Decision No. 01/2016/QĐ-TTg On mechanisms and procedures for financial support to localities to mitigate the consequences of natural disasters

Pursuant to …;

Von mechanisms and procedures for financial support to localities to address the consequences of natural disasters

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PURSUANTbased on the Law on the Organization of the Government dated January 1export,

Pursuant to the Law on State Budget dated December 16, 2002;

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

Pursuant to Decree No. 88/2020/NĐ-CP dated July 28, 2020 of the Government detailing and guiding the implementation of some provisions of the Labor Safety and Health Law on mandatory work injury and occupational disease insurance;natural disaster day June 19, 2013;

At the proposal of the Minister of Finance;

The Prime Minister issues this Decision on mechanisms and procedures for financial support to localities to address the consequences of natural disasters. This Decision stipulates mechanisms and procedures for providing financial support from the central government's contingency reserve fund to localities to address the consequences of natural disasters.

Article 1. Scope of Regulation and Applicability

2. Applicability:

a) Natural disasters referred to in this Decision shall be implemented according to Clause 1, Article 3 of the Law on Prevention and Control of Natural Disasters.

b) Damage caused by natural disasters that falls under the responsibility of provinces and centrally-administered cities to address the consequences of natural disasters as provided for in Article 30 of the Law on Prevention and Control of Natural Disasters;

c) Damage caused by natural disasters affecting ministries and sectors not within the scope of this Decision; ministries and sectors shall report to the Prime Minister for consideration and decision.

a) Provinces and centrally-administered cities suffering damage due to natural disasters as specified in Clause 1 of this Article;

第二条 组织和实施奖励工作的支出水平，如政府第152/2025/NĐ-CP号决定关于分级授权和奖励领域的分权规定

b) Organizations and individuals related to the procedures for providing financial support from the central government's contingency reserve fund to localities to address the consequences of natural disasters.

Article 2. Basis for Support

1. Statistics and assessment of damage caused by natural disasters in accordance with guidelines issued by the Ministry of Agriculture and Rural Development and the Ministry of Planning and Investment;

2. Reports from provincial People's Committees on damage caused by natural disasters that fall under the responsibility of localities to address the consequences of natural disasters; needs for disaster relief and support of localities; mobilization of local resources to address the consequences of natural disasters (local budget reserves; disaster prevention and control funds; other lawful financial sources as prescribed by law); proposals to the Prime Minister for financial support to address the consequences of natural disasters.

3. Local budget reserves allocated in the budget estimate, local budget reserves already used, and remaining local budget reserves at the time of the natural disaster.

4. Remaining central government budget reserves at the time of considering support for localities affected by natural disasters.

Article 3. Support Procedures

1. Chairpersons of provincial and centrally-administered city People's Committees:

a) Report on damage caused by natural disasters, needs for disaster relief and support, and proposed solutions to the Central Steering Committee for Disaster Prevention and Control and relevant ministries and sectors as prescribed by the Law on Prevention and Control of Natural Disasters.

b) Report on local budget reserves, reserves already used, and remaining reserves at the time of the natural disaster to the Ministry of Finance.

2. The Ministry of Finance compiles the situation of local reserves; categorizes groups of localities based on their budget capacity; and central government budget reserves.

3. The Head of the Central Steering Committee for Disaster Prevention and Control compiles damage, needs for disaster relief and support of localities, and proposes financial support to the Prime Minister for localities to address the consequences of natural disasters.

4. The Prime Minister decides on financial support to localities based on the proposal document of the Head of the Central Steering Committee for Disaster Prevention and Control and opinions of the Ministries of Finance, Planning and Investment, and related agencies.

5. In emergency situations, the Ministry of Finance implements temporary advance payments from the central government budget to support localities affected by damage as decided by the Prime Minister.

In cases of emergency, the Ministry of Finance shall implement provisional budgetary advances from the central budget to support localities affected by damage, in accordance with the Prime Minister's decision.

Article 4. Principles and Mechanism for Financial Support

1. Regarding livelihood support and infrastructure restoration:

a) Only consider providing support from the central government's reserve fund for localities with significant damage exceeding their local budget balancing capacity.

b) Based on the extent of damage, relief needs, support requirements, and local proposals to address the situation; the Disaster Prevention and Control Fund and other legitimate financial resources; remaining local and central government reserves; the provision of financial support for disaster aftermath recovery for localities shall be categorized as follows:

- The central government budget will support localities that have not yet achieved self-balancing of their budgets.

- The central government budget will support localities where revenue sharing to the central budget is less than 50%.

- For the remaining localities, they must ensure funding through their own local budgets.

- Special cases shall be decided by the Prime Minister.

2. Regarding seed and livestock support for production recovery in disaster-stricken areas:

Implement according to Decision No. 142/2009/QĐ-TTg dated December 31, 2009, and Decision No. 49/2012/QĐ-TTg dated November 8, 2012, of the Government amending and supplementing Article 3 of Decision No. 142/2009/QĐ-TTg dated December 31, 2009, concerning mechanisms and policies to support seeds, livestock, and aquaculture for production recovery in disaster-stricken areas; and related documents. In case these documents are amended, supplemented, or replaced, apply the amended, supplemented, or replacement documents.

Article 5. On Damage Support Due to Heatwaves and Drought

Implement support according to the provisions of Decree No. 143/2003/NĐ-CP dated November 28, 2003, of the Government detailing the implementation of certain provisions of the Law on Water Conservancy Works Exploitation and Protection. In cases of severe drought, heatwaves causing significant damage or serious impact on production and daily life, if the local budget, after reallocation and reserve funds, still cannot cover the costs, the People's Committee of the province shall report to the Prime Minister; the Ministry of Agriculture and Rural Development shall take the lead in compiling the damage situation, the need for state budget support, and propose a support plan to send to the Ministry of Finance. Based on the proposal of the Ministry of Agriculture and Rural Development, the situation of local budget reserves and central budget, the Ministry of Finance shall take the lead, coordinating with the Ministry of Planning and Investment to compile and submit to the Prime Minister for consideration and decision on using the central government's reserve fund.

Article 6. Implementation Organization

1. The Ministry of Agriculture and Rural Development:

a) Direct the People's Committees of provinces and centrally-administered cities to aggregate, statistically analyze, assess damage caused by natural disasters before reporting to the Prime Minister and the Ministry of Agriculture and Rural Development.

b) Aggregate and evaluate damage caused by natural disasters nationwide, report to the Prime Minister, and publish the figures of damage caused by natural disasters.

2. The Central Steering Committee for Natural Disaster Prevention and Control shall aggregate the damage situation, identify damage within the responsibility of localities to mitigate disaster consequences; the relief and support needs of localities, the resources already utilized by localities to mitigate disaster consequences, and propose to the Prime Minister to decide on using the central government's reserve fund to support localities.

3. Ministry of Finance:

a) Monitor and aggregate the use of local reserves; central government reserves; promptly supplement localities' funds according to the Prime Minister's decision.

b) Take the lead in coordinating with relevant agencies to organize inspections on the allocation and use of disaster aftermath recovery funds by localities; at year-end, compile and report the results to the Prime Minister.

4. The Ministry of Planning and Investment, the Ministry of Labor, Invalids, and Social Affairs, and other relevant ministries and sectors within their functions and authorities shall be responsible for inspecting the statistical and assessment results under their management and proposing disaster aftermath mitigation plans in accordance with laws on natural disaster prevention and control.

5. Chairmen of the People's Committees of provinces and centrally-administered cities:

a) Aggregate and report the damage situation caused by natural disasters in their jurisdiction, report to the Central Steering Committee for Natural Disaster Prevention and Control and relevant ministries and sectors; report on the use of local budget reserves according to Clause 1, Article 3 of this Decision.

b) Actively use the local budget, local budget reserves, the Disaster Prevention and Control Fund, and other legitimate financial resources to immediately address the aftermath of natural disasters to stabilize people's lives and restore production.

c) Within thirty days from receiving additional funding notification from the Ministry of Finance, submit a written report to the Central Steering Committee for Natural Disaster Prevention and Control, the Ministry of Finance, the Ministry of Planning and Investment, and the Ministry of Labor, Invalids, and Social Affairs regarding the receipt, allocation, and utilization of disaster aftermath recovery funds, including those supported by the central government budget.

d) Ensure the allocation, management, and use of received funds are appropriate, effective, and targeted. If central government budget funds are not fully utilized, misused, or used incorrectly according to the Prime Minister's decision, recover them to the central government budget.

Article 7. Implementation Provisions

1. This Decision takes effect from March 5, 2016.

2. Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairmen of the People's Committees of provinces and centrally-administered cities are responsible for implementing this Decision./.