The commune, township or ward budgets constitute part of the State budget, built and managed by the People�s Committees, and decided and supervised by the People�s Councils of communes, townships or wards. The budget of a commune, township or ward shall be formulated from revenues it is authorized to collect, and cover expenses for activities involved in the functions and tasks of the commune, township or ward administration as prescribed by the Law on State Budget.

This Circular guides the implementation of provisions on content of revenues and expenditures; the drafting, implementation and settlement of commune, township or ward budget.-