On the morning of August 19, the National Assembly heard the Government’s proposal seeking approval in principle for investment in a national target program for cultural and social development, rural areas, ethnic minorities and mountainous regions for 2026-2035.

The plan would establish a single comprehensive national target program by consolidating four programs covering cultural development; education and training; new-style rural development, poverty reduction and development in ethnic minority and mountainous areas; and healthcare, population and development.

Prime Minister proposed to head program steering committee

Presenting the proposal, Finance Minister Ngo Van Tuan said the Government had proposed naming the integrated initiative the National Target Program for Cultural and Social Development, Rural Areas, Ethnic Minorities and Mountainous Regions for 2026-2035.

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Finance Minister Ngo Van Tuan presents the Government’s proposal. Photo: QH

The Government proposed maintaining the estimated total resources at around $30.7 billion (VND808.558 trillion), while asking the National Assembly to authorize the Government to review and determine the structure of each funding source, as well as the balance between investment and recurrent expenditure from the central budget, with a focus on keeping recurrent spending to a minimum.

Regarding the allocation of state budget funding for the program, the Government proposed shifting from an approach based on “registered demand” to one combining demand with progress toward targets, disbursement results, capacity and implementation readiness. Annual allocations would take into account needs alongside implementation results, disbursement capacity and counterpart funding, while allowing funds to be transferred from slow-moving tasks to those with a better prospect of completion.

The central budget would support localities that receive balancing transfers, as well as those that do not receive such transfers but are not required to remit revenue to the central budget. A threshold under which balancing transfers account for at least 60% of a locality’s total balanced budget expenditure would be used to determine higher levels of support. Localities capable of balancing their own budgets would proactively allocate resources for implementation.

As for program governance, a Central Steering Committee chaired by the Prime Minister would oversee, direct and coordinate implementation, while the Ministry of Agriculture and Environment would use its existing coordinating office as the program’s overall coordination body.

Sectoral ministries would be responsible for managing groups of objectives, designing policies, indicators and criteria, and evaluating outputs, rather than serving as intermediaries in fund allocation and settlement.

The Ministry of Finance would act as the focal point for consolidating information on allocations, use of funds, payments, settlement and implementation results. Local authorities would have the autonomy to select project portfolios and priorities, allocate and adjust funding, and determine implementation methods, while bearing full responsibility for effectiveness and outcomes.

The Government said combining the four programs would reduce overlaps and duplication; streamline administrative bodies, documents, procedures and management costs; allow resources to be allocated more flexibly based on results; and give local authorities greater autonomy and accountability. It would also enable people to access policies in a more coordinated manner and shift the focus of oversight from disbursement to tangible products and outcomes.

However, the Government also acknowledged potential negative impacts and risks, including reduced priority for specific objectives and target groups; imbalances in resource allocation; disparities in benefits among localities; disruptions to projects, contracts and payments during the transition; and additional conversion costs.

Lawmakers call for total funding and limits on Government authority to be defined

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Lam Van Man, Chairman of the National Assembly’s Ethnic Council, presents the appraisal report. Photo: QH

Presenting the appraisal report, Lam Van Man, Chairman of the National Assembly’s Ethnic Council, said the council agreed on the need to meaningfully integrate the four existing national target programs into a single comprehensive program to improve resource efficiency and ensure coordinated investment.

The consolidation would also strengthen local autonomy and accountability, shift management from a process-based approach to one focused on outcomes, and address problems caused by multiple administrative focal points, difficulties in combining resources, and delays in fund allocation and disbursement.

Before consolidation, the four programs had combined resources of $30.7 billion, comprising $13.1 billion from the central budget; $15.0 billion from local budgets; $874 million for policy credit; $776 million in counterpart funding from educational institutions; and $940 million from other legally mobilized sources.

The Ethnic Council agreed that the ratio of 75% public investment funding to 25% recurrent expenditure should not be applied mechanically. However, it recommended that the National Assembly’s resolution specify the total funding, the balance between public investment and recurrent expenditure, and limits on the authority delegated to the Government.

The Government would be allowed to determine the detailed funding structure within the scope and limits approved by the National Assembly, but without changing the total investment, objectives, beneficiaries, priority levels or other elements of the investment policy decided by the legislature. It should also ensure that resources are not reduced for direct assistance, livelihoods, production development, education, healthcare, culture, vocational training and ethnic minority policies.

Local counterpart funding should reflect each locality’s budget capacity and should not prevent financially constrained localities from accessing central government funding. Any adjustments exceeding the delegated authority would have to be submitted to the National Assembly Standing Committee for consideration and decision within its jurisdiction.

Tran Thuong