These criteria are divided into five main groups: population; development level (the ratio of poor households and domestic tax collection, excluding land-related taxes); natural conditions; administrative level; and specific traits, Mr Phuc said.

Under new criteria, he added, the rate of budget allocation for investment development to be earmarked for each locality will not be lower than the projected figure of 2006.

The State budget allocation for development over the past three years, which was implemented in conformity with investment demands of different ministries and sectors to serve the country’s socio-economic development plan, prioritised sectors including human resources development, education and science and technology, Mr Phuc said.

During the 2004-2006 period, investment development disbursement accounted for 28.3 per cent of the total State budget allocation and nearly 22 per cent of social investment capital, according to a report by the Ministry of Planning and Investment.

The Ministry estimated that State budget allocation during the 2007-2010 period will account for 27 per cent of the Gross Domestic Product, or an annual increase of 11.5 to 12 per cent.