State budget allocation policy is one of the important macroeconomic policies of the State in order to ensure financial resources for agencies and organizations to fulfill their assigned tasks, and to minimize inequality between regions. Therefore, the law also sets out specific regulations for documents about state budget estimates and budget allocation plans.
State budget reserve means an entry of the unallocated budget expenditure estimate which is decided by corresponding agencies in charge of the budget. According to the Law on State Budget 2015 of Vietnam, the reserve is 2% - 4% of total budget expenditure at each level.
For the budget process of each country, the formulation of the state budget estimate is the first step to create the premise and basis for the next stages of the state budget process. Therefore, Vietnam’s current law on state budget has prescribed a number of bases as a basis for formulating scientific budget estimates, concurrently setting certain requirements for the preparation of the annual state budget estimate.
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