Circular No. 342/2016/TT-BTC dated September 30, 2016 of the Ministry of Finance on detailing and guiding the implementation of a number of articles of the Government's Decree No. 163/2016/ND-CP dated December 21, 2016 on detailing a number of articles of the Law on the State Budget

CIRCULAR

ON DETAILING AND GUIDING THE IMPLEMENTATION OF A NUMBER OF ARTICLES OF THE GOVERNMENT S DECREE NO. 163/2016/ND-CP DATED DECEMBER 21, 2016 ON DETAILING A NUMBER OF ARTICLES OF THE LAW ON THE STATE BUDGET

Pursuant to the Law on the State Budget dated June 25, 2015;

Pursuant to the Government’s Decree No. 163/2016/ND-CP of December 21, 2016 on detailing a number of articles of the Law on the State Budget;

Pursuant to the Government’s Decree No. 215/2013/ND-CP of December 23, 2013, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

At the proposal of the Director of the State Budget Department;

The Minister of Finance promulgates the Circular on detailing and guiding the implementation of a number of articles of the Government s Decree No. 163/2016/ND-CP dated December 21, 2016 on detailing a number of articles of the Law on the State Budget.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

1. This Circular stipulates in detail and guides the implementation of a number of articles of the Government s Decree No. 163/2016/ND-CP dated December 21, 2016 on detailing a number of articles of the Law on the State Budget (hereinafter referred to as the Government’s Decree No. 163/2016/ND-CP).

2. Contents of organization of collection and accounting for revenues of the state budget; process, procedure of, accounting and controlling budget expenditures; allocation and payment of basic construction investment capital, management mechanisms of loans and aid; management and use of the state budget for agencies of the Communist Party of Vietnam; management of the commune-level budget; disclosure of the state budget, the Ministry of Finance shall guide or coordinate with the concerned agencies to issue the separate guidelines.

Article 2. Subjects of application

1. State agencies, political organizations and socio-political organizations;

2. Socio-politico-professional organizations, social organizations and socio-professional organizations that receive state budget support for their State-assigned tasks;

3. Public non-business units;

4. Other organizations and individuals related to the state budget.

Chapter II

DECENTRALIZATION OF STATE BUDGET MANAGEMENT

Article 3. Revenue sources of the central budget

1. Revenues wholly belonging to the central budget (including late-payment interests according to the Law on Tax Administration), comprise:

a) Value-added tax on imports;

b) Import duty and export duty;

c) Excise tax on imports, including excise tax on imports sold in the country by importers;

d) Environmental protection tax on imports;

dd) Royalties, enterprise income tax, value-added tax, profits shared to the host country, various charges, water surface rental, and other taxes, charges and revenues from oil and gas exploration and exploitation activities;

e) Non-refundable aid provided by foreign governments, international organizations, other organizations and overseas individuals to the Vietnamese Government;

g) Charges for services provided by central state agencies, except for the charges deducted by competent authorities for agencies that have to pay their operating expenses at a pre-fixed level; charges for services provided by central public non-business units and central state enterprises, after subtracting the amounts retained to cover relevant expenses as prescribed by law.

The charges amount deducted and retained to cover relevant expenses shall not be in revenue sources of the state budget and be managed and used as prescribed by law;

h) Fees collected by central state agencies, excluding license fee prescribed at Point g and registration fee prescribed at Point h, Clause 1, Article 5 of this Circular;

i) Collected fines for administrative violations, other fines and money amounts from seizures as prescribed by law under decisions of central state agencies;

k) Proceeds from the sale of state property, including those from transfer of the right to use land and land-attached assets or change of land use purposes with regard to land managed by state agencies, political organizations, socio-political organizations, public non-business units, state-owned single-member limited liability companies or enterprises with capital contributions of central agencies before such companies or enterprises are equitized or reorganized, or other central units or organizations;

l) Revenues from property over which the state ownership is established and which is managed by central agencies, units or organizations, after subtracting relevant expenses prescribed by law;

m) Retrieved central budget capital amounts (both principals and interests) invested in economic organizations; dividends and profits from state-invested joint-stock companies and limited liability companies with two or more members in which ministries, ministerial-level agencies, government-attached agencies or other central agencies act as the owner’s representatives; after-tax profits left after setting aside various funds of state enterprises in which ministries, ministerial-level agencies, government-attached agencies or other central agencies act as the owner’s representatives;

n) Revenues from the grant of the mining right or right to exploit water resource as prescribed by law that are belonging to revenues of the state budget;

o) Levies on use of sea areas falling within the competence of central agencies;

p) Positive difference between revenues and expenditures of the State Bank of Vietnam;

q) Revenues from the central financial reserve fund;

r) Central budget remainder;

s) Central budget revenues brought forward from preceding years;

t) Other revenues as prescribed by law, including revenues from subordinate budget.

2. Revenues shared by percentage (%) between the central budget and local budgets (including late-payment interests according to the Law on Tax Administration), including:

a) Value-added tax, including value-added tax payable by subcontractors for services for oil and gas exploration and exploitation activities, except value-added tax prescribed at Points a and dd, Clause 1 of this Article;

b) Enterprise income tax, including enterprise income tax payable by subcontractors for services for oil and gas exploration and exploitation activities (including enterprise income tax for capital transfer in oil and gas activities); except for enterprise income tax prescribed at Point dd, Clause 1 of this Article;

c) Personal income tax;

d) Excise tax, except excise tax prescribed at Point c, Clause 1 of this Article;

dd) Environment protection tax, except environment protection tax prescribed at Point d, Clause 1 of this Article.

For environment protection tax amounts collected from domestically produced petrol and oil, their determination shall be based on the volume of petrol and oil sold in the market by wholesale traders and the ratio of the total output of domestically produced petrol and oil to the total volume of imported petrol and oil. The Ministry of Finance shall determine annually this ratio.

Article 4. Spending tasks of the central budget

1. Development investment expenditures:

a) Capital construction investment in programs and projects of ministries, ministerial-level agencies, government-attached agencies and other central state agencies in the fields prescribed in Clause 3 of this Article;

b) Investment in, and provision of capital support for, enterprises providing public products and services under orders placed by the State, economic organizations; central financial institutions; and investment of state capital in enterprises in accordance with law;

c) Other development investment expenditures as prescribed by law.

2. National reserve expenditures.

3. Current expenditures of ministries, ministerial-level agencies, government-attached agencies and other central state agencies who shall directly manage as assigned in the following fields:

a) National defense according to separate regulations of the Government and written guidances on the implementation;

b) Security and social order and safety according to separate regulations of the Government and written guidance on the implementation;

c) Education-training and vocational training, including higher education, college, professional secondary education, vocational training; activities of boarding general education schools for ethnic minority students and other education, training and refresher training forms;

d) Science and technology, including basic research tasks, application and development, application transfers in the domains of natural sciences, technology, social sciences and humanities and various sciences;

dd) Health care, population and family, including prophylactic medicine activities, medical examination and treatment; funding for payment and support of health insurance premiums for persons eligible for premium payment or support from the state budget under the Law on Health Insurance; food hygiene and safety; population and family and other medical activities;

e) Culture and information, including conservation, museums, libraries, restoration of historic relics, historical archives; creative activities of literature, art and other cultural and informational activities;

g) Radio and television broadcasting and news;

h) Physical training and sports, including retraining and training of coaches and athletes of the national teams; the national and international tournaments; sports facilities management and other activities of fitness, sports;

i) Environmental protection, including survey, prevention and control of environmental pollution; remedy of environmental incidents and environmental protection; response to climate change; assurance of clean water and environmental sanitation and other environmental protection activities;

k) Economic activities, including:

Traffic, including management, maintenance, repair, assurance of operation and safety in road traffic, railway, inland waterway navigation, maritime, aviation and other traffic activities;

Agriculture, forestry, salt production, fisheries, irrigation and rural development, including activities of agriculture, forestry, salt production, fishery, irrigation development; construction of new rural construction and other rural development activities;

Resources, including land, resource, geology and mineral, hydro-meteorology survey and management; survey and mapping; administrative boundary survey; marker planting of boundaries and other resource management activities;

Planning; investment, commerce and tourism promotion; expenditures for warehousing, delivery, preservation, protection and insurance of national reserve commodities performed by the State;

Other economic activities, including search and rescue, occupational safety and health;

l) Activities of state agencies, political organizations and social-political organizations, support for activities of socio-politico-professional organizations, social organizations and socio-professional organizations in accordance with law, including:

Activities of the National Assembly, Office of the President, ministries, ministerial-level agencies, Governmental agencies, other central state agencies; systems of People’s Courts; People s Procuracies; State Audit; activities of central agency of the Communist Party of Vietnam; activities of Central Committee of the Vietnam Fatherland Front; the Vietnam General Confederation of Labor; Central Committee of the Vietnam Veterans’Union; Central Committee of the Vietnam Women’s Union; Central Committee of the Vietnam Farmers’Union; Central Committee of the Ho Chi Minh Communist Youth Union;

Support for socio-politico-professional organizations, social organizations, socio-professional organizations under the Central Government s management under the provisions ofArticle 10 of the Government s Decree No.163/2016/ND-CP;

m) Expenditures for social security activities, including assurance of implementation of regimes for retired people, people with lost working capacity, people entitled to social insurance support and other supports ensured by the central budget; care policies and activities for people with meritorious services to the revolution; policies and activities of social relief; support for the social insurance fund according to the Government s regulations; expenditures for prevention and control of social evils and other social activities ensured by the central budget according to the law;

n) Other activities eligible for current expenditures as prescribed by law.

4. Expenditures for payment of interests on other charges and other expenses arising from government loans.

5. Expenditures for aid provision.

6. Expenditures for loan provision in accordance with law.

7. Transfers to the central financial reserve fund.

8. Central budget expenditures brought forward to the subsequent year.

9. Budget-balancing transfers and targeted transfers to local budgets.

Article 5. Revenue sources of local budgets

1. Revenues wholly belonging to the local budget (including late-payment interests according to the Law on Tax Administration), comprise:

a) Royalties, except royalties collected from oil and gas exploration and exploitation activities;

b) Agricultural land use tax;

c) Non-agricultural land use tax;

d) Land use levy;

dd) Land and water surface rentals, excluding those from oil and gas exploration and exploitation activities;

e) Rentals, and revenues from the sale, of state-owned houses;

g) License fee;

h) Registration fee;

i) Revenues from construction lottery activities, including computerized lottery activities;

k) Retrieved local budget capital amounts invested in economic organizations in accordance with law; dividends and profits from state-invested joint-stock companies and limited liability companies with two or more members in which People’s Committees of provinces and central affiliated cities act as the owner’s representatives; and after-tax profits left after setting aside various funds of state enterprises in which People’s Committees of provinces and central affiliated cities act as the owner’s representatives;

l) Proceeds from the sale of state property, including those from transfer of the right to use land and land-attached assets or change of use purposes with regard to land managed by state agencies, political organizations, socio-political organizations, public non-business units, state-owned single-member limited liability companies, units or enterprises funded with local budgets before they are equitized or reorganized, or other local units or organizations;

m) Non-refundable aid provided by international organizations, other organizations and overseas individuals directly to localities;

n) Charges for services provided by local state agencies, except for the charges deducted by competent authorities for agencies that have to pay their operating expenses at a pre-fixed level; charges for services provided by local public non-business units and local state enterprises, after subtracting the amounts retained to cover relevant expenses as prescribed by law.

The charges amount deducted and retained to cover relevant expenses shall not be in revenue sources of the state budget and be managed and used as prescribed by law;

o) Fees collected by local state agencies;

p) Collected fines for administrative violations, other fines and money amounts from seizures under decisions of local state agencies;

q) Revenues from property over which the state ownership is established and which is realized by local agencies, units or organizations, after subtracting relevant expenses as prescribed by law;

r) Revenues from the grant of the mining right or right to exploit water resource as prescribed by law;

s) Levies on use seas areas within the competence of local administrations;

t) Revenues from public land areas and yields and profits from public property;

u) Contributions made by organizations and individuals as prescribed by law;

v) Revenues from local financial reserve funds;

x) Local budget remainders;

y) Other revenues as prescribed by law, including revenues from paddy land protection and development; indemnification to the State for damage caused during land management and use; revenues from subordinate budget.

2. Revenues shared by percentage (%) between the central budget and local budgets under Clause 2, Article 3 of this Circular.

3. Budget-balancing transfers and targeted transfers from the central budget.

4. Local budget revenues brought forward from the preceding years.

Article 6. Spending tasks of local budgets

1. Development investment expenditures:

a) Capital construction investment in locally managed programs and projects in the fields specified in Clause 2 of this Article;

b) Investment in, and provision of capital support for, enterprises providing public products and services under orders placed by the State, and local economic organizations and financial institutions in accordance with law; and investment of state capital in enterprises in accordance with law;

c) Other development investment expenditures as prescribed by law.

2. Current expenditures of local agencies and units as assigned directly in the following fields:

a) Education-training and vocational training, including primary education, general education, complementary education, nursery and pre-primary education, boarding general education for ethnic minority students and other education activities; higher education, college, professional secondary education, vocational training and other training and refresher training forms;

b) Science research, including science and technology application and development, other science and technology activities;

c) The duties of defense, security, social order and safety ensured by local budgets in accordance with the Government’s regulations and the implementation guidelines;

d) Health care, population and family, including prophylactic medicine activities, medical examination and treatment; funding for payment and support of health insurance premiums for persons eligible for premium payment or support from the state budget under the Law on Health Insurance; food hygiene and safety; population and family and other medical activities;

dd) Culture and information, including conservation, museums, libraries, restoration of historic relics, historical archives; creative activities of literature, art and other cultural and informational activities;

e) Radio and television broadcasting;

g) Physical training and sports, including retraining and training of coaches and athletes of the provincial-level teams; the provincial-level and district-level tournaments; sports facilities management and other activities of fitness, sports;

h) Environmental protection, including survey, prevention and control of environmental pollution; remedy of environmental incidents and environmental protection; response to climate change; assurance of clean water and environmental sanitation and other environmental protection activities;

i) Economic activities:

Traffic, including management, maintenance, repair, assurance of operation and safety in road traffic, inland waterway navigation and other traffic activities;

Agriculture, forestry, salt production, fisheries, irrigation and rural development, including activities of agriculture, forestry, salt production, fishery, irrigation development; construction of new rural construction and other rural development activities;

Resources, including land and resource survey and management; survey and mapping, administrative boundary survey; cadastral record archive and other resource management activities;

Planning; investment, commerce and tourism promotion;

Administrative urban construction: restoration, maintenance of lighting systems, sidewalks, water supply and drainage systems, parks and other administrative urban construction;

Other economic activities, including search and rescue, occupational safety and health;

k) Activities of state agencies, political organizations and social-political organizations, support for activities of socio-politico-professional organizations, social organizations and socio-professional organizations in accordance with law, including:

Activities of the state agencies, agencies of the Communist Party of Viet Nam; activities of the Committee of Vietnam Fatherland Front; Veterans’Union of Vietnam; Women s Union of Vietnam; Vietnam Farmers Association; Communist Youth Union of Ho Chi Minh City in localities;

Support for socio-politico-professional organizations, social organizations, socio-professional organizations in localities under the provisions ofArticle 10 of the Government s Decree No. 163/2016/ND-CP;

l) Social security activities, including the social camps, social donation, poverty relief, prevention and control of social evils and other social security policies; performance of social policies for subjects ensured by local budgets in accordance with law;

m) Other current expenditures under the provisions of law, including payment for higher-level budget.

3. Expenditures for payment of interests on, charges and expenses arising from, loans borrowed by provincial-level administrations.

4. Transfers to local financial reserve funds;

5. Local budget expenditures brought forward to the subsequent year.

6. Budget-balancing transfers and targeted transfers to lower-level budgets.

Article 7. Principles of assignment of revenue sources and spending tasks between local budgets at all levels

1. The assignment of revenue sources between local budgets at all levels shall comply withArticle 39 of the Law on the State Budget;Article 17 of the Government s Decree No. 163/2016/ND-CPand the following requirements:

a) Associated with the mission and management capabilities of each level, limiting the addition from the high-level budget to the lower budget; and encouraging all levels to strengthen revenue management, revenue loss prevention. Revenue sources associated with the management role of a certain level of government shall be allocated to budget of that level of government;

b) Limiting decentralization for many levels of budget for small-scale revenues;

c) Ensuring the percentage (%) dividing the revenues for its budget and the budgets of all lower-levels shall not exceed the percentage (%) divided by the regulations of the higher level for each revenue divided.

2. The assignment of spending tasks between local budgets at all levels shall comply with the principals as prescribed inArticle 39 of the Law on the State BudgetandArticle 17 of the Government s Decree No. 163/2016/ND-CP.

3. In the budget stabilization period:

a) Do not change the percentage (%) dividing the revenues between levels of budget;

b) Annually, based on the balancing capacity of a higher-level budget, a competent agency shall decide to increase budget-balancing transfers from such higher-level budget to a lower-level budget as compared to the first year of the budget stabilization period;

c) Localities shall use annual increase in revenues belonging to the local budget as the assignment for increase in expenditures on performing the duties of economic and social development, defense and security assurance. Increase in budget revenues compared to the budget estimates shall comply with regulationsin Clause 2, Article 59 of the Law on the State Budget;

In case revenues arising from operations of a new project in the budget stabilization period make an significant increase in local budget revenues, the increase in revenues shall be remitted to the higher-level budget, the provincial-level People’s Committee shall submit to the same level People s Council for decision of collection of such revenue increase and of partial targeted transfers to local budgets according toPoint d, Clause 3, Article 40 of the Law on the State Budgetto support the local infrastructure investment in projects approved by competent authorities;

d) Based on revenue sources and spending tasks decentralized, percentage (%) dividing the revenues and budget-balancing transfers from higher-level budget, regime of collection, regimes, criteria and norms of budget expenditures and specific requirements for economic and social development of the localities, the People s Committees at all levels shall submit to the same level People s Councils the estimates of budget revenues and expenditures for decision and manage, operate proactively the estimates of budget revenues and expenditures which have been decided by the People s Councils.

Article 8. Determination of percentage (%) of revenue sharing between budgets at all levels in the first year of the budget stabilization period:

1. Determination of percentage (%) of revenue sharing between central budget and budget of each province or central affiliated city as below:

a) Percentage (%) of revenue sharing between central budget and local budgets shall be separately determined for each province or central affiliated city and applied for all revenue shared between budgets at all levels in the locality;

b) The formula of determination of percentage (%) of revenue sharing between central budget and local budgets as below:

The total expenditures of local budgets shall be determined based on state budget allocation principles, criteria and norms as prescribed in resolutions of the National Assembly Standing Committee (including development investment expenditure and current expenditure) for the first year of the budget stabilization period (herein referred to as A);

The total revenues wholly belonging to local budgets are determined based on collection capacity, exclusive of revenues from construction lottery activities, land use levies, supplementary revenues from higher-level budgets, budget remainder, spontaneous distribution, aid, revenues brought forward from preceding years’budgets (herein referred to as B);

The total of revenues shared between central budget and local budgets are determined based on the revenue capacity (herein referred to as C);

If A - B <C, the percentage (%) of distribution is calculated by the formula:

If A - B≥C, the percentage (%) is determined by 100% and the difference (if any) will be added to balance local budget by central budget. The determination of budget-balancing transfers to each locality shall be stipulated in Clause 1, Article 9 of this Circular.

2. Determination of percentage (%) of revenue sharing between budgets of local administrations at all levels

a) Revenues shared between budgets of local administrations at all levels include:

The revenue sources of tax, fees, charges and other revenue sources wholly belonging to local budgets as prescribed in Clause 1 of Article 5 of this Circular.

Revenues shared between the central budget and local budgets, part of revenues belonging the local budgets shall comply with Clause 1 of Article 5 of this Circular;

b) Provincial-level People s Council decides percentage (%) revenue sharing between the provincial-level budget with budget of each rural district, urban district, town, provincial city, cities of centrally run cities and budget of each commune, ward or township. The decision of percentage (%) revenue sharing between the provincial-level budget with budget of each rural district, urban district, town, provincial city, cities of centrally run cities and budget of each commune, ward or township may be applied for each revenue.

Article 9. Transfers from higher-level budgets to lower-level budgets

1. Budget-balancing transfers from higher-level budgets to lower-level budgets:

a) Budget-balancing transfers from the central budget to budget of each locality for the first year of the budget stabilization period is determined by the formula as below:

Budget-balancing transfers = A - (B + C)

A, B, C shall be determined in accordance with Point b, Clause 1, Article 8 of this Circular; C combines revenues shared between the central budget and local budgets, part of revenue belonging to the local budgets may be extended up to 100%.

b) Budget-balancing transfers from high-level budgets to lower-level budgets in a locality shall be determined according to the principles determining the difference between expenditures and revenues of budgets at lower levels, including revenues wholly belonging to such lower-level budget and revenues shared by percentage (%) from the revenues shared between the local budgets).

c) For the years of the budget stabilization period, based on the balancing capacity of a higher-level budget, a competent agency shall decide to increase budget-balancing transfers from such higher-level budget to a lower-level budget as compared to the transfers of the first year of this period.

2. Targeted transfers from high-level budgets to lower-level budgets shall be determined according to principles, criteria, norms of budget allocation and regimes, criteria, norms of budget expenditures, balancing capacity of higher-level budgets and balancing capacity of budgets of each locality at the lower level, in order to support the lower-level budget in the following cases:

a) Implementation of new policies and regimes issued by higher level but not been included in the budget estimates of the first year of the budget stabilization period, the specific level of support shall be determined on the basis of capacity of budget balance of the relevant levels;

b) Implementation of national target programs and other target programs, programs and projects of superior authorities assigned to subordinate authorities; the specific level of support shall be determined on the basis of expenditure estimates assigned by competent authorities;

c) Support of expenditures for the remediation of consequences of widespread disasters, catastrophes and epidemics which go beyond the balancing capacity of lower-level budgets, even after budget provisions and financial reserve funds have been used under regulations but can’t meet the expenditure need;

d) Support for the implementation of goals, works, projects that have great significance to the requirements of economic and social development of the localities, are in the planning and has been approved by competent authorities in accordance with law provisions on management of investment and construction. The specific support level shall be determined for each program or project. The total annual support for development investment from the central budget to a local budget prescribed at this Point must not exceed 30% of the central budget’s total expenditures for capital construction investment;

dd) Targeted transfers from high-level budgets to lower-level budgets shall be determined annually. The use of capital and funding supplemented by the goal must be according to the specified target. If the targeted transfers to lower-level budgets are used incorrectly for the defined target or are remaining, they must be reimbursed to high-level budgets.

Chapter III

ESTIMATION OF ANNUAL STATE BUDGET

Article 10. Guidance on making estimate and notifying figures for examination of state budget estimates

1. Based on the Prime Minister’s regulations on formulating a plan on socio-economic development and state budget estimates for the subsequent year, the Ministry of Planning and Investment, the Ministry of Finance shall provide guidance on formulating plans on socio-economic development, plans on public investment, state budget estimates and notify figures for examination of state budget expenditure and revenue estimates for the subsequent year.

Time for guiding on formulating state budget estimates and notifying figures for examination of state budget expenditure and revenue estimates shall comply with Clauses 1, 2 and 3, Article 22 of the Government s Decree No. 163/2016/ND-CP.

2.Ministries, ministerial-level agencies, government-attached agencies, other central agencies and People’s Committees of provinces and centrally run cities shall provide guidance on formulating estimates and notify figures for examination of state budget expenditure and revenue estimates for the subsequent year to their affiliated units and People’s Committees of lower levels, ensuring the consistency with figures for examination of both total and detailof state budget revenue and expenditure fields of competent authorities notified under Clause 4, Article 22 of the Government s Decree No. 163/2016/ND-CP.

Article 11. Formulation of state budget revenue and expenditure estimates

1. The formulation of state budget estimates must ensure principles on state budget balance, grounds and requirements in accordance with the Law on the State Budget, the Government’s Decree No. 163/2016/ND-CP and guiding documents as prescribed in Article 10 of this Circular.

2. Formulation of state budget revenue and expenditure estimates at budget-estimating units and state budget-supported organizations:

a) Budget-using units, project owners and state budget-supported organizations shall formulate state budget revenue and expenditure estimates under Clauses 1, 2, 3 and 4, Article 23 of the Government’s Decree No. 163/2016/ND-CP;

b) Before July 20 every year, level-I central budget-estimating units shall formulate budget revenue and expenditure estimates under their direct management and use; review and summarize estimates formulated by affiliated units, send reports of state budget estimates, development investment expenditures and regular expenditures according to each expenditure field in details, national reserve expenditures, expenditures for aid provision (if any), detailing every agency or unit using budget to the Ministry of Finance, the Ministry of Planning and Investment, agencies managing national target programs and target programs (for estimates of expenditures for national target programs and target programs).

Based on the characteristics of the units and regulations of the time to send the budget estimates prescribed at this Point, level-I central budget-estimating units shall prescribe the time to prepare and submit reports for the affiliated budget-estimating units;

c) Level-I budget-estimating units at localities shall formulate budget expenditure and revenue estimates under their direct management and use; review and summarize estimates formulated by affiliated units, send state budget estimates, development investment expenditures and regular expenditures according to each expenditure field in details, detailing every agency or unit using budget to financial agencies, planning and investment agencies of the same levels.

Time to send reports of the local level-I estimating units shall be defined by provincial-level People s Committees; ensure the time for summarizing, sending reports of local budget estimates to the Ministry of Finance, the Ministry of Planning and Investment, agencies managing national target programs, target programs shall comply with Point d, Clause 6 of this Article.

3.Tax Departments, Customs Departments shall formulate state budget revenue estimates in accordance with Article 24 of the Government’s Decree No. 163/2016/ND-CP.

4. Agencies and units assigned to collect charges and fees must formulate estimates of revenues of each type of charges and fees, total revenues, the amount to be remitted to the budget, the amount to be deducted and retained in details according to law provisions, each type of fees and charges in details, and budget expenditures of agencies and units according to fields, send to immediate superior managing agencies for summarization, send to level-I budget-estimating units for general summarization in state budget expenditure and revenue estimates in accordance with Points b and c, Clause 2 of this Article.

5. Formulation of estimates of expenditures for national target programs, target programs:

a) Based on figures for examination of expenditures for national target programs, target programs notified by the Ministry of Finance, the Ministry of Planning and Investment; agencies managing programs shall provide guidance on programs’ targets and tasks of the estimating year for ministries, ministerial-level agencies, government-attached agencies, other central agencies and People’s Committees of provinces and centrally run cities;

b) Ministries, ministerial-level agencies, government-attached agencies, other central agencies and People’s Committees of provinces and centrally run cities shall formulate estimates of expenditures for national target programs, target programs (expenditures for development investment and regular expenditures according to each task, project in details), send the Ministry of Finance, the Ministry of Planning and Investment, agencies managing programs before July 20 every year;

c) Based on the proposal of agencies managing national target programs, target programs, the Ministry of Finance, the Ministry of Planning and Investment shall officially notify the capital level and fund for each program of the estimating year;

d) Agencies managing national target programs, target programs shall formulate plans on allocating capital,     fund for each ministry, ministerial-level agency, government-attached agency, other central agency and locality (expenditures for development investment and regular expenditures according to each task, project in details), send the Ministry of Finance, the Ministry of Planning and Investment before August 15 every year.

6. When formulating local budget estimates, in addition to comply with instructions provided in Clauses 1, 2, 3, 4 and 5 of this Article, localities must implement the following contents:

a) For the first year of the budget stabilization period:

Pursuant to the Resolution of the National Assembly Standing Committee on rules, criteria and norms of state budget allocation (including expenditures for development investment and regular expenditures), the provincial-level People’s Committee shall submit the People’s Council of the same level to decide rules, criteria and norms of local budget allocation serving as a basis for agencies, units and budgets of lower levels to formulate budget expenditure estimates, direct the Finance Department to preside over, coordinate with related agencies in formulating state budget revenue estimates in area, estimates of revenue and expenditure of local budget, determine budget-balancing transfers or percentage (%) of budget revenues of which local budget is transferred from revenues sharing between central and local budgets; determine local budget surplus and deficit, payment amount of loan principals and sources for payment of loan principals (if any); total borrowing, including borrowing to pay for loan principals and borrowing to offset the local budget deficit (if any), report the provincial-level People’s Committee for reporting agencies as prescribed at Point d of this Clause.

Financial agencies shall assume the prime responsibility for, coordinate with related agencies in organizing a discussion on estimates with the People s Committee of immediate lower level for determine budget estimates for the first year of the budget stabilization period;

b) For years of the budget stabilization period: Based on the percentage (%) of revenue sharing between central and local budgets, budget-balancing transfers from central budget to local budget and estimates of lower-level agencies, units and budget, the Finance Department shall assume the prime responsibility for, coordinate with related agencies in formulating state budget revenue estimates in areas, formulating local budget revenue and expenditure estimates (detailing expenditures for development investment and regular expenditures according to expenditure field), payment of interests, transfers to financial reserve funds, budget contingency; local budget deficit and surplus, payment amount of loan principals and sources for payment of loan principals (if any); total borrowing, including borrowing to pay for loan principals and borrowing to offset the local budget deficit (if any), report the provincial-level People’s Committee for reporting agencies as prescribed at Point d of this Clause.

Higher-level financial agencies shall only organize a discussion on budget estimates with the People s Committee of immediate lower level upon request of the lower-level People s Committee;

c) On an annual basis, based on the ability of local budget balance, loan outstanding balance limit as prescribed and the need for development investment capital, the provincial-level People’s Committee shall formulate estimates of budget deficit and plans on borrowing and payment of provincial budget, including the following contents:

Estimates of local budget deficit; estimated total borrowing in the year (including borrowing to offset the deficit and borrowing to pay for loan principals), details according to borrowing sources (borrowing from sources government bond issuance, borrowing from loans taken by the Government for on-lending to local budgets according to commitment of disbursement, borrowing from other domestic sources); task of repayment of due debts arising in the estimated year (including repayment of loan principals, interests, fees and other relevant expenses); expected sources of debt repayment; the provincial-level budget balance in the current year, the estimated year and the debt repayment capability of the budget in subsequent years; outstanding loan balance of localities until December 31 of the previous year and the year of the budget estimate shall not exceed the outstanding loan balance prescribed in Clause 6, Article 7 of the Law on the State Budget and Clause 6, Article 4 of the Government’s Decree No. 163/2016/ND-CP; other documents to explain clearly the loan plan.

Investment project proposed for using loans must be listed in the List of medium-term public investment plans decided by the provincial-level People’s Council (for years in the medium-term public investment plan) or expected to be in the medium-term public investment plan to submit the competent authorities for decision (for the first year of the medium-term public investment plan) and ensure investment procedures as prescribed;

d) The provincial-level People’s Committee shall summarize, formulate local budget estimates and report the standing bodies of the same-level People’s Councils for considerations and opinions. After obtaining opinions of standing bodies of provincial-level People’s Councils, provincial-level People’s Committees shall send reports on local budget estimates to the Ministry of Finance, Ministry of Planning and Investment, and agencies managing national target programs, target programs before July 20 every year;

dd) Provincial-level People s Committee shall provide specific guidelines the annual estimate of budget at local levels in accordance with regulations on requirements, contents and time of local budget estimate formulation.

7. Formulation of financial plans for state extra-budgetary financial funds:

a) Agencies directly managing state extra-budgetary financial funds shall formulate plans on financial fund revenue and expenditure and the need of support of charter capital from state budget (if any) in accordance with Clauses 3, 4 and 5, Article 12 of the Government’s Decree No. 163/2016/ND-CP, send them to the immediate superior managing agency for summarization with the annual state budget estimate of such immediate superior managing agency;

b) The level-I budget-estimating agency shall summarize the need of charter capital support from budget (if any) into the state budget and make a separate report on the revenue and expenditure plan of state extra-budgetary financial funds under its management, and send it to the financial agency of the same level;

c) The Vietnam Social Security shall make a revenue and expenditure plan of social insurance fund, health insurance fund, unemployment fund and the need for support from the state budget under the law on social insurance, health insurance and unemployment insurance.

8. The Ministry of Planning and Investment shall summarize, make a detailed plan on allocation of development investment expenditure estimates of central budget (including estimates of development investment expenditures for each national target program, target program) and send it to the Ministry of Finance before August 31 every year.

9.The Ministry of Finance shall sum up, formulate state budget estimates and make a plan on allocation of central budget, submit competent authorities for decision under Clauses 8 and 9, Article 22 and Article 26 of the Government’s Decree No. 163/2016/ND-CP.

10.The re-formulation of state budget estimates shall comply with Article 27 of the Government’s Decree No. 163/2016/ND-CP.

Article 12. Form for the state budget estimate

1. Tax agencies, customs agencies shall formulate revenue estimates according to form No. 01 thru form No. 04 provided in Appendix 1 attached to this Circular.

2. State agencies, budget-using units, budget-estimating unit shall formulate estimates of budget revenues, expenditures according to form No. 05 thru form No. 18 specified in Appendix 1 attached to this Circular.

3. Agencies managing national target programs, target programs shall formulate budget expenditure estimates for implementing national target programs, target programs according to form No. 11.2 provided in Appendix 1 attached to this Circular.

4. Social insurance agencies shall formulate revenue, expenditure estimates according to form No. 19 thru form No. 22 provided in Appendix 1 attached to this Circular.

5. State agencies, budget-using units, budget-estimating units, social insurance agencies shall formulate estimates of development investment expenditures according to form No. 23 thru form No. 27 specified in Appendix 1 attached to this Circular.

6. The People’s Committee and financial agencies of locality shall formulate estimates of budget expenditures, revenues according to form No. 28 thru form No. 35 provided in Appendix 1 attached to this Circular and the system of forms specified in the Government’s Decree on Regulations of formulating, verifying, deciding the 5-year financial plan of locality, medium-term public investment plans of locality, 3-year financial - state budget plans of locality, estimates and allocation of local budget, approving annual local budget estimates.

7. The Ministry of Finance shall formulate state budget revenue and expenditure estimates according to the system of forms provided in the National Assembly Standing Committee’s Resolution on formulating, verifying, deciding the 5-year national financial plan, medium-term public investment plans of the country, 3-year financial - state budget plans of the country, state budget estimates and plans on allocation of central budget, approving annual state budget estimates.

Chapter IV

IMPLEMENTATION OF THE STATE BUDGET

Article 13. Allocation and assignment of state budget estimates of budget-estimating units

1.Before December 31 of the preceding year, level-I budget-estimating units at central-level and locality must complete the allocation and assignment of state budget estimates for affiliated budget-using units or those at subordinate level in accordance with Clauses 1, 2 and 3, Article 31 of the Government s Decree No. 163/2016/ND-CP.

In case of re-formulation of estimates under Article 48 of the Law on the State Budget and Article 27 of the Government’s Decree No. 163/2016/ND-CP, level-I budget-estimating units at central-level and locality must complete the allocation and assignment of state budget estimates to affiliated budget-using units and those at subordinate level within 10 working days at the latest, after the budget estimate is assigned by the Prime Minister, People’s Committee.

2. Level-I budget-estimating units at central-level shall assign budget estimates for affiliated budget-estimating units according to form A provided in Appendix 2 attached to this Circular, at the same time, send them to the Ministry of Finance (enclosed with documents explaining the basis for allocation and assignment of estimates according to form No. 36 thru form No. 45 provided in Appendix 1 attached to this Circular), the State Treasury and State Treasury where the transaction is conducted (the detailed document shall be sent according each budget-using unit) for implementation.

Agencies and units organized vertically shall be allocated to budget estimate units at immediate lower-level and assign estimates to affiliated budget-estimating units; and at the same time report to level-I budget-estimating units for synthesis.

Level-I budget-estimating units at central-level shall sum up allocation result and send it to the Ministry of Finance and shall be responsible for budget estimates allocated and assigned to budget-using units under their management.

3. Level-I budget-estimating units at localities shall allocate budget estimates to affiliated budget-estimating units according to forms B and C provided in Appendix 2 (enclosed with forms No. 48 and 49, Appendix 1) issued together with this Circular, at the same time, send them to the financial agencies, State Treasury at the same level and the State Treasury where such transaction is conducted (send the document detailing each budget-estimating unit) for implementation.

The Department of Finance shall submit the provincial-level People’s Committee to stipulate documents demonstrating proofs and reports on allocation and assignment of budget estimates, send them to the financial agencies for the inspection of estimate allocation and assignment of level-I budget-estimating units at all level in locality.

4. Within 10 working days from the date on which documents demonstrating proofs and reports on allocation of level-I budget-estimating units are received, financial agencies at the same level must inspect estimates assigned to budget-using units by level-I budget-estimating units. The scope of inspection includes the accuracy, consistency about both total amount and details according each field, collection and spending task with estimates assigned to level-I budget-estimating units by the competent authorities:

a) In case of detecting that the estimate assignment of a level-I budget-estimating unit fails to comply with the assigned total budget estimates or budget estimate detailed for each field or collection and spending task of budget estimates assigned by competent authorities or fails to comply with prescribed policies and regimes, the financial agency shall request level-I budget-estimating units to adjust the assigned estimate. Within 07 working days at from the date of receiving request from the financial agency the latest, level-I budget-estimating units shall adjust according to the financial agency s opinions and send the decision on assigning the adjusted estimate to the financial agency, State Treasury of the same level and the State Treasury where such transaction is conducted as prescribed;

b) If the level-I budget-estimating unit disagree with the financial agency’s request, such level-I budget-estimating unit shall report to the Prime Minister (for level-I budget-estimating unit at central level) and the People’s Committee (for level-I budget-estimating unit at locality) for consideration and decision. While pending for the Prime Minister or People’s Committee s decision, such unit is not allowed to spend the estimate requested for re-adjustment by the financial agency.

5. If level-I budget-estimating units, lower-level budgets are assigned additional estimates, within 10 working days from the date of being assigned additional estimates at the latest, level-I budget-estimating units and lower-level budgets must complete the assignment and allocation of estimates as prescribed.

Article 14. Adjustment of the assigned budget estimates

1.The adjustment of budget estimates during the period of budget implementation shall comply with Articles 52 and 53 of the Law on the State Budget and Clauses 2 and 3, Article 36 of the Government’s Decree No. 163/2016/ND-CP.

2. A decision on estimate adjustment sent to the financial agency at the same level by the level-I budget-estimating unit shall comprise: Grounds, task contents, expenses for adjusting each task according to each field of implementing agencies and units.

3.In case of detecting any level-I budget-estimating unit’s estimate adjustment is contrary to Clause 1, Article 50 of the Law on the State Budget, within 10 working days from the date of receiving the level-I budget-estimating unit’s decision on estimate adjustment, the financial agency shall request such level-I budget-estimating unit for re-adjusting the estimate.In case the level-I budget-estimating unit disagrees with the financial agency’s request, regulations specified at Point b, Clause 4, Article 13 of this Circular shall be complied with.

Article 15. Organization of collection of state budget revenues

1.The organization of collection of state budget revenues shall comply with Article 55 of the Law on the State Budget and Article 32 of the Government’s Decree No. 163/2016/ND-CP.

2. State budget revenues in foreign currencies shall be accounted into foreign currency fund of the state budget, at the same time, accounting the state budget revenues in Vietnam dong according to the exchange rate prescribed by the Ministry of Finance.

State budget revenues in foreign currencies arising in localities must be remitted to the State Treasury (central-level) under the Ministry of Finance’s regulations. Local budgets at all levels shall not be allowed to establish foreign currency funds.

3. The Ministry of Finance shall specify the organization of collection and accounting of revenues and non-refundable aid amounts into the state budget.

Article 16. Management and accounting of loans of the state budget

1. State budget loans shall be implemented within the estimate scope decided by the competent authorities, shall be managed and accounted on budgets’ accounts of respective levels.

In case the assigned local budget estimate includes domestic borrowings and borrowings from loans taken by the Government for on-lending, then during the implementation, it is allowed to disburse such borrowings from loans taken by the Government for on-lending to localities, but the corresponding number of domestic borrowings must be adjusted to reduce to ensure that the total loan amount does not exceed the assigned estimate.

2. Loans in foreign currencies shall be accounted in foreign currencies and Vietnam dong at the exchange rate provided by the Ministry of Finance. Periodically at the beginning of the month, the State Treasury shall re-adjust debit balances in Vietnam dong of budget at all levels according to the exchange rate provided by the Ministry of Finance; at the same time, the increase or decrease in the difference (if any) correspondingly due to the revaluation of the debit balance shall be accounted and separately monitored on the exchange rate difference account (not accounted into the budget revenue and expenditure) to ensure budget revenue and expenditure balance at the exchange rate recorded at the time of loan creation. At the end of the year, the State Treasury shall settle the exchange rate difference to account the state budget expenditure and revenue as prescribed.

3. Loans through bond issuance shall be accounted according to its par value. In case there is any difference in bonds’ selling price compared to bonds’ par value and discounts, par value difference of swapping bonds and swapped bonds, such difference shall be monitored on the separate account by accountants; at the end of the year, if the difference is more than the par value, it shall be accounted into the budget revenue, if the difference is less than the par value, it shall be accounted into the budget expenditure.

Article 17. Organization of payment of state budget expenditures

1.The payment of state budget expenditures shall comply with Article 56 of the Law on the State Budget and Article 34 of the Government’s Decree No. 163/2016/ND-CP.

2.If at the beginning of the budget year, budget estimates and budget allocation plans are not decided by the National Assembly or the People’s Council, the financial agency and State Treasury bodies at all levels shall, within the ambit of their functions, temporarily grant budgets under Article 51 of the Law on the State Budget.

3. In case agencies, organizations and budget-estimating units fail to fully and timely comply with the regime of accounting report, settlement and other financial statements as prescribed, the financial agency shall temporarily suspend or request the State Treasury to temporarily suspend the budget spending, excluding the following spending: Wages, allowances, contributions according to salary, social allowances, scholarships and other expenditures for people according to regimes; expenses for professional fees, public duty fees and other necessary expenses to ensure the state apparatus operation (excluding equipment purchasing and repairing); additional expenses for lower-level budget balance; spending for transformation projects belonging to national target programs, important national programs; spending for important and urgent transformation investment projects to overcome the consequences of natural disasters, disasters and epidemics.

When deciding to suspend the payment of budget expenditures, financial agencies shall notify their decisions to superior management agencies of agencies, organizations and units having expenditures suspended from payment.

4. State budget expenditures in foreign currencies shall be accounted in foreign currencies and Vietnam dong at the exchange rate provided by the Ministry of Finance.

Article 18. Payment of state budget expenditures under the form of withdrawal of estimates from the State Treasury

1. Payment under the form of withdrawal of estimates from the State Treasury shall be implemented to the following spending tasks:

a) Regular expenditures in the assigned estimate of state agencies, public non-business units, political - social organizations, political and social - professional organizations, social organizations, socio-professional organizations frequently funded by state budget and units funded to implement a number of regular tasks as prescribed by laws;

b) Aid expenditures for training Laos and Cambodian; students

c) Expenses for promoting travel, commerce and investment (excluding expenses for national investment promotion);

d) Expenses for order to produce documentary and science films, cartoons, movies according to the State s policies;

dd) Transfers from higher-level budgets to lower-level budgets.

2. Budget-balancing transfers from central budget to local budgets, the monthly maximum withdrawal amount must not exceed 1/12 of the total budget-balancing transfers for the whole year; particularly, in quarter I, based on requirements, spending tasks of local budgets, the withdrawal of estimates may be greater, but must ensure that the withdrawal of one month shall not more than 12% of the estimate for the whole year and the total withdrawal of quarter I shall not more than 30% of the estimate of the year. In special cases that require the increase of estimate withdrawal, the provincial-level People’s Committee shall send a written request to the Ministry of Finance for consideration and decision.

Based on the ability of the revenues and requirements of implementing spending tasks of lower-level budgets, the higher-level People’s Committee shall prescribe the monthly estimate withdrawal level for budget-balancing transfers for lower-level budgets in consistent with actual situations of localities.

3. Based on regimes, progress, volume of each program, project or task and the advance as prescribed, the Department of Finance shall withdraw targeted transfer estimates from central budget to local budgets, the maximum withdrawal amount shall be equal to estimates assigned to each program, project or task. In case of withdrawal of estimates but such amount is used contrary to its purposes or is not fully used, such amount or the remaining amount shall be refunded to central budget within 30 days from the date of estimate withdrawal.

For the targeted transfer from higher-level budgets to lower-level budgets in localities, the higher-level People’s Committee shall stipulate the lower-level budget estimate withdrawal in consistent with actual situations of localities and purposes as prescribed.

4. Periodically, by 15^thof the following month at the latest, the State Treasury shall summarize and report the financial agency at the same level the withdrawal of budget-balancing transfers, targeted transfers from the higher-level budget to the lower-level budget of the previous month.

In case of detecting the withdrawal of budget-balancing transfers, targeted transfers of the financial agency is contrary to regulations, the State Treasury shall send a notice to such financial agency, at the same time, temporarily suspend the withdrawal of budget-balancing transfers, targeted transfers from higher-level budgets to lower-level budgets.

5. The Ministry of Finance shall specify about process of spending, dossiers, procedures, accounting, controlling of expenditures under the form of estimate withdrawal at the State Treasury.

Article 19. Budget expenditure under the form of money order

1. Expenditure under the form of money order shall be implemented with the following tasks:

a) Expenditure for loan provision under State social policies and other programs, projects according to the Prime Minister’s decision;

b) Expenditure for transferring funds for Vietnam Social Insurance agencies to pay pensions, social insurance allowances in accordance with law provisions; expenses for payment and support for the payment of health insurance premiums for subjects as prescribed by the law on health insurance; expenses for support the unemployment insurance fund according to the law on unemployment insurance;

c) Expenditure for contribution of equity capital, contribution of yearly dues for international financial organizations (excluding amounts assigned in estimates of ministries, ministerial-level agencies, government-attached agencies and other central agencies that withdraw estimates at the State Treasury);

d) Expenditure for granting charter capital and supporting state financial agencies in accordance with law provisions;

dd) Expenditure for subsidizing state investment credit interest rate differences and preferential credit policies for poor households, ethnic minority people and policy beneficiaries;

e) Expenditure for supporting public-utility and defense enterprises;

g) Expenditure for national investment promotion;

h) Expenditure for supporting, placing order, assigning tasks for enterprises, economic organizations, social organizations, socio-professional organizations that are not in regular relation with budgets;

i) Transfers to national reserves and expenditures for preserving national reserve commodities (for commodities assigned to enterprises for reserve purpose by the State);

k) Expenditure on the target program East Sea - Islands for defense, security at sea and on islands (part of funding allocated to ministries, ministerial-level agencies, government-attached agencies and other central agencies);

l) Expenditure for implementing special tasks and other spending tasks covered by payment orders of police, national defense agencies under the competent authorities’ decisions;

m) Expenditure for guaranteeing activities of bodies of the Communist Party of Vietnam;

n) Expenditure for repayment of loans of the state budget (excluding payment for principals, interests, issuance fees, Government bond swap and settlement);

o) Expenditure for irregular state aid provision for foreign countries;

p) Expenditure for supporting other localities and supporting agencies and units of higher-level agencies under Points a, b and c, Clause 9, Article 9 of the Law on the State Budget;

q) Transfers to financial reserve funds;

r) Expenditures and revenues recorded in the budget under regimes.

2. Order of expenditure under the form of money order:

a) Based on the assigned budget estimate, dossiers, documents according to the prescribed regime and the budget-using units’ requirements, the financial agency shall consider and inspect, if spending conditions specified in Clause 2, Article 12 of the Law on the State Budget are fully met, within 05 working days from the date of receiving dossiers of request for spending of such units, the financial agency shall make a money order and send it to the State Treasury;

b) Within 02 working days from the date of receiving the money order from the financial agency, the State Treasury shall inspect the validity and legality of such money, on the basis of money order contents, to make payment, remit money into account or make payment in cash for budget beneficiaries. If the money order is invalid or illegal, within 01 working day at the latest, from the date of receiving such money order, the State Treasury must notify to the financial agency for settlement.

Article 20. Expenditure for loans of the state budget

1. Based on the budget estimate assigned by the competent authorities, the financial agency shall make a payment in the form of money order to transfer capital for agencies that are assigned the task of providing loans or directly transfer under contracts to borrowing agencies in case of direct loans.

2. Agencies tasked to provide loans or financial agencies (in case of direct loans) shall be responsible for management, lending, recovery of principal and interest to remit into the state budget under the regulations.

Article 21. Debt repayment of the state budget

1.The debt repayment of the state budget shall comply with Clauses 1 and 2, Article 35 of the Government’s Decree No. 163/2016/ND-CP.

In case the actual needs of debt repayment exceed the total debt repayment estimates of the state budget assigned by competent authorities, the Ministry of Finance (for central budget), the Department of Finance (for local budget) shall summarize, report competent authorities for consideration and decision.

2. Process of debt repayment and accounting of central budget

a) Repayment of Government bond debts: Based on estimates and repayment obligation requirement of due debts, the State Treasury shall make a payment from central budget, at the same time, account the debt deduction (for principal repayment) and account the central budget expenditure (for the repayment of interests, charges and other costs arising from the issuance, swap and payment of Government bonds) as prescribed;

b) Repayment of other domestic debts: Based on estimates and repayment obligation requirement of due debts, the Ministry of Finance shall make a money order and send it to State Treasury in order to make a payment from central budget, at the same time, account the debt deduction (for principal repayment) and account the central budget expenditure (for the repayment of interests, charges and other costs arising from such debts) as prescribed;

c) Repayment of foreign debts: 07 working days before the due date (except for cases where a notice of creditors is required to determine the amount to be paid or repaid), based on estimates and repayment obligation requirement of due debts, the Ministry of Finance shall make a money order, enclose with a payment schedule and related documents (if any) and send them to State Treasury in order to make a payment from central budget, at the same time, account the debt deduction (for principal repayment) and account the central budget expenditure (for the repayment of interests, charges and other costs arising from such debts) as prescribed.

3. Process of debt repayment and accounting of local budgets:

Based on estimates and repayment obligation of due debts, the Department of Finance shall make a money order and send it to State Treasury in order to make a payment from local budget, at the same time, account the debt deduction (for principal repayment) and account the local budget expenditure (for the repayment of interests, charges and other costs arising from such debts) as prescribed.

Article 22. Organization of administration of the state budget

1.The organization of administration of the state budget shall comply with Article 54 of the Law on the State Budget and Article 36 of the Government’s Decree No. 163/2016/ND-CP.

2. On a quarterly basis, the budget revenue-collecting agency shall make a plan on quarterly budget revenue, detailing to economic zone, taxes and subjects of collection, send it to the financial agency of the same level before 20^thof the last month of the previous quarter.

3. Based on the state budget expenditure and revenue estimates of the whole year, revenue collection and spending demand plans in a quarter, the financial agency shall make a plan on administration of quarterly budget of its budget, ensuring the source for timely payment of budget expenditures as prescribed.

The financial agency shall send a plan on administration of quarterly budget to the State Treasury at the same level by 30^thof the last month of the previous quarter at the latest, for coordination and implementation.

4. Based on the state budget expenditure and revenue estimates of the whole year and the plan on administration of quarterly budget of the financial agency, the State Treasury shall summarize and make a plan on state fund administration in accordance with regulations on state fund management regimes, timely and fully meet the need of payment, repayment of the state budget.

5. Every day, the State Treasury shall report the budget remaining to the financial agency of the same level.

6.For case of temporary shortage of the budget fund, the financial agency shall handle under Clause 1, Article 36 of the Government’s Decree No. 163/2016/ND-CP.

Article 23. Bonus for state budget revenues which are higher than estimated

1.Bonus for the higher-than-estimated revenues sharing between central and local budgets which are entitled by the central budget, excluding the increase in local budget revenues due to the arising of revenues from projects that have just come into operation in the budget stability period, must be remitted to the central budget under Point d, Clause 7, Article 9 of the Law on the State Budget:

a) Rules for considering bonus:

The total central budget revenues must increase compared to the budget estimates decided by the National Assembly;

The basis for considering bonus for each locality is the total of revenues shared in such locality, not a single revenue. The percentage of bonus must not exceed 30% of the increase in revenues belonging the central budget which, however, must not exceed the increase in revenues compared to the preceding year’s collected revenues.

Example 1:

Total central budget revenue estimate of the year of bonus consideration decided by the National Assembly is VND 1,000,000 billion. Performance reached as VND 1,200,000 billion.

In province A, the revenue (central budget) from the divided revenues made in previous year is VND 500 billion. In the year of bonus consideration, the assigned central budget revenue estimate is VND 550 billion, performance reached as VND 600 billion. The percentage of bonus on the revenues exceeding estimates assigned by decision of the Prime Minister for province A is 30%. The rate of bonus for the province A is determined as follows:

The bonus in proportion: (VND 600 billion - VND 550 billion) x 30% = VND 15 billion.

The increase in revenues compared to the preceding year’s collected revenues: VND 600 billion - VND 500 billion = VND 100 billion.

Because the increase in revenues compared to the preceding year’s collected revenues is more than the increased revenue as estimated and the total central budget revenues is more than estimates, so the bonus for revenue in excess of estimate for the province A is VND 15 billion maximum. If the implementation of total central budget revenues only reaches or is less than VND 1,000,000 billion, such locality shall not receive bonus.

Example 2:

Still as the same with the total central budget estimate and the revenues of the province A as mentioned in example 1, if the previous year s result is VND 590 billion; allocated revenue estimates is VND 550 billion, results of performance is VND 600 billion.

The bonus in proportion: (VND 600 billion - VND 550 billion) x 30% = VND 15 billion.

The bonus in excess of revenues compared to the preceding year’s collected revenues: VND 600 billion - VND 590 billion = VND 10 billion.

The maximum bonus is equal to the increase in revenues compared to the preceding year’s collected revenues, which is VND 10 billion and the total increase in central budget revenues compared to estimates. If the implementation of total central budget revenues only reaches or is less than VND 1,000,000 billion, such locality shall not receive bonus.

Example 3:

Still as the same with the revenues of the province A mentioned in example 1, if the previous year s result is VND 610 billion; allocated revenue estimates is VND 550 billion, results of performance is VND 600 billion.

The bonus in proportion: (VND 600 billion - VND 550 billion) x 30% = VND 15 billion.

The increase in revenues compared to the preceding year’s collected revenues: VND 600 billion - VND 610 billion = VND 10 billion.

The province is not rewarded because the revenue is not increased compared with the previous year.

b) Based on results of budget collection, remittance till December 31, People’s Committees of provinces and centrally run cities shall be responsible for synthesis of the revenues remitted actually into central budget from the revenues divided between the central budget and local budgets as prescribed, prepare reports with the State Treasury’s confirmation and send them to the Finance Ministry for used as the basis for bonus consideration before January 31 of the subsequent year;

c) The Ministry of Finance shall summarize, make a plan on using the increase in central budget revenues to submit the Government, submit the National Assembly Standing Committee under Clause 2, Article 59 of the Law on the State Budget;

c) Localities shall use bonus for collected revenues higher than estimated in accordance with Point a, Clause 4, Article 59 of the Law on the State Budget and Clause 8, Article 36 of the Government’s Decree No. 163/2016/ND-CP.

2.The reward for higher-than-estimated revenue sharing between local budgets at all levels shall comply with Point b, Clause 4, Article 59 of the Law on the State Budget and Clause 6, Article 36 of the Government’s Decree No. 163/2016/ND-CP.

Article 24. Report regimes on implementation of the state budget

1.The report on implementation of the state budget shall comply with Article 60 of the Law on the State Budget and Article 41 of the Government’s Decree No. 163/2016/ND-CP.

2. Time limit for report and reporting forms:

a) Every 15 days, monthly and quarterly, tax agencies and customs agencies at all levels shall send reports to financial agencies at the same levels about the implementation of state budget revenues which made according to form No. 53 provided in Appendix 1 issued together with this Circular; report to other relevant agencies about the implementation of state budget revenues in accordance with law provisions;

b) On a monthly basis, level-I budget-estimating units shall report finance financial agencies at the same levels about the implementation of state budget revenues and expenditures, which made according to form No. 54 provided in Appendix 1 issued together with this Circular; report to other relevant agencies about the implementation of state budget revenues and expenditures in accordance with law provisions;

c) On a monthly and quarterly basis, the provincial-level People’s Committee shall report the Ministry of Finance about the state budget revenue implementation in area, local budget revenue and expenditure implementation according to forms No. 55 thru 57 provided in Appendix 1 issued together with this Circular;

d) On a monthly basis, the Ministry of Finance shall report the Government about the implementation of state budget revenues and expenditures, which made according to forms No. 50 thru 52 provided in Appendix 1 issued together with this Circular; report to other relevant agencies about the implementation of state budget revenues and expenditures in accordance with law provisions;

dd) People’s Committees at all levels shall report the People’s Council and standing bodies of the same-level People’s Councils about the local budget implementation under Clause 5, Article 60 of the Law on the State Budget and its guiding documents;

e) The Ministry of Finance shall report the Government to submit the National Assembly, National Assembly Standing Committee about the adjustment of estimates, plans on using the increase in revenues, decreases in expenditures of central budget and the state budget expenditures and revenues under Clause 8, Article 60 of the Law on the State Budget and its guiding documents;

g) The Ministry of Finance shall specify about the time limit and forms for the State Treasury to periodically report financial agencies of the same levels about the state budget expenditure and revenue implementation;

h) The provincial-level People’s Committee shall specify about the time limit and reporting forms prescribed in Clauses 4 and 6, Article 60 of the Law on the State Budget.

Chapter V

ACCOUNTING, AUDIT AND ACCOUNT FINALIZATION OF THE STATE BUDGET

Article 25. Closing of accounting books

1.End of the budget year, agencies, units and organizations involved in collection of state budget revenues and payment of state budget expenditures shall close accounting books under Article 42 of the Government’s Decree no. 163/2016/ND-CP and implement the following contents:

a) To review, remit the amount payable to the budget but not yet remitted to the state budget. If the procedure for remitting to the budget of the current year is not completed, and such amount is transferred to the budget of the subsequent year, it shall be accounted and settled in the budget revenue of the subsequent year;

b) To review, handle the remaining expenditure estimates, the deposit account balance of the units in the State Treasury, advance balance and cash remaining at the units for actively spending and paying for advances in the year;

c) State budget expenditures and revenues that are stipulated to be accounted and recorded as revenues and expenditures in the state budget must be carried out procedures for recording as revenues and expenditures into the state budget.

2. Financial agencies, State Treasuries and budget revenue-collecting agencies of the same levels shall collate the state budget revenues arising in areas and the budget revenues and expenditures of all levels under their management to ensure the consistency in total and detail according to the State Budget Index before preparing and reporting annual state budget account-finalization statements.

3. Financial agencies shall coordinate with the State Treasuries at the same level to collate state budget expenditures and revenues from January 01 until the end of December 31 and amounts accounted into budgets in the period of adjustment of budget account finalization to ensure state budget expenditures and revenues shall be fully and accurately accounted according to the State Budget Index.

Article 26. Handling of state budget revenues and expenditures at the year end

1.The handling of state budget revenues and expenditures at the year-end shall comply with Article 64 of the Law on the State Budget and Article 42 of the Government’s Decree No. 163/2016/ND-CP.

2. Time limit for payment, advance and accounting of budget revenues and expenditures:

a) Time limit for payment, advance of budget (including advances of basic construction investment capital) for tasks allocated in the annual state budget estimates shall be implemented until the end of December 31 at the latest. Time limit for budget-using units (including project owners) to send dossiers, documents of withdrawal of budget expenditure estimates, budget advances to the State Treasury where the transaction is conducted shall be the end of December 30;

b) For advances fully satisfying spending conditions, volume and works implemented from December 31 and earlier which are assigned in the budget estimate, the time limit for payment and spending shall be implemented until the end of January 31 of the subsequent year and shall be accounted and settled to the previous year. Time limit for budget-using units (including project owners) to send dossiers, documents of budget payment (including payment for budget advances) as prescribed to the State Treasury where the transaction is conducted shall be the end of January 25of the subsequent year.

3. The balance of deposit accounts of budget allocations by the end of December 31 shall be handled as follows:

The balance of deposit accounts of budget allocations opened by budget-estimating units at the State Treasury by the end of December 31 may be further settled under regulations within the time limit for account finalization adjustment.Upon the expiration of the time limit for account finalization adjustment, if such balance still exists, it shall be reimbursed into the state budget, except the cases where it may be carried forward to the subsequent year under Article 43 the Government’s Decree No. 163/2016/ND-CP.

By the end of February 10 of the subsequent year at the latest, budget-using units must collate the balance of deposit accounts with the State Treasury where the transaction is conducted and in details to type, clauses, section and sub-section of the remaining money according to form No. 58 provided in Appendix 1 issued together with this Circular to serve as a basis for accounting and transfer such balance to the subsequent year. Based on the comparison results of balance of deposit accounts, the State Treasury shall account the expenditure deduction (if it has accounted the expenditure) or account the advance deduction (if has accounted the advance) of the budget of the preceding year, increase the budget allocation for the subsequent year; at the same time, transfer the budget estimate balance of the preceding year (corresponding to the balance of deposit accounts transferred to the budget of the subsequent year) to the budget estimate of the subsequent year.

The State Treasury shall make a report detailing the settlement of balance of deposit accounts at the end of the budget year according to level-I budget-estimating unit, send it to the financial agency at the same level to monitor. If the balance of deposit accounts is allowed to continue to be used, it shall be accounted and finalized in the budget of the subsequent year as prescribed;

b) The balance of deposit accounts specified at Point a of this Clause which is not used shall be remitted to the state budget. Budget-using units shall send reports detailing the balance according to the State Budget Index to the State Treasury where the transaction is conducted before February 10 of the subsequent year for coordination to remit to the budget and account the decrease in expenditures or budget advances;

c) The balance of deposit accounts of commune-level budget (if any) shall be transferred to the budget of the subsequent year to be used under regulated regimes.

4.Budget estimates assigned for units, projects and constructions by the end of January 31 of the subsequent year which remain unimplemented or not used up (called balance of budget estimates) shall be canceled; except for cases of transfer to the budget of the subsequent year under Article 43 of the Government’s Decree No. 163/2016/ND-CP.The transfer of balance of budget estimates to the budget of the subsequent year for spending shall be implemented as follows:

a) By the end of February 10 of the subsequent year at the latest, budget-using units shall collate the balance of budget estimates with the State Treasury where the transaction is conducted according to form No. 59 provided in Appendix 1 issued together with this Circular;

b) Based on regulations on budget transfer (time limit for spending, estimate contents assigned by competent authorities and conditions for payable transfer), the State Treasury where the transaction is conducted shall collate, confirm used and unused estimates for units and transfer the balance of budget estimates of the preceding year to the subsequent year as prescribed;

c) The State Treasury shall prepare a report on balance of budget estimates transferred to the budget of the subsequent year of level-I budget-estimating units, detailing to each task of each budget-using unit, and send it to the financial agency at the same level to monitor. Such balance shall be accounted and finalized into the budget of the subsequent year as prescribed upon using.

5.Advances in estimates under regimes by the end of January 31 of the subsequent year which have not yet completed payment procedures (called advance balance) shall be remitted to the budget; except for cases of transfer to the budget of the subsequent year under Article 43 of the Government’s Decree no. 163/2016/ND-CP.The transfer of advances to the budget of the subsequent year for spending or remittance to the budget shall be implemented as follows:

a) By the end of February 10 of the subsequent year at the latest, budget-using units shall collate the advance balance with the State Treasury where the transaction is conducted according to form No. 59 provided in Appendix 1 issued together with this Circular;

b) Based on regulations on budget transfer (time limit for spending, estimate contents assigned by competent authorities and conditions for payable transfer), the State Treasury where the transaction is conducted shall collate, confirm the unpaid advance balance for units and transfer the advance balance of the preceding year to the subsequent year as prescribed.

The State Treasury shall make a detailed report according to level-I budget-estimating units, send it to the financial agency at the same level to monitor. Such balance shall be accounted and finalized into the budget of the subsequent year as prescribed upon using.

c) For the remaining advance balance which are not transferred to the subsequent year, budget-using units must remit it to the budget before February 10 of the subsequent year. After February 10 of the subsequent year, if such advance is not remitted yet, the State Treasury where the transaction is conducted shall recover it by transferring such advance to the advance of the subsequent year within the estimate assigned in the subsequent year with the same content with the recovered amount. If the estimate of the subsequent year is not assigned or is less than the amount must be recovered, the State Treasury shall notify the financial agency at the same level for settlement.

If the advances must be recovered (including the budget expenditures) but have not been recovered yet, the State Treasury shall account them into the advance account for monitoring; upon recovery, the advance amount shall be reduced and not accounted into the state budget revenue.

6.For programs, topics and projects permitted by competent authorities with the implementation period of more than 12 months, the account finalization shall comply with Clause 4, Article 44 of the Government’s Decree No. 163/2016/ND-CP and shall be prescribed as follows:

a) Programs, topics and projects managed under prescribed regimes on frequent expenditures shall be finalized according to regulations on frequent expenditures;

b) Programs, topics and projects managed under prescribed regimes on basic construction investment expenditures shall be finalized according to regulations on basic construction investment expenditures;

c) Expenses finalized according to annual budget period shall be monitored and accumulated annually for serving as a basis for finalizing programs, topics and projects upon completion as prescribed.

7. Financial agencies shall make a payment and transfer budget from a year to the subsequent year and finalize such payment according to the budget period:

a) The expenditure amount transferred to the subsequent year for continue paying shall comply with Clauses 3, 4 and 5 of this Article;

b) The increase in revenues, decrease in budget expenditures which have had used plans approved by competent authorities as prescribed;

c) Based on tasks and total funding transferred to the budget of the subsequent year under Points a and b herein, financial agencies, the commune-level People’s Committee (for commune-level budgets) shall send a document to the State Treasury where the transaction is conducted so that such State Treasury can account the expenditure and revenue transferred to the subsequent year as prescribed.

8. State budget expenditures and revenues that are stipulated to be accounted and recorded as revenues and expenditures in the state budget shall be implemented as follows:

a) Level-I budget-estimating units shall send dossiers to financial agencies at the same levels before January 25 of the subsequent year; financial agencies shall complete procedures for recording budget expenditures and revenues and send the State Treasury by the end of January 30 of the subsequent year at the latest. The expenditure amount recorded into the state budget is the amount actually paid under prescribed regimes, the revenue amount recorded into the state budget must correspond to the recorded expenditure amount. The revenue amount not yet recorded into the state budget shall continue to be monitored and managed in order to record into the state budget when such units make a payment under prescribed regimes;

b) Foreign loans, foreign aids directly to budget-using units must carry out procedures for recording revenues and expenditures into the state budget according to the prescribed regime; agencies and units shall send dossiers to the State Treasury by the end of January 30 of the following year at the latest. In case of transferring to lower-level budgets, procedures for recording revenues and expenditures must be completed and sent to the State Treasury by the end of January 15 of the following year for the central budget; by the end of January 20 of the following year for provincial-level budgets and by the end of January 25 of the following year for district-level budgets;

c) Revenues and expenditures recorded into the budget of a year shall be finalized into budget expenditures and revenues of such year.

Article 27. Approval and appraisal of final settlement of the state budget

1.The approval and appraisal of final settlement of the state budget shall comply with Articles 66 and 67 of the Law on the State Budget.

2. Approval and appraisal of final settlement of the state budget

a) After receiving account-finalization statements of the lower-level budget-estimating units, heads of the immediate superior budget-estimating units shall be responsible for reviewing and approving the settlements and notifying the results of review for final settlement approval to the lower-level budget-estimating units. Within 10 working days after receiving notice of review for final settlement approval, the lower-level budget-estimating units must fully complete the content in the notice of review for final settlement approval.

If the lower-level budget-estimating unit disagrees with the content of the notice of review for estimate approval of the higher-level budget-estimating unit, it shall send a document to the immediate superior budget-estimating unit of the budget-estimating unit reviewing and approving the budget final settlement for consideration and decision.

Where the lower-level budget-estimating units have the opinions inconsistent with the notice of review for final settlement approval made by the heads of level-I estimate units, they must send documents to financial agencies at the same level with the level-I budget-estimating units for consideration and decision.

While pending the decision made by the competent authority, the lower-level budget-estimating unit must comply with the notice of review for final settlement approval made by higher-level budget-estimating units;

b) Level-I budget-estimating units shall be responsible for reviewing and approving the account-finalization statement of their affiliated units, synthesize and make budget account-finalization statements (including those of their units and their affiliated lower-level budget-estimating units), send to the same-level financial agencies;

c) Within 30 days from the date of receiving the budget account-finalization statement from level-I budget-estimating units of the central budget, the Ministry of Finance shall be responsible for appraising such budget final settlement of level-I budget-estimating units of the central budget.

The provincial-level People’s Committee shall specify the appraisal duration for level-I budget-estimating units at all levels in locality, provided that the time limit for making local budget account-finalization statements complies with Article 69 of the Law on the State Budget and Article 44 of the Government’s Decree No. 163/2016/ND-CP.

Within 10 working days from the date of receiving the notice on budget final settlement appraisal from the financial agency, the level-I budget-estimating unit must complete all content provided in the financial agency’s notice on budget final settlement appraisal. If the level-I budget-estimating unit disagrees with the financial agency’s budget final settlement appraisal content, such level-I budget-estimating unit shall report to the Prime Minister (for level-I budget-estimating unit at central level) and the same-level People’s Committee (for level-I budget-estimating unit at locality) for consideration and decision.

While pending the decision made by the Prime Minister and the same-level People’s Committee, level-I budget-estimating unit must fully comply with the financial agency’s appraisal content.

3. Handling of violations detecting in the course of approval, appraisal, inspection, audit and summarization of state budget final settlement:

a) Any expenditure contrary to the regime or not satisfying the finalization condition detected upon approving, appraising, auditing and summarizing the state budget settlement shall be handled according to competence or request of competent authorities as follows: If the spending is wrong, it must be fully recovered for the budget; If the finalization is not eligible, it must complete the finalization procedures according to regulations;

b) Budget-estimating units and localities permitted to inspect and supervision must implement and report results of implementing requests of inspection agencies, state audit send to higher-level budget-estimating units, level-I budget-estimating units for summarizing and sending the same-level financial agencies. Financial agencies shall summarize results of implementing requests of inspection agencies, state audit, report the same-level People’s Committee for reporting the immediate superior financial agencies. Recommendations and conclusions of State inspectors and auditors which are implemented after November 15 of the following year for state budget final settlement of the previous year shall be accounted into the budget year at the time of handling under prescribed regimes;

c) Level-I budget-estimating units shall summarize and report the same-level financial agencies, lower-level financial agencies shall summarize, report the same-level People’s Committee to send the higher-level financial agencies according to form No. 69 provided in Appendix 1 issued together with this Circular;

b) If there is any error or violation detected in the course of appraisal, the higher-level financial agency shall handle and send a notice to the lower-level People’s Committee for reporting the same-level People’s Council to adjust state budget final settlement under Article 67 of the Law on the State Budget.

Article 28. Handling of budget remainders at each level

1.The handling of budget remainders shall comply with Article 72 of the Law on the State Budget.

2. Based on the National Assembly and People’s Council’s resolutions on approval of budget final settlement for budget remainder handling (if any), the same-level financial agency, commune-level People’s Committee (for commune-level budgets) shall send a document to the State Treasury where the transaction is conducted to carry out procedures for accounting and transferring such remainders to the financial reserve fund, repayment of debt and transfer to budget revenues of the following year as prescribed by regimes.

Article 29. Inspection, supervision and auditing the budget accounting and final settlement

1. The financial agencies, agencies of budget revenues collection, the State Treasury, budget-estimating units at all levels according to assigned function, duties shall implement the regime of accounting inspection regularly, periodically for the units and individuals that are obliged to collect to remit into budget, budget-estimating units at levels. During the accounting inspection, approval and appraisal of budget final settlement, if it detects the revenues of organizations and individuals that have been paid into the state budget not being collected in compliance with regulations of law, it must refund from the state budget to the organizations, individuals and account decrease of budget revenues. The expenses not being conducted in compliance with regulations prescribed by law must be recovered and account decrease of state budget expenditures. Where the state budget final settlement ratified by the National Assembly, the People s Council, then account budget expenditure (for the refunds) or revenues (for the amounts required to be recovered) into budget of the settling year.

2. The auditing and supervision of budget final settlement of budget-estimating units and budgets at all level shall comply with the law on state audit, supervision and the Law on the State Budget. Upon receiving recommendation and conclusion of State Audit, inspection and supervision agencies, competent authorities must review and handle in accordance with law provisions.

Article 30. Forms of state budget final settlement, account-finalization statements

1. State agencies and public non-business units shall send budget account-finalization statements according to regulations and forms No. 58 thru 70 provided in Appendix 1 attached to this Circular.

2.Agencies directly managing state extra-budgetary financial funds shall finalize financial fund revenues and expenditures in accordance with Clause 5, Article 12 of the Government’s Decree No. 163/2016/ND-CP.

3. Level-I budget-estimating unit of central budget shall send 02 copies of the final settlement to the Ministry of Finance (01 copy sent to the State Treasury) and 01 copy to the State Audit. State budget expenditure, revenue reports, detailed according the State Budget Index, shall be sent by electronic file in excel format to the email address: [email protected] and it shall be responsible for the accuracy of such electronic file data.

4. Department of Finance of provinces and centrally run cities shall make reports on explaining the budget final settlement and report on state budget revenues; annual local budget revenues and expenditures according to forms No. 58 thru 70 specified in Appendix 1 attached to this Circular, submit to the provincial-level People’s Committee, send 02 copies to the Ministry of Finance (01 copy sent to the State Treasury) and 01 copy to the State Audit; concurrently, send electronic files with contents prescribed in this Clause and the final settlement data of the state budget revenues and expenditures, detailed according to the State Budget Index to the Ministry of Finance to the email address: [email protected] and it shall be responsible for the accuracy of such electronic file data.

5.Time limit for sending annual state budget final settlement of level-I budget-estimating units to the same-level financial agencies and those of lower-level People’s Committee to the higher-level financial agencies shall comply with Articles 69 and 70 of the Law on the State Budget and Article 44 of the Government’s Decree No. 163/2016/ND-CP.Past the time limit and the financial agency has not yet received the state budget account-finalization statement, it may suspend the allocation of funds under Clause 2, Article 34 of the Government’s Decree No. 163/2016/ND-CP and Clause 3, Article 17 of this Circular.

6. In addition to the annual report under the Ministry of Finance s regulations on the State budget accounting regime and State Treasury operations on the Ministry of Finance s report on expenditures on development investment capital, the State Treasury shall report to the financial agency of the same level on the use of funds and the results of handling remainders of all types according to forms promulgated together with this Circular. Time limit for the State Treasury to send reports is before March 15 of the subsequent year (for commune-level and district-level budgets), before April 01 of the subsequent year (for provincial and central budgets).

7. After the People’s Council approves the budget final settlement, within 05 working days at the latest, the lower-level People’s Committee shall send the higher-level financial agency the People’s Council’s resolutions on approval of budget final settlement. If such final settlement approved by the People’s Council changes compared to the account-finalization statement sent by the People’s Committee, the financial agency must submit the People’s Committee to send additional statement on the change compared to the statement sent to the higher-level financial agency.

Chapter VI

IMPLEMENTATION PROVISIONS

Article 31. Transitional provisions

For account finalization of budget of 2015, 2016, the Law on the State Budget No. 01/2002/QH11, the Government’s Decree No. 60/2003/ND-CP dated June 06, 2003 on detailing and guiding the implementation of the Law on the State Budget, the Circular No. 53/2003/TT-BTC dated June 23, 2003 of the Ministry of Finance on guiding the implementation of the Government’s Decree No. 60/2003/ND-CP of June 06, 2003 and the Circular No. 108/2008/TT-BTC dated November 18, 2008 of the Ministry of Finance on providing guidance on settlement of state budget at the end of the year and preparing the annual State budget settlement report shall be applied.

Article 32. Effect

1. This Circular takes effect on February 13, 2017 and applies from the 2017 budget year.

2. To repeal the Circular No. 53/2003/TT-BTC dated June 23, 2003 of the Ministry of Finance on guiding the implementation of the Government’s Decree No. 60/2003/ND-CP of June 06, 2003 on detailing and guiding the implementation of the Law on the State Budget and the Circular No. 108/2008/TT-BTC dated November 18, 2008 of the Ministry of Finance on providing guidance on settlement of state budget at the end of the year and preparing the annual State budget settlement report.

3. Any difficulty arising in the course of implementation should be reported to the Ministry of Finance for study and handling./.

* All Appendices are not translated herein.