On May 13, 2026, the Minister of Finance officially signed and issued Circular No. 51/2026/TT-BTC providing guidelines on the preparation of State Financial Reports (SFRs). This is a crucial legal document aimed at institutionalizing the provisions of the Law on Accounting, the Law on State Budget, and the Government's Decree No. 140/2026/ND-CP, creating a synchronous and transparent database to serve the management and governance of the national financial system. The new Circular clearly defines the scope, applicable entities, and data consolidation processes, while specifically allocating comprehensive responsibilities to financial agencies at the local level.
A New Step Forward in Institutionalizing Public Financial Information
Circular No. 51/2026/TT-BTC provides detailed guidance on the templates and procedures for preparing, submitting, and verifying the balance, rationality, and validity of Financial Information Provision Reports (FIPRs); the contents and methodology for formulating indicators on the SFRs; as well as methods for eliminating internal transactions and correcting arising errors. The SFR is prepared periodically based on the calendar accounting year (from January 1 to December 31).
The prominent highlight in this new governance mechanism is the promotion of scientific-technological applications and digital transformation. The Ministry of Finance has assigned the State Treasury to operate and upgrade the State General Accounting Information System to meet the requirements of centralized, unified, and secure management, ensuring that the flow of financial information from the grassroots to the central level remains seamless, accurate, and timely.
Specific Implementation Responsibilities at the Local Level
To ensure the quality of Provincial State Financial Reports, Circular No. 51/2026/TT-BTC clearly delineates the reporting template system and enforcement responsibilities of each local agency and unit:
- Regional State Treasuries: Act as the presiding agency, assisting the State Treasury in consolidating and preparing the provincial SFR. The Regional State Treasury is responsible for preparing FIPRs using Form No. C01a/CCTT to reflect all information regarding cash, cash equivalents, and local budget revenues and expenditures (including both provincial and commune-level budgets) that are not tracked by independent units. Concurrently, this agency checks the accuracy of input data and publicizes the list of information-providing units on the State General Accounting System.
- Departments of Finance: Are responsible for preparing FIPRs using Form No. C07/CCTT to fully reflect information on state capital in enterprises managed by the locality, as well as the actual debt status of local governments. In addition, the Department of Finance must submit its own financial statements or consolidated financial statements accompanied by Form No. C08/CCTT to clarify specific fixed assets and expenses by specialized sectors. Before January 15 of each year, the Department of Finance is obligated to review and compile a list of the highest-level superior accounting units and independent accounting units under provincial management from the preceding year to facilitate reconciliation.
- Commune-level People's Committees: Play the role of controlling financial information at the grassroots level. Similar to the provincial level, Commune-level People's Committees are responsible for compiling a list of the highest-level superior accounting units and independent accounting units within their management scope before January 15 of each year to submit to the State Treasury.
- Local Tax Authorities and Accounting Units: Tax authorities prepare reports in accordance with the domestic tax professional accounting regime to clarify receivables, payables, and the managed tax revenue. All administrative units, public non-business units, and independent or highest-level superior accounting units under local jurisdiction must strictly prepare financial statements or consolidated financial statements in compliance with current accounting regimes (Circular No. 24/2024/TT-BTC and Circular No. 108/2025/TT-BTC).
Procedures for Data Reception, Verification, and the Elimination of Internal Transactions
All local financial data must be submitted electronically via the Web Portal of the State General Accounting Information System with digital signatures. Physical paper documents are only permitted for classified/secret materials or in force majeure events regarding internet infrastructure.
Within 03 working days upon receipt, State Treasuries at all levels must conduct rigorous checks on the legality of the reports, approval authority, and mechanical balance (Total Assets must equal Total Resources; data compared to the current year must match the previous year). If discrepancies are detected, the Treasury will reject the submission, and the responsible unit must coordinate to explain, refine, and resubmit within 05 working days.
In particular, to prevent data duplication when consolidating provincial SFRs, the Circular stipulates strict mandatory exclusions of internal transactions. Specifically, at the local level, the following must be thoroughly eliminated:
- Balancing budget additions, targeted additions, or fund refunds between the provincial budget and the commune-level budget.
- Expenditures, advances, or pre-advances for operational costs, project funds, and basic capital construction invested from the local budget allocated to agencies and units subject to data consolidation.
Regarding error corrections, Circular 51/2026/TT-BTC stipulates that all discrepancies arising in the current year must be comprehensively reviewed and adjusted before submitting the local SFR to the provincial People's Council. In cases where material errors from previous reporting periods are discovered after approval, the locality is compelled to make retroactive adjustments to the opening balances of assets, liabilities, and net assets of the year the error was discovered.
Strategic Directions for the Local Financial System
The issuance of Circular No. 51/2026/TT-BTC requires localities to take prompt action. Provincial and municipal People's Committees need to swiftly direct Departments of Finance to cooperate closely with local State Treasuries to organize intensive training courses and provide technical guidance on applying the new templates for all accounting units within their territories.
Simultaneously, it is vital to enhance inspection, review the progress of updating the list of focal units, upgrade information technology infrastructure, and promote the comprehensive completion of digital signature integration. Proactiveness, decisiveness, and strict compliance with technical processes at the grassroots level constitute the ultimate key to ensuring that the state financial picture remains transparent and precise, effectively serving the sustainable socio-economic development of each locality and the entire nation.