management indicators under the Public Debt Management Law for the 2026 – 2030 period, linked to strategies for attracting new-generation ODA funding.
(6) Financial policy measures to implement the 5-year national financial plan, including ensuring the central budget's leading role, strategies for state budget revenue collection, expenditure management to ensure an efficient spending structure, public debt sustainability measures, financial market and service development strategies, mobilizing international resources in emerging sectors, public asset management, state-owned enterprise reforms, restructuring public service units, and improving governance in the public sector.
Developing a 5-Year Financial Plan for Provinces and Centrally Governed Cities for the 2026 – 2030 Period
Directive 18/CT-TTg (2024) provides guidance on developing the 5-year financial plan for provinces and centrally governed cities for the 2026 – 2030 period as follows:
(1) Forecast the economic and financial situation and key socio-economic indicators of the locality (including Gross Regional Domestic Product - GRDP growth, Consumer Price Index, sectoral and industrial growth, and key product prices) that may affect the mobilization and utilization of local financial and budgetary resources over the five-year period from 2026 to 2030.
(2) Determine the overall objectives of the 5-year financial plan for the locality, as well as the goals and strategies for mobilizing and allocating local resources during the five-year period.
(3) Identify key specific objectives and establish the financial-budgetary balance framework for the locality, based on current policies and regulations, including:
- Revenue and budget structure aligned with local economic and social development plans submitted for approval. This includes local budget revenues as per fiscal decentralization (detailed breakdown of land use fees, lottery revenues, dividends, and post-tax profits). It also includes factors affecting state budget revenues within the locality and policy and management solutions to optimize revenue collection, particularly from major enterprises and high-revenue sectors.
Projected capital recovery from local government investments in economic organizations under local management during the 2026 – 2030 period.
- Local budget expenditures, including total expenditures and budget structure based on 2025 mechanisms and policies, detailing development investment expenditures (specifying allocations from centralized capital construction funds, land use revenues, lottery revenues, and local budget deficits), recurrent expenditures, interest payments, and total wage fund expenditures. The plan also considers factors affecting local budget expenditures and policy and management measures to ensure a rational, sustainable expenditure structure and improve budget efficiency;
Projected sources for implementing new policies according to regulations, as well as additional revenue sources, cost-saving measures, and funds derived from administrative restructuring and workforce streamlining (if applicable).
- Local budget balance, including local budget surplus or deficit and increased local government borrowing, covering both deficit financing and principal debt repayment..
(4) Debt management indicators for local governments, including borrowing limits, outstanding debt, projected borrowing, and repayment plans.
(5) Forecast potential risks affecting the local budget balance and debt management indicators for local governments.
(6) Other financial solutions to implement the 5-year financial plan for provinces and centrally governed cities.
According to Clause 1, Article 3 of Decree 45/2017/NĐ-CP, the 5-year financial plan is a financial plan formulated for a period of five years, in conjunction with the 5-year socio-economic development plan as stipulated in Article 17 of the 2015 State Budget Law. It includes both the national 5-year financial plan and the 5-year financial plan for provinces and centrally governed cities.
Source: Thuvienphapluat