Decree No. 18/2012/ND-CP dated March 13, 2012 of the Government on road maintenance funds

DECREE

ON ROAD MAINTENANCE FUNDS

Pursuant to the Law on Organization of the Government, of December 25, 2001;

Pursuant to the Law on Road Traffic, of November 13, 2008;

At the proposal of the Minister of Transport;

The Government promulgates Decree on road maintenance funds,

Chapter I

GENERAL PROVISIONS

Article 1. Scope of adjustment

This Decree provides for the forming, management and use of the road maintenance Funds (below referred to as Funds).

Article 2. Subjects of application

This Decree applies to organizations arid individuals relating to the forming, use and management of Funds.

Article 3. Operational principles of Funds

1. Funds operate for non-profit proposes.

2. Funds operate in a public, transparent and effective manner, for proper purposes and in conformity with law.

Article 4. Forming of Funds

1. Road maintenance funds are State’s funds and have the legal person status, seals and accounts opened at the State Treasury. The fund forming at the central level is called the central Fund, and forming at the provincial level, called local funds.

2. The Prime Minister shall decide on organizational structure and fund management apparatus and promulgate the Regulation on operation of the central fund management Council.

3. Based on the organizational structure, management apparatus and the Regulation on operation of the central fund management Council, provincial-level People s Committees shall decide on organizational structure, fund management apparatus and promulgate Regulations on operation of local fund management councils for suitability.

Chapter II

FINANCIAL SOURCES, MANAGEMENT AND USE OF FUNDS

Articles 5. Sources forming funds

1. The charges for road use which annually collected per road motor vehicle, including: automobiles, tractors; trailers or semi-trailers towed by automobile or tractor (hereinafter referred to as automobile); and two-wheeled motorcycles, three-wheeled motorcycles and motorbikes, mopeds (hereinafter referred to as motorcycles).

2. Annual state budgets additionally allocated to Funds: the central budget additionally allocated to the central Fund and provincial-level budgets additionally allocated to local funds.

3. Revenue sources relating to road use and other revenues under provisions of law.

Article 6. Principles of allocation of charges of road use to the central fund and local funds

1. Charges of road use which are collected with respect to motorcycles in a locality, shall be added to the Fund of that locality.

2. For charges of road use which are collected with respect to automobiles, shall be allocated 65% of collected amount to the central fund, and 35% of collected amount to local funds.

3. On the basis of amounts allocated to local funds specified in Clause 2 of this Article, the central fund management Council shall allocate them to each local fund according to the length of roads of that locality, the number of standard – imputing automobiles registered in that locality, and the revenue difficulty coefficient of each locality.

4. In case of necessity, the Prime Minister is assigned to adjust the rate of allocation to the central fund and local funds suitable to each period at the proposal of the Ministry of Transport and the Ministry of Finance.

Article 7. Expenditures of Funds

The central fund is used for the maintenance and management of the national highway system; local funds are used for the maintenance and management of local road system which are maintained and managed by localities as decentralized by provincial-level People s Councils. Expenditures of Funds include:

1. Expenditures for the maintenance of road works.

2. Expenditures for the management of road works.

3. Expenditures for the operation of fund management apparatus.

4. Other expenditures relating to the maintenance and management of road works decided by fund management councils.

Article 8. Financial management of funds

1. Annually, fund management councils shall formulate financial plans on revenues and expenditures (in which clearly defining additionally allocated state budgets) and send them to transport and finance agencies of the same level. Transport agencies shall consider and include amounts additionally allocated to funds in their state budget estimates and send them to finance agencies of the same level which shall consider and submit them to competent state agencies for decision according to the State budget Law. Based on revenues of Funds and additionally allocated state budgets, fund management councils shall approve financial plans on revenues and expenditures of funds and send them to transport and finance agencies and the State Treasury as prescribed.

2. Units assigned to collect charges of road use shall collect and remit them into funds as prescribed.

3. Units assigned to manage funding of funds shall perform bidding, order and plan assignment to units to maintain and manage road works as prescribed. The State Treasury shall control expenditures from funds as expenditures from state budget.

4. Settlement of revenues and expenditures of Funds shall be complied with current regulations. At the end of year, funding which has not yet been spent out shall be transferred to the subsequent year in order to cover the maintenance and management of road works.

5. Funds must be examined, inspected and audited by state agencies as prescribed.

Chapter III

ORGANIZATION OF IMPLEMENTATION

Article 9. Responsibility of Fund management councils:

1. To propose amendments to regulations relating to revenue sources of funds and amendments, supplements of regulations relating to operation of funds.

2. To formulate and approve financial plans on revenues and expenditures of funds.

3. To examine and evaluate implementation of financial plans on revenues and expenditures of funds.

4. To settle revenues and expenditures of funds as prescribed.

5. To manage finance and assigned properties as prescribed.

6. To implement other tasks assigned by competent agencies.

Article 10. Responsibility of the Ministry of Transport:

1. To execute the state management on roads as prescribed by the Law on Road Traffic.

2. To direct and examine the management of collection, use and settlement of the central fund as prescribed.

3. To assume the prime responsibility for considering proposals of fund management councils for adjustment of regulations relating to revenue resources of funds or amendment and supplement of regulations on operation of funds in order to promulgate or submit to competent state agencies for promulgation.

4. To assume the prime responsibility for, and coordinate with the Ministry of Finance in, proposing the Prime Minister to adjust the rate of allocation of charges of road use to the central fund and local funds specified in Clause 2, Article 6 of this Decree for suitability to each period.

Article 11. Responsibility of the Ministry of Finance:

1. To ensure allocations of central budget to the central fund.

2. To coordinate with the Ministry of Transport in examining the management of collection and use of the central fund as prescribed by current regulations.

3. To guide the regime on management of collecting charges of road use; promulgate annual rates of charges of road use for per vehicle with respect to automobiles and annual tariff of charges of road use with respect to motorcycles.

4. To assume the prime responsibility for, and coordinate with the Ministry of Transport in, guiding the management and use of road maintenance funds.

Article 12. Responsibility of provincial-level People s Committees:

1. To ensure local budget allocations to local funds.

2. To promulgate annual rates of charges of road use for per vehicle with respect to motorcycles within the tariff of charges of road use with respect to motorcycles issued by the Ministry of Finance.

To organize the collection of charges of road use with respect to motorcycles in their localities.

3. To direct and examine the management of collection, use and settlement of local funds as prescribed.

Chapter IV

IMPLEMENTATION PROVISIONS

Article 13. Effect

This Decree takes effect on June 1, 2012.

Article 14. Implementation

Ministers, heads of ministerial-level agencies, heads of government-attached agencies, and chairpersons of provincial-level People’s Committees shall implement this Decree.