Prime Minister directs the development of a 5-year financial plan for the period 2026 - 2030

Prime Minister Pham Minh Chinh signed Directive No. 18/CT-TTg on developing a 5-year financial plan for the period 2026 - 2030.

Prime Minister's Directive on Developing a 5-Year Financial Plan for the 2026-2030 Period

Accordingly, the Prime Minister requested ministries, ministerial-level agencies, government agencies, other central agencies (ministries, central agencies), provinces and centrally run cities (localities) to implement the work of developing a 5-year financial plan for the period 2026 - 2030.

Evaluation of achievements, limitations, subjective and objective causes, and lessons learned

The Directive clearly states that the assessment of the implementation of the 5-year period 2021 - 2025 must clarify the results achieved in conjunction with the goals set out in the documents of the 13th National Party Congress, the Resolutions of the 13th Central Committee, the 10-year Socio-Economic Development Strategy 2021 - 2030; Resolution No. 07-NQ/TW dated November 18, 2016 of the Politburo on restructuring the state budget, managing public debt to ensure a safe and sustainable national finance; Resolutions of the National Assembly on 5-year plans; Resolutions of the Provincial and Municipal Party Congresses for the 2020-2025 term; Resolutions of the Provincial People's Council on local 5-year plans; Decisions of the Prime Minister approving Strategies in the fields of finance, public debt, tax, customs, national reserves, development of financial markets (securities, insurance, etc.) until 2030; achievements, limitations and subjective and objective causes, lessons learned in the context of implementation in the period 2021 - 2025.

Building a national 5-year financial plan for the period 2026 - 2030

Regarding the development of the national 5-year financial plan for the period 2026-2030, the Prime Minister requested:

1- Forecast the context, political, economic and financial situation in the world and in the country that affects the ability to mobilize and the need to use financial resources - state budget in the 5-year period 2026 - 2030.

2- Analyze the difficulties, challenges, and factors affecting the development and implementation of general and specific goals in the period 2026 - 2030.

3- Develop general and specific goals, mainly on state finance and budget, including: Revenue and budget revenue structure, expenditure and budget expenditure structure; state budget deficit; government debt, public debt, and national foreign debt; mobilization and distribution of resources, state budget structure in the 5-year period 2026 - 2030.

4- Determine the 5-year state budget balance framework for the period 2026 - 2030, including:

- Total state budget revenue, detailed revenue structure by sector.

- Total state budget expenditure, detailed by structure of development investment expenditure, national reserve expenditure, regular expenditure, debt interest payment, aid expenditure, other expenditure; factors affecting state budget expenditure, including the overall implementation of salary reform policy and policies on pensions, social insurance and preferential allowances for meritorious people, social allowances.

- State budget balance: State budget deficit, central budget deficit; total state budget borrowing, including borrowing to cover deficit and borrowing to repay principal.

5- Debt management indicators according to the provisions of the Law on Public Debt Management in the period 2026 - 2030, associated with the orientation of attracting new generation ODA capital.

6- Financial solutions to implement the national 5-year financial plan, including solutions to ensure the leading role of the central budget; solutions to collect state budget; management solutions to ensure expenditure structure and efficiency of state budget expenditure; management solutions to ensure safety and sustainability of public debt; solutions to develop markets, financial services, mobilize international resources in emerging fields; management of public assets, state-owned enterprises, innovation of public service units, and state management areas.

Developing a 5-year financial plan for provinces and centrally run cities for the period 2026 - 2030

The Prime Minister directed the development of a 5-year financial plan for provinces and centrally run cities for the period 2026 - 2030, requiring:

1- Forecasting the economic and financial situation, key socio-economic indicators in the locality (gross regional product growth - GRDP), consumer price index, growth of production sectors, industries and prices of key products and goods) that affect the ability to mobilize and demand for using local financial resources - budget in the 5-year period 2026 - 2030.

2- Determine the general objectives of the local 5-year financial plan; objectives, orientations for mobilizing and distributing local resources during the 5-year plan period.

3- Determine specific and main goals; financial and budget balance framework of the locality based on current policies and regimes; including:

- Revenue and budget revenue structure in the area are consistent with the projections submitted to competent authorities on the orientation and goals of local socio-economic development in the same period; local budget revenue is enjoyed according to decentralization (details on land use fees, lottery revenue, dividends and after-tax profits); factors affecting state budget revenue in the area and policy and management solutions to mobilize state budget revenue, especially for enterprises and sectors with large revenue sources.

Estimated capital recovery of local budget invested in economic organizations under local management for 5 years 2026 - 2030.

- Local budget expenditure, including: Total expenditure and budget expenditure structure based on mechanisms and policies in 2025, detailed by development investment expenditure (clarifying the structure of development investment expenditure according to the nature of centralized basic construction sources, land use sources, lottery sources, local budget deficit sources), regular expenditure, interest payment and total local salary fund expenditure; factors affecting local budget expenditure; policy and management solutions to ensure a reasonable and sustainable expenditure structure, improving the efficiency of local budget expenditure.

Estimated sources for implementing new policies according to regulations and sources for increased revenue, cost savings, and sources set aside from organizational restructuring and staff streamlining (if any).

- Balancing local budgets: Local budget deficit or surplus; increasing local budget borrowing, including borrowing to cover deficit and borrowing to repay principal of local budgets.

4- Local debt management indicators, including: Loan limit, outstanding loans of local authorities; expected borrowing and debt repayment.

5- Forecast risks affecting the local budget balance framework and local government debt management indicators.

6- Other financial solutions to implement the 5-year financial plan of the province and centrally-run city.

The Prime Minister assigned the Ministry of Finance to preside over and coordinate with the Ministry of Planning and Investment and relevant ministries and central agencies to develop a national 5-year financial plan for the period 2026 - 2030 to submit to competent authorities for consideration and decision, ensuring progress according to the provisions of Resolution No. 343/2017/UBTVQH14, Resolution No. 974/2020/UBTVQH14 and Decree No. 45/2017/ND-CP.

Source: https://thoibaonganhang.vn/thu-tuong-chinh-phu-chi-chi-thi-xay-dung-ke-hoach-tai-chinh-05-nam-giai-doan-2026-2030-152204.html